The statement is that you are exactly where the system wants you to be. Oh and the systems that we often refer to is not one big system there are several and the one that I am talking about is the banking and lending system.
There is a huge misconception that the system or the industry would like for us to have great interest rates and lower payments and this is not true. It is their desire to get approvals with the highest possible rates because this is how they make money. So, the idea that there is someone other than yourself and a company you hired to work with you on your credit wants you to walk into the bank with an 800 credit score is completely wrong.
There are more benefits to having someone walk into the bank with a 700 credit score. Think about the mortgage industry and how one can get approved for a massive 30 year mortgage and borrow hundreds of thousands of dollars with a 580 credit score.. We can say that the mortgage industry is more focused on the length of credit that someone has versus the scores but the statement is very clear - a 580 can get it done with the right credit mix and this is ok because you will receive the highest rate available at that time and pay it for years to come.
Assuming, you don't get wiser and improve your credit so you can refinance your home with a 780 credit score and save yourself thousands on top of thousands of dollars. Please believe that the holding mortgage company is assuming the same thing and also hoping that you don't refinance unless it's with them. In which they will make more money because of the cost of repackaging a brand new mortgage with closing costs and down payments potentially.
Now let's discuss the car industry and credit card industry that are notorious for the 24.99% and don't mind!
Every time we agree to pay these high interest rates it's making a statement that we don't mind paying them, paying the large down payments and the high car notes. It is saying that we don't mind wasting money. That we would rather waste much needed money we could use else where to pay other things than to be disciplined and fix our credit and change the statement our credit reports are making on our behalf.
It is a true mentality that we must change and I understand the need to do what you have to do to secure a vehicle for work and family etc.. However, after that vehicle is purchased let's make it our business to change the cycle of wasting money and paying for things multiple times when there is a way out of that cycle.
There are Americans that are paying 0%, 0.9% and 1.9% on loans, vehicles and credit cards. They took the time to do the work, hired a professional to be accountable to and made the changes. There are some that come from families that already have these values and never take the setback but I assure you that is a very small percentage of people.
Most of us start running our credit down at 18 during college or for other means of survival, but whatever the reason is that we lack the knowledge to have great credit then - we have no excuses now.