Is Credit Policy Classist, Penalizing the Poor?
As the saying goes, “It costs more to be poor.” This day in time, when credit is king, are the credit rating and lending policies inherently classist. After all, when one pays late fees, these fees are tantamount to extortion, it can be argued. So if you pay a hefty fee for paying late, shouldn’t your credit in fact be “cleared”, as opposed to having you declared late. I am not sure of the impact of late fees on the GDP, however I do believe that many lenders consider this one of the most profitable elements of their business. And consider the lazy man, who has the funds, but just pays late. Why can’t he “buy” his way out of a bad credit rating? I am serious when I say that I believe the credit rating policies are classist, and that people who struggle to make payment, but pay late, paying the exorbitant late fees should not be penalized in their credit rating. I’m curious to your thoughts on this?