There still isn’t a standardized and scientific way to assess credit risk. There are three major companies, several minor ones, and all of them offer multiple products.
IT’S ALL A FUCKING SCAM. We just blindly accept random institutions compiling all of our data and telling a bank whether or not we should be given a loan regardless of our ability to pay it back. It has little to do with income anymore, which should be the only allowable metric. Don’t want the risk? Get the fuck out of the mortgage business.
What about those that have sufficient income, but don’t pay their bills and have defaulted on previous loans?
Mortgages were, prior to assholes screwing the whole thing up with mortgage-backed securities, seen as one of the lowest risk things banks could handle.
If you default on a mortgage the bank forecloses and auctions the home. This was QUITE rare before the housing crash. The problem was that the banking industry became so lax that they were giving loans to people that actually did NOT have the money to pay for them, figuring that they could just seize and sell the home as they always had. The problem THEN is that mortgage-backed securities were a thing by that point and every foreclosure caused another domino to fall over.
It became a shitshow because banks fucked themselves over being greedy pieces of shit.
It was so much better before! When being a woman, or god forbid, being black, counted as serious criteria. Oh, and you best be friends with the banker. (Read the part, again, about being a white man, who was well accepted in the community.)
It’s not a scam, it’s a step forward. Time to take the next step.
Because there are standard metrics for where the score comes from. Each of the big three has slightly different weighting, but it all broadly comes out the same.
The numbers aren’t made up. You can look at your credit report and see what is affecting it.
i dont see the problem with improving your credit score by sacrificing a virgin to the volcano every year, at least anyone can do it instead of just the well accepted white men
im being unfair of course, unlike modern credit scores tossing a virgin into the volcano doesnt still put minorities at a disadvantage
which should be the only allowable metric.
Why? Income is a terrible metric. Regardless of how much money I’ve made, I’ve always spent within my means. I’ve never carried debt, but always has my cc to build the credit score.
The idea that some bozo who spends more than he earns has a better credit score than me just because he makes more money makes absolutely zero sense to me.
Income is a terrible metric.
I suggest you lie on a few credit applications (not really). You’ll be amazed at how readily you get approved just because your income crosses a certain threshold, even with the same score.
Several years ago I was looking to add a couple of cards, primarily for emergency reasons. I apply for a card and get rejected. Six months later I get a new job that’s promising me a significantly higher income but I haven’t started receiving more money yet (contract work is fun). I apply for the same card, same information, knowing my credit score had not changed, the only difference in my applications was my income (that required no verification) and that time I got approved.
So apparently the banks have a different thought process than you.
And what the fuck is wrong with you that you even think about someone else’s credit score? Are you also mad that your neighbor is gay?
Don’t answer that…
I never said it wasn’t a factor, only a terrible one that shouldnt be the only one. Also try improving your credit score and see the better rates and cards with better benefits open up to you.
And what the fuck is wrong with you that you even think about someone else’s credit score?
Considering you think I spend time thinking about people’s credit score because I think it’s better metric for getting credit, this question is all but a straight up admission that you spend a lot of mental energy thinking about the income of other people.
Are you mad that your neighbor is straight too?
About 780 last I looked. Utilization went up when I decided to do some travel this year. But go on thinking that the only people that want a system reformed are the ones that don’t know how to work it.
I’m sure that’ll get you far in life. All the way to brown-nosing middle management.
This is the internet. I, along with everyone else here, don’t give two shits about your score or opinion bud.