4 ms·
Credit scores and how they are linked to everything.
by danieltillett 11y ago
Credit scores and how they are linked to everything.
- rm2904 11y agoWould you mind sharing types of services you were not able to get because of credit scores?
- danieltillett 11y agoRent, phone, bank account, car, employment. Credit scores are basically used for everything and a a recent immigrant you are considered worse than a bankrupt.
- lgieron 11y agoLack of credit can stand in a way of getting a job?
- danieltillett 11y agoYes some employers use credit scores as a screening tool. No score == bad employee! This is more of an issue for the spouse who is trying to get a job locally.
- kspaans 11y agoDo you mean lack of a credit score upon entering the US, or misconceptions about credit scores compared to other countries?
- danieltillett 11y agoBoth really, but the lack of a score is worse. Once you find out what this means it does not take too long to work out what you need to do.
- joefarish 11y agoI know someone who was moved from the UK to the US with work. Despite earning $200,000 PA he still had to pay 6 months rent up front and he was unable to get a new iPhone on contract. He told me this was because no credit history = 0.
- rm2904 11y agoThis is interesting and a good example where credit scores fail.
- dsacco 11y agoCredit scores aren't perfect, but that's not a good example. An individual's salary says nothing about their credit-worthiness.
- danieltillett 11y agoThis is true if you are from the country, but if you are a recent immigrant you are treated as though you are a bankrupt. If credit scores were really based on risk they would look at the default risk of immigrants as a group (maybe using things like country of origin, education level, and job status to fine tune) and start the score to reflect the real risk rather than starting at zero.
- rm2904 11y agoThere are some laws around what data can be used to underwrite loans. Nationality can't be used, but immigration status can be. http://www.consumer.ftc.gov/articles/0347-your-equal-credit-opportunity-rights http://www.consumer.ftc.gov/articles/0347-your-equal-credit-...
- danieltillett 11y agoYou can provide this national origin information voluntarily if you wish. If it means you get a credit score then most people would. The problem right now is all immigrants are treated as they are the highest possible credit risk with no effort made to adjust on the basis of personal circumstances.