Tag Archives: Credit score

Changing The Banking Rules For Illegal Aliens

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On Thursday, Breitbart posted an article detailing how the Trump administration’s crackdown on illegal aliens taking out loans has impacted America’s banking system.

The article reports:

The number of non-citizens engaged in the U.S. banking system has fallen sharply amid the Trump administration’s crackdown on illegal migrants.

Immigrants have been closing bank accounts and going back to keep cash in their homes, according to a report by Bloomberg.

Migrants are also taking out fewer loans, the news organization added. Consumer loans to illegal aliens fell by 70 percent since 2024. And lenders are beginning to shy away from entering into such deals to begin with.

“We’ve seen a reduction overall in people who come for financial services, education services, workforce development,” said Hispanic rights activist Erica Serna, the associate director of financial empowerment for UnidosUS. She added that the current atmosphere is “truly frightening for families.”

The current atmosphere is not frightening for families who are here legally!

The article concludes:

Consequently, loans issued to those without suitable credit scores over the last few months have cratered.

“Across all asset classes, the share of loans to people without credit scores fell more than 70% from 2024 to 2025 and another 40% in 2026,” Bloomberg reported. The site further added that lending for auto loans and credit cards for those with low or non-existent credit scores is “expected to be about $7.2 billion in 2026, down from about $37 billion in 2024.”

While these metrics are not a perfect match for the population of illegal migrants, it is a fairly good indicator, Bloomberg says.

“It is the segment with the largest concentration of undocumented borrowers,” said Vadim Verkhoglyad, head of research at dv01, who wrote in the report cited by Bloomberg. “The timing suggests lenders may be reducing exposure to these borrowers amid changes to the political and policy environment.”

Another migrant activist, immigration lawyer Jennifer Oltarsh, said her clients are more fearful than ever.

“My clients are afraid, so they’re pulling their money out of banks,” she said. “They’re holding it in their mattresses.”

Note that the article says, “loans issued to those without suitable credit scores over the last few months have cratered.” Why are banks issuing loans to people without suitable credit scores to begin with? If you come to America illegally, I really don’t think you should complain about the banking system caring whether or not you are a legal citizen.

Good Economic News For Americans

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According to Investopedia:

A FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. FICO scores take into account various factors in five areas to determine creditworthiness: payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts.

Yesterday The Federalist posted an article about how the Trump economic policies have impacted the FICO scores of Americans.

The article reports:

Americans’ average FICO score has hit an all-time high of 706 on the personal credit rating scale. Ethan Dornhelm, the vice president for scores and analytics at FICO, told CBS News that a score of more than 700 basically qualifies individuals for just about any credit at favorable terms.

FICO scores range from 300 to 850. A score above 700 is considered great, and a score above 760 is considered excellent. This high national credit score may be largely attributed to the strong economy, with its historically low unemployment rate, and the Tax Cuts and Jobs Act.

“This record-long stretch of economic growth has helped minimize reliance on debt to pay the bills,” said Joel Griffith, a research fellow at The Heritage Foundation. “Low interest rates help ensure a greater portion of loan payment goes to paying down principal rather than merely making interest payments.”

Creditworthiness is now increasing, which means Americans have the ability to rely on their paychecks, not just borrowing from their futures, to fulfill their financial obligations.

Americans’ average FICO score hit a low during the financial downturn of 2008, with a score of 686. After the recession passed, the nation’s average FICO score continuously grew.

Is giving Americans more access to larger lines of credit such a good thing? According to Griffith and Federal Reserve Bank data, U.S. household debt is also declining. Even now that Americans are able to take on more debt, they are not. They’re paying off their credit cards and increasingly lowering their other debt.

Unfortunately, this national accomplishment has not been a topic discussed among 2020 Democratic nominees. Why have the Democratic presidential candidates shied away from talking about the economy? Because, they call for an economy that “works for everyone,” when the current system is working for more people than ever before.

A Gallup poll shows that 88 percent of Americans believe the current U.S. economy is either “fair,” “good,” or “excellent.” That’s because this economy has provided 5.1 million new jobs and dropped the unemployment rate to 3.7 percent — the lowest rate in nearly half a century.

Leadership and economic policies make a difference to ALL Americans. The tax cuts and economic policies of President Trump have ‘worked for everyone.’ The government cannot create an economy the ‘works for everyone’ by taking money from people who earn it and giving it to people who did not earn it. An economy  that ‘works for everyone’ is created when everyone has the opportunity to find a job or start a company and create their own success.

It’s Time To Get Rid Of A Bad Idea

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On Friday, Investor’s Business Daily posted an article about plans by Republicans to redo some of the reforms put in place after the 2008 housing bubble crash.

The article reminds us of the lies that were told in order to create the Dodd-Frank reforms and the Consumer Financial Protection Bureau (CFPB).

The article reports:

One of the great follies of the 2010 Dodd-Frank reforms is that it let Democrats pretend that “Wall Street greed” was to blame for the financial crisis. In a brilliant bit of jujitsu, Democrats used that false narrative to create a mass of new regulations — and a new super-regulator, the CFPB, giving it sweeping, near-dictatorial and likely unconstitutional regulatory control over nearly all lending in the U.S., from major mortgage lenders to payday lending shops.

It was created under false pretenses. The fact is, government, not Wall Street, was to blame for the crisis. Research by Edward Pinto, former executive vice president and chief credit officer for Fannie Mae, found that by 2008 more than half of all mortgages in the U.S. were subprime or otherwise risky, and 76% of those were on government agencies’ books. And it is an indisputable fact that, from the Clinton administration on, government regulations required banks to lend to uncreditworthy borrowers, or face stiff penalties.

“This leaves no doubt that government housing policies — and not a lack of regulation — created the demand for these risky mortgages,” wrote American Enterprise Institute Senior Fellow Peter Wallison, who sat on the government’s 2009 Financial Crisis Inquiry Commission, the official investigation into the crisis.

The article reminds us that since the creation of the CFPB in 2010, there has been a near-decade long credit slump which has crippled the nation’s financial industry. Both Dodd-Frank and the CFPB have severely hurt economic growth in America.

The article concludes:

We’re happy to see that Congress wants to seriously reform the CFPB. We’d be even happier if they just got rid of it.

That is a wonderful idea.

For an honest history of the housing bubble, I strongly recommend this video: