Why The US Government Needs Their Own FICO Score

With all of the talk about the national debt, isn’t it curious that our federal government can be in debt by literally trillions of dollars and yet it is nearly impossible for hard working Americans to secure a loan to purchase a home? The government has the audacity to put restrictions on whether we can get credit or not, and yet they themselves spend freely, with no apparent concern over when (and if) they can pay their own bills, endangering our economy on a global scale. Maybe they should pay attention to their own FICO score.

FICO scores are increasingly important in today’s economy. The reality in the housing market right now is that unless you have nearly perfect credit, it is difficult to get a home loan. The only way to keep good credit is by paying your bills on time. On the face of it, that shouldn’t be terribly difficult if you have a job and don’t purchase more than you can afford.

However, if you find yourself in a crisis, your credit score will take a nosedive, very quickly. The people that already do have homes are getting very little grace from their own banks if they have a family disaster that impacts their finances, whether it might be unexpected medical bills or the loss of a job. Dire things happen when the government can’t pay their bills. We are seeing more and more people who work for their local, state and federal governments who are being laid off or furloughed for an extended period of time, putting them in a difficult position. Without knowing whether their job will continue, or when, they are unable to move on to a new position or career, effectively putting them in job limbo. All of this is happening at the same time the government at large is arguing about larger government or smaller government and refusing to pay the people they have already hired.

When these government employees are furloughed, disaster begins to trickle down. The government can’t pay their employees, so those employees can’t pay their bills. Lucky for the government – they don’t have a FICO score to maintain. The bottom line is that nobody is getting a break. Things we need to buy every day are more expensive than ever and people need their jobs in order to pay their mortgages. Banks are more skittish than ever because of the recent downturn in the economy and require their note-holders to pay their mortgages on time or face penalties. When you add the government’s erratic behavior to the mix, the trickle down effect means that no one is getting the help that they need, and there is nothing left in the cupboard for a rainy day.

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