Finally! It’s just too bad my insurance score is still too low for me to get the required homeowner’s insurance because the car company shared my driving data with insurance data brokers, and they don’t like that I park in front of bars every Friday night, they don’t know it’s because I have a third job as a busboy. It’s ok though, cause at least I’m still free to tip my landlord, and employment rates are up!
But remember. You’re paying his mortgage and you can’t deduct that from your taxes but he can deduct his mortgage from his taxes (the same mortgage that you paid)
You can only deduct taxes paid on your mortgage. Not the actual mortgage. Not sure why i keep seeing this and piece of misinformation everywhere.
Pretty much. Because you’re deducting the interest. You could have also googled this
>implying americans actually want a credit score
I’m honestly unsure. What is the alternative? Instead of a pre-emptive risk assessment of whether or not you can pay something, more people just receive punishments when they end up not being able to? I don’t like being judged or told what I can or cannot pay back a month from now, but on a large scale doesn’t this mostly protect people from dangerous debts? For the opponents, what is the proposed alternative?
on a large scale doesn’t this mostly protect people from dangerous debts?
Not really. It just ends up with lenders offering far more predatory interest rates, which worsens the situation for the debtor. The system is set up in such a way that you can spiral pretty hard with a single misstep.
I’m honestly unsure. What is the alternative?
Given that there are plenty of developed countries where credit scores don’t exist (and plenty more where they do but only for businesses), I think alternatives are imaginable. I would know, I live in one such country.
If you want a mortgage here, the bank will:
- Ask you about your current loans and potential past defaults
- Ask you about your current and past income, marital status, employment status, etc.
- Use those variables to pretty straightforwardly determine your loan capacity
- I think do a background check in national databases for defaults/“bad payer” status
- Contractually obligate you to receive your salary on the same account from which they will automatically pull the mortgage. I don’t think this helps reduce actual defaults much, but it probably greatly reduces the financial and administrative overhead of late/missed payments. Also this ties you into the creditor bank which is good for business, IDK how standard that practice is abroad.
The US consumer economy is very highly dependent on short-term/credit debt, and that is absolutely crazy to me. Some Americans say they “need” a credit card to defer payment on some purchases, and as someone raised in culture where debit is king this sounds absolutely insane. Y’all have been propagandized, here it is perfectly normal to not have a single credit line open before shopping for a mortgage and if anything your banker will commend you for it.
For the opponents, what is the proposed alternative?
I’d imagine this is the crux of the problem. Banks need some way to determine if someone will pay back their loans, and what better way than to tabulate their history of doing just that? Should banks be willing to take risks in a system with stuff like the 7 year rule?
If it was about the ability to pay back loans, then why does it go down when I finish paying the loan? Its about your ability to pay as much interest as possible.
I’d like credit scores systems to be fully public and developed by the government. It would be far better than the three private systems Americans deal with now.
The vast majority of Americans (95%) say having a good credit score is important to them, according to the survey.
I have yet to meet a Democrat or Republican who thinks they shouldn’t exist.
I mean same applies to the Chinese,
but wanting to look good in an oppressive system, does not mean you actually like to be oppressed by said system.
you can’t really do anything about it.
I mean denouncing the system would be a first step, yes. Like I said I never seen Democrats or Republicans claims this system shouldn’t exist.
The sadder thing is that Chinese social credit hasn’t actually even been implemented, and doesn’t seem like it’s going to. There are only limited local experiments, most of which are allegedly largely irrelevant.
Whereas there are multiple credit score companies currently tracking literally everyone who has a bank account.
How do you think it came to be that most Americans believe that in China you can have your home seized for being impolite?
with the amount of information sharing between all the large corps, they are likely to be more similar than you think.
But does the corporate data collection factor into your FICO score? Unless there’s some new scary development I’m not aware of, the FICO score is only based on the following: length and number of accounts, revolving utilization, if payments are on time, and the loans you have made (based on the size and frequency of them).
FICO is just one of a multitude of scoring systems which impact people’s lives in the US today.
https://en.wikipedia.org/wiki/Criticism_of_credit_scoring_systems_in_the_United_States
You and your friends’ social media activity, among numerous other things, can absolutely affect your ability to get a loan, a job, a rental contract, etc.
When you’re rejected for a loan by a bank in the USA you’re entitled by law to know the reason. If your credit is good, your job is stable, and you’ve got no history of finance-related crime then you won’t be denied a loan. If you’re denied a loan because of the type of porn you browsed or some shit you said on Twitter, then that’s grounds for a discrimination lawsuit.
China’s Orwellian Social Credit Score Isn’t Real
Edit: I can’t respond to replies from the deeply unserious users of the cowardly instances that have defederated from HB, nor those instances so filled with liberalism and foolishness (but I repeat myself) that we had no choice but to defederate from them. Go read a book.
I got rejected just last week for something pretty inexpensive that I can afford to pay off in installments. My credit score is good and I’ve never defaulted on any payments before. I live in the UK, not in China.
AFAIK the social credit system that westerners like to mock was only trialled and never implemented. I, on the other hand, have actually been screwed over by my own country’s credit score system.
In the US, I think you would be entitled by law to know the reason why you were rejected ( https://en.m.wikipedia.org/wiki/Equal_Credit_Opportunity_Act ).
Does the UK have something similar?
