A new report showing how comparison tools from Credit Karma consumers

With technology progress, various tools were created to help people with them Less credit grades Or the limited credit record obtaining credit. These tools, which are often called “Fintech”, were examined by Democrats in Congress and organizational agencies such as the Consumer Financial Protection Office (CFPB) and the Federal Communications Committee (FCC).

Comptive shopping tools, such as Credit Karma, Nerdwallet, Wallethub, and LindingTree, can give people a better opportunity to agree to a loan or credit card.

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Credit agencies, such as Experian, also offer similar options, including what they call a “decline in decline”. Customers can apply, and there is no effect on their credit degree unless the request is approved.

Democrats such as retired Senator Dick Durbin, D. Il. , And the Senator Elizabeth Warren, D-Mass, that they use deceptive tactics and other measures to direct consumers to “predatory” lending options. CFPB has tried to implement regulations to get rid of practices that are considered offensive or predatory, although platforms such as Credit Karma and other disclosure of how to affect compensation from advertisers on the arrangement of products offers.

However, a new research from the South Western Public Policy Institute (SPPI) found that comparative shopping tools and leading generators allow consumers to make more enlightened options. The report decided that government intervention may be harmful to those who have difficulty Get credit.

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Entitled “Swipe Right: How the leading shopping and generators that revolutionize the consumer’s access to products and services”, the report explains the efforts of the founder and president of Sppi, Patrick Brenner, to obtain credit after his divorce.

The report shows how Brenner submitted a request for seven credit cards through different web sites such as Wells Fargo, Capital One, Discover and others. All efforts took a long time and often confusing, and in the end they all failed. However, when I use the tools provided by Credit Karma, it was matching with a offer from Merrick Bank for a credit card of $ 500 doubled to $ 1,000 after submitting payments on time for seven months.

CFPB created a tool for people to search for as possible Credit cards. However, unlike comparative shopping tools that one can use on their mobile phones, CFPB only provides disclosures for fees and prices. Anyone who wants to apply for the transfer card to the bank or credit federation must directly. There is no indication of the opportunity to agree.

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Sppi says such efforts are meaningless. The report says: “Imagine incompetence: Government agencies need help in enlarged processes, old technology, and dull user experiences. If they will develop a comparative tool, you will directly compete with the very advanced systems that polished their algorithms and user facades for decades. Government programs do not have resources or the ability to match technological programs for this technological behavior.”

The report concludes with a warning about excessive organization and supervision.

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“Politics makers should realize that these platforms provide vital alternatives to traditional banking services, especially for those who lack access through traditional means. The focus should be on maintaining a dynamic market where consumers enjoy freedom to choose and tools needed to make enlightened decisions.”