what you described is someone with no history of paying off loans and the first loan you want someone to trust them with is the biggest one: a home loan?
I don’t think most Americans realize most countries don’t have credit scores or use a lot of credit cards.
- Thread starter Ethnic Vagina Finder
- Start date
I won't lie my cousin has a card with great rewards till the point she was getting hotel rooms etc for nothing so I feel u.
I get 'free' money from other point reward systems tho. Without the temptation to overspending create debt
Ethnic Vagina Finder
The Great Paper Chaser
If they had a stable income history, assets that are paid off, and has adequate income, why not? Especially if they've been with that bank for years.
A lot of people have bad debt, that they pay off prior to applying for a home loan. The person who had to resolved old credit card debt and delinquent loans that finally came off their history are just as if not more risky.
Redwood
Superstar
when delinquent loans come off your credit there is only a boost if in those 7 years you've been good with all the other debt. it's their money they have to figure out who they can trust with a big loan. the person is in your 2nd example isn't getting one either.
null
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Lieutenant Daniels
I’m up for Major
I mean, there’s a difference between a 580 doing “fukk shyt” as you call it and a 650 of on time payments. One is not like the other regardless of length of credit. The credit profile is different.
Also there’s more to having a lower score than “doing fukk shyt”. If your utilization is over 30% your score will take a beating regardless of if you are paying your bills on time. I know because I’ve been in that position before and I had a 100% payment history for over 5 years.
Have a high utilization and you’d be hard pressed to reach over 700 and that’s regardless of paying every bill on time years.
Ethnic Vagina Finder
The Great Paper Chaser
Not true.
1. If they put down a big enough down payment, they bank will see they are willing to take on the risk because they are heavily invested
2. If they have enough assets, they bank will see that they are worth the risk
3. If they have zero debt, they will also see them as less risky
4. If they have been banking with them for years, they will trust them more because they can confirm their spending habits.
I never said there weren't alternate means of having a low credit score, besides doing phuk shyt.
I was simply speaking to my experience and the fact that credit scores, for the most part, are an objective way of trying to determine the creditworthiness of masses of people. Is it perfect? Of course not.
And yes, if you're making on-time payments but your credit utilization is constantly exceeding that 30% mark then an institution is correct in making the assessment that you're a risker borrower than someone who has a credit utilization of 5%. Again, age of credit is also taken into account when determining a person's credit-worthiness - as is total accounts, hard inquiries and derogatory remarks.
Now, if you interpreted my remarks to indicate that people with low credit scores is only a result of irresponsibility (like in my case) then that's my fault. shyt happens and it doesn't always have to do with a person being irresponsible.
With that being said, there's no shortage of muthaphuckas charging vacations, and the like, on their credit cards or on loans.
Roger king
Superstar
Alot of people get in debt that it drowns their entire incomes and traps their life, its a vicious cycle
so this hypothetical person, has good credit history as far anyone looking is concerned because the only negative thing they had has dropped off the report. a big down payment, assets, no debt. why wouldn't they get a loan after you added all these goodies. that's not what you presented in the first place.
Dreamchaser
All Star
What's crazy is that credit card were never designed to be used for people to transact everyday transactions. It was used for business establish a way for them to pony up what was owed to each other.
EA
A Pound & A Prayer
I guess it’s a cultural difference because we don’t usually pay for things on credit here in the UK unless we have to. Debit is always the primary method of payment and then credit is secondary.
The True HD
Billionaire
Y'all don't know what's really going on. Many think they know & but haven't read shyt.
DEBT is Divine, CREDIT is a vehicle.
Learn the game then play it at a high level... too many people seeing this shyt at eye level.
We are the creditors.
DEBT is Divine, CREDIT is a vehicle.
Learn the game then play it at a high level... too many people seeing this shyt at eye level.
Because the concept of interest is religiously and culturally banned
Now ask yourself why America runs on credit and who the creditors are
We are the creditors.
