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> there is no credit score This isn't good. The alternative to credit scores is that some banker, most of whom grew up upper middle class or upper class, meet

> there is no credit score This isn't good. The alternative to credit scores is that some banker, most of whom grew up upper middle class or upper class, meets you in person, nods at your firm, masculine handshake, and decides they like the cut of your jib, complexion of your skin, and accent of your voice well enough to give you a loan and/or a reasonable rate. The inherent discrimination of this process is a huge part of the reason we shifted to credit scores in the 80s. Credit scores are objective, algorithmic measures of credit worthiness that anyone can game upwards by following the rules. The alternative is subjective measures that are applied erratically by different human minds that will always be riddled with bias.

drexlspivey 4y ago
> The inherent discrimination of this process is a huge part of the reason we shifted to credit scores in the 80s. Citation needed. It’s in the bank’s interest to offer loans based on credit-worthiness and not on the superficial things you described.
mattpallissard 4y ago
Eh, I don't know if I agree with that. I know a few people who have gone the alternative route; proof of utilities paid, lack of back rent, etc. From the outside looking in it seemed to be a bit more hoop jumping, but overall more palatable than 3 private firms, who don't give damn about you, aggregating your financial history with financial institutions' best interests in mind.
jacobr1 4y ago
Credits scores for loans make sense. But increasingly they are being used as proxies "general trustworthiness" which they are not well designed to support, even if there is some rough correlation. They shouldn't be used a gate to employment, or rental housing (some of the factors apply, being able to afford rent, or prior payment history are relevant ... but the scores are still abused beyond those factors).
mindslight 4y ago
Or the alternative is that we have much less credit, the prices of assets become a lot more affordable, and wealth remains better distributed throughout society rather than being sucked away into the financial industry by the servicing of perpetual debt.
lm28469 4y ago
> The alternative is subjective measures that are applied erratically by different human minds that will always be riddled with bias. No, you get a credit because you prove you have regular, stable, safe incomes or a solid business plan.

drexlspivey 4y ago

> The inherent discrimination of this process is a huge part of the reason we shifted to credit scores in the 80s. Citation needed. It’s in the bank’s interest to offer loans based on credit-worthiness and not on the superficial things you described.

mattpallissard 4y ago

Eh, I don't know if I agree with that. I know a few people who have gone the alternative route; proof of utilities paid, lack of back rent, etc. From the outside looking in it seemed to be a bit more hoop jumping, but overall more palatable than 3 private firms, who don't give damn about you, aggregating your financial history with financial institutions' best interests in mind.

jacobr1 4y ago

Credits scores for loans make sense. But increasingly they are being used as proxies "general trustworthiness" which they are not well designed to support, even if there is some rough correlation. They shouldn't be used a gate to employment, or rental housing (some of the factors apply, being able to afford rent, or prior payment history are relevant ... but the scores are still abused beyond those factors).

mindslight 4y ago

Or the alternative is that we have much less credit, the prices of assets become a lot more affordable, and wealth remains better distributed throughout society rather than being sucked away into the financial industry by the servicing of perpetual debt.

lm28469 4y ago

> The alternative is subjective measures that are applied erratically by different human minds that will always be riddled with bias. No, you get a credit because you prove you have regular, stable, safe incomes or a solid business plan.