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

601–610 of 690 posts

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

#601

Post by hoseja »

rayiner wrote: post #179
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"

There is no “system.” It’s all just people making choices. My wife puts straws in the dishwasher to reuse them. She grew up in America the same as everyone else.

Do you think the choanoflagellate making up your fingertip knows there is a system.

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

#602

Post by potato3732842 »

9rx wrote: post #589
danans wrote: post #573

Earlier quoted context omitted.

> The difference is really only that people in towns of 3,000 people want all the jobs, services, and amenities as possible. Whereas suburban folk fight tooth and nail to keep it all out. But the question is: Why? Why wouldn't you want those things nearby, most especially when you are complaining you can't afford transportation to those amenities where there are found elsewhere? Because the amenities usually require…

> which might then compromise some of the reasons you liked the suburb in the first place. What might be those reasons? This 3,000 person town has some very well paid people and low paid workers living side-by-side seemingly in harmony. Seriously, I really cannot imagine any quality that would be different in a suburb. I did even live in a suburb of a large city a number of years ago for a while when I was young and…

> and low paid workers living side-by-side seemingly in harmony.

Have you asked the low paid workers about that?

Because I strongly suspect that, to their own detriment, they put in a lot of effort and avoid doing things that would help them get ahead in order to prevent the rich people from having reason to sick the government on them.

Can't smoke weed on your porch or run a mechanic business out of your apartment driveway when you've got a bunch of HNers leering at you from the balconies of their 5-over-1 luxury apartment complex across the street like you're an animal in a zoo.

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

#603

Post by vel0city »

9rx wrote: post #593
vel0city wrote: post #558

Earlier quoted context omitted.

> What part of "as a rule" made you think this was about a specific area? As a rule that just happenes to not work in any of the large metros of the country in question. I've got a rule that a pen always rolls off on the left side of a desk, too bad it only works on my desk here that is missing a couple of legs! > Hollowed out opportunity, or hollowed out available jobs? As noted earlier, there is a pretty big differ…

> As a rule that just happenes to not work in any of the large metros of the country in question. Large... metro? What? Where did you see me say "large metros as a rule..."? Perhaps you need to read it again? It clearly asserted "rural areas as a rule". You even literally quoted that exact bit in your response! How do you have absolutely no awareness of what is going on now? > I've linked mine You certainly did for s…

When your rule fails to accurately describe reality over and over, it's pretty worthless as a rule.

> Perhaps you need to read it again? It clearly asserted "rural areas as a rule"

Yeah, it's comparing rural areas to urban areas as a rule. So comparing and talking about metro areas is absolutely relevant here. And the metro areas I've been talking about include a mix of rural and urban areas. Metro doesn't mean urban.

> You certainly did for some strange reason, but I have no idea why.

You have no idea why someone would link to data to back their assertions instead of just saying things like "as a rule" without supppying any data. As a rule US males are 12 feet tall. As a rule dogs have eight legs. Don't bother linking to any data about these things, don't bother actually engaging with real examples, I'm not talking about any specific dogs or specific people, just some imagined models in my head. It's a total waste of time to actually research the data when I've conjectured a general rule in my head!

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

#604

Post by cyanydeez »

toast0 wrote: post #448
cyanydeez wrote: post #215

Earlier quoted context omitted.

If the DOD can't do it, why should poor people? https://americanmilitarynews.com/2024/11/pentagon-fails-7th-...

I doubt most people would pass a financial audit, unless they had built their life around "proper accounting controls". Of course, if they had an incentive to do so, it probably would only take two or three years to get things in place and consistent. But then, most people don't have 1.3 Million active employees [1], who knows how many contractors and retirees. The DoD's finances were not designed around audit requir…

Ok, but the point is: people whose job it is to be accountable, cannot

Blaming poor people for being scammed only benefits grift culture.

But since this site is essentially a growth engine for grift its unsurprising to find parrots of this "poor people are moral and ethical inferiors"

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

#605

Post by altacc »

thomascountz wrote: post #347
lisper wrote: post #338

Earlier quoted context omitted.

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.

What struck me about credit scores is that, from the outside, it seems so obviously ripe for corruption and predation. But growing up, it just felt that it was the way things had to be; how could it possibly be different?

> how could it possibly be different?

This is the aim of every culture & political system: to remove the ability to even consider that other ways of doing things are possible and that other countries doing things differently are terribly flawed compared to the paradise you live in.

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

#606

Post by 9rx »

potato3732842 wrote: post #602
9rx wrote: post #589

Earlier quoted context omitted.

> which might then compromise some of the reasons you liked the suburb in the first place. What might be those reasons? This 3,000 person town has some very well paid people and low paid workers living side-by-side seemingly in harmony. Seriously, I really cannot imagine any quality that would be different in a suburb. I did even live in a suburb of a large city a number of years ago for a while when I was young and…

> and low paid workers living side-by-side seemingly in harmony. Have you asked the low paid workers about that? Because I strongly suspect that, to their own detriment, they put in a lot of effort and avoid doing things that would help them get ahead in order to prevent the rich people from having reason to sick the government on them. Can't smoke weed on your porch or run a mechanic business out of your apartment d…

> Can't smoke weed on your porch or run a mechanic business

Why not? My neighbours do both those things. It seems they can do it just fine.

> 5-over-1 luxury apartment complex

That would be the true spectacle.

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

#607

Post by 9rx »

danans wrote: post #594
9rx wrote: post #589

Earlier quoted context omitted.

> which might then compromise some of the reasons you liked the suburb in the first place. What might be those reasons? This 3,000 person town has some very well paid people and low paid workers living side-by-side seemingly in harmony. Seriously, I really cannot imagine any quality that would be different in a suburb. I did even live in a suburb of a large city a number of years ago for a while when I was young and…

> I can really find no noticeable difference in the way of life other than everything I do outside of the home is a lot easier to access now Yes, small walkable towns are nice. I personally prefer them to unwalkable suburbs by a long shot. But plenty of people reasonably find the balance of their preferences is better met by suburbs. And as suburbs densify into towns themselves, people might reasonably want to upgrad…

> But plenty of people reasonably find the balance of their preferences is better met by suburbs.

Obviously. They wouldn't be there otherwise. But the question was: Why? (Or maybe better asked, given your phrasing, as what or how?) The discussion seeks to understand what that balance is.

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

#608

Post by quickthrowman »

loeg wrote: post #581
quickthrowman wrote: post #443

Earlier quoted context omitted.

1.5% back on the purchase via CC rewards beats earning 1% over 3 months (4% yield) in a HYSA every time, anyone using BNPL is using them suboptimally. For a 3 month BNPL loan to be worth it, HYSA rates must be over 6%, and actually a bit more due to the time value of money; you get CC reward cash after the statement period but it takes 90 days (and up to ~120 days) to get three monthly interest payments.

Maybe you replied in the wrong place? This isn't responsive to my comment.

No, I was replying to your comment. Using a BNPL loan is less optimal than paying with a credit card due to the cash back rewards.

People with good credit may use them, but it makes zero sense to do so. You always come out ahead by using a credit card and paying it off immediately unless the high yield savings rate is 6% or higher assuming a BNPL loan term of 3 months. Beyond that, it does make sense to use them, like Apple’s 12 month no interest on Apple products with the Apple Card.

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

#609

Post by altacc »

LeafItAlone wrote: post #350
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.

Where are you now? And what is the system like there? From my extremely naive understanding, obtaining credit and low rates is, in general, much easier in the US than other places. So it makes sense to me that it has “artificial” tools to help determine risk. How do other countries handle this and provide the availability that can be found in the US?

In some countries a credit score is a mysterious value calculated by a private company based on patterns of consumerism and money usage that greatly affects your life. You must earn the score through engaging with other private companies, to the company's profit. This is why in the US & UK people get credit cards early, to improve their score whilst trying to avoid the debt trap.

In Scandinavian countries there are registries of your income (from the tax authority), your debts (including buy now pay later which are technically flexible loans) and any bad debts you have that have gone to debt collection. No history of previous balances, repayments, how long you've had a credit card, etc... Companies use this to come up with a score, either themselves or a company like Bisnode will do it for them. So basically it's a simpler calculation based mainly on current situation than history.

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

#610

Post by therealpygon »

ricardbejarano wrote: post #210
therealpygon wrote: post #209

Earlier quoted context omitted.

They also didn’t destroy people’s credit when they got upside down and had to return the $5k couch or $15k car they were talked into buying on their fixed income, but that’s usually “other people” problems.

Being "talked into" is one hell of an excuse not to take accountability for your own purchases.

You’re so right, and that is exactly why we don’t have an entire class of jobs whose purpose is to get people to spend more than intended. Yup, all personal responsibility. 50% of people having less than a middle school education level, but you’re totally correct, it’s just ALL personal responsibility. No other factors at all!
Post reply on HN