Sunday, October 4, 2009


I've been catching up on some personal finance reading lately. After reading Pocketmint's series on how credit cards are changing, I find myself getting really frustrated with the current banking system.

I just opened my first credit card a couple weeks ago, and I made my first purchase on it about 3 days ago. I opened it simply to build up my credit score, but how are credit scores calculated anyway? I feel like it's such a volatile, unscientific estimation of what kind of debtor you'll be. First of all, no one freakin' understands how credit scores are calculated anyway! And if you read through Pocketmint's credit card series, you'll see how Orwellian the whole system seems anyways. But so many important life necessities are based on the stupid score, so even if your credit score is inaccurately low, you can't qualify for the best rates on mortgages or other loans.

I propose an overhaul of the credit score. A simplification, if you will, based on paying your bill every month in full. Wouldn't that make so much more sense?! Geez.

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