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True. There are HUGE benefits to society from making credit available - Grameen loans prove this?

And, yes, those who "understand" the rules don't get too burned by the lenders, and are therefore "rewarded".

You and I've had some very similar stuff happens experiences, WRT job loss and potential debt.

It is intuitively obvious to me (and apparently to you, too) that I can "play the credit game by their rules" in a way that benefits me personally.

Yes, the interest rate a card could charge is irrelevant if one pays the balance each month.

Yes, many folks on this board have "learned the debt lesson". And help others get out of the debt hole. That's why I posted the article about the 30% rule.

That's all true.

While easy credit does have huge benefits to society, draconian punishments have enormous negative consequences to that same society. Just look at the fear that CC debt is going to precipitate a recession.

FICO, as it's currently set up, gives lenders draconian power and magnifies those negative consequences to society. FICO is a tool of the lenders, there is nothing on the consumer/borrower side to balance it.

Naive users accept FICO at face value. They do not realize FICO is not there for the borrower, but rather for the lender. And lenders use FICO to harm the borrowers. FICO is legal, but it's also a SCAM on borrowers.

FICO is a SCAM (on borrowers) even though it's "legal".

Perhaps the CARD act should have placed more regulations on FICO and lenders?

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