That is exactly what people are doing. And it is completely unfair and unnecessary. Credit scoring does not benefit the consumer.
My son is 27yrs old and he was shocked to find his credit score was below 550. He’s never been in default or had any judgements or insolvencies against him.
The bank asked him if he wanted to know his score. What the bank didn’t tell him was that he lost points against his credit score by applying for a loan because the bank credit checked him. The bank also did not inform him that he could have applied to Veda himself for a copy of his own credit report and then given a copy to the bank, because no points are lost when one requests a copy of their own score. The bank also didn’t inform him how many points would be lost against him before they did the credit check, so he did not have the option to make an informed decision and to say no to the credit check. And just how do you get your credit score without losing any points. You must pay for it. $51.95. The free report does not contain the credit score. I opened a bank account with no lending or overdraft facility and lost nearly 70 points. My credit report has actually aged artifically and the score has been damaged as result. Veda are still investigating. Credit score damage is occuring without the debtors knowledge. Disputed debt can also be listed on a credit report. If there are errors on a report the burden of proof is on the debtor (customer) to prove the entries are incorrect. Also a creditor or bank or finance company that lists debt against a person won’t update the credit report to show that an account has been closed or paid in full.
Credit scoring has no standing in law and its open to abuse. When all creditors, financial service providers, utility provides subscribe to it, there is nothing we can do about it.
Something else most people don’t know. PPSR = Personal properties security register. Debt against you can get listed there as well. Some banks have a blanket term for ensuring they have security over everything.
So whats the purpose of credit scoring. To stop you shopping around and getting the best deal. If all your lending is with the same bank and you default or fall into hardship its easier for them to take your assets if they are all in the same place.
Credit reporting and scoring is a form of control. It restricts freedom of choice. The scoring formular Veda uses is protected by law so it can keep secret its system so it can never be challenged.