5 ms·

own credit score system when paying by installments These are good ideas. Many people have debt from all kind of life issues and it kind of seems insane to loc

own credit score system when paying by installments These are good ideas. Many people have debt from all kind of life issues and it kind of seems insane to lock them out of financing for … a phone or the like. The credit score system is the OG social credit system that China ain’t got nothing on.

toomuchtodo 5y ago
There is a lot of opportunity in issuing credit to folks with thin or no credit files where you can rely on other signals to determine creditworthiness, and it’s win win. The lender makes a profit, and the borrower is able to obtain credit they otherwise wouldn’t be able to, or credit at a lower cost.
- crate_barre 5y ago
  So I’ve heard but for the thing that really matters, renting and certainly buying a home, you are more or less fucked (at least for the 7 years they put you in financial jail).
  - deleted 5y ago
    [deleted]
  - toomuchtodo 5y ago
    The mortgage banking origination pipeline, mortgage backed securities, and the housing/wage macro situation is a topic onto itself.
  - NovemberWhiskey 5y ago
    That's certainly not true. I relocated to the U.S. in 2015 with zero credit history, and was able to get a jumbo mortgage in 2016 because I worked with a lender that was willing to look beyond a credit file with zero seasoned tradelines.
    - crate_barre 5y ago
      Will take a reference if you have one.
basisword 5y ago
>> These are good ideas. Many people have debt from all kind of life issues and it kind of seems insane to lock them out of financing for … a phone or the like. Why is that insane? Why would a company essentially loan money to people they think are unlikely to pay them back? A £1200 iPhone is certainly not essential when there are serviceable equivalents for < £100 without the need for a contract.
- crate_barre 5y ago
  The same reason they loan out the money in the first place. Do they ever actually check if a young person will have the earning potential to pay back a 50k loan? Not really right, but they hand out that loan. I’ve gotten credit cards with 20k credit line 1 year out of college, no questions asked. That’s insane to hand that out and then blackball the receiving party. Liability is on both sides here but only one party suffers in an unbalanced way. For a large company, writing off 50k is nothing even at scale, but for the individual the scarlet letter is haunting. Overall, I cannot fathom how we tied the credit system to something necessary like housing. It’s absurd to think you are fucked out of housing options for 7 years.
  - 2Gkashmiri 5y ago
    i do not own a credit card. in our immediate family, taking loans is seen as a terrible thing. the result? i do not "own" a car because i can't afford it. same for going on expensive holidays or owing iphones. if i can't afford it with the cash i have, i am not getting it. growing up, this has been my idea and i cannot imagine tying myself "in future" to an item of convenience or luxury if i can't already pay it in cash. a large part of it comes from the reason that i am not a government employee who traditionally have enjoyed a "get employed and you will get your salary till you die", those people can certainly portion off their salary, future even because there is essentially 0 risk of being let off. OTOH, being a professional with no "assured" income, this is not possible. i know people, like many who sport a credit card, own a vehicle for the lulz and the "experience" of making heads turn but i can't care less about neighbours idea of me owing or not owing an iphone or a top line car. meh

toomuchtodo 5y ago

There is a lot of opportunity in issuing credit to folks with thin or no credit files where you can rely on other signals to determine creditworthiness, and it’s win win. The lender makes a profit, and the borrower is able to obtain credit they otherwise wouldn’t be able to, or credit at a lower cost.

crate_barre 5y ago
So I’ve heard but for the thing that really matters, renting and certainly buying a home, you are more or less fucked (at least for the 7 years they put you in financial jail).
- deleted 5y ago
  [deleted]
- toomuchtodo 5y ago
  The mortgage banking origination pipeline, mortgage backed securities, and the housing/wage macro situation is a topic onto itself.
- NovemberWhiskey 5y ago
  That's certainly not true. I relocated to the U.S. in 2015 with zero credit history, and was able to get a jumbo mortgage in 2016 because I worked with a lender that was willing to look beyond a credit file with zero seasoned tradelines.
  - crate_barre 5y ago
    Will take a reference if you have one.

basisword 5y ago

>> These are good ideas. Many people have debt from all kind of life issues and it kind of seems insane to lock them out of financing for … a phone or the like. Why is that insane? Why would a company essentially loan money to people they think are unlikely to pay them back? A £1200 iPhone is certainly not essential when there are serviceable equivalents for < £100 without the need for a contract.

crate_barre 5y ago
The same reason they loan out the money in the first place. Do they ever actually check if a young person will have the earning potential to pay back a 50k loan? Not really right, but they hand out that loan. I’ve gotten credit cards with 20k credit line 1 year out of college, no questions asked. That’s insane to hand that out and then blackball the receiving party. Liability is on both sides here but only one party suffers in an unbalanced way. For a large company, writing off 50k is nothing even at scale, but for the individual the scarlet letter is haunting. Overall, I cannot fathom how we tied the credit system to something necessary like housing. It’s absurd to think you are fucked out of housing options for 7 years.
- 2Gkashmiri 5y ago
  i do not own a credit card. in our immediate family, taking loans is seen as a terrible thing. the result? i do not "own" a car because i can't afford it. same for going on expensive holidays or owing iphones. if i can't afford it with the cash i have, i am not getting it. growing up, this has been my idea and i cannot imagine tying myself "in future" to an item of convenience or luxury if i can't already pay it in cash. a large part of it comes from the reason that i am not a government employee who traditionally have enjoyed a "get employed and you will get your salary till you die", those people can certainly portion off their salary, future even because there is essentially 0 risk of being let off. OTOH, being a professional with no "assured" income, this is not possible. i know people, like many who sport a credit card, own a vehicle for the lulz and the "experience" of making heads turn but i can't care less about neighbours idea of me owing or not owing an iphone or a top line car. meh