this post was submitted on 07 Jun 2024
996 points (92.1% liked)

Memes

45889 readers
2299 users here now

Rules:

  1. Be civil and nice.
  2. Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.

founded 5 years ago
MODERATORS
 
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 2 points 6 months ago (1 children)

And how exactly is guessing your credit worthiness based on those factors a better system than literally keeping track of what happened each previous time money was lent to you, when it comes to making a decision on lending money to you?

This is like arguing it's a better idea to select NBA players by their height, than by their performance in high school and college basketball games.

[–] [email protected] 1 points 6 months ago (1 children)

Sorry, I’m not sure how to answer “how is measuring your credit worthiness based on your income a good way to determine how much to lend you.” I would think it’s pretty obvious that your capacity to repay a loan is dependent on your current income, not how many loans and credit cards you’ve had active in the past.

[–] [email protected] 1 points 6 months ago (1 children)

1 in 4 households earning over $100,000 a year live paycheck to paycheck--not because they can't make ends meet, but because their money management sucks. A high income has very little relationship with responsible borrowing, despite what many would assume.

[–] [email protected] 0 points 6 months ago

If you stop paying your car or home loan it gets repossessed, people with bad money management still have incentives to pay those on time.