Credit scores are a protection racket. Your credit scores are not accurate. Your credit scores were not designed to be accurate. It’s not that the credit rating agencies deliberately insert errors into their scores, but rather that they calculate them with a deliberate disregard for accuracy. To calculate them accurately would undermine one of the primary revenue streams of the credit rating agencies’ business model. You’ve seen the ads, you know the jingles. Credit rating agencies make money by charging a monthly fee to “allow” consumers to do their job for them. Pay a monthly fee to each of the three credit rating agencies and you will be permitted to attempt to ensure the accuracy that they cannot be bothered to attempt to ensure themselves because, if they did, then they couldn’t get you to pay them each a monthly fee.
The racket is exactly that transparent. And please note that this isn’t something I am accusing them of, this is something they explain themselves, explicitly, hundreds of times a day on the radio, on television and in advertisements all over the Internet. If you don’t pay them, they will not guarantee the accuracy of the credit score on which your ability to borrow or to purchase — or perhaps even to earn a living — depends. “Nice credit score ya got there. Shame if anything happened to it.” That’s exactly what they’re saying, brazenly, in all those ads.
(part of an excellent exposition at the Slacktivist)
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