Posted on 06/02/2022 7:43:08 AM PDT by millenial4freedom
Hi All,
One of the latest talking points of the mainstream media and its band of pavlok-dog economists is that credit scores for all individuals, particularly homebuyers, are much higher than those pre-GFC (Great Financial Crisis).
However, we all know that the Swamp, particularly the likes of Fauxcahauntas, has ruthlessly inserted itself into consumer financial affairs for the last 100+ years.
So I have to ask, have their been efforts made and/or regulations enforced that essentially water down credit scores for consumers? In other words, would many (maybe not all) individuals with an 800 credit score today have the equivalent of a 720 score if standards were applied from 2004?
I figured that someone involved in community banking might be more familiar with this, but I'm open to hearing commentary from anyone else, of course.
Thanks!
Obama would have shut down all the credit bureaus if he could for being racist:
https://www.investors.com/politics/editorials/cordray-has-hidden-agenda-policing-credit-bureaus/
“It’s part of the administration’s political agenda to reallocate credit. Equalizing outcomes in credit reporting across racial and income groups serves that goal, called “the democratization of credit.”
Today, lenders are using algorithms to make safe loans but those algorithms are being attacked for being racist by Biden’s people in the CFPB:
Liberals still prosecuting banks for redlining in an attempt to create the recipe for another economic melt down as in 2008:
“I don’t have the highest number available, but I am in that group and close.”
Some of the tricks to get a perfect score are counterintuitive. Let’s say you have a score of 840 and mortgage, credit cards you payoff each month, but no car loan. Getting a $20,000 car loan could actually bump your score to 850, because your types of credit factor went up. You would think, adding more to my debt total would make my score go down.
“They also don’t like zero balances on credit cards.”
Only if there is no activity. If so during the period it doesn’t hurt. Common sense. If you charge $1000 during each month and then pay it off, you can handle a credit card. If you don’t use the cards, it doesn’t say much. Like gauging whether a person can handle their booze. If they never drink, it’s an unknown. But if each time they go to a bar, have a few, and then go home, they says a lot.
The credit industry is not that hard to understand. With fractional reserve lending you’d have to be dumb as a box of rocks or extremely unlucky to lose money as a banker. Still some of them manage.
I had a $12 bill from a podiatrist that got lost in mail issues (we recently moved after 30 years at one address). They never called. It finally went to collections and we finally got a forwarded bill, paid it immediately but too late. It’s on my report. Really dropped my score, which Re entry was well over 800
Recently
Seems to me that the credit scores are for your manipulation. You can have a perfect record then suffer more than a hundred point hit with one small error. Try not to borrow money!
We used to believe that, but our bank told us that it isn’t true. We pay everything off each month, and the score consistently increases.
No credit scores haven’t been messed with in some back door manner.
The only recent change is that medical collections are not affecting credit scores too much.
That’s a good thing as it’s very easy for one of those to get attached .
The bigger thing to be concerned with is coming decline in housing prices.
That’s a certainty in my opinion .
There oughta be a law. These medial billers are too quick t send things to collections, when often it's a issue with the insurance company. I had to threaten a collections law firm with a counter suit to get them to cease and desist after providing them with proof positive documentation of payment. But here in NY our AG is too busy harassing Trump to actually protect citizens from this sort of abuse.
“I had a $12 bill from a podiatrist “
Call the podiatrist and ask them to remove it. Also dispute the bill on your credit report. If they don’t respond and confirm in 30 days it gets removed. If the debt collector or podiatrist have closed, there is no one there to confirm. Or if they have crummy records and can’t confirm, it gets removed. All those options will cost you nothing so it a free shot.
A few years ago, I was surprised to learn I had no credit score at all. At that time, I needed a score urgently (long story). To get one, I had to put a deposit down on a credit card (yes, you read that correctly). Then, each month, I charged a small amount to that card and paid it off in full. And I still had to wait close to a year for a score. When I finally got one, it started around 710. Eventually, it has crept up to about 740 (AFAIK). So, if there's been a big boost to credit scores, I didn't receive it.
Put the money to best use and don’t fret over your credit score.
“Add to that I have been retired for 3 years with no income”
No income?
Woah, I mean, you gotta work for a 335 score.
Yeah, that doesn’t make sense to me. People who simply don’t need or use credit are forced to take some on just to be in the game in case they might need a score in the future.
Our car is 9 years old and has about 38K miles on it. Has needed only minor upkeep and repair, and there’s absolutely no sense in buying a car ‘just because’.
score means nothing. zero balance month to month means they make 0 dollars on interest giving you an account.
They will still give you a card, but you might not get as high of a limit as someone with a lower score that carries a balance. banks are in the business of making money, paying off before interest cycles doesn’t make them anything but the small fee they charged the merchant for taking your card.
I’m in the 800 club too, all I gotta do is “sign here” for anything I want.
common sense isn’t common..
“dude! I need a ride to get to work! You gotta help me, you can do buy here pay here right?”
ya, no.. if no bank will touch you, why should I?
I do have a nice huffy in back for your 100 dollars you have as a down payment.
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