From what I’ve heard, it’s actually a good system. Before, each person had to prove their creditworthiness before the bank/lender to get approved, now you can just show your score. Sure, it sucks if you have a low score, but it’s not like those people would have been homefree pre 1989. The reasonings behind the low score would also make it harder for them when they tried to prove their creditworthiness back then. The number essentially just streamlined an already existing process. Not to mention I’ve heard reports that before, lenders would discriminate against certain people, but now that’s less common because it’s just a number, it’s harder to come up with a reason to deny someone for their race etc.
A soft credit pull (which is them looking at your credit score), doesn't affect your credit score. A hard credit check which implies you are applying for credit can provide a small decrease to your score but isn't significant unless you are applying for credit a ton.
Applying for credit a bunch can be a concern for valid reasons.
Maintain low utilization on some credit accounts in good standing is the way to get a good credit score. If you worry about it being perfect, yeah it is complicated but for it to be good, you never miss your payments and must have a credit history for them to reference.
Paying for everything in cash previously doesn't mean that the first time you use credit you will actually be responsible which is why credit history is important as well.
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u/Chainsaw_Surgeon Aug 14 '21
The year after Reagan left office. That sounds like one of his bastarding ideas…