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I have lots of poor friends and I have never heard any of them indicate that they’re making their savings decisions based off of the shifting advantages of thei
by cogitoergofutuo 3y ago
I have lots of poor friends and I have never heard any of them indicate that they’re making their savings decisions based off of the shifting advantages of their FICO scores.
I never really quite understood the reasoning that poor people are poor due to a lack of incentives to become not-poor. Being poor isn’t fun, it actually sucks.
If poor people are poor because of a pathology as you suggest, what incremental changes to mortgage rates would create an incentive big enough to overcome such an obstacle?
- 2devnull 3y agoI don’t think poverty can be reduced to any one cause. People are poor for a lot of different reasons, often multiple reasons. Some people have problems with financial reasoning, or other psychological money related issues (shopping addiction, gambling, etc). These are groups that do not benefit from mixed messaging about the importance of managing their credit. Credit ratings are a way for lenders to assess risk which allows them to loan out more money, and money to those with fewer assets, than they would be able to lend without the signal credit ratings provide. Diminishing the value of credit ratings is counter to the best interests of the poor and those who see upward mobility as a positive (obviously not everyone!)
- deleted 3y ago[deleted]