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WHo would you rather give a $250k loan to? a) Person who makes $100k salary and never had a loan taken out in their name. b) Person who makes $100k and has
by jmartrican 7y ago
WHo would you rather give a $250k loan to?
a) Person who makes $100k salary and never had a loan taken out in their name.
b) Person who makes $100k and has 10 year history of paying off over $50k in accumulated loans.
- esoterica 7y agoYou're presenting that as a rhetorical question with an "obvious" answer, but it's not obvious to me at all that the latter person is clearly a lower credit risk. Being financially stable enough that you never need to borrow any money seems like as much a positive indicator of creditworthiness as a history of paying off loans in time. I think you're bringing very US-centric prejudices to the table. In many countries there is no such thing as a credit score and having no credit history is considered equivalent to having a history of on-time payments. As long as you don't have any delinquent payments you're good. So clearly the financial institutions in these countries agree with my assessment.
- maxxxxx 7y agoPersonally I would think that person a) generally thinks more about money management but in the end both are probably equal. I would probably only look at defaults.