How long until my score goes down because I don’t use these?!??
FICO to incorporate buy-now-pay-later loans into credit scores
161–170 of 690 posts
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#162Theoretically, 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…
Only the bourgeoisie can be trusted to handle credit responsibly.
The proletariat is too illiterate and short-term-focused to be trusted with it.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#163thats interesting. I was always wondering what the hustle was, guess that was it- it was outside of the credit system
It already shows up when mortgage lenders do their checks, AIUI.
The irony is that it does not even really matter anymore at this stage, especially with mortgages. So you get a few points taken off because you have 800 vs 600 score, but it won’t really make a difference when both are on the same out of control roller coasters where house prices have increased by 100% in 7 years.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#164Earlier quoted context omitted.
No. You can rent and you can take the bus. Or rent and buy a crazy cheap old used car. A house and a decent car are not primarily about making money. They're about your quality of life. > And all recommend not using credit cards and instead an emergency fund if you lose your job. And if you already used your emergency fund on, say, a medical emergency...?
8 years ago I bought a house. My monthly rent was 1300 and mortgage/escrow/repair savings were instead 2000. Rent went up $100-$200 a year. My son is looking for rentals in our same community and the equivalent rental to what I had is now around $3000. Even ignoring appreciation, in the long term there was a cash flow savings.
> there was a cash flow savings
... in your case. There was a cash flow savings in your case.
I've moved several times and done the math each time. Sometime it's been more cost effective to own, sometimes to rent. There are a lot of factors that go into that calculation, and the math doesn't always fall on the side of buying. That's especially true if you don't expect to be in a house for decades.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#165It probably makes sense to do so. Not that I condone the FICO hustle. But small loans can add up quickly and delinquencies need to be measured for financial market stability.
If you're paying for your food delivery on an installment plan, you're probably going to have a blow up. https://www.nytimes.com/2025/03/23/business/doordash-klarna-...
The worst part is that it will equally affect all the responsible people when it blows up just like it is affecting them now when BNPL is just one more way in which demand is artificially created that drives up prices.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#166Why do some ancient traditions ban usury?
I suspect actually MOST ancient traditions ban usury (or ban lending altogether). Christianity banned usury, Islam banned essentially all lending, Hinduism banned some casts from lending and regulated the lending of others[1]. I think the practice was found to be corrosive to societies and thus at one point or another many of them tried to ban it. (Lending is also very helpful for commerce, so most societies also rei…
If you look up the various means of buying home without having all of the money up front that are compliant, it’s just a mortgage by different name.
https://www.guidanceresidential.com/resources/faith-based-fi...
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#167Earlier quoted context omitted.
You can’t block all of it all of the time, and children (some of the most vulnerable) especially can’t.
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.
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.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#168This seems like it’s going to harm more people than help. Encouraging fiscal irresponsibility under the guise of improving your credit score. All it’s really going to do is give lenders another metric to deny you a loan, either because of delinquent accounts or too many accounts opened and closed.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#169Theoretically, 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…
Only the bourgeoisie can be trusted to handle credit responsibly. The proletariat is too illiterate and short-term-focused to be trusted with it.
If you really believe the only responsible use of credit is to buy productive assets then this is a tautology. As soon as anyone uses credit buy productive assets they cease to be proletarian and become part of the capitalist class.
Re: FICO to incorporate buy-now-pay-later loans into credit scores
#170Theoretically, 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…
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?