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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

#331

Post by jjice »

Hilift wrote: post #224
Yizahi wrote: post #123

They didn't before? It's a credit like any other type, increasing debt burden like any credit. Seems like corru... ahem, lobbying of course. :)

Your credit score can decrease if you pay off your credit card balance or pay it down too quickly. For example, paying off the last $10k on a home loan. The score is also a reflection of your value to them as a paying customer. How much money you can make them, and how reliable you are with regular payments based on past data. These types of businesses may seem off, but if the customer is reliable and makes you money…

> Your credit score can decrease if you pay off your credit card balance or pay it down too quickly

It can have a short term impact, sure, but long term (a few years), your score will be fine. I paid my last student loans years ago and I did see a sudden score drop and not I'm sitting right below 800 with no debt.

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

#333

Post by ch4s3 »

parpfish wrote: post #304
ch4s3 wrote: post #257

Earlier quoted context omitted.

Credit scores aren't a score of how valuable you are, they're a score of creditworthiness or how unlikely you are to default on a loan. The largest factors are age of credit and payment history. Utilization is also a factor. Someone who occasionally misses payments and has high utilization is going to be more profitable but higher risk to lend to.

Just because that’s what a scores is designed to do it doesn’t mean that’s what businesses use it for downstream. The fact people always debate what a credit score really means suggests that there are too many factors rolled up into a single number when we should really have a few distinct sub-scales. Anybody that has made a dashboard for a ceo with a short attention span that refuses to deal with nuance and just wan…

I agree in general, but a credit score absolutely DOES NOT tell you how profitable someone is to lend to, and in general someone with a very high credit score is a very low margin customer.

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

#334

Post by dragonwriter »

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…

> Theoretically, credit should be used

There are at least as many ways that this can be finished accurately (for some theory) as there are theories of what should guide human behavior, generally. But this one:

> to make more money.

Is really more apt to theories of appropriate behavior for arms-length business organizations whose only shared interest among their owners is profits than the common ones for individual people.

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

#335

Post by kiba »

nradov wrote: post #311
RankingMember wrote: post #300

Earlier quoted context omitted.

I see this as directly correlated with the gradual denigration of liberal arts education, a core tenet of which is critical thinking.

Liberal arts education leaders haven't been doing themselves any favors. During the recent COVID-19 pandemic we saw many college administrations abandon all critical thinking to enforce blind obedience and mandatory compliance with pointless and counterproductive policies around lockdowns and mandates. Scientists were condemned for daring to even discuss alternative views. I absolutely see value in classical liberal…

Million of people die in the US. In a pool of 300 million people that might be a small minority but it could be much worse.

I was diabetic and still am, and was obese. I was also young. There's no telling that a viral infection would have landed me in the hospital but I do have risk factors.

COVID is definitely a risk. It would be foolish not to practice at least some measure of risk control.

There's definitely some loss of trust in institutions, but if it weren't for RFK, I would still trust them more than some random skeptic covid. Now, I don't trust the FDA anymore, how ironic.

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

#336

Post by 9rx »

kiba wrote: post #326
bryanlarsen wrote: post #309

Earlier quoted context omitted.

That's not true. Wages have generally outpaced inflation as long as we've measured inflation properly. Up until the early 1970s this was very palpable, since the early 1970s the delta has been much lower, wage increases have been very slightly above inflation. Why does it feel different? 1: the amount of stuff we buy has increased a lot . Anybody who owns what would be considered solidly middle class in the early 197…

Average American household budgets are dominated by housing, transportation and taxes. Maybe some of that problem is about spending too much money, but it cannot be denied that housing are unaffordable and that transportation is inefficient and is a mess.

> Average American household budgets are dominated by [...] transportation

Huh? Doesn't the average American live in a city? The whole reason for accepting being squeezed in tightly with other people is so that you don't have to worry about transportation; enabling everything you could ever want and need to be found in short walking distance.

Transportation is for people in rural areas. Yes, it is expensive, but that's exactly why most people left rural areas for the city long ago.

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

#337

Post by nradov »

RankingMember wrote: post #323
nradov wrote: post #311

Earlier quoted context omitted.

Liberal arts education leaders haven't been doing themselves any favors. During the recent COVID-19 pandemic we saw many college administrations abandon all critical thinking to enforce blind obedience and mandatory compliance with pointless and counterproductive policies around lockdowns and mandates. Scientists were condemned for daring to even discuss alternative views. I absolutely see value in classical liberal…

I think it's very easy to Monday morning quarterback administrative decisions about COVID-19 mitigation now that we're past it, when, at the time, we had very little information which led to a ton of hysteria. I'm not going to relitigate the COVID-19 pandemic response, but I will say I don't think it was inconsistent or ill-advised at all to err on the side of following national health guidance in an emergent situati…

You're really missing the point. Many liberal arts college administrations went far beyond any sort of federal government guidance, and imposed lockdown and mandate policies with zero scientific basis. Or look how the Stanford University administration and fellow academics treated Dr. Jay Bhattacharya; that story was repeated at colleges all over the country. The level of hypocrisy and inconsistency makes it clear that they don't deserve any sort of benefit of the doubt.

Classical liberal arts are wonderful, and have been a great benefit to all of humanity. But sadly many academics no longer live up to those ideals in thought, word, and deed. Instead they're more focused on indoctrination and political advocacy then a search for higher truth. If they want to restore public trust in liberal arts education then they need to start by reforming themselves. Otherwise no one will take them seriously, and many taxpayers will oppose public funding.

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

#338

Post by lisper »

thomascountz wrote: post #327

I left the U.S. several years ago and have completely forgotten about "credit scores" in this sense. I get reminded every once-in-a-while how things that used to feel so obvious and inevitable and necessary for society to function are completely artificial.

Society itself is completely artificial. Money, property rights, laws, taxes, even the words I'm using to write this very comment... all of these are just human inventions, reified mythology.

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

#339

Post by greedo »

ta1243 wrote: post #297
lesuorac wrote: post #249

Earlier quoted context omitted.

> You'd have to invest the savings and get way higher than inflation returns to break even. You say that like it's a difficult thing to do. S&P500 is up 710% since 1996. Gold is up 92% since 2012. Personally, the rent control is the best part of a mortgage and even though renting is typically better, I'm fine paying a premium for that. That said, good luck getting somebody to loan you 900k so you can play the stock m…

> Gold is up 92% since 2012. And housing is up 125% since 2012, so the sucker who bought gold instead of a house has lost out. We can all be rich in hindsight. (There's also other benefits to owning - like being able to have pets, not being able to be evicted, etc) But the biggest tell that housing is valuable is that nobody is spending $500k on housing to rent it out if they could make more money pumping $500k into…

You should look into how many homes are being purchased primarily for AirBNB/VRBO type income streams...

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

#340

Post by [deleted] »

skeeter2020 wrote: post #279
beowulfey wrote: post #270

Earlier quoted context omitted.

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.

>> Social media runs rampant with a form of skepticism, but I would call that closer to paranoia than critical thinking For my generation this was always refered to as a "healthy skepticism", but lately I've noticed many don't necessarily see this as a good trait - an example: any sort of measured, full-picture response to the impact of AI on software development.

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