this post was submitted on 22 Apr 2024
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[–] wildbus8979@sh.itjust.works 64 points 1 year ago* (last edited 1 year ago) (1 children)

Finally! It's just too bad my insurance score is still too low for me to get the required homeowner's insurance because the car company shared my driving data with insurance data brokers, and they don't like that I park in front of bars every Friday night, they don't know it's because I have a third job as a busboy. It's ok though, cause at least I'm still free to tip my landlord, and employment rates are up!

[–] Drinvictus@discuss.tchncs.de 30 points 1 year ago (11 children)

But remember. You're paying his mortgage and you can't deduct that from your taxes but he can deduct his mortgage from his taxes (the same mortgage that you paid)

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[–] imPastaSyndrome@lemm.ee 59 points 1 year ago (14 children)

>implying americans actually want a credit score

[–] Imgonnatrythis@sh.itjust.works 8 points 1 year ago (6 children)

I'm honestly unsure. What is the alternative? Instead of a pre-emptive risk assessment of whether or not you can pay something, more people just receive punishments when they end up not being able to? I don't like being judged or told what I can or cannot pay back a month from now, but on a large scale doesn't this mostly protect people from dangerous debts? For the opponents, what is the proposed alternative?

[–] azertyfun@sh.itjust.works 5 points 1 year ago* (last edited 1 year ago)

I’m honestly unsure. What is the alternative?

Given that there are plenty of developed countries where credit scores don't exist (and plenty more where they do but only for businesses), I think alternatives are imaginable. I would know, I live in one such country.

If you want a mortgage here, the bank will:

  • Ask you about your current loans and potential past defaults
  • Ask you about your current and past income, marital status, employment status, etc.
  • Use those variables to pretty straightforwardly determine your loan capacity
  • I think do a background check in national databases for defaults/"bad payer" status
  • Contractually obligate you to receive your salary on the same account from which they will automatically pull the mortgage. I don't think this helps reduce actual defaults much, but it probably greatly reduces the financial and administrative overhead of late/missed payments. Also this ties you into the creditor bank which is good for business, IDK how standard that practice is abroad.

The US consumer economy is very highly dependent on short-term/credit debt, and that is absolutely crazy to me. Some Americans say they "need" a credit card to defer payment on some purchases, and as someone raised in culture where debit is king this sounds absolutely insane. Y'all have been propagandized, here it is perfectly normal to not have a single credit line open before shopping for a mortgage and if anything your banker will commend you for it.

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[–] sentient_loom@sh.itjust.works 31 points 1 year ago (5 children)

I have good credit but I cannot buy a house.

[–] LinkOpensChest_wav@lemmy.blahaj.zone 19 points 1 year ago (6 children)

My husband and I bought ours in 2019, and I feel like we did so in the nick of time, and that's with being on two programs and taking an additional loan for the down payment, and that's because paying the mortgage was lower than renting an apartment at the time.

People can't afford housing anymore. I feel guilty even owning a house because it's gotten so bad (even though the bank technically owns this shit).

[–] sentient_loom@sh.itjust.works 20 points 1 year ago (1 children)

Don't feel guilty! Congrats on the house. Enjoy it.

[–] Sunforged@lemmy.ml 8 points 1 year ago

Buying a house was what pushed me from Bernie flavored socialist to full on leftist. We were lucky enough to find and qualify for a community land trust and it is such a better system than anything else in America. It should just be how housing is done available to everyone, not just people who qualify.

[–] anarchrist@lemmy.dbzer0.com 8 points 1 year ago (1 children)

Same. Alternatively, turn that guilt into the drive to attend community meetings.

[–] LinkOpensChest_wav@lemmy.blahaj.zone 6 points 1 year ago (2 children)

Yeah I'm pretty involved locally, although action is pretty limited here where I live in South Dakota

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[–] radiant_bloom@lemm.ee 30 points 1 year ago (3 children)

The sadder thing is that Chinese social credit hasn’t actually even been implemented, and doesn’t seem like it’s going to. There are only limited local experiments, most of which are allegedly largely irrelevant.

Whereas there are multiple credit score companies currently tracking literally everyone who has a bank account.

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[–] qjkxbmwvz@startrek.website 27 points 1 year ago* (last edited 1 year ago) (2 children)

We tried personally evaluating people for loans on their individual merits, and shocker, there was rampant racism and sexism. Having strict metrics, instead of relying on the whims of a dickwad loan agent, is a good thing.

The new system isn't perfect, and yeah, it completely favors people who have parents who know how the system works. But at least it's not explicitly racist or sexist (again, there are of course systemic issues that feed into it).

I get that it's frustrating to, for example, need to have debt in order to qualify for more debt. But in other contexts this is pretty standard


it's essentially "financial experience."

But yeah. It sucks that you should pay expenses with a credit card rather than debit in the USA. Personally it doesn't matter to me (I pay them off every month), but it sucks for merchants who get stuck with the credit card transaction fees.

[–] ShellMonkey@lemmy.socdojo.com 7 points 1 year ago

The rise of check cards and normalizing paying for everything on plastic was a big tipping point. There's even a Monopoly game that uses electronic cards these days. It lets activity tracking run rampant and of course the banks get to skim a fee off everything.

Franky I see it as having nothing to do with fiscal responsibility (can't overspend the cash on hand) and more just a way to funnel more to those with means than anything. It's funny how cash advances on cards charge a higher rate than purchases despite neither offering a security interest to the card issuer.

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[–] criitz@reddthat.com 25 points 1 year ago (2 children)

I'm no fan of credit scores but let's not act like its the same thing as Chinese social credit

[–] linkhidalgogato@lemmy.ml 5 points 1 year ago (5 children)

course not credit scores actually exists and social credit does not since it was just a trial

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[–] phoenixz@lemmy.ca 22 points 1 year ago (40 children)
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[–] Infamousblt@hexbear.net 18 points 1 year ago (2 children)

735 ain't enough to buy a house in America in this economy

[–] Assian_Candor@hexbear.net 22 points 1 year ago (1 children)

It's not the 735 thats the problem it's the 5k a month mortgage

Don't forget the minimum 20% down payment if you don't want to get your booty destroyed with interest.

[–] Maoo@hexbear.net 6 points 1 year ago

It's enough but you've gotta be ready to pay for a $1 million small bungalow, so $200k up front and a $4k/month mortgage.

[–] Tankiedesantski@hexbear.net 12 points 1 year ago (1 children)

In evil totalitarian China, you can be banned from buying high speed rail tickets if you default on your loans.

In good democratic freedom America, you can be denied all forms of air travel because your name happens to resemble one that's on a secret list.

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