The Atlantic

Can the Flaws in Credit Scoring Be Fixed?

Not easily.

Source: David Goldman / AP

That credit scoring and reporting is an opaque and flawed system isn’t a new revelation. But recent news that two of the three major credit-reporting agencies were allegedly providing customers with different scores than they advertised and signing them onto subscription-based services without proper disclosures has hit a nerve with consumers. People aren’t just upset about being misled, but because the news served as a reminder of how vulnerable Americans are to the policies of powerful, private credit-reporting agencies.

A credit score is the most ubiquitous indicator of financial responsibility. Americans rely on credit-reporting agencies to provide a fair portrait of financial health not just for their own reference, but for reporting that can be used by banks and potential employers too. The current system leaves millions with low scores that hinder their financial access despite healthy records of paying day-to-day bills responsibly. And tens of millions Americans have no score

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