The Broken World of Credit Scores: Unveiling the Flaws and Solutions
One of the main flaws with credit scores is their one-size-fits-all approach. Traditional credit scoring models rely on factors such as payment history, credit utilization, length of credit history, and mix of credit accounts to evaluate creditworthiness. While these factors provide a general picture of an individual's financial behavior, they fail to take into account unique circumstances and financial struggles that may have led to negative credit events.