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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

#681

Post by hopelite »

nradov wrote: post #375
hopelite wrote: post #163

Earlier quoted context omitted.

The irony is that it does not even really matter anymore at this stage, especially with mortgages. So you get a few points taken off because you have 800 vs 600 score, but it won’t really make a difference when both are on the same out of control roller coasters where house prices have increased by 100% in 7 years.

US home prices haven't increased by 100% in 7 years. On a national basis, the Case-Shiller index has only increased by 65% (nominal dollars, not inflation adjusted). https://fred.stlouisfed.org/series/CSUSHPINSA In the short term, the difference in mortgage interest rates between prime versus subprime loans can have a major impact on borrower cashflow and the type of property they can afford.

I’m not sure why you would rationalize things so much. Yes, the biased Case-Shiller shows that the avg is only up 65% (think about that!!! 65%!!!) which is kept suppressed by the prices only increasing far slower in places where no one wants to live because there are no opportunities.

I know first hand that prices have doubled in the places people want to live because all the money has pooled there through all the money printing fraud.

It’s not even hard to see if you simply look yourself, not rely on some intentionally moderating Case-Shiller index. So again, why do you make excuses for 65% increases because it’s not 100%?????? 65%, my man!

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

#682

Post by 9rx »

johnnyanmac wrote: post #467
9rx wrote: post #377

Earlier quoted context omitted.

Yes, but why would anyone want to live on what is effectively a farm, but without the benefit of separation from other people or land (read: income) that a farm offers? That completely defies the whole reason for the density. I'm not saying it doesn't exist, I question why people are doing it.

Because it's cheaper, if we're bring frank. The middle class is slowly being priced out of urban sprawls.

It's not though, else transportation costs wouldn't be of concern.

If you don't find transportation costs to be problematic in your budget, wonderful news, but that is not fitting in the topic at hand. Those with "fuck you" money live a very different life.

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

#683

Post by bluecalm »

scythe wrote: post #248
bluecalm wrote: post #233

Earlier quoted context omitted.

It has nothing to do with credit. The whole buy-now-pay-later, 0% rates or pay-day loans industry came much later here. The same goes for predatory marketing industry. When I went to elementary school everyone was poor as it was a year after communism collapsed. People were still spending their last money on shiny things back then even if those shiny things weren't as shiny as they are today. >>Getting rich may be ex…

I think you're half right. But there are cultures in which people save money. (You can just run a web search for "savings rate".) My hypothesis is that "human" nature does play a role, specifically a very general phenomenon in animal psychology called "observational learning". If you see people around you who saved money and it worked out for them, you're more likely to imitate those people. Saving money probably isn…

>>I think you're half right. But there are cultures in which people save money. (You can just run a web search for "savings rate".)

Yes definitely. My whole point is that it's about culture/values you learn as a child from your family not about external factors.

>>Taking the contrapositive, if we look at cultures where people don't save money, it's probably because of a lack of successful role models.

I am not sure if it's about role models or just about what your family/people close to you strongly believe.

>>In the US, savings culture has been decimated by years of QE and ZIRP, so the people who poured all of their money into housing and stocks did better than the cautious types. Skeptics have claimed for years that this will lead to an awful hangover. We'll see.

Well, pouring money into housing or stocks isn't that problematic if at all. I mean, housing as investment is problematic on its own but in a stable system investments like stocks will always do better (on average) than keeping money in the bank. The problematic thing is wasting money on pointless shiny things. The culture of materialism where you value is defined by the next expensive thing you can show off to your friends.

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

#684

Post by Frogeman »

devmor wrote: post #527
potato3732842 wrote: post #269

Earlier quoted context omitted.

You didn't get fucked with 19% apr because you had no credit history. You got fucked with 19% APR because either the parameters of the loan were really bad or there were some other circumstances. Income less existing obligations vs payment size account for the lion's share of interest rate on an auto loan or just about any other consumer loan. Credit history is massively over-sold as being impactful by the kind of id…

No, I got 19% APR because I had no credit history. I know this because there is a big detailed letter full of reasons for your offered rate that you receive when you take out a loan. The fact that you don’t know this suggests you probably don’t know a lot about how loans work.

I got a car loan at a 8% rate right out of undergrad… you got hosed, maybe you were in a hyperinflationary environment though.

I bet they sent you a letter telling you it was your lack of credit history. You didn’t find one of the many credit providers and have them fight to give you the best rate?

Credit is an extremely elementary thing to grok in a day or so

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

#685

Post by Frogeman »

suddenlybananas wrote: post #192
xattt wrote: post #182

Earlier quoted context omitted.

> 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.

Yeah who cares about society?

Like virtue signalling techies are actually able to do anything about it.

Fix your own house - as the previous poster said - and then worry about outside your family unit.

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

#686

Post by danans »

9rx wrote: post #675
danans wrote: post #674

Earlier quoted context omitted.

> But then you're right back to it being regular city — exactly what the people in the suburbs (supposedly) want to avoid when they choose to live in the suburbs. They don't have to have the density of Manhattan or SF to be better for walkability than they are now. After all, the walkable boroughs of some of the world's biggest cities were at one point a lot like suburbs (albeit minus the car-centered planning). Many…

> They don't have to have the density of Manhattan or SF to be better for walkability than they are now. Right, but it was said that the people don't want walkability at all. I mean, that's how we got here: Wondering why someone wants neither the walkability of the city nor the wide open spaces of the countryside, but instead the crampedness of the city and having to drive everywhere. I mean, hey, If that's what is u…

> At some point there needs to be a recognition of "you can't have it both ways", no?

Yes, at some point that true.

My point is that there is space for transit systems and mixed use zoning to make life easier in suburbs if they incrementally densify, but not to the point of being cramped.

To put a number on it, a population density somewhere around 5000/sqmi (vs the average suburban density right now of 2000/sqmi).

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

#687

Post by gwbas1c »

JKCalhoun wrote: post #276
gwbas1c wrote: post #231

Earlier quoted context omitted.

> Housing prices are constantly rising Housing prices typically appreciate up with inflation over the long run, although local markets don't always follow the same pattern. (IE, Silicon Valley is a case where real estate appreciated faster than inflation.) Remember, it's over the long run. There can be periods where a house will appreciate faster than inflation, and other periods where the real value of a house doesn…

Since the not-yet-homeowner is no doubt paying rent, home appreciation can slip by some measure below the rate of inflation and still have been a wise investment. Of course there is home insurance and repairs to consider. But also there is the increase in rent to consider on the other side as well.

> repairs

My house is 7 years old and the various amount of things I need to fix is making me miss being a renter.

That being said, generally the reason why home ownership is a "good deal" in the US is because you can accumulate equity, even when the value of the home keeps up with inflation. (Technically it means that inflation works in your favor if you have a fixed-rate mortgage.)

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

#688

Post by al_borland »

lcnPylGDnU4H9OF wrote: post #568
Y_Y wrote: post #563

Earlier quoted context omitted.

A popup? How? If you can't pay by cash or bank transfer then wtf are they doing?

Realpage offers payments on their website and landlords typically pass on the service costs to their tenants in the form of a $5 “service fee” as itemized by Realpage. Compared to a $10 fee to get a cashier’s check to pay in person (because ACH is done by Realpage), you’re saving $5/mo. (Cash is generally not accepted because they don’t want to be storing cash on location.)

If there is no way to avoid a fee, they should just bake it into the rent price. They just look petty by charging it separately.

I’m also surprised by the need for a cashier’s check. I’ve needed those on occasion for a security deposit to move in, but monthly rent was also accepted with a simple personal check.

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

#689

Post by john01dav »

api wrote: post #132
john01dav wrote: post #98

Earlier quoted context omitted.

You can buy investment properties to convert debt to income and get nice returns. While this is technically a business, there are ways to make it quite passive and thus more like an investment than a business. Margin stock accounts also exist, although I don't know enough to know what situations it makes sense to use them in.

That's not technically a business, it is a business, and it can be a tough time consuming one. I've known more than one person who sold their investment properties because they were tired of being a landlord, which is a job. Not saying it can't work. It can. But it's a business and a job/sidehustle not magic free money.

If you hire a trusted property manager and have a trusted list of contractors to do all of your maintenance, it can be quite passive. Of course, you have to build these trusted relationships first, but I consider that to be part of the initial cost of the investment similar to working to obtain the money to buy the property (or make a down payment).

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

#690

Post by azthecx »

eptcyka wrote: post #127
azthecx wrote: post #112

Earlier quoted context omitted.

There are arguments to be made, especially if you're young and just starting out to take a reasonable amount of margin and kickstart your compounding growth. Say you just started working, have no use for your money and are willing to bet 20k on index funds vs a 90% market drop, you should be able to take 2k in leverage and set up your position be auto closed. But of course as you have more money this type of market e…

You clearly are delusional if you believe that the people drowning in credit card debt are in ever in this position.

Please don't put words into other people's mouths, I've never made that claim nor do I agree with it.

    Margin stock accounts also exist, although I don't know enough to know what situations it makes sense to use them in.
I was obviously replying to this part of the parents comment.
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