[bcg1]

Thanks for your comment, my sentiment exactly.

Opting out of the entire thing is the best way to eliminate this scam. It is absolutely stupid that in the US your financial life is dictated by an opaque algorithm and an entrenched bureaucracy.

If you live carefully you don't need credit at all, ever, except for possibly buying a house as you said. All other purchases... car, food, etc are easy enough to save up for... and if not, just do without until you can. Such a lifestyle sucks if you are used to instant gratification and living beyond your means (been there) but you can sleep better at night.

If more people followed your advice we would surely be better off... even in the circumstance of buying a house as you said, they will find a way... they are after all paid on commission :)

[rahimnathwani]

"It is absolutely stupid that in the US your financial life is dictated by an opaque algorithm"

It's not 'an opaque algorithm'. I'm assuming the US is similar to the UK, in that banks/lenders use credit bureaus for access to data. That data is then fed to the lenders' own systems for processing (to create a score, check against certain criteria etc.).

If banks did not have such reliable access to your credit status and history, they'd be less likely to give you a loan, and offer credit on worse (for the borrower) terms.

[bcg1]

In the US, the main number that everyone is concerned with is the FICO score, and the algorithm is a secret. Most lenders do not generate their own measures of creditworthiness but rather just use FICO

Also even if you don't want to borrow money here is a list of things in the US that are increasingly based off of FICO:

1) car insurance 2) employment 3) wireless phone contracts 4) copper phone lines

I'm sure there are more... but you get the point I hope