The following was sent to us through Change.org's website. Suze Orman, Financial Advisor. Before we make our comments, let's look at what she has to report.
As a world-renowned financial advisor, I know that building good credit is one of the most important things you can do to secure your financial future. But did you know that none of the purchases you make with your debit card count toward building your credit?
This puts debit card users at a serious disadvantage when it comes to making big purchases like a car or a home, or even applying for jobs and rental agreements. No credit = bad credit, and because the credit bureaus don't track debit card transactions, debit card users get no reward for being financially responsible.
This is a deeply unfair system, especially for lower income people, and I am determined to see it change.
That's why I started a petition on Change.org calling on the Senate Banking Committee to mandate that the major credit bureaus track debit card transactions as well as credit cards. Please click here to sign.
This change could make a big difference for a lot of people, from young people applying for student loans, to new families who want to own their own homes, to people who've fallen on hard times and need to refinance their mortgages.
You could be the most loan-worthy person in the world, but simply because you choose to use a debit card rather than a credit card, you run a high risk that your credit score will be negatively impacted -- and you might not be able to get the loan you need.
The good news is that the Senate Banking Committee is led by folks like Senator Elizabeth Warren who want to promote financial fairness. I know that by using a petition to draw attention to this important issue, we can give the Senate Banking Committee the leverage it needs to help make the credit ranking process more fair for everyone.
Sorry Suze Q, we just can't support stupidity. A debit card is not a credit card and we do not need more intrusions into our financial affairs watching everything we purchase, we need less intrusions.
The concept is the same as saying that we need to track cash transactions to determine credit scores. It makes no sense. How would anyone track cash transactions? Should the local drug dealer get credit for paying for his drugs from his supplier in cash? Give that drug dealer bonus points for paying cash? Hey I just paid my bookie off, now give me bonus credits for being caught up with the bookie?
A debit card is the same as a cash transaction. It's not a credit card and should not be considered the same as one. For a world class Financial Adviser, this sure is a pretty bad move. What were you thinking?
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