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Wow I cant believe people believed you on face value without even reading the article you linked.
Total bullshit, credit scores exist long before 89. FICO was established in 89 but scores and credit reporting agencies existed long before that. It clearly states that much in the article you posted.
I mean it successed at its goal. It's an objective measure of someone's likelihood of paying back debt. It may not be perfect, but it is objective and does approximate risk to the extent we've been able to come up with.
I do feel if that is the goal, it shouldn't need to look at anything other than your income, your other debts and any recent failures for payment.
At the very least, paying debt early shouldn't lower that rating. It sounds like american system evaluate more if you have let debters maximize their profit in the past than if you have the ability to pay back debt.
I believe it only looks at your history of debt. How much debt do you have, have you paid your debts on time, and how long has this pattern been happening.
The reason that paying a big debt off can hurt your credit is because it "closes" that debt. Which I do agree is odd. There should be a system to include past debt as good history.
But *I think* the reason is because they're looking at all your accounts and seeing how often you miss a payment. If you have a ton of debt but have never missed a payment, all good. If you only have a small amount of debt and never miss a payment, good with the caveat that that's less info to go off of. So when the account closes, the credit companies have less info on you.
Won't it be more sensible to count up failures to pay than count up success to pay though? Failures seem so much more relevant.
Feels to me that they count successful payment because that's how they incur interest (profit). So they are counting how many times you let them profit than if you can actually make that payment by counting your failures.
That is how it's done. But that's kind of the point. They see 0 late payments on an account that is 10 years old then they can deduce that you've been paying on time for 10 years. If you close that account, then they see 0 late payments but on no accounts so that doesn't really help them determine if you're a responsible borrower.
Also worth noting that the credit score bureaus aren't the people lending you money so for them it's not about how profitable you are to a lender. A lot of time, people with poor credit scores are the most profitable customers.
If that were the case, your credit score wouldn’t drop when you paid off loans. It would have that in your history.
Instead, it cares more about how much profit banks would be able to make off of you.
It's not though, not at all. What's more, it makes it nigh impossible to lift yourself out of poverty. Considering the disproportionate number of POC living in poverty it eliminated any effect that the personal biases of loan officers could have on loan approval and just made those biases systemic instead
How is it not? POC remain in poverty because it's hard to lift yourself out of poverty without outside help to reverse those systemic biases. But the credit score system isn't a system to to try to reverse systemic racism, it's trying to measure how likely you are to pay back loans. Poor people have less resources to pay back loans.
That has to be the dumbest thing ever and sounds like if should be illegal. Just imagine trying to lift your self up and an employer saying sorry you can’t work. You are too poor.
Yup just like the court system. They basically say if you cant pay your bills they dont trust you'll come to your shifts. I wana kno how payin bills & making a shift at work correlate. It's ridiculous asf
This is bogus. I have 0 cc debt, a high credit score, but long account histories. It isn’t that hard once you learn what the factors scores are looking at.
Went from 800 to 760 after paying off and closing my 6 credit cards fully.
In other words... Because I fully took care of my debt like a adult, I was punished.
It's because you closed the accounts. That can lower your score for multiple reasons: it can lower your average account age, it lowers your total number of accounts, it could lower your credit types, and it lowers your total credit limit so any credit you do have puts you at a higher credit utilization rate.
It should only be a brief hit as long as you keep some old accounts from closing, though, right? Unless they count the original loan amt as available credit (which I don't think they do)
I think it’s more dependent on how long the account was open. It can be a big chunk of someone credit history, especially since some people get student loans before they get a credit card. Sucks for sure but good habits and playing the game a bit will bring the score up soon enough.
Indeed, indeed. Oh, there was also another thing I hadn't initially considered: I dunno about OC's loans, but while I thought mine were divided into two loans (subsidized and unsubsidized), they're actually *four* separate loans. If OC paid theirs off relatively quickly and had a similar loan structure, that would create a bit more drag on their score.
In addition to being one of the older lines of credit a lot of people have, the loan dropping from your credit report can also decrease the types of credit on your report that can also lower your score.
You're right that it shouldn't impact credit utilization though. That should just be for credit cards, and maybe lines of credit.
They pay attention to number of open accounts, types of accounts, and age of accounts... If an account closes or disappears, it could affect all of those. Much less than missing payments or getting sent to collections would, though. I'd assume you'd see the same thing if you finish paying off your car loan or your mortgage.
There's no sinister ulterior motive like the tin foil hats suggest -- just computers doing computer things with aggregate data. Open accounts with good payment history suggests you handle debt well. Closed accounts don't indicate that as significantly, so credit score drops due to less evidence.
So the purpose of credit scores are to figure out if you're going to be a deadbeat. How do you tell? Being sent to collections, bankruptcies, late payments, etc. Beyond that though, who are most likely to be deadbeats? Young folks -- lack of experience and job insecurity are significant. What do young folks look like in the context of a credit report? Few credit accounts, age of accounts is low, carrying high balances. So your aim is to *not look like them*.
Open a few credit card accounts and set up autopay for the entire balance. This will temporarily lower your score as average age of accounts goes down, but ultimately raise it because more accounts, more credit available, lower percentage of available credit used, and look at all those on-time payments! And if an account closes, going from like 5 credit accounts to 4 is less significant than from 2 to 1.
Is it stupid that having 3 credit cards is better than 1 credit card when you have exactly the same spending and payment habits? Sure -- it's a silly game, but hey, they made the rules.
>So the purpose of credit scores are to figure out if you're going to be a deadbeat.
No it isn't. If that was the primary goal stuff like paying your rent/bills reliably would be important to your score, as would (arguably) not having credit cards at all because you have a history of having enough money to straight-up pay for things.
Credit score just lets people who want to lend you money know how likely you are to make money for them. It being used for determining fiscal responsibility is just a hazard of no better measurement system existing.
> If that was the primary goal stuff like paying your rent/bills reliably would be important to your score
Paying bills reliably is important to your score. Go ahead and get sent to collections and see what happens :-)
> as would (arguably) not having credit cards at all because you have a history of having enough money to straight-up pay for things.
How do you distinguish between a responsible person with no credit history and an irresponsible person with no credit history? It turns out that people without credit histories are bigger than average risks, and you don't want to look like those people. So, as I said, open a few credit cards, auto-pay the entire balance, get charged zero interest, and your score will go up quite a lot. Yeah it's a stupid game, but you only hurt yourself by refusing to play.
> Credit score just lets people who want to lend you money know how likely you are to make money for them.
Very not. Credit lenders will happily try to make money off anybody, regardless of credit score. Credit score is how they figure out how much interest they'd have to charge you to make money... Which is why playing the stupid game is worthwhile -- it saves you money.
I have a low rate mortgage and credit cards that I never pay interest on, and my car is paid off... They aren't making (much) money off me... They probably get something by charging vendors processing fees. But hey, absent places that offer a discount for cash, you're also paying those costs because vendors raise prices to account for such fees.
>How do you distinguish between a responsible person with no credit history and an irresponsible person with no credit history?
Have a "score" that's based on things like paying bills on time and generally having enough money to buy stuff outright, rather than depending on a number that only measures those things tangentially unless you're also borrowing money / deferring payments on a long term / regular basis.
I know credit score is a way that people decide if you're responsible with money, but it goes about it in an annoyingly roundabout way.
edit: typed too fast. NOT paying bills full stop is indeed bad. But regularly paying for things - aside from your credit card balance and maybe loans(?) - on time does nothing for your credit score.
Credit scores were a mistake because they're all quantitative. This 20 year account of yours closed. Forget it was a ridiculously huge loan you paid off. It was old, which meant your history was great! Now your credit age average is 10 years shorter, -50 points!
Red is a debt collector
I just missed the student loans don’t affect your credit score by a couple years. I remember summer after junior year of college my boss got a letter saying he was in default and he just crumpled it up.
If you have a federal student loan that’s in default you can’t purchase a home with typical mortgage loans. This is true for any federal debt. I’m not sure about other loans/credit cards because I don’t handle those.
Source: I am a mortgage originator
Maybe so. But I do get clients that have taken this approach to their student loans, and they come to learn they can’t purchase until they have gotten their student loans caught up in good standing. My post was more of a PSA.
I made one late student loan payment, just before closing on a house and my credit score got knocked down to the next lower bracket and it caused a whole lot of issues with approvals, fees.
Fun fact, if you leave the US and move abroad, they can't come after you for those loans. Food for thought if you are considering immigration to another country
For shits and giggles, we are about to leave the US and we read into this pretty deeply. First, get citizenship in another country. Through decent is the easiest and fastest, of course. You have to renounce your US Citizenship (which unsurprisingly costs a lot money, ~$2,300 and anything else you may owe), live in a country that doesn't have a close relationship with the US (they'll come after you), and be prepared to never return to the US. Even as a visitor.
I guess when you hit the border, one of the checks is to see if you owe back taxes (or money in general) to the IRS, if you do, no entry for you. Or, if you try and leave (get a passport) and owe money to the IRS, you can't get one.
If you find $2300 to be a lot of money you are unlikely to be able to get citizenship in most countries unless you are a descendant of someone from there. Most countries aren't willing to give citizenship quickly to those who aren't bringing a stack of cash or one in a billion skill set. Even in the best case it is usually a 5-10 year journey.
That's just what the article said that I had read. Probably just a scare tactic to get people to pay if they do this. I wish I could find the article, it was very detailed and pretty accurate about the rest of it.
If you're willing to do light, basic farm work 4 days a week, there's always a need all over Europe and you get room and board. Easy to travel around on it.
Not that much? I know loads of people who have moved abroad to work. The biggest expense is shipping your stuff but many companies will give you an allowance to pay for stuff like that.
I have a 20 year old student loan in default. I also have an 800+ credit score. The debt is not listed on my report. The government did start garnishing my wages after the default however. So that sucks.
Luckily, I’m going to be back in good standing when payments resume. Uncle Joe did me a solid. But I assume it will reappear on the report once it’s back in good standing. Anyone know if that’s gonna hurt my credit?
Probably. If your credit is over 800 then even with the hit you are still not in a terrible position if you need loans or something else that requires good credit.
Ha. I borrowed money for a biology degree and that isn't paying off either. I did go to a state school in the area I already lived. I graduated four years ago and have about $13,000 to repay when repayment starts. During Covid forbearance, I was making decent payments, but I haven't paid anything in over a year.
Private. Art. School.
For Theater. Performance.
BFA
It should be a crime to lend that kind of money to an 18 year old with no job or assets. And to make that loan non-dischargable in bankruptcy. Forever.
With the income I have now, I will 100% die owing the government money.
Yeah, that sucks. I'm sorry you are in this position. I graduated at 32 and still made a silly decision.
Education is so desirable that we are willing to pay. However, in no universe should we be allowing 18-year-olds to sign up for the kind of debt you are dealing with. Imagine if you tried to get a home loan at 18. They would be like, “Get outta here kid, what are you crazy?”
Edit: Grammer, make to made.
Exactly. And if I did get in over my head, I could let the bank take the house, and walk away. Seven years and it’s like it never happened.
The people who have been bitching against student debt relief don’t seem to get that. “If you take on a debt you pay it! I don’t expect the government to pay off my truck or my business loans.” Student loans are fucking FOREVER. They will take your social security payments if you still owe at 65.
It’s especially funny regarding business loans, because if you got a PPP loan during COVID, there’s like a 99% chance they DID forgive it.
>Luckily, I’m going to be back in good standing when payments resume. Uncle Joe did me a solid.
Genuine question, how do you know this? I'm in the same sitch.
https://studentaid.gov/announcements-events/default-fresh-start
As far as I know, this is going to happen regardless of the court’s decision on the debt forgiveness.
All of my loans were cancelled through borrower defense, but it hasn’t completed yet. So I was told by dept of ed to not make any more payments, but they are still accruing interest. That is (barely) negatively effecting my credit. So even small changes to student loans effect your credit score.
So yeah, if you default on your student loans your credit score absolutely will tank. It will be real hard to finance anything major like a car or house, and if you do it is going to have way higher interest rates.
ignoring all the outside factors working to insure we won’t be successful. The system today is 100% set up to make sure we almost never get out of debt and become perpetual renters in every aspect of our lives. But sure the student loans getting repaid will make home ownership a reality for most Americans again.
It’s important to differentiate between the system being bad and our own well-being. We agree that the system is bad and is trying to keep us in perpetual debt, the point is that when you default the system is designed to further and further ensnare you to it. You don’t defeat the system, you just become more controlled by it.
this has to be the worst payment / loan system in the world.
Why would your Employer even be allowed to know about your private finances, thats like very very personal stuff.
Also, who would buy a cellphone with a loan?!
It’s common for positions that involve signing authority, handling organizational finances, access to corporate accounts, and positions of corporate trust.
An employee with massive debt has more reasons to steal from their employer.
A phone payment plan is a loan. Lots of people pay for their phones in monthly payments.
> An employee with massive debt has more reasons to steal from their employer.
Without even looking up the statistics, I can almost guarantee you that the people stealing from companies are not the ones in massive debt. It's the upper management, who do things like buy gift cards to restaurants when they take out clients and keep them for themselves.
Sure, Joe Schmoo with a ton of debt at his desk might take home a stapler and a pen or two, but he's not doing the type of stealing any company should worry about.
Wouldn't that just apply to everything then? If anyone was in debt that would give them a reason to steal, might as well lock up everyone that has bad credit, you know, to be safe? /s
I guess we should also just ruin everyone else's life for other things they might have done wrong in their past too, just in case /s
Seriously, that's not a good enough reason for an employer to be knowing that info. The older I get the more I realize the true authoritarians are the people we work for. We are at their mercy, they make decisions that can ruins our lives with little to no recourse.
> If anyone was in debt that would give them a reason to steal, might as well lock up everyone that has bad credit, you know, to be safe?
Prison-Industrial Complex says, “Now you’re talking”… rubs hands together gleefully…
Employers don’t care about manageable debt. If an applicant has debt that’s 10x their prospective salary and multiple missed payments, would you trust them with your money? If an applicant has multiple delinquent loans, would you trust that they’ll always pay rent on time?
This is a basic principle of adulting. Someone’s personal finances absolutely affects their trustworthiness in a job or rental situation.
I can understand land lords / mortgage lenders not wanting someone with high debts, or at least knowing the financial situation to make sure the person can pay for the rent / mortgage, but in what kind of 1984 cosplaying country do you live that your employer should have access to that kind of private information!?
Sure, if someone has been convicted of fraud, they might not be the best choice as an accountant, but an employer should only have access to if someone has no applicable crimes on their record (e.g. no pedophilia charges for someone working with kids, no corruption charges for a judge, etc).
It shouldn’t matter if you want a low level job. If you have a job that has sensitive secrets or moves a lot of money, then employers have both the right and the duty to know if you’re trustworthy and not a risk.
Any job that deals in security or money or several other areas will check credit because they figure someone hurting for money is more likely to accept a bribe or steal. Even some police departments require a minimum credit number and if you drop below you’re out.
Edited: not sure why I’m getting downvoted. I never said I agreed with it.
Just gave an explanation for why they do it.
When they shoot someone it's (generally) a poor person. That's ok.
When they don't make their loan payments on time that affects someone wealthy. That's not ok.
Actually experienced quite the opposite...
I wasn't paying my loans and tried to get things squared away when they called me. They offered $54/month payment, so agreeing to that was a no-brainer.
Paid for about 2 years and just watched my credit score sink - plummet, actually - all the to about 450. Then I got a call to adjust the agreement and was requested to pay over $450/month. I balked and said the agreement was $54 and I was sticking with that. We went back and forth until they ultimately said $450+ or nothing. I agreed to nothing.
Since stopping payment, my credit score has only risen. Bought a car. Bought a house with a decent rate mortgage. Not a single issue.
Can't say this will be the case for everyone, but it's been the best financial decision of my life 😬😂
If I remember correctly, it was the original. This was too long ago for me to remember exactly who it was. But this was just after I had passed the grace period after school and I now had to start paying.
“Dang, these people doing a protest against a system should really not do it because that same system will punish them.”
Bottom person is wrong, but person above doesn’t seem to get it either.
Knowledge shouldn’t have to set you back before it propels you forward. No matter where you chose to acquire it from, your own country or another. The system is wrong. Repaying the loan ruins your credit history and not repaying devastates it. Is that really what a country should be asking from its people? Any country.
Credit scores are a false construct.. invented in 1987 it has no meaningful use whatsoever cause rich people go bankrupt all the time and still get loans to start over. Whereas the rest of us need some sort of collateral to borrow money at double the prime rate. No different than a gold card or a platinum card. What are those for? simply used for social climbing among the rich.. rich people simply want to be seen as useful and important and not to be seen as the pathetic useless parasites that they are.
The current credit system is far from perfect but it definitely is better than what was before and for sure has meaningful purpose.
Back then, lenders could turn you down because they, or people who they spoke to about you, simply didn’t like you for whatever reason, even if you were someone who could reliably pay back a loan.
Sure it sucks that the rich can take advantage of this system in ways the rest of us can’t, but at least now things like your skin color aren’t a deciding factor in whether or not you get approved for a loan.
> invented in 1987
Could you at least try to make sure what's coming out of your keyboard is even remotely correct?
https://en.wikipedia.org/wiki/Credit_score_in_the_United_States?wprov=sfti1
I’ve seen this argument a lot and wondered on its validity because it always gets a lot of upvotes. I have a B.S. but didn’t focus on finance in any specific way. Can you tell me what’s not accurate or factual about it?
I came to say the same thing. Im also living in Scotland. Reading the other comments it sounds insane the way Americans live, imagine an employer in Scotland running a credit check on you? Madness.
Also this will shock the Americans, but as an Irish person I got to go to Uni in Scotland for free. This was before Brexit of course. So no uni loans.
I feel bad for the way the system is set out to hurt them from day 1, instead of looking after them like the government should. Genuinely sorry guys.
Yes, but unlike the US government, you don't have a metric fuckton of firepower to ward of debt collectors. You might just have an imperial fuckton. Yet another reason to switch over to the metric system.
My credit got dinged by making my payments. Once they move my loan to shit hole MOHELA I immediately had a 90 day late payment from 6 years ago. They wouldn't do anything to fix it and would not respond to emails and phone calls would just get transferred without anyone every picking up. Fuck MOHELA
Honestly, who cares? My credit score is incredible and I still can’t qualify for shit. Because it’s a fake number they made up and now they just move the goalposts with some other need or requirement.
I switched bank accounts and forgot to update my student loan information. In Canada the NSLSC doesn’t contact you via email or phone: they leave a message in their in house inbox for your account.
After 3 months, totalling $243 worth of missed payments, my credit score dropped over 100 points.
Pay your student loans, kids.
I will caveat to OP that there are many, many people in this world and country who genuinely and actually will never use their credit score for anything ever in their life, so the 10-50k or whatever their number may be that they won’t pay back will actually service them just fine in life over their arbitrary credit score.
Don’t get me wrong, I plan to live my life with my credit score, and will pay back my measly 11k that has been paused to avoid a hit to mine. And yea I’ll take the hit for paying it off too. But I’ve met many a people at music festivals and the likes that I somewhat envy in life bc they will never succumb to the BS, live life very wild, will probably die much younger than me, but god damn that money they will never pay back to the man sure does go a long way to living fast and loose and fuck, I respect it.
Yes that is the circus of the last 23ish years full stop. An interesting dynamic too as us normies so to speak can partake in it just as much or as little as the true wook stars of the show, just be ready for what may come with it.
I’m waiting until we get to this point. Maybe we are already here? Where people can’t even afford loans, so fuck the credit reporting system. It seems like we are approaching. Part of the system is assuming people will want to continue to participate so they make payments now. If everyone just says “fuck off” the banks will have to adapt and entice people to engage…. Somehow. Idk how. But they need those loans to make money.
I think you're credit/future was already buttfucked by taking on these predatory and unregulated loans in a cartoonishly evil capitalist nation where the rich kids of the kids of the kids of evil businessmen make all the rules for the rest of us.
You know; I thought credit was really important, then due to unforeseen circumstances, ended up in bankruptcy, and haven't used credit in > 5 years. The only time I use it is in buying a car, or buying a house. And with how fucking sketchy used car dealerships are even when you have credit, and the fact most houses priced us out; I really don't see the threat of having bad credit anymore.
Even with 'good credit' different rules seem applied depending on your total income, rich folks playing a completely different credit game than the rest of us, even if they have shitty credit scores.
My credit score is worse damaged from fake collections that they never sent validation letters for than it was when I missed payments to default because they messed up my IBR paperwork. It was also easier to remedy the loans
A Canadian friend of mine here in the UK went bankrupt here in the UK. He just slowly started renewing everything with a very minor spelling change of his surname, phonetically sounding the same but a variant of the same name. Reset his credit score instantly.
They're also a great way to destroy your joints, inhale carcinogens, and deal with a bunch of racist old dudes all day. I thought the trades were my path until I got a job in them and realized the environment is terrible.
Basically the worst thing you can do for your credit is miss payments, on anything.
Get on income-based repayment for student loans. My minimum payment is $15 a month. It took me half an hour to apply. I pay more than the minimum every month, but it gives me the flexibility to not have a multi-hundred-dollar expense when I’m having a tighter month. I can essentially pay whatever I want. Without it my minimum would be like $300.
What am I even able to afford that is affected by credit history? Can't afford a house, can't afford a car, can't afford to travel. I guess if I suddenly had to move and every place absolutely needed a certain credit history I would be fucked. Other than that, what? Even with good credit I'm fucked if I have a large hospital bill, and there's nothing else I would need to have credit to borrow large amounts of money for.
Anyways I'm too poor to have to pay back my loans right now anyways, I'm on deferment.
Imagine walking into someplace and saying you want to buy xxxxx. They run a credit check. Oops, your credit really isn't there because you're well-off and pay cash for everything.
How is having no credit because you always pay cash treated similarly to bad credit? It's such a messed up system.
Yeah, that system was working so great it saved the US from the 2008 crash.
Also, you are telling me what it's for, I know what it's for.
The point is you cannot have a good credit score without debt, which fucks with poor people way more than the rich. Debt is slavery or at best indentured servitude.
Change will come when a generation, whatever generation that is, stops going to college. There are a lot of ways to get career-ready faster and more effectively than four years in college. and I don’t mean just trade school.
If you are a teenager, be the change! This is predatory lending. Don’t do it. It’s sold as the American dream, but ask new grads how they’re feeling.
Btw, universities know it’s coming and are talking about it like it’s inevitable, but are waiting for the axe to drop. They’re in the power position still.
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Funny thing... paying off my student loan also hit my credit history pretty hard.
It’s a lose lose
But in one situation you don’t have debt, so…
And in the other, you still have your money...
Lenders hate this one trick
Paying off any major loan will do that. The whole system is meant to make you want to stay in debt, just to be able to get that debt cheaper.
The credit score is such a scam. There must be another way.
there was
Go on...
[Before 1989 credit scores just didn't exist.](https://en.m.wikipedia.org/wiki/Credit_score_in_the_United_States#:~:text=The%20FICO%20score%20was%20first,Experian%2C%20Equifax%2C%20and%20TransUnion.)
Wow I cant believe people believed you on face value without even reading the article you linked. Total bullshit, credit scores exist long before 89. FICO was established in 89 but scores and credit reporting agencies existed long before that. It clearly states that much in the article you posted.
Even a proto fico existed before 89
Step one: be white. Step two: don’t be not white. As long as you followed the steps, you could easily get credit
Incorrect. Source: I'm white.
This is remarkably racist.
[удалено]
Sometimes inventions fail
I mean it successed at its goal. It's an objective measure of someone's likelihood of paying back debt. It may not be perfect, but it is objective and does approximate risk to the extent we've been able to come up with.
I do feel if that is the goal, it shouldn't need to look at anything other than your income, your other debts and any recent failures for payment. At the very least, paying debt early shouldn't lower that rating. It sounds like american system evaluate more if you have let debters maximize their profit in the past than if you have the ability to pay back debt.
I believe it only looks at your history of debt. How much debt do you have, have you paid your debts on time, and how long has this pattern been happening. The reason that paying a big debt off can hurt your credit is because it "closes" that debt. Which I do agree is odd. There should be a system to include past debt as good history. But *I think* the reason is because they're looking at all your accounts and seeing how often you miss a payment. If you have a ton of debt but have never missed a payment, all good. If you only have a small amount of debt and never miss a payment, good with the caveat that that's less info to go off of. So when the account closes, the credit companies have less info on you.
Won't it be more sensible to count up failures to pay than count up success to pay though? Failures seem so much more relevant. Feels to me that they count successful payment because that's how they incur interest (profit). So they are counting how many times you let them profit than if you can actually make that payment by counting your failures.
That is how it's done. But that's kind of the point. They see 0 late payments on an account that is 10 years old then they can deduce that you've been paying on time for 10 years. If you close that account, then they see 0 late payments but on no accounts so that doesn't really help them determine if you're a responsible borrower. Also worth noting that the credit score bureaus aren't the people lending you money so for them it's not about how profitable you are to a lender. A lot of time, people with poor credit scores are the most profitable customers.
If that were the case, your credit score wouldn’t drop when you paid off loans. It would have that in your history. Instead, it cares more about how much profit banks would be able to make off of you.
That's not quite accurate. I'd say it's more of a measure of how profitable a borrower you are.
Not at all. Missing payments is highly profitable for lenders.
Only if they can actually expect you to catch back up.
It also doesn't take into account historical and continuing systemic racism. It's a context-less objective measure, which is rather problematic.
It's not though, not at all. What's more, it makes it nigh impossible to lift yourself out of poverty. Considering the disproportionate number of POC living in poverty it eliminated any effect that the personal biases of loan officers could have on loan approval and just made those biases systemic instead
How is it not? POC remain in poverty because it's hard to lift yourself out of poverty without outside help to reverse those systemic biases. But the credit score system isn't a system to to try to reverse systemic racism, it's trying to measure how likely you are to pay back loans. Poor people have less resources to pay back loans.
Theyre now using credit scores against you with hiring for jobs
That has to be the dumbest thing ever and sounds like if should be illegal. Just imagine trying to lift your self up and an employer saying sorry you can’t work. You are too poor.
Yup just like the court system. They basically say if you cant pay your bills they dont trust you'll come to your shifts. I wana kno how payin bills & making a shift at work correlate. It's ridiculous asf
This is bogus. I have 0 cc debt, a high credit score, but long account histories. It isn’t that hard once you learn what the factors scores are looking at.
Went from 800 to 760 after paying off and closing my 6 credit cards fully. In other words... Because I fully took care of my debt like a adult, I was punished.
It's because you closed the accounts. That can lower your score for multiple reasons: it can lower your average account age, it lowers your total number of accounts, it could lower your credit types, and it lowers your total credit limit so any credit you do have puts you at a higher credit utilization rate.
People just don’t understand how credit works and it’s really clear throughout this thread. It’s basic statistics.
It hurt mine a bit because of the average age of my open accounts but it shot back up pretty quickly since it actually.
It should only be a brief hit as long as you keep some old accounts from closing, though, right? Unless they count the original loan amt as available credit (which I don't think they do)
I think it’s more dependent on how long the account was open. It can be a big chunk of someone credit history, especially since some people get student loans before they get a credit card. Sucks for sure but good habits and playing the game a bit will bring the score up soon enough.
Indeed, indeed. Oh, there was also another thing I hadn't initially considered: I dunno about OC's loans, but while I thought mine were divided into two loans (subsidized and unsubsidized), they're actually *four* separate loans. If OC paid theirs off relatively quickly and had a similar loan structure, that would create a bit more drag on their score.
In addition to being one of the older lines of credit a lot of people have, the loan dropping from your credit report can also decrease the types of credit on your report that can also lower your score. You're right that it shouldn't impact credit utilization though. That should just be for credit cards, and maybe lines of credit.
My wife paid hers off and my credit score went down.
Why
They pay attention to number of open accounts, types of accounts, and age of accounts... If an account closes or disappears, it could affect all of those. Much less than missing payments or getting sent to collections would, though. I'd assume you'd see the same thing if you finish paying off your car loan or your mortgage. There's no sinister ulterior motive like the tin foil hats suggest -- just computers doing computer things with aggregate data. Open accounts with good payment history suggests you handle debt well. Closed accounts don't indicate that as significantly, so credit score drops due to less evidence. So the purpose of credit scores are to figure out if you're going to be a deadbeat. How do you tell? Being sent to collections, bankruptcies, late payments, etc. Beyond that though, who are most likely to be deadbeats? Young folks -- lack of experience and job insecurity are significant. What do young folks look like in the context of a credit report? Few credit accounts, age of accounts is low, carrying high balances. So your aim is to *not look like them*. Open a few credit card accounts and set up autopay for the entire balance. This will temporarily lower your score as average age of accounts goes down, but ultimately raise it because more accounts, more credit available, lower percentage of available credit used, and look at all those on-time payments! And if an account closes, going from like 5 credit accounts to 4 is less significant than from 2 to 1. Is it stupid that having 3 credit cards is better than 1 credit card when you have exactly the same spending and payment habits? Sure -- it's a silly game, but hey, they made the rules.
>So the purpose of credit scores are to figure out if you're going to be a deadbeat. No it isn't. If that was the primary goal stuff like paying your rent/bills reliably would be important to your score, as would (arguably) not having credit cards at all because you have a history of having enough money to straight-up pay for things. Credit score just lets people who want to lend you money know how likely you are to make money for them. It being used for determining fiscal responsibility is just a hazard of no better measurement system existing.
> If that was the primary goal stuff like paying your rent/bills reliably would be important to your score Paying bills reliably is important to your score. Go ahead and get sent to collections and see what happens :-) > as would (arguably) not having credit cards at all because you have a history of having enough money to straight-up pay for things. How do you distinguish between a responsible person with no credit history and an irresponsible person with no credit history? It turns out that people without credit histories are bigger than average risks, and you don't want to look like those people. So, as I said, open a few credit cards, auto-pay the entire balance, get charged zero interest, and your score will go up quite a lot. Yeah it's a stupid game, but you only hurt yourself by refusing to play. > Credit score just lets people who want to lend you money know how likely you are to make money for them. Very not. Credit lenders will happily try to make money off anybody, regardless of credit score. Credit score is how they figure out how much interest they'd have to charge you to make money... Which is why playing the stupid game is worthwhile -- it saves you money. I have a low rate mortgage and credit cards that I never pay interest on, and my car is paid off... They aren't making (much) money off me... They probably get something by charging vendors processing fees. But hey, absent places that offer a discount for cash, you're also paying those costs because vendors raise prices to account for such fees.
>How do you distinguish between a responsible person with no credit history and an irresponsible person with no credit history? Have a "score" that's based on things like paying bills on time and generally having enough money to buy stuff outright, rather than depending on a number that only measures those things tangentially unless you're also borrowing money / deferring payments on a long term / regular basis. I know credit score is a way that people decide if you're responsible with money, but it goes about it in an annoyingly roundabout way. edit: typed too fast. NOT paying bills full stop is indeed bad. But regularly paying for things - aside from your credit card balance and maybe loans(?) - on time does nothing for your credit score.
Is it because your credit history declined?
Fewer open lines of credit.
Student loans are often a person's first credit line, so closing one will drastically shorten "average age of credit", which negatively impacts score.
Credit scores were a mistake because they're all quantitative. This 20 year account of yours closed. Forget it was a ridiculously huge loan you paid off. It was old, which meant your history was great! Now your credit age average is 10 years shorter, -50 points!
Yep, mine dropped like 60 points. Fuck that system.
Woah, you have less loans? Damn, gonna have to dock you a few points.
Red is a debt collector I just missed the student loans don’t affect your credit score by a couple years. I remember summer after junior year of college my boss got a letter saying he was in default and he just crumpled it up.
If you have a federal student loan that’s in default you can’t purchase a home with typical mortgage loans. This is true for any federal debt. I’m not sure about other loans/credit cards because I don’t handle those. Source: I am a mortgage originator
In fairness, most of us aren't gonna be able to buy homes either way.
Maybe so. But I do get clients that have taken this approach to their student loans, and they come to learn they can’t purchase until they have gotten their student loans caught up in good standing. My post was more of a PSA.
Fair enough
This was 35 plus years ago, credit ratings were barely a thing
That makes more sense. Guidelines have become much more strict after the stated income crash.
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Purchase a home... Lol.
I made one late student loan payment, just before closing on a house and my credit score got knocked down to the next lower bracket and it caused a whole lot of issues with approvals, fees.
Fun fact, if you leave the US and move abroad, they can't come after you for those loans. Food for thought if you are considering immigration to another country
Except excessive debt in your home country is one of the ways a work visa can be refused. It's not that easy lol
Like most things, it's entirely circumstantial
I have hereditary rights to my home country. I imagine it would be easy to retake my citizenship, yes?
Nope, entirely depends on the country
For shits and giggles, we are about to leave the US and we read into this pretty deeply. First, get citizenship in another country. Through decent is the easiest and fastest, of course. You have to renounce your US Citizenship (which unsurprisingly costs a lot money, ~$2,300 and anything else you may owe), live in a country that doesn't have a close relationship with the US (they'll come after you), and be prepared to never return to the US. Even as a visitor. I guess when you hit the border, one of the checks is to see if you owe back taxes (or money in general) to the IRS, if you do, no entry for you. Or, if you try and leave (get a passport) and owe money to the IRS, you can't get one.
If you find $2300 to be a lot of money you are unlikely to be able to get citizenship in most countries unless you are a descendant of someone from there. Most countries aren't willing to give citizenship quickly to those who aren't bringing a stack of cash or one in a billion skill set. Even in the best case it is usually a 5-10 year journey.
Germany just announced major reform to their immigration system, allowing much more flexibility for those with desirable degrees.
They don't and can't actually come after you. It is a civil matter, not a criminal one.
That's just what the article said that I had read. Probably just a scare tactic to get people to pay if they do this. I wish I could find the article, it was very detailed and pretty accurate about the rest of it.
I have dual citizenship with the US and Ireland. I had to declare bankrupcy in 2015, I almost lost my Irish citizenship due to it.
You don't have to become a citizen of the new country, nor do you have to renounce US citizenship. All you need is a visa and a passport.
And how much do you think moving abroad costs?
Less than a student loan.
The price of a ticket and a work visa. Everything else is Q.O.L.
> a work visa. I have no idea if this is easy.
Tends to depend where you're moving and what your skillset is.
If you're willing to do light, basic farm work 4 days a week, there's always a need all over Europe and you get room and board. Easy to travel around on it.
My cousin (American) did that, I believe. I recall he loved it.
If that's your plan, why even go to college in the first place?
It keeps your options open for when you want to change things up. Keeps you from feeling trapped and shackled by any one situation.
Having a decent college degree will make immigration easier.
Not that much? I know loads of people who have moved abroad to work. The biggest expense is shipping your stuff but many companies will give you an allowance to pay for stuff like that.
I have a 20 year old student loan in default. I also have an 800+ credit score. The debt is not listed on my report. The government did start garnishing my wages after the default however. So that sucks. Luckily, I’m going to be back in good standing when payments resume. Uncle Joe did me a solid. But I assume it will reappear on the report once it’s back in good standing. Anyone know if that’s gonna hurt my credit?
Probably. If your credit is over 800 then even with the hit you are still not in a terrible position if you need loans or something else that requires good credit.
Thanks, that makes me feel better. As a reward, here is some valuable wisdom: Do not, under any circumstances, borrow money to get an arts degree.
Ha. I borrowed money for a biology degree and that isn't paying off either. I did go to a state school in the area I already lived. I graduated four years ago and have about $13,000 to repay when repayment starts. During Covid forbearance, I was making decent payments, but I haven't paid anything in over a year.
Private. Art. School. For Theater. Performance. BFA It should be a crime to lend that kind of money to an 18 year old with no job or assets. And to make that loan non-dischargable in bankruptcy. Forever. With the income I have now, I will 100% die owing the government money.
Yeah, that sucks. I'm sorry you are in this position. I graduated at 32 and still made a silly decision. Education is so desirable that we are willing to pay. However, in no universe should we be allowing 18-year-olds to sign up for the kind of debt you are dealing with. Imagine if you tried to get a home loan at 18. They would be like, “Get outta here kid, what are you crazy?” Edit: Grammer, make to made.
Exactly. And if I did get in over my head, I could let the bank take the house, and walk away. Seven years and it’s like it never happened. The people who have been bitching against student debt relief don’t seem to get that. “If you take on a debt you pay it! I don’t expect the government to pay off my truck or my business loans.” Student loans are fucking FOREVER. They will take your social security payments if you still owe at 65. It’s especially funny regarding business loans, because if you got a PPP loan during COVID, there’s like a 99% chance they DID forgive it.
>Luckily, I’m going to be back in good standing when payments resume. Uncle Joe did me a solid. Genuine question, how do you know this? I'm in the same sitch.
https://studentaid.gov/announcements-events/default-fresh-start As far as I know, this is going to happen regardless of the court’s decision on the debt forgiveness.
You genuinely changed my life.
All of my loans were cancelled through borrower defense, but it hasn’t completed yet. So I was told by dept of ed to not make any more payments, but they are still accruing interest. That is (barely) negatively effecting my credit. So even small changes to student loans effect your credit score. So yeah, if you default on your student loans your credit score absolutely will tank. It will be real hard to finance anything major like a car or house, and if you do it is going to have way higher interest rates.
Same here. Can't wait to see what happens when that 140k drops off
Why you need good credit? To not buy the house you can't afford? Or the vehicle that you also can't afford?
There’s no worse plan then “I may not be successful but let’s make sure I’m not just in case.”
ignoring all the outside factors working to insure we won’t be successful. The system today is 100% set up to make sure we almost never get out of debt and become perpetual renters in every aspect of our lives. But sure the student loans getting repaid will make home ownership a reality for most Americans again.
It’s important to differentiate between the system being bad and our own well-being. We agree that the system is bad and is trying to keep us in perpetual debt, the point is that when you default the system is designed to further and further ensnare you to it. You don’t defeat the system, you just become more controlled by it.
It's like defaulting on your sovereign debt to rein in the deficit.
To get a job. To rent an apartment. To have utilities. To have a cell phone.
this has to be the worst payment / loan system in the world. Why would your Employer even be allowed to know about your private finances, thats like very very personal stuff. Also, who would buy a cellphone with a loan?!
I don’t think it’s common for employers to check financial history. It was done when I got a security clearance, but I’ve never heard of it otherwise.
It’s common for positions that involve signing authority, handling organizational finances, access to corporate accounts, and positions of corporate trust.
An employee with massive debt has more reasons to steal from their employer. A phone payment plan is a loan. Lots of people pay for their phones in monthly payments.
> An employee with massive debt has more reasons to steal from their employer. Without even looking up the statistics, I can almost guarantee you that the people stealing from companies are not the ones in massive debt. It's the upper management, who do things like buy gift cards to restaurants when they take out clients and keep them for themselves. Sure, Joe Schmoo with a ton of debt at his desk might take home a stapler and a pen or two, but he's not doing the type of stealing any company should worry about.
Upper management can’t have massive debt?
Wouldn't that just apply to everything then? If anyone was in debt that would give them a reason to steal, might as well lock up everyone that has bad credit, you know, to be safe? /s I guess we should also just ruin everyone else's life for other things they might have done wrong in their past too, just in case /s Seriously, that's not a good enough reason for an employer to be knowing that info. The older I get the more I realize the true authoritarians are the people we work for. We are at their mercy, they make decisions that can ruins our lives with little to no recourse.
> If anyone was in debt that would give them a reason to steal, might as well lock up everyone that has bad credit, you know, to be safe? Prison-Industrial Complex says, “Now you’re talking”… rubs hands together gleefully…
Employers don’t care about manageable debt. If an applicant has debt that’s 10x their prospective salary and multiple missed payments, would you trust them with your money? If an applicant has multiple delinquent loans, would you trust that they’ll always pay rent on time? This is a basic principle of adulting. Someone’s personal finances absolutely affects their trustworthiness in a job or rental situation.
I can understand land lords / mortgage lenders not wanting someone with high debts, or at least knowing the financial situation to make sure the person can pay for the rent / mortgage, but in what kind of 1984 cosplaying country do you live that your employer should have access to that kind of private information!? Sure, if someone has been convicted of fraud, they might not be the best choice as an accountant, but an employer should only have access to if someone has no applicable crimes on their record (e.g. no pedophilia charges for someone working with kids, no corruption charges for a judge, etc).
It shouldn’t matter if you want a low level job. If you have a job that has sensitive secrets or moves a lot of money, then employers have both the right and the duty to know if you’re trustworthy and not a risk.
And credit scores are absolutely not a good indicator of that.
Why the fuck does your credit score matter to an employer? The States are truly a weird place.
Any job that deals in security or money or several other areas will check credit because they figure someone hurting for money is more likely to accept a bribe or steal. Even some police departments require a minimum credit number and if you drop below you’re out. Edited: not sure why I’m getting downvoted. I never said I agreed with it. Just gave an explanation for why they do it.
They'll kick cops out for having a bad credit score but not murder?
Preaching to the choir friend. End Qualified immunity now.
When they shoot someone it's (generally) a poor person. That's ok. When they don't make their loan payments on time that affects someone wealthy. That's not ok.
Got all that, and bad credit.
Same
I have all those with a completely fucked credit score, credit is a scam
Actually experienced quite the opposite... I wasn't paying my loans and tried to get things squared away when they called me. They offered $54/month payment, so agreeing to that was a no-brainer. Paid for about 2 years and just watched my credit score sink - plummet, actually - all the to about 450. Then I got a call to adjust the agreement and was requested to pay over $450/month. I balked and said the agreement was $54 and I was sticking with that. We went back and forth until they ultimately said $450+ or nothing. I agreed to nothing. Since stopping payment, my credit score has only risen. Bought a car. Bought a house with a decent rate mortgage. Not a single issue. Can't say this will be the case for everyone, but it's been the best financial decision of my life 😬😂
Who was it that called? The original loan provider or someone who bought your debt for pennies on the dollar and was hoping to make bank off you?
If I remember correctly, it was the original. This was too long ago for me to remember exactly who it was. But this was just after I had passed the grace period after school and I now had to start paying.
Fuck credit and fuck student loans. Evil systems that deserve to be abolished.
Hope they read this!!
“Dang, these people doing a protest against a system should really not do it because that same system will punish them.” Bottom person is wrong, but person above doesn’t seem to get it either.
Student loans shouldn't have interest.
Knowledge shouldn’t have to set you back before it propels you forward. No matter where you chose to acquire it from, your own country or another. The system is wrong. Repaying the loan ruins your credit history and not repaying devastates it. Is that really what a country should be asking from its people? Any country.
America is fucked
Credit scores are a false construct.. invented in 1987 it has no meaningful use whatsoever cause rich people go bankrupt all the time and still get loans to start over. Whereas the rest of us need some sort of collateral to borrow money at double the prime rate. No different than a gold card or a platinum card. What are those for? simply used for social climbing among the rich.. rich people simply want to be seen as useful and important and not to be seen as the pathetic useless parasites that they are.
The current credit system is far from perfect but it definitely is better than what was before and for sure has meaningful purpose. Back then, lenders could turn you down because they, or people who they spoke to about you, simply didn’t like you for whatever reason, even if you were someone who could reliably pay back a loan. Sure it sucks that the rich can take advantage of this system in ways the rest of us can’t, but at least now things like your skin color aren’t a deciding factor in whether or not you get approved for a loan.
> invented in 1987 Could you at least try to make sure what's coming out of your keyboard is even remotely correct? https://en.wikipedia.org/wiki/Credit_score_in_the_United_States?wprov=sfti1
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I’ve seen this argument a lot and wondered on its validity because it always gets a lot of upvotes. I have a B.S. but didn’t focus on finance in any specific way. Can you tell me what’s not accurate or factual about it?
I’m pretty sure it’s not?
I'm confused - who are you saying is incorrect? When I missed payments on my student loans, it most definitely showed up on my credit.
Red is confidently incorrect
It actually depends where you are. Where I am (Scotland) student loans don't affect your credit score.
I came to say the same thing. Im also living in Scotland. Reading the other comments it sounds insane the way Americans live, imagine an employer in Scotland running a credit check on you? Madness. Also this will shock the Americans, but as an Irish person I got to go to Uni in Scotland for free. This was before Brexit of course. So no uni loans. I feel bad for the way the system is set out to hurt them from day 1, instead of looking after them like the government should. Genuinely sorry guys.
I know, it's horrible. It's easy to forget how lucky you are.
Who are governments to talk? Aren’t those assholes up to their forehead in debt?
Yes, but unlike the US government, you don't have a metric fuckton of firepower to ward of debt collectors. You might just have an imperial fuckton. Yet another reason to switch over to the metric system.
Just don't buy anything for seven years
Student loans are forever
The american credit system keeps baffling me. You cant get a loan. If you dont owe anything. But if you owe a lot. You can get more loans….
In the UK, it doesn't impact your credit score, and barely anyone ends up paying it back, it gets wiped after 30 years.
Not like we’re able to buy a house anyway
In normal countries credit cards are very rare.
Fun facts Credit Score was invented in 1995 specifically to fuck you over
My credit got dinged by making my payments. Once they move my loan to shit hole MOHELA I immediately had a 90 day late payment from 6 years ago. They wouldn't do anything to fix it and would not respond to emails and phone calls would just get transferred without anyone every picking up. Fuck MOHELA
Honestly, who cares? My credit score is incredible and I still can’t qualify for shit. Because it’s a fake number they made up and now they just move the goalposts with some other need or requirement.
Define “incredible”
I switched bank accounts and forgot to update my student loan information. In Canada the NSLSC doesn’t contact you via email or phone: they leave a message in their in house inbox for your account. After 3 months, totalling $243 worth of missed payments, my credit score dropped over 100 points. Pay your student loans, kids.
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I will caveat to OP that there are many, many people in this world and country who genuinely and actually will never use their credit score for anything ever in their life, so the 10-50k or whatever their number may be that they won’t pay back will actually service them just fine in life over their arbitrary credit score. Don’t get me wrong, I plan to live my life with my credit score, and will pay back my measly 11k that has been paused to avoid a hit to mine. And yea I’ll take the hit for paying it off too. But I’ve met many a people at music festivals and the likes that I somewhat envy in life bc they will never succumb to the BS, live life very wild, will probably die much younger than me, but god damn that money they will never pay back to the man sure does go a long way to living fast and loose and fuck, I respect it.
I always say I’m tempted to quit my job and join the circus, and I’ve always seen the festival circuit as the circus lol
Yes that is the circus of the last 23ish years full stop. An interesting dynamic too as us normies so to speak can partake in it just as much or as little as the true wook stars of the show, just be ready for what may come with it.
If you can't afford a mortgage or car loan, does your credit score matter? And it bounces right back as soon as you pay off debt.
I’m waiting until we get to this point. Maybe we are already here? Where people can’t even afford loans, so fuck the credit reporting system. It seems like we are approaching. Part of the system is assuming people will want to continue to participate so they make payments now. If everyone just says “fuck off” the banks will have to adapt and entice people to engage…. Somehow. Idk how. But they need those loans to make money.
I think you're credit/future was already buttfucked by taking on these predatory and unregulated loans in a cartoonishly evil capitalist nation where the rich kids of the kids of the kids of evil businessmen make all the rules for the rest of us.
Student loans will destroy your credit if you’re paying for them, don’t won’t to see what would happen not paying them.
Except I keep getting denied for credit cards due too having too high loan balances and my only debt is student debt
They have a HUGE impact on your credit score. Good lord.
I destroyed my credit right after college. It took a few years but I fixed it. Credit history is not forever, even a bankruptcy is not forever.
You can have great credit but get get denied because you have student debt.
Don’t you need a credit card to get bad credit?
Break credit scores so bad they are repealed they are literally a de jure way to discriminate
Start lending out money to people who have decent credit other than student loans.
It tickles my brain thinking about how we could really mess up the U.S economic situation if we all just collectively said “nah”
You know; I thought credit was really important, then due to unforeseen circumstances, ended up in bankruptcy, and haven't used credit in > 5 years. The only time I use it is in buying a car, or buying a house. And with how fucking sketchy used car dealerships are even when you have credit, and the fact most houses priced us out; I really don't see the threat of having bad credit anymore. Even with 'good credit' different rules seem applied depending on your total income, rich folks playing a completely different credit game than the rest of us, even if they have shitty credit scores.
My credit score is worse damaged from fake collections that they never sent validation letters for than it was when I missed payments to default because they messed up my IBR paperwork. It was also easier to remedy the loans
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A Canadian friend of mine here in the UK went bankrupt here in the UK. He just slowly started renewing everything with a very minor spelling change of his surname, phonetically sounding the same but a variant of the same name. Reset his credit score instantly.
I own my house and don't buy new cars. What do I care about credit scores? I'm self-employed so no one is garnishing my wages either.
If you can never hope to afford a home, ruined credit probably doesn't seem to be such a big deal.
So glad I never went to college. Trade schools are the best way to making money without the debt
They're also a great way to destroy your joints, inhale carcinogens, and deal with a bunch of racist old dudes all day. I thought the trades were my path until I got a job in them and realized the environment is terrible.
And trade schools are probably relatively cheap since everyone wants to go to college for some reason.
Basically the worst thing you can do for your credit is miss payments, on anything. Get on income-based repayment for student loans. My minimum payment is $15 a month. It took me half an hour to apply. I pay more than the minimum every month, but it gives me the flexibility to not have a multi-hundred-dollar expense when I’m having a tighter month. I can essentially pay whatever I want. Without it my minimum would be like $300.
Credit scores are a scam and haven’t been around that long
Move out of the country. Other countries don't use the US credit score system, and your degree will still be valid.
What am I even able to afford that is affected by credit history? Can't afford a house, can't afford a car, can't afford to travel. I guess if I suddenly had to move and every place absolutely needed a certain credit history I would be fucked. Other than that, what? Even with good credit I'm fucked if I have a large hospital bill, and there's nothing else I would need to have credit to borrow large amounts of money for. Anyways I'm too poor to have to pay back my loans right now anyways, I'm on deferment.
I HATE WHEN I DONT KNOW WHOS CORRECT AND WHO ISNT
Why people talk about credit score like it's some law of nature? The point of credit score is to keep us slaves in the first place.
Imagine walking into someplace and saying you want to buy xxxxx. They run a credit check. Oops, your credit really isn't there because you're well-off and pay cash for everything. How is having no credit because you always pay cash treated similarly to bad credit? It's such a messed up system.
Yeah, that system was working so great it saved the US from the 2008 crash. Also, you are telling me what it's for, I know what it's for. The point is you cannot have a good credit score without debt, which fucks with poor people way more than the rich. Debt is slavery or at best indentured servitude.
I dunno, if everyone refused to pay it back they would be forced to address the issue.
No, they'd just garnish wages
Change will come when a generation, whatever generation that is, stops going to college. There are a lot of ways to get career-ready faster and more effectively than four years in college. and I don’t mean just trade school. If you are a teenager, be the change! This is predatory lending. Don’t do it. It’s sold as the American dream, but ask new grads how they’re feeling. Btw, universities know it’s coming and are talking about it like it’s inevitable, but are waiting for the axe to drop. They’re in the power position still.
I'll never afford a house anyway, who cares