The Chief Operating Officer, the CEO of ShapeShift, Erik Voorhees is of the view that the US Credit Score system has been undermining their user accounts depriving them of their money. The established system, according to the Erik Voorhees, is just a distraction to the underlying method to benefit only the credit card companies which are enjoying every bit of the capital and squeeze the user financially in an ever-increasing manner. The thing hard to digest, the cherry on top, is the delicately sophisticated environment the system operates over.
The US Credit Score system is a scam. Nobody likes it, other than credit card companies and banks. It keeps people impoverished with little recourse or rationale. Yet, it exists in a highly regulated environment. How can that be?
The credit score system is the rating or a number issued by the relevant authorities with which the third party lenders or similar entities evaluate one’s ability to pay off any debts. The score is issued in such a way that the higher score mean you are more than able to withstand paying off an exceedingly large amount of debt. The credit score is, loosely speaking, the exact measure of your current monetary assets which are open to be payed off in case of debts. The United States of America has devised a term to replace the credit score, the FICO score which works the same way.
The FICO score system is indeed the worst face of capitalism where the poorer gets poorer and vice versa. The score sets you right with the lenders and offers the additional perks (mostly financial) that the high score user can enjoy. This tend to elevate the high scorer who obviously is the person with a strong capital statement with him and can turn his monetary assets to escalate further, given the perks which a random poor person cannot certainly benefit from.
Erik says thats such a process sounds perfect to most of the corporate personnels but the fact is that it is all a scam to ‘impoverish’ the poor of their money at the end of the day. The point an analyst raised following Erik’s statement that the entire process is a plot favouring the corrupt system. In order to score a high rating, we must buy a thing we cannot afford otherwise we’d have a bad score mentioned with our ‘respectful’ names.
This is the point! The only way to get good credit is to get something you can’t afford and owe it back and pay it back when your told. If we only bought what we could afford, everyone would have bad credit.
Simon Taylor, the co-founder of the 11FSTeam and the founder of the Global Digital Finance state the current situation in the following way,
It’s the least worst system that works for all banks Banks ability to use and understand data is terrible, their data is locked in silos and change is expensive Their cost model drives a broken business model Banks are bad landlords and need to become good waiters.