There should be new regulations as to who can open a credit card or get any loan, including student loans. If any of the following applies to someone, they should be denied from getting a credit card or loan.
- Credit score below 500.
- Have any non-mortgage non-educational debt.
- Classified as under the federal poverty line.
- A liquid cash amount less than the credit limit if a credit card.
- Are below the age of 21.
If the credit holder has a credit score below 500, then their credit score should be wiped and start from 600 after a two year ban on credit usage, with any credit cards becoming locked out.
Any attempt to replace FICO with any similar system should apply similar restrictions and protections as mentioned above.