Can credit report score system work if it was emphasized before when credit cards were just new? Probably yes, because a credit card then was resorted to only if there was a dire need. Credit cards were actually used to introduce a Cashless Society wherein people only need to bring their credit cards. Whatever cash they had, remained intact in their bank accounts. Settlement of all credit purchases or household expenses used checks as medium of payment. This way, they were less prone to being victimized by criminal elements; yet something went wrong along the way. People became victims of the convenience of credit cards. Can credit report score system work out the problems that most people encountered with the use of credit cards?
People found it easy to buy even if there was more money coming out of their bank accounts over money coming in. Obviously, credit reports played very insignificant roles back then, because even credit companies enjoyed the robustness of the credit card commerce. Can credit report score system work, back when everybody seemed to benefit from the consumers’ mindless spending?
Department stores flourished with the consumers’ strong purchasing power using their credit cards. Credit card companies and banks enjoyed tremendous income from the interests they imposed on large and small credit purchases. Besides, the computerized system of sending out credit information was not as reliable then, hence, credit reports were quite easy to elude. In fact, cardholders were able to spend even beyond their credit limits because reports of their purchases were not up to date. How can credit report score system work back then when not all credit transaction was recorded in real time?
Until time caught up with the unmonitored purchases and the computerized system of reporting became more accurate. Recording the piles of receipts was no longer a separate task. Credit purchases once encoded could reach different computer systems of different users. Everything was being recorded simultaneously and in real time. The credit report system was slowly taking on a new face.
Can credit report score system work now that people have found themselves deep in credit card debts? Probably yes, because people now are more aware that their credit purchases can ruin their financial positions. Even their home mortgage loans became affected, because their credit scores were affected by just owning more than one or two credit cards. Every credit transaction was now monitored into one credit reporting system and a laxity in credit obligation can affect another.
Can credit report score system work now that most borrowers and credit cardholders have learned their lessons? Yes it can work because people are now paying attention to their credit obligations and payment habits. In about 5 to 7 years, a lot of people will be able to overwrite their bad credit scores with a good one, because they are doing everything in their power to repair their credit reputations.
Whereas before a consumer only needed to know which establishment honored their credit cards, today people are also interested about credit institutions who will diligently report their credit transactions. All because they need to have proofs that they have changed their paying habits.
Can credit report score system work for credit card companies and banking institutions who were left holding unpaid credit card bills? Yes, because the reporting system has instituted the proper control measures that could prevent cardholders from borrowing and buying beyond their credit limits. A person who already has existing loans and credit obligation can drop his credit score by merely submitting his application for another credit facility.
Can credit report score system work to everybody’s advantage? Probably yes, because people now know the value of keeping their credit score clean. The real economy is now buying and selling with more cash circulating rather than simply signing and incurring unimaginable debts.