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Not extending credit to a person vs not allowing you to spend your existing money is not really comparable. Credit scores are not "massively opaque". Your bank

by Para2016 8y ago

Not extending credit to a person vs not allowing you to spend your existing money is not really comparable. Credit scores are not "massively opaque". Your bank should report it monthly to you and you can see it rise and fall based on your number lines of credit lines (loans, mortgage, car, credit cards, etc) and whether or not you're in repayment. It's not punitive. If you have too many lines of credit out and you can't pay them, why should a company extend credit? For charity? Cycle of debt and poverty statement makes no sense. Credit scores do not do that. People can easily repair credit scores by beginning to repay their existing loans. They don't even have to be paid off, just in repayment. Your ideas regarding credit score and "social credit" as comparable similar systems is false. I don't think you're an American at all now that I think about it.

oldoverholt 8y ago
The formula for calculating FICO credit scores isn't public, the processes for correcting errors on credit reports are not responsive, and lenders use questionable algorithms that affect things like your credit limit. https://qz.com/1079490/the-equifax-breach-is-proof-its-time-to-overhaul-the-credit-bureau-industry/ https://qz.com/1079490/the-equifax-breach-is-proof-its-time-... http://blogs.reuters.com/reuters-wealth/2011/05/23/why-are-credit-scores-such-a-mystery/ http://blogs.reuters.com/reuters-wealth/2011/05/23/why-are-c... https://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1122&context=yjolt https://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?refe... https://publicintegrity.org/business/unregulated-fico-has-key-role-in-each-americans-access-to-credit/ https://publicintegrity.org/business/unregulated-fico-has-ke... Going into debt for an education that is sold as a ticket to higher wages and then being punished in employment and housing for debt you took on and were unable to repay is punitive. It's not just about getting further lines of credit, it's about being able to land a job or find a place to live. Oh and I forgot to even mention debt related to medical expenses. That's a huge issue in the US... https://www.bostonglobe.com/business/2014/11/12/debt-weighs-heavily-those-trying-rise-from-poverty/yBy0ZVd48bcANQGgk0Kf9K/story.html https://www.bostonglobe.com/business/2014/11/12/debt-weighs-... https://www.masslive.com/news/index.ssf/2014/11/crushing_debt_part_of_cycle_of.html https://www.masslive.com/news/index.ssf/2014/11/crushing_deb... Weird to jump to the conclusion that I'm not American, but whatever.

oldoverholt 8y ago

The formula for calculating FICO credit scores isn't public, the processes for correcting errors on credit reports are not responsive, and lenders use questionable algorithms that affect things like your credit limit. https://qz.com/1079490/the-equifax-breach-is-proof-its-time-to-overhaul-the-credit-bureau-industry/ https://qz.com/1079490/the-equifax-breach-is-proof-its-time-... http://blogs.reuters.com/reuters-wealth/2011/05/23/why-are-credit-scores-such-a-mystery/ http://blogs.reuters.com/reuters-wealth/2011/05/23/why-are-c... https://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1122&context=yjolt https://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?refe... https://publicintegrity.org/business/unregulated-fico-has-key-role-in-each-americans-access-to-credit/ https://publicintegrity.org/business/unregulated-fico-has-ke... Going into debt for an education that is sold as a ticket to higher wages and then being punished in employment and housing for debt you took on and were unable to repay is punitive. It's not just about getting further lines of credit, it's about being able to land a job or find a place to live. Oh and I forgot to even mention debt related to medical expenses. That's a huge issue in the US... https://www.bostonglobe.com/business/2014/11/12/debt-weighs-heavily-those-trying-rise-from-poverty/yBy0ZVd48bcANQGgk0Kf9K/story.html https://www.bostonglobe.com/business/2014/11/12/debt-weighs-... https://www.masslive.com/news/index.ssf/2014/11/crushing_debt_part_of_cycle_of.html https://www.masslive.com/news/index.ssf/2014/11/crushing_deb... Weird to jump to the conclusion that I'm not American, but whatever.