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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

#381

Post by xeromal »

bryanlarsen wrote: post #345
kiba wrote: post #326

Earlier quoted context omitted.

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.

That's a two-edged sword. Food, clothing, cars and all sorts of factory produced stuff are significantly cheaper today than they were 50 years ago. So they don't dominate budgets the way they used to 50 years ago.

I remember reading years ago that food used to cost 30% of a family's income in the early 1900s

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

#382

Post by mrguyorama »

beowulfey wrote: post #270
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…

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.

> because we've been literally removing that from the curriculum in schools

Do you have any actual evidence of this or is this just more parroting of vibes based history?

Most of the people I know who say things like "School didn't teach me X" were just not paying attention. Turns out, if your society doesn't care about or value education, kids aren't going to pay attention.

Like, some states definitely have mediocre education in a lot of ways, but people will say shit like "Why didn't school teach me how to balance a checkbook" as if school didn't teach them basic arithmetic and the ability to read a single paper of instructions included in your checkbook by middle school.

Or you have people saying "Why didn't school teach me how to understand a loan" as if they didn't learn algebra and how to plug a couple numbers into a calculator right next to me in class.

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

#383

Post by ProllyInfamous »

2OEH8eoCRo0 wrote: post #199
kurthr wrote: post #14

Earlier quoted context omitted.

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-...

I don't understand people. If you need to use an installment plan why the hell are you using DoorDash which is a luxury ripoff? I can afford it but I don't use it because it's obscene. I'm tempted to say that some people are poor because they're imbeciles with poor financial sense.

>using DoorDash ... is a luxury ripoff

I live in a working-class neighborhood and it blows my mind how often DoorDash visits my neighbors (particularly considering there are dozens of restaurants within one mile).

The only time I encourage delivery service is when we're too intoxicated to drive.

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

#384

Post by hedora »

benmanns wrote: post #322
asdfasvea wrote: post #250

Earlier quoted context omitted.

Depends on your definition of 'penalized'. FICO is all about identifying good ROI candidates. Say you are a lender, you want someone who constantly uses credit, always pays their bills and has the capacity take on new debt. That's what FICO is for. It's not some consumer reward system. It's not your score to game, it's a score on you for companies to game. Quit playing the game. Credit score NULL.

IMO the game is to get the highest credit score while spending the least on credit. That way if you e.g. need to acquire housing, a reliable vehicle, business loans, even employment or insurance, you will be able to and can get a good deal. Sure, paying nothing saves you money, but it also costs you the opportunity cost between what you could earn/save by utilizing credit vs waiting months to years to save up and pay…

The easiest approach is to get high point credit cards and pay them off each month.

That way, you don’t pay anything (and are subsidized).

Of course the money comes from people that don’t do this, and vendors’ margins.

So, it’s “Participate in the credit card racket or no house for you” on one side and “That’s a nice shop you have there. It’d be a shame if something happened to it.” on the other.

The US really should abolish the credit rating industry.

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

#385

Post by mrguyorama »

tnel77 wrote: post #160
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.

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.

One of the important purposes of a society is to improve the raising of kids who might not be raised well by their parents alone, because it is a valuable outcome to everyone.

You don't choose who you get born to, so if society chooses to say "If you get born to a shitty person, you will suffer immensely and we will do nothing about it", that is a bad society.

Nobody deserves to suffer due to an accident of birth.

Also, "It takes a village to raise a child" is not exactly metaphorical.

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

#386

Post by lesuorac »

pmalynin wrote: post #378
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…

If you put around 200-300k into IBKR (not affiliated) you can get portfolio margin which will give you just shy of $2,000,000 in buying power. Access to leverage isn’t really an issue, but forced liquidation definitely is. The bank will not liquidate your mortgage if you end up underwater.

Yeah forced liquidation is a big problem for a long-term loan.

IIUC, Musk et al take loans at 25% of their share's value to avoid this ever coming up.

Also the average house price is 500k in the US so a 20% downpayment (which not everybody does) is still less than 200k.

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

#388

Post by veggieroll »

Ok, do rent next.

Paying rent doesn't count towards your credit score (at least it didn't a decade ago when I was getting my mortgage). And it's a glaring signal of how the system isn't built for what it claims: evaluating your ability to pay obligations on time. No, the system is built to trap people in poverty and enrich the rentier class.

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

#389

Post by lxgr »

9rx wrote: post #314
LinXitoW wrote: post #222

Earlier quoted context omitted.

There's no system the same way there's no Facebook, just some databases and servers. Or there's no Java language, it's all just UTF-8 characters. Or there's no government, there's just people voting for other people. Or there's no society, it's all just fancy apes existing and making decisions. It's quite frankly ludicrous to be a software engineer and pretend systems don't arise from "individual" "independent" eleme…

> Or there's no Java language, it's all just UTF-8 characters. Some programming languages explicitly require UTF-8 in the language specification. Java is not one of them.

As of Java 18, it is: https://openjdk.org/jeps/400

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

#390

Post by [deleted] »

greedo wrote: post #289
ta1243 wrote: post #239

Earlier quoted context omitted.

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…

No more expenses... Right! No property tax. No homeowner's insurance. No maintenance. Just living on easy street.

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