603
TIL personal credit scores only started in 1989
(en.m.wikipedia.org)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 21 Feb 2024
603 points (97.3% liked)
Today I Learned
17686 readers
862 users here now
What did you learn today? Share it with us!
We learn something new every day. This is a community dedicated to informing each other and helping to spread knowledge.
The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:
Rules (interactive)
Rule 1- All posts must begin with TIL. Linking to a source of info is optional, but highly recommended as it helps to spark discussion.
** Posts must be about an actual fact that you have learned, but it doesn't matter if you learned it today. See Rule 6 for all exceptions.**
Rule 2- Your post subject cannot be illegal or NSFW material.
Your post subject cannot be illegal or NSFW material. You will be warned first, banned second.
Rule 3- Do not seek mental, medical and professional help here.
Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.
Rule 4- No self promotion or upvote-farming of any kind.
That's it.
Rule 5- No baiting or sealioning or promoting an agenda.
Posts and comments which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.
Rule 6- Regarding non-TIL posts.
Provided it is about the community itself, you may post non-TIL posts using the [META] tag on your post title.
Rule 7- You can't harass or disturb other members.
If you vocally harass or discriminate against any individual member, you will be removed.
Likewise, if you are a member, sympathiser or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people, and you were provably vocal about your hate, then you will be banned on sight.
For further explanation, clarification and feedback about this rule, you may follow this link.
Rule 8- All comments should try to stay relevant to their parent content.
Rule 9- Reposts from other platforms are not allowed.
Let everyone have their own content.
Rule 10- Majority of bots aren't allowed to participate here.
Unless included in our Whitelist for Bots, your bot will not be allowed to participate in this community. To have your bot whitelisted, please contact the moderators for a short review.
Partnered Communities
You can view our partnered communities list by following this link. To partner with our community and be included, you are free to message the moderators or comment on a pinned post.
Community Moderation
For inquiry on becoming a moderator of this community, you may comment on the pinned post of the time, or simply shoot a message to the current moderators.
founded 1 year ago
MODERATORS
If you ask someone to loan you some money (a line of credit), they might reply:
"Hmm, has anyone else loaned you money before, and you paid it back, showing you can be responsible with a loan?"
Even if it's just a friend asking for you to spot them $50, you might ask a mutual friend if that person actually pays them back.
It makes sense that not having a credit history is negative for them.
Sure but this person was denied housing because of their lack of credit. Some jobs will also deny you for similar reasons.
You need to think about this a little harder.
The landlords are there to make money and not to offer charity.
They aren’t going to take a risk offering you housing if they feel strongly that they’ll never see a dime from you.
It’s not a hard concept to understand.
I won’t invite you into my house if I think chances are good you’re going to rob me.
There are numerous other ways to determine that like eviction records, references, or reported income. A poor score doesn't mean that you aren't going to pay rent and most rentals require a first and last month's rent to begin with.
Do you think someone who pays all their bills but was the victim of identity theft should be unable to access housing?
If you’re homeless without a job, why would I take a risk? You’re not thinking about it from the perspective of a creditor.
No. But if I were a creditor why would I take a risk on you just because there is a possibility you’re a victim of identify theft?
If the world was ran with your expectations all businesses would be broke because they would be exploited into oblivion.
For every victim of identify theft out there there’s 10 other people happy to take advantage of the situation and never pay a dime.
You’re purely thinking from the perspective of a victim and clearly don’t see that all of this is a liability. It’s not up to a bank or landlord to provide charity.
Do you invest in anything? Would you invest into a stock, a company, or anything if there is information that clearly indicates a small chance on a return of investment? The answer is no. Instead you’ll invest in something else that is proven to be a good return. It’s simply risk management vs opportunity cost.
Statements like this make me think you've never actually had to rent an apartment/home before or you'd have realized there's an application process involved before you're accepted. This is basic knowledge.
Nobody is talking about charity, stocks, creditors, or any of the other strawman b/s you're spouting. Somehow, people managed to rent homes/apartments long before credit scores or the internet existed, but for some reason, you don't seem to think that's possible while also lacking basic information on the process like mentioned above or standard first and last month deposits as mentioned in my previous comment.
Restricting someone from credit due to poor financial decisions makes sense. Restricting someone from housing because of some score that comes out of a black box is abhorrent.
Part of the application process generally entails a credit score check. This is also basic knowledge.
You can argue all day long but in the end landlords and creditors look at a poor credit score as a risk to their investment. Nothing more.
Statements like this show me you’ve never owned a business, never been a landlord, or otherwise been in a position where risk management is at play.
There is no grand evil conspiracy here, you just don’t understand risk management and how it relates to credit scores.
This right here shows me you know virtually nothing about what a credit score is or how it’s calculated.
Ah so you’re making strawman arguments while accusing me of making strawman arguments.
Clearly I am talking to someone that has zero ability to understand basic finances while simultaneously lacking basic communication skills. Obviously I am wasting my time responding to you.
Good bye.
You're just exemplifying the inherent problem.
People need housing. People without a house are a risk. People with houses won't let people that need housing rent a house because of said risk. Thus we are back at the start where people need housing but can't get it because of the broken system.
You can talk about risk management until you're blue in the face but it doesn't change the fact that landlords are participating in a broken system that leaves real people in one of the worst situations you can be in.