As you may know, the three major credit bureaus track all our credit card transactions, as well as your loan repayment history. The data the bureaus compile in credit reports is what is used to generate a credit score.
Debit card users are at a serious disadvantage to building financial security because of senseless policy. I am determined to make sure that changes---and am asking you to join me in ensuring that debit card users obtain reporting parity.
And I sure hope you know how vital a solid credit score is in today’s world. It determines if you’ll be able to get a car loan or mortgage—and the terms you’ll be offered. For renters, you better understand many landlords check your credit score when they are vetting whether you’re a good “risk” to rent to. Your credit score also determines whether you’ll need to make a deposit to open a cell phone account.
Yet if you prefer to use a debit card none of your transactions are tracked by the credit bureaus. If you’ve gone cold turkey on credit cards and exclusively use a debit card you may not have a credit report, or it may be very “thin” in industry lingo. That likely means your credit score will suffer. It makes no sense. You could be the most loan-worthy person in the world, but simply because you chose to use a debit card rather than a credit card, you run a high risk that your credit score will be negatively impacted.
THE FIRST STEP is to get debit card transactions reported. And then it is imperative that the credit bureaus as well as Fair Isaac Corporation (the creator of the Fico Credit Score) work to determine how best to incorporate debit card data into their scoring algorithms.
These actions would benefit every one of you who always pay your bills on time via a debit card and you would be rewarded for paying in cash via a debit card rather than being punished for doing so.
Could you please help me help you by signing this petition and asking everyone you know to sign it as well?
Host of the Suze Orman Show on CNBC
Suze Orman started this petition with a single signature, and now has 246,424 supporters. Start a petition today to change something you care about.