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Early_To_Risa@sh.itjust.works

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Anon tries to understand credit scores (sh.itjust.works)

submitted 13 hours ago by Early_To_Risa@sh.itjust.works to c/greentext@sh.itjust.works

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[–] BeardededSquidward@lemmy.blahaj.zone 25 points 7 hours ago (4 children)

Makes sense when you learn and realize that this is the new way of red lining people. Particularly POC who are less likely to be able to build credit because of poverty.

[–] VitoRobles@lemmy.today 3 points 5 hours ago (1 children)

A few pieces of history here

The credit system didn't exist until around 1989.
Back then, your "trustworthiness" was vague. So if you were black in America walking into a bank, they can easily reject you. And they'd pass this information around like "So-and-so was rejected because ~~he was black~~ we at the Ku Klux bank believe he is untrustworthy" so now banks all over the US has that information and will auto reject you.
In 1970s, they push laws to deny credit based on gender, religion, race. You know, because women couldn't have bank accounts.

So, the credit system fixed a few problems.

Now, there's a few other issues. Credit score + education + zip code easily tells people more about you. Lots of data loopholes.

Im disgusted by the credit score system for the points you laid out. And it's a imperfect system that did solve some big problems.

[–] BeardededSquidward@lemmy.blahaj.zone 1 points 55 minutes ago

It changed but is still used to affect people who used to be redlined before that was made illegal. As for the laws passed in the 70s, yeah, everybody obeys those all the time don't they?

[–] BanMe@lemmy.world 3 points 6 hours ago (2 children)

Yep! Credit scores work for the people they're supposed to: wealthy folks who give their kids $$$ at 18, add them as an authorized user on their own cards, etc. All the one-up stuff poor people can't afford. This is just a numerical way of saying "you're poor go to hell."

[–] lusterko@sh.itjust.works 4 points 6 hours ago (1 children)

Correct me if I'm wrong, but being an authorized user doesn't improve your credit score

[–] heatermcteets@lemmy.world 1 points 5 hours ago

Yes it can improve their scores if the main user keeps it in good standing. It can have a negative impact if the main user doesn’t make payments on time, maxes it out, etc.

It might not be a blanket rule, but if, as an authorized user, you see the line of credit on your credit report it is impacting it.

[–] Jakeroxs@sh.itjust.works 2 points 4 hours ago

I hqd a score of 800 after about 8 years starting from a $200 secured card I got after moving states with my gf and living our lives working at restaurants.

You don't have to be rich to get a good score, it's about habits and debt load.

[–] damnedfurry@lemmy.world 2 points 5 hours ago

Ridiculous, you can have a fantastic credit score just by using a credit card in place of when you'd otherwise use cash, then just pay the card off each month (which you should be able to do with no problem if you didn't borrow more than you had in cash) no later than the due date.

No interest accrued, credit score over 800. Easy.