Credit Scores Still Low After Great Recession- Do Credit Building Cards Help or Hurt?
Although the credit score system- controlled by the shadowy and secretive FICO organization- is largely very consumer unfriendly, it doesn’t do you any favors to have a poor credit score.
And yet if you ever get injured or sick, have a difficult divorce, attend school and have a hard time finding a job or experience any of the other setbacks that can happen to a reasonably responsible person, a tumbling credit score can mean thousands of dollars a year in higher interest rates, penalties, or just lack of access to credit when necessary. An unfavorable credit score can also prevent you from getting a job, making it difficult to pay your bills on time and irritatingly, increasing your risk of having a low credit score.
While we all know the credit score system is extremely flawed, it doesn’t stop the amount of sanctimony aimed at those who may have experienced credit setbacks. And when your credit has taken a hit, building it back up again can be quite the seemingly insurmountable task. One of the ways to boost your credit score is to obtain a credit building credit card, aimed at people who have encountered such issues in the past. And for the price of higher interest rates and huge fees, you too can obtain a bad credit credit card- but is there any way to avoid paying such a large price?
One website is taking the credit score building credit industry to task for practices many see as predatory. CardHub.com’s CEO Odysseas Papadimitriou says of one lender that regulators need to step up to the plate and speak up for consumers trying to improve their credit score:
“I suppose we’ll just have to wait and see how things play out in the courts, but the issue is interesting in the sense that we as a nation criticized regulators for falling asleep at the switch and helping bring about the Great Recession, but now regulators are facing roadblocks in trying to eliminate clearly unfair, burdensome fees.”
Have you tried to raise your credit score with a credit building card?
