Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

axios.com

Post reply on HN
Print view View original

181–190 of 690 posts

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

#181

Post by lm28469 »

mihaaly wrote: post #100
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"

Believing what is told, trut all what is told, is something to be blamed about (here I am assuming we are talking about adults). Not like blame was allocated here, just since the topic was mentioned.

You're probably doing things every day without ever questioning them, things that other people would find extremely weird and/or brainwashed behaviours.

Some of my friends became corporate drones when they moved to a country where most people are corporate drones, they don't see the problem even though they changed their entire personality to fit in, yet they are educated, cultured and smart

If it was that easy the average Joe wouldn't be in such a bad mental and physical shape... the forces at play are much stronger than individual will, especially when said will is being worked against from the beginning.

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

#182

Post by xattt »

mathgeek wrote: post #97
john01dav wrote: post #95

Earlier quoted context omitted.

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…

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

> children … especially can’t

Worry about your own kids, teach them the right values, and use others’ imperfect knowledge to the advantage of your family.

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

#183

Post by thrance »

username332211 wrote: post #124
thrance wrote: post #115

Earlier quoted context omitted.

I'm picturing you in my head as one of those 19th century Englishmen, writing about how being poor is a moral failure and the famine in Ireland is actually a punishment from God and thus nothing should be done about it.

[flagged]

Your oversimplification placing the blame back on Irish farmers is troubling. Maybe you should do some reading to clear that up? Let's start here: https://en.wikipedia.org/wiki/Great_Famine_(Ireland)#Causes_...

> In 1800, the 1st Earl of Clare observed of landlords that "confiscation is their common title". According to the historian Cecil Woodham-Smith, landlords regarded the land as a source of income, from which as much as possible was to be extracted. With the peasantry "brooding over their discontent in sullen indignation" (in the words of the Earl of Clare), the landlords largely viewed the countryside as a hostile place in which to live. Some landlords visited their property only once or twice in a lifetime, if ever. The rents from Ireland were generally spent elsewhere; an estimated £6,000,000 was remitted out of Ireland in 1842.

> In 1843, the British Government recognized that the land management system in Ireland was the foundational cause of disaffection in the country. The Prime Minister established a Royal Commission, chaired by the Earl of Devon (Devon Commission), to enquire into the laws regarding the occupation of land. Irish politician Daniel O'Connell described this commission as "perfectly one-sided", being composed of landlords with no tenant representation.

Seems more like the wealth of Irish farmers was consistently extracted and sent out of the island, ensuring none of them can get out of poverty. Reminds you of something?

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

#184

Post by rayiner »

mathgeek wrote: post #97
john01dav wrote: post #95

Earlier quoted context omitted.

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…

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

I’m not sure my kids have ever seen an ad except for little computer games, and they have laptops and iPads (but no network TV or cable). They are far less exposed to consumerism than when we were kids. My teenage daughter dresses like a hobo.

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

#185

Post by astura »

firesteelrain wrote: post #86
bitmasher9 wrote: post #68

Earlier quoted context omitted.

1. Maybe they are over leveraged, let a bank to decide with all the data. 2. BNPL often has short durations (3 months) so it’s not a long term problem for people with BNPL if they pay it all back.

Affirm can go up to 60 months on larger purchases A bunch of tiny loans does not loom good

Urban myth.

I successfully applied for a mortgage with ~30 credit cards open. Nobody batted an eye, or even commented on it. They looked at balances and credit score. Balances were almost all zero and credit score was excellent.

A hundred small loans that were all paid off on time over the last decade is extremely helpful getting you a mortgage, it doesn't hurt.

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

#186

Post by thechao »

bboygravity wrote: post #149
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…

Mortgages with low interest rates are also one of the (main) reasons houses are so "expensive" in the first place. The cheaper money (credit) is, the "higher" the prices will go. It's not so much that houses became expensive, it's more that money to buy a house (specifically mortgages) became relatively cheaper. Low interest rates did that.

House size, build "quality" (the details in the house), resource scarcity, and zoning policy are the drivers of cost. Cheap credit and lifetime loans allow the system to continue.

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

#187

Post by graemep »

SecretDreams wrote: post #180
paxys wrote: post #175

Earlier quoted context omitted.

Average *American

Probably average "any country where it's common to own a car for less than 10 years" tbh.

and those that do not meet that criteria are going the same way.

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

#188

Post by Retric »

matthewdgreen wrote: post #153
bboygravity wrote: post #149

Earlier quoted context omitted.

Mortgages with low interest rates are also one of the (main) reasons houses are so "expensive" in the first place. The cheaper money (credit) is, the "higher" the prices will go. It's not so much that houses became expensive, it's more that money to buy a house (specifically mortgages) became relatively cheaper. Low interest rates did that.

This is a one-time effect, though. Or at least, an effect that only changes periodically (and should reverse) when interest rates change. 30-year mortgages have been standard in the US for most of my life, and houses have gotten a lot more expensive during that time.

Mortgage loans have been getting cheaper due to automation and the commoditization of loans / increase in surplus capital.

That then pushes up home prices over time relative to inflation.

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

#189

Post by Uvix »

matthewdgreen wrote: post #153
bboygravity wrote: post #149

Earlier quoted context omitted.

Mortgages with low interest rates are also one of the (main) reasons houses are so "expensive" in the first place. The cheaper money (credit) is, the "higher" the prices will go. It's not so much that houses became expensive, it's more that money to buy a house (specifically mortgages) became relatively cheaper. Low interest rates did that.

This is a one-time effect, though. Or at least, an effect that only changes periodically (and should reverse) when interest rates change. 30-year mortgages have been standard in the US for most of my life, and houses have gotten a lot more expensive during that time.

The effect may pause when interest rates change, but it's unlikely to reverse significantly. People who have homes now aren't going to want to sell for less than they paid for them, so there's a lot of inertia against prices going down.

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

#190

Post by potato3732842 »

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…

I'm really sick of this sort of look down your nose at a huge fraction of consumers type behavior. It's the same sort of stupidity that underpins the famous "surely everyone else is wrong" behavior that is exemplified by principal skinner[1].

I eat garbage by the standards of anyone who gives a crap about food and you don't see me going around looking down on everyone for wasting resources on fancy food ingredients and fancy cookware and whatnot. At the end of the day these unnecessary things bring enough perceived benefit to people's lives that they seem worth it, whether that's you overpriced LeDouchebag brand enameled dutch oven or a financing service for consumer garbage doesn't really matter. It's all a "needless" expenditure at the end of the day that people find worth it.

I've never used these services and probably never will, nor am I saying the prevalence of these things is optimal at scale, it's probably not, but I'm not gonna sit there and act like 1 in N consumers, probably hundreds of millions of people, is wrong or ignorant for using them or that I know better for not.

-shitposted from my 8yo phone while driving my $500 car through traffic on bald tires

[1] https://knowyourmeme.com/memes/am-i-so-out-of-touch

Post reply on HN