4 ms·

> very strong consumer protection laws What if you go bankrupt as a consumer in the US? Credit cards are scarily easy to come by in the US, which suggests to

by Svip 5y ago

> very strong consumer protection laws What if you go bankrupt as a consumer in the US? Credit cards are scarily easy to come by in the US, which suggests to me that credit card issuers aren't worried about consumers potentially unable to pay them off. Which further suggests to me that it's not really the consumers being protected, but rather the credit card companies. How does consumer bankruptcy work in the US? Raking in a lot of credit card debt, that you cannot afford, could make one liable for life.

throwawayboise 5y ago
> What if you go bankrupt as a consumer in the US You will have difficulty getting credit for 5-7 years. You may think "fine, I'll just pay as I go" but credit checks are often part of the approval process for an apartment lease, or applying for a job.
- matttb 5y ago
  I had a property management company tell me they wouldn't rent to me if my credit wasn't good enough even if I paid the entire lease up front
  - verall 5y ago
    Yes, because you could do more than the value of the lease in damage to the property, and then be so insolvent that there is no way to recover any of the money from you. I'm not saying I agree with this. Landlords are ridiculously abusive, as a renter you will frequently be asked to pay a $300+ nonrefundable "application fee" before they will show you the lease document. They then can put whatever terms they want into the lease, understanding that many renters would not be able to afford another application fee.
  - cpwright 5y ago
    Even if the landlord was willing to rent to you by mitigating the risk in this way; at least in NY state that would not be legal anymore. The state recently limited security deposits to a single month, and do not permit taking more than one months rent up front. This was meant to help tenants avoid having to come up with more money, but of course landlords will simply mitigate the risk by not renting to some people at all or only for a higher monthly amount. https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf https://ag.ny.gov/sites/default/files/changes-in-nys-rent-la... "Capping Security Deposits • Landlords can only charge up to one month of rent for a security deposit or “advance payment.” This applies to all residential rentals, with a few exceptions, whether you have a lease or not. › This means that if you are moving into an apartment where the rent is $1500 a month, the most your landlord can charge for a security deposit is $1500. › This also means that your landlord may not charge you in advance for the last month’s rent if you are also paying a security deposit."
- malka 5y ago
  > credit checks are often part of the approval process for an apartment lease, or applying for a job. And then, your country tries to shame China for its "social score".
  - Clewza313 5y ago
    Which, contrary to popular perception, is not even a monolithic government scheme but a bunch of mostly unrelated initiatives, the best known of which is Alibaba's Sesame. https://en.wikipedia.org/wiki/Zhima_Credit https://en.wikipedia.org/wiki/Zhima_Credit
  - Karunamon 5y ago
    There's a pretty broad difference between a system that determines "does this person honor their payment agreements according to the objective metrics of their payment history and credit usage" and a system that determines "is this person a 'good citizen' according to an opaque set of random metrics, many of which are non-financial and defined by the state". Comparing them directly in this way is not only disingenuous, it indirectly handwaves the objectively oppressive system China runs.
- KSteffensen 5y ago
  Why are credit checks part of applying for a job? Isn't the employer supposed to pay you?
  - fredophile 5y ago
    It may be included as part of a background check. If you need to apply for a security clearance then any debt you have is relevant to that process.
  - frockington1 5y ago
    If you are in mountains of debt you would be more vulnerable to embezzlement and bribery. Generally only relevant for security and financial industries
  - IncRnd 5y ago
    An employer may not want to hire someone to be responsible for company money, when they are not responsible with their own money. A poor credit file can show you are not organized or responsible. Actually using much available credit is an indicator of someone in financial hardship who may be more likely to commit fraud or theft.
- deleted 5y ago
  [deleted]
- toomanybeersies 5y ago
  > credit checks are often part of the approval process for ... applying for a job Surely that can't be legal?

by Svip 5y ago

throwawayboise 5y ago

> What if you go bankrupt as a consumer in the US You will have difficulty getting credit for 5-7 years. You may think "fine, I'll just pay as I go" but credit checks are often part of the approval process for an apartment lease, or applying for a job.

matttb 5y ago
I had a property management company tell me they wouldn't rent to me if my credit wasn't good enough even if I paid the entire lease up front
- verall 5y ago
  Yes, because you could do more than the value of the lease in damage to the property, and then be so insolvent that there is no way to recover any of the money from you. I'm not saying I agree with this. Landlords are ridiculously abusive, as a renter you will frequently be asked to pay a $300+ nonrefundable "application fee" before they will show you the lease document. They then can put whatever terms they want into the lease, understanding that many renters would not be able to afford another application fee.
- cpwright 5y ago
  Even if the landlord was willing to rent to you by mitigating the risk in this way; at least in NY state that would not be legal anymore. The state recently limited security deposits to a single month, and do not permit taking more than one months rent up front. This was meant to help tenants avoid having to come up with more money, but of course landlords will simply mitigate the risk by not renting to some people at all or only for a higher monthly amount. https://ag.ny.gov/sites/default/files/changes-in-nys-rent-law.pdf https://ag.ny.gov/sites/default/files/changes-in-nys-rent-la... "Capping Security Deposits • Landlords can only charge up to one month of rent for a security deposit or “advance payment.” This applies to all residential rentals, with a few exceptions, whether you have a lease or not. › This means that if you are moving into an apartment where the rent is $1500 a month, the most your landlord can charge for a security deposit is $1500. › This also means that your landlord may not charge you in advance for the last month’s rent if you are also paying a security deposit."
malka 5y ago
> credit checks are often part of the approval process for an apartment lease, or applying for a job. And then, your country tries to shame China for its "social score".
- Clewza313 5y ago
  Which, contrary to popular perception, is not even a monolithic government scheme but a bunch of mostly unrelated initiatives, the best known of which is Alibaba's Sesame. https://en.wikipedia.org/wiki/Zhima_Credit https://en.wikipedia.org/wiki/Zhima_Credit
- Karunamon 5y ago
  There's a pretty broad difference between a system that determines "does this person honor their payment agreements according to the objective metrics of their payment history and credit usage" and a system that determines "is this person a 'good citizen' according to an opaque set of random metrics, many of which are non-financial and defined by the state". Comparing them directly in this way is not only disingenuous, it indirectly handwaves the objectively oppressive system China runs.
KSteffensen 5y ago
Why are credit checks part of applying for a job? Isn't the employer supposed to pay you?
- fredophile 5y ago
  It may be included as part of a background check. If you need to apply for a security clearance then any debt you have is relevant to that process.
- frockington1 5y ago
  If you are in mountains of debt you would be more vulnerable to embezzlement and bribery. Generally only relevant for security and financial industries
- IncRnd 5y ago
  An employer may not want to hire someone to be responsible for company money, when they are not responsible with their own money. A poor credit file can show you are not organized or responsible. Actually using much available credit is an indicator of someone in financial hardship who may be more likely to commit fraud or theft.
deleted 5y ago
[deleted]
toomanybeersies 5y ago
> credit checks are often part of the approval process for ... applying for a job Surely that can't be legal?