5 ms·

I have a very hard time believing that sales-people and trades-people don't take it into considering when negotiating or quoting a price. One of the reasons a c

I have a very hard time believing that sales-people and trades-people don't take it into considering when negotiating or quoting a price. One of the reasons a car sales person wants to "check your credit" early in the process is to get your credit rating and address - which helps them guess your price sensitivity - and many home services certainly take into account the area you live in even when it is irrelevant.

sofixa 3y ago
Yeah, "checking your credit" doesn't exist, really, outside of the US. When making loan decisions, your income and loan totals/history are the main things considered, not an arbitrary score by private third parties that couldn't keep the data safe if their lives depended on it.
- tyoma 3y ago
  A credit score is determined by your loan totals/history. Every lender needs to assess credit-worthiness in some way, and they resort to the very similar schemes, with minor procedural differences based on cultural factors and historical accident.
  - sofixa 3y ago
    Except that credit scores in the US include things such as evictions and credit card use, scores going down if you repay a loan in full and other bullshit, which a random bank determining your credit worthiness in France doesn't do. They ask for proof of income, check with Banque de France if you have outstanding debts or if you have failed debt payments, and that's it.
    - lotsofpulp 3y ago
      Evictions are not reported on a credit history report. There is no single credit score in the US. Anyone can calculate whatever they want from a credit history. There is no requirement for a lender to negatively view a borrower’s decision to buy pay off a loan. In fact, I doubt any even do. Using a credit card is borrowing money, hence shows up on a credit report.
      - pc86 3y ago
        Of course there's no requirement, but everyone knows that paying off a loan early can, in some circumstances[0], lower your credit score. Nobody is taking the time to look into your score and see why it was 810 last month and is 780 this month. They just use the 780 and move on, so it can absolutely affect the rate you get, and whether you get approved or not. No creditor is overriding a denial because they spent time investigating your recent score change. [0] Usually the credit score is a measure of how likely you are to hold credit over time. It is not a "how good are you with money" or "how much money do you have" score, it is a "how likely are you to pay this back under the agreed-upon terms" score. Part of that score is the mix of different credit types, so if you pay off your final installment loan (e.g. car, house, private loan, student loan), your mix of credit types just went from N to N-1, hence a temporary, minimal drop. This is also why paying something off early can negatively affect it (in certain models, but I don't think this happens much anymore). This is always used by people to explain how credit scores are stupid and evil and idiotic and evil and stupid, but its effect is always overblown, and your score almost always rebounds within a few months.
- lotsofpulp 3y ago
  A lender or seller does not have to use any specific credit score. Many businesses calculate their own credit score based on borrowing/repayment history, and some do not calculate a score at all.
lotsofpulp 3y ago
> many home services certainly take into account the area you live in even when it is irrelevant. When negotiating a price, how much a buyer is able and willing to pay is always relevant for a seller. (And vice versa for a buyer).

sofixa 3y ago

Yeah, "checking your credit" doesn't exist, really, outside of the US. When making loan decisions, your income and loan totals/history are the main things considered, not an arbitrary score by private third parties that couldn't keep the data safe if their lives depended on it.

tyoma 3y ago
A credit score is determined by your loan totals/history. Every lender needs to assess credit-worthiness in some way, and they resort to the very similar schemes, with minor procedural differences based on cultural factors and historical accident.
- sofixa 3y ago
  Except that credit scores in the US include things such as evictions and credit card use, scores going down if you repay a loan in full and other bullshit, which a random bank determining your credit worthiness in France doesn't do. They ask for proof of income, check with Banque de France if you have outstanding debts or if you have failed debt payments, and that's it.
  - lotsofpulp 3y ago
    Evictions are not reported on a credit history report. There is no single credit score in the US. Anyone can calculate whatever they want from a credit history. There is no requirement for a lender to negatively view a borrower’s decision to buy pay off a loan. In fact, I doubt any even do. Using a credit card is borrowing money, hence shows up on a credit report.
    - pc86 3y ago
      Of course there's no requirement, but everyone knows that paying off a loan early can, in some circumstances[0], lower your credit score. Nobody is taking the time to look into your score and see why it was 810 last month and is 780 this month. They just use the 780 and move on, so it can absolutely affect the rate you get, and whether you get approved or not. No creditor is overriding a denial because they spent time investigating your recent score change. [0] Usually the credit score is a measure of how likely you are to hold credit over time. It is not a "how good are you with money" or "how much money do you have" score, it is a "how likely are you to pay this back under the agreed-upon terms" score. Part of that score is the mix of different credit types, so if you pay off your final installment loan (e.g. car, house, private loan, student loan), your mix of credit types just went from N to N-1, hence a temporary, minimal drop. This is also why paying something off early can negatively affect it (in certain models, but I don't think this happens much anymore). This is always used by people to explain how credit scores are stupid and evil and idiotic and evil and stupid, but its effect is always overblown, and your score almost always rebounds within a few months.
lotsofpulp 3y ago
A lender or seller does not have to use any specific credit score. Many businesses calculate their own credit score based on borrowing/repayment history, and some do not calculate a score at all.

lotsofpulp 3y ago

> many home services certainly take into account the area you live in even when it is irrelevant. When negotiating a price, how much a buyer is able and willing to pay is always relevant for a seller. (And vice versa for a buyer).