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FICO to incorporate buy-now-pay-later loans into credit scores

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Re: FICO to incorporate buy-now-pay-later loans into credit scores

#261

Post by nradov »

allenrb wrote: post #220
wobfan wrote: post #167

Earlier quoted context omitted.

Thing is, keeping children out of Instagram, Facebook, or whatever new social media is hyping currently will probably make them kind of weirdos in their bubble, e.g. in school. At least this would be my fear (don't have children). And good luck trying to use any of these ad-infested privacy-invading platforms while trying to avoid ads.

Learning how to stand on your own in school is good practice for doing the same thing in life. By which I’m absolutely not saying “don’t have friends” but rather, you don’t have to be like everyone else. My kids won’t be on social media until they’re not kids anymore. If none of us take a stand, nothing ever changes.

Your kids will create hidden social media accounts that you don't know about. That's what I would have done in their situation.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#262

Post by rangestransform »

Forgeties79 wrote: post #201
tnel77 wrote: post #160

Earlier quoted context omitted.

True, and this is why you shouldn’t just hand your kid an iPad and peace out. I’m all for technology and video games for my kids, but I’m vigilant to keep my kids’ eyes away from ads. As a result, my kids aren’t foaming at the mouth for the latest and greatest toys and games which was my experience as a child.

It takes a lot of work to be a parent and also monitor all that media consumption/stop all ads. The “average person” isn’t as tech savvy as most of us here and that stuff just doesn’t come as easily to them. For instance I am very comfortable letting my kids play video games. I play a lot myself, I can make good judgments about what is appropriate for them, what is an appropriate amount of time to play, what is good/…

Is it not ok that parents that spend more time and effort with their kids have better outcomes than parents that spend less time? I’d rather that than have the nanny state regulate everything bad for kids out of existence; we already know what kind of civil rights violations politicians try to justify with children.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#263

Post by JKCalhoun »

PostOnce wrote: post #13

Theoretically, credit should be used for one thing: to make more money. (not less) However, instead of using it to buy or construct a machine to triple what you can produce in an hour, the average person is using it to delay having to work that hour at all, in exchange for having to work an hour and six minutes sometime later. At some point, you run out of hours available and the house of cards collapses. i.e., credi…

> It'd have been nice had they taught me this in school.

Yeah, even at a basic level, it should be made clear that cars depreciate and real estate, by and large, appreciates in value.

One of those is "good money" and the other is "bad money". Kids should learn coming out of school to be able to distinguish which of the two they are throwing "good money" at.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#264

Post by andruby »

RHSeeger wrote: post #158
jacekm wrote: post #133

Earlier quoted context omitted.

I do. Housing prices are constantly rising, when you take a loan you are buying an asset which (with some luck) may appreciate in value more than mortgage interest rates. That's why in some countries it's worth taking a loan as soon as possible without saving for too long. Sure, without mortgage you may not be able to afford a house at all but it does not change the fact that mortgage is a "good" loan (i.e. you benef…

> Housing prices are constantly rising Housing prices are _generally_ rising. It's entirely possible to buy a house and wind up selling it later, having lost money in it. Many times through no real fault.

I hope most people haven't forgotten about 2008 financial crisis and how it was caused by declining housing prices (and the banks/markets not taking that risk into account)

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#265

Post by [deleted] »

ta1243 wrote: post #239
eadmund wrote: post #125

Earlier quoted context omitted.

A mortgage doesn’t make money, but it (can) enable spending less money. If you buy a place such that interest, maintenance, insurance, taxes and the opportunity cost of not being able to easily relocate are less than rent, then you have saved the difference. It’s also a way to force saving, which is psychologically useful (and thus valuable).

If you buy a house for 500k on a 5% mortgage over 25 years when you are 25, and you plan to live until you are 85, you will live there for 60 years. It will cost you 35k a year for 25 years, or 875k a year After 25 years you have no more expenses. If instead you rent it for 20k a year, increasing with 2% inflation each year, by year 25 you're paying 33k a year in rent, and by year 60 you're paying 66k a year. Over 60…

[deleted]

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#266

Post by SirMaster »

bediger4000 wrote: post #70

FICO scores are a joke. They hint at what they use to calculate them, but the algorithms are kept secret. Fair Isaac can't reveal the algorithms, otherwise they'd get gamed. Incentives to keep bad info and wrong info in dossiers are strong, too. If allowed, Fair Isaac would put rumors and other bullshit on n your file, and never take it out.

I don't know that they are really that complicated... I just do the things that they suggest the scores are based on. Pay on time, have more accounts that have been opened longer, have a lower credit utilization, etc and I watch my score go up and up.

My score started at around 670 when I was young and before I had done anything and I did the things and now it's around 820.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#267

Post by JKCalhoun »

hk1337 wrote: post #170
andruby wrote: post #118

Earlier quoted context omitted.

Do you also think that way about buying a house with a mortgage (credit)? I don't. A mortgage isn't used to make more money. It's used so people can own a house after saving for a few years, rather than waiting until they've saved for a few decades.

- They’re giving you a line of credit, money you don’t have, to buy a house. - Why else would mortgage loans ave percentage rates if not to make money off lending you money?

Of course they make money — but they take on no real risk. The home owner (who is taking on the risk) likely stands to make much more money than the lender in appreciation.

(Never mind the homeowner has to live somewhere regardless — and anywhere but mom's basement [1] is going to charge rent which would, by comparison, be throwing money away.)

[1] Okay, my mom charged me rent to live in her basement when I was 19 or 20 and needed a place over the summer.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#268

Post by [deleted] »

PostOnce wrote: post #13

Theoretically, credit should be used for one thing: to make more money. (not less) However, instead of using it to buy or construct a machine to triple what you can produce in an hour, the average person is using it to delay having to work that hour at all, in exchange for having to work an hour and six minutes sometime later. At some point, you run out of hours available and the house of cards collapses. i.e., credi…

[deleted]

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#269

Post by potato3732842 »

devmor wrote: post #255
mathgeek wrote: post #97

Earlier quoted context omitted.

You can’t block all of it all of the time, and children (some of the most vulnerable) especially can’t.

Or you end up with the opposite end of the problem. I grew up in destitute poverty and was told all my childhood that credit was an evil trap - I should absolutely never use it. Well, spring forward to me starting a pretty good career as a software developer and wanting to get my first reliable car. I had no credit history and ended up with a 19% APR. That really, really sucked. It's been 10 years since then and I st…

You didn't get fucked with 19% apr because you had no credit history. You got fucked with 19% APR because either the parameters of the loan were really bad or there were some other circumstances. Income less existing obligations vs payment size account for the lion's share of interest rate on an auto loan or just about any other consumer loan.

Credit history is massively over-sold as being impactful by the kind of idiots who live payment to payment.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#270

Post by beowulfey »

john01dav wrote: post #95
lm28469 wrote: post #91

Earlier quoted context omitted.

> the average person is using The "average person" is told from birth to consume as many things and experiences as possible as it if was the only thing that could give their life a meaning. The entire system is based on growth and consumption, I have a hard time blaming "the average person"

I acknowledge that such telling exists, but there is still responsibility for people choosing to listen to it. Skepticism is vital. Beyond being skeptical of what you see, it is wild to me that we don't have approximately everyone blocking all ads, cable news, most social feeds, and other such transparently manipulative shit. Advertisement especially is literally industrialized and research-based psychological manipu…

People aren't going to learn to be skeptical or think critically because we've been literally removing that from the curriculum in schools. How can someone be skeptical of something if they don't even know how to be skeptical?

Social media runs rampant with a form of skepticism, but I would call that closer to paranoia than critical thinking, and I don't think it's really being helpful in the same way.

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