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

481–490 of 690 posts

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

#481

Post by ameliaquining »

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…

Since no one has done so yet, I'll link to (without necessarily endorsing) patio11's defense of BNPLs: https://www.bitsaboutmoney.com/archive/buy-now-pay-later/

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

#482

Post by bananalychee »

alkonaut wrote: post #251

Does anyone else live in a place where there isn't a visible "score" for how valuable you are, but rather only a "credit check" for how risky you are, which is performed if you apply for new credit (buying anything with an invoice, getting a credit card, or taking any other kind of loan)? Meaning that if you have a good income and no history of failing payments, you are basically passing the check with flying colors,…

Credit scores in the US function similarly to this risk assessment you describe, with the caveat that there is no standard way to measure risk without a credit history. In my experience, it does not take very long to establish that baseline, and there are inexpensive vehicles to do so, such as secured credit cards. Small-scale lenders are likely to accept alternative documents like income statements or proof of payment history to qualify. FICO scores, as imperfect as they are, merely simplify the risk assessment process.

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

#483

Post by Whoppertime »

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.

I think contemporary events force people to be skeptical. For one generation it was the Vietnam War, the dissonance between what generals were saying and what was happening on the ground. Another generation had that happen with WMDs in Iraq. I think many in this generation had it happen with "2 weeks to flatten the curve" and the dissonance between promises made about COVID, the efficacy of lockdowns or the efficacy of vaccines.

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

#484

Post by jerf »

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.

The system will never tell you how to escape from the system. Don't hold your breath waiting for that to happen.

"Critical thinking" was never really taught in schools. It was always just training in how to dismiss any proposition by "criticizing" it selectively, with a heavy bias towards criticizing anything outside the system, and a token zone of approved disagreement to convince yourself that you really are free to disagree with things.

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

#485

Post by RC_ITR »

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 for one thing: to make more money. (not less)

This is prima fascia false. Credit, especially artificially low interest rate credit like this, can be used for a ton of reasons, including 'beating inflation.'

I bring this up because so many diligent savers in 2019/2020 got screwed by waiting to buy big tickets items.

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

#486

Post by cyberge99 »

johnnyanmac wrote: post #457
ndileas wrote: post #437

Earlier quoted context omitted.

You don't need klarna for this. Credit cards already fill this need, and with careful use are free. Most people (in my circles) already do this type of thing

That "woth careful use" is carrying a trillion dollar industry on its back, sadly. Clearly society is in fact not careful.

Not really. The people that pay interest on credit cards are the ones that pay for the luxuries/points/rewards of those who use credit cards wisely. If I get a 0% apr credit card for 18 months, i put all of my expenses on it for 16 months. I put that equivalent cash in to a high interest yield savings account (HYSA) and pay the card off before it’s due. I pocket the difference since the bank just gave me a free loan.

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

#487

Post by JKCalhoun »

scarface_74 wrote: post #299
JKCalhoun wrote: post #291

Earlier quoted context omitted.

You present some very daunting problems that the young and working class have to deal with (I know, I was both of those decades ago and struggled myself). Credit to buy a new car though is still generally a bad solution. We should fix the other things you mentioned. I would like to see laws allowing extreme low-cost vehicles (equivalent to golf carts, I guess) allowed on designated roads. A special inexpensive insura…

How are you going to safely have a golf cart on a highway? And what good is a car that can’t get you everywhere you need to go?

To go between work and my apartment, I didn't need the highway. As I have said in another thread, I made do with a 10-speed bicycle, frcrisake. I don't expect everyone else to be able to do that though.

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

#488

Post by GreenVulpine »

BobaFloutist wrote: post #330
ljm wrote: post #294

Earlier quoted context omitted.

Wages for the average person (working class) typically remain stagnant while cost of living increases, particularly through inflation. I imagine minimum wage would be 25-30 bucks an hour if it did track inflation and that would only serve to keep your purchasing power constant. Credit, in this sense, is also used to solve a cash flow problem. It’s a bad sign when that credit (or Klarna Pay-in-3 style setups) is appli…

I do wonder if there's hidden benefits to using Klarna to get, like, bulk discounts. Buy three months of toilet paper/chicken broth at once at Costco, pay it off over three months, save a few bucks each time.

They had a $5 off a $20 purchase promo on eBay recently. I imagine they'd make similar offers on other platforms too.

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

#489

Post by lurk2 »

jerf wrote: post #484
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.

The system will never tell you how to escape from the system. Don't hold your breath waiting for that to happen. "Critical thinking" was never really taught in schools. It was always just training in how to dismiss any proposition by "criticizing" it selectively, with a heavy bias towards criticizing anything outside the system, and a token zone of approved disagreement to convince yourself that you really are free t…

This is conspiratorial nonsense.

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

#490

Post by Whoppertime »

johnnyanmac wrote: post #454
mrguyorama wrote: post #382

Earlier quoted context omitted.

> 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…

The "vibes" are that the US government has been cutting funding from education since the 80's. I feel this is very well established, but if you really want a source I can fish up a few charts. As a fun fact, today we still spend about as much per student as we did in the 80's for university. The main difference is that funding cratered, so colleges need to make up for that out of pocket. >people will say shit like "W…

https://www.cato.org/blog/new-k-12-productivity-chart It's hard to believe that education is getting less funding. There seems to be a perception that spending more money on education will result in smarter students or higher test scores but that doesn't seem to be the case. Obviously if you spend $0 on education results will suffer, but there's a point of diminishing returns where $1 more in spending doesn't seem to have any impact on key metrics
Post reply on HN