Could the Economic crisis be fixed with a credit score fix? I mean after all you can't do much with bad credit. After all you can't qualify for Loans,Jobs even so why not reset everyone's credit? and Make it harder to qualify for a loan since the economy collapsed due to bad loans and what not. Now maybe it wouldn't exactly solve the whole problem but at least the housing market could be salvaged. What do you think? I don't think the Bailout is right since its just bailing out those who caused most of this in the first place.
peoples credit scores are the least important thing at this time--its more about liquidity of banks right now, the banks are almost insolvent right of now. credit got too easy to get, and now we are seeing why some people should of never got a car/mtg/credit card to begin with
Oh I agree fully but if you have bad credit you are severely limited on what you can qualify for correct?
The issue is less about credit and more about value. There's a ton of vague credit already spoken for out there at this point, no one knows what its' worth or if they'll get their money back. Banks are seeing their investments tank and their cash dwindle. They're holding onto whatever they have incase things get worse. The present issue is that NO ONE is lending anything because they quite honestly don't know if they're company can float. They don't know the value of the houses, mortgages, etc. at this point.
Banks are too afraid to even lend to each other. Hiding the truth from them would really scare the banks off. It's not the credit score's "fault" that certain borrowers have a bad credit score. You would be lumping the good credit people w/the bad credit people and there would no differentiation. Banks need that differentiation to mesaure their potential risk. Who would you trust? We as a country would end up in more trouble than we are today because what you suggest is essentially doing the same thing that got us in this current mess in the first place. Banks would lend to people who do not deserve credit in any shape or form but this time, it will be under the guise of a good credit score. So in other words, it wouldn't solve anything and it would make things much worse.
right now, bad credit=no loan hell even perfect credit=might not get a loan its going to be tough if you are not showing stability right now, meaning not working in the same location for a while, not showing income, not showing living in the same location mean no loan i even seen people getting turned down if they are not in the right field of work
