Many Americans Shut Out By Credit Reporting Agencies And Banks

The United States government is bailing out the banks with a 700 billion dollar package that American citizens will have to pay for while they are unable to get credit extended to refinance the bad loans the predatory banks gave them. Adjustable rate and interest only loans being the main foreclosure reason.

Mortgages and credit are extended based on the credit reporting agencies report of each individual or business. A score is given for consumer credit and mortgages. Currently because of the high cost of fuel, unemployment and higher mortgage payments that are unaffordable Americans are losing their credit.

The banks are refusing to extend credit to business and consumers due to bad credit scoring. The banks have the right to run a consumer’s credit history at any time and they also have the right to increase their interest rate, with or without notice to the consumer. Every time a credit check is done it lowers the consumers credit score.

Many business consumers are shutting down because the banks are refusing to extend credit as seen in Chicago this week when a window factory shut its doors due to the loss of credit  from Bank of America, thousand are being put out of work. November statistics show that approximately half a million jobs were lost .

Many people think the US government is not helping the American people they are bailing out the banks at the expense of their citizens. The bailout is not going to create jobs, keep the price of fuel low or give consumers fair mortgages or restore good credit. Many people also believe banks are the problem not the solution.

Interest rates and the credit reporting agencies need to be fair and legislation needs to be changed as to how they operate. Americans are paying double or more with credit purchases on mortgages and consumer goods. It is not in the best interests of the American citizens for this to continue.

American citizens are being shut out by the banks and credit reporting agencies. Due to the economic situation in the US, the three big credit reporting agencies.Trans Union, Experian and Equifax are making it hard and even impossible to get credit or get a better mortgage for American citizens. The real estate market is collapsing due to bad credit scores and late payment history on mortgages.