The Debt Hamlet

Hamlet · Joined: 07 May 2008 Posts: 3

Your FICO score formulation was developed by a company by the name of Fair Isaac. This formula was derived at the behest of the banking lobby, the banking industry, and the Federal Government in order to perform legal collusion resulting in the manipulation of interest rates.

Money is a product, like gasoline, bread, or any other product with a marginal value. The price one pays for money is the interest rate attached to the amount borrowed, which is to say that this is the rental price of the money. This is completely different from the concept of wealth transfer, which is what occurs when you recieve a paycheck. The price you pay for that money is the taxes that are attached to it by your State, Local, and Federal Government institutions.

There are two ways that a bank makes money.
1. Interest
2. Fees

This is why you have fees for every minute transaction at your bank that is determined to be outside of the "norm". But the real issue is the price of money. You see, the interest rate is cloaked under the terms of "risk", which used to be determined by your ability and willingness to pay. Now, it is determined almost entirely by your credit score, which is designed to magnify all of the reasons why you should not receive a low interest rate.

This formulation, combined with the arbitrary credit practices of say a car dealership, allows credit managers to engage in usory (loan sharking). You might be able to get a better deal from Tony Saprano.