The careless errors of credit reporting agencies

Post by superuser2 » Sun, Sep 11, 2016, 6:35 PM UTC

hellogoodbyeeee wrote: post #137

superuser2 wrote: post #101

Earlier quoted context omitted.

>you are trusted by definition I felt pretty "trusted by definition." Citi gave me a credit card with a $3,000 limit as a college freshmen. A few years later I had an $8,000 limit card and a $10,000 limit card. I bought my car certified-pre-owned under a program that writes favorable low-cost loans to recent college graduates with no or limited credit history (with an offer letter or paystubs). You just aren't truste…

It sounds like you are at least ten years out of college. Federal regulations have changed and now it is more difficult for a college student to access credit cards

Post by tedunangst » Sun, Sep 11, 2016, 6:37 PM UTC

ThomPete wrote: post #108

rco8786 wrote: post #89

Earlier quoted context omitted.

I'm curious why you think that is absurdly backwards. Not necessarily disagreeing, but it's not hard to justify wanting to see a history of repayment vs trusting by default.

It's absurdly backwards because it's asking you to create debt which normally is the opposite of showing you are good with money and I would question the validity of seeing people paying back limited debt to be indicative of ex. borrowing for a house. You could instead just look at the history of their debit card usage to figure out whether they are trustworthy. As I said though I understand why they do it, it's just…

Post by sbov » Sun, Sep 11, 2016, 6:40 PM UTC

wyager wrote: post #139

sbov wrote: post #123

Earlier quoted context omitted.

I don't think they're saying it doesn't make sense. The point is, we help those that don't need help, and hurt those that are already hurting. We give better rates to people with high credit scores, but people with low ones probably need it more. It can turn into a feedback loop where the only way out is some form of outside help.

Credit scores are not a charity mechanism; they are a way of estimating someone's default risk. People with low credit scores don't get high loan rates because their credit scores are low; they get high loan rates because they're probably extremely risky borrowers. If you want to help poor people, the way to do that is not to ask banks to take on irrational risk for no good reason. In fact, making loans more accessib…

Post by tedunangst » Sun, Sep 11, 2016, 6:42 PM UTC

wtbob wrote: post #78

superuser2 wrote: post #13

Earlier quoted context omitted.

Driver license numbers change when you move, so are not useful for things meant to be long term like credit.

The Congress could use its constitutional authority over weights & measures to prescribe a national system of ID numbers, administered by the states, with assignment at birth.

Post by ThomPete » Sun, Sep 11, 2016, 6:42 PM UTC

ArkyBeagle wrote: post #140

ThomPete wrote: post #108

Earlier quoted context omitted.

It's absurdly backwards because it's asking you to create debt which normally is the opposite of showing you are good with money and I would question the validity of seeing people paying back limited debt to be indicative of ex. borrowing for a house. You could instead just look at the history of their debit card usage to figure out whether they are trustworthy. As I said though I understand why they do it, it's just…

They don't care if you're "good with money". They care that you can demonstrate a habit of making payments on time.