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Comment by akramar | Hacker News Reader

> our credit score is simple... It’s measured from our assets, our income, and if we have bought on credit in the past and managed it well.

Having worked in mortgage lending for many years, I'd like to point out that this isn't true. Your score (generated by the big 3 bureaus) does not take income or assets into account, it's based on credit utilization, payment history, and similar factors reported by your existing creditors and public records (BKs, judgments). That's why more factors go into extending you credit (credit card, mortgage, auto loan), than your score alone.

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> That's why more factors go into extending you credit (credit card, mortgage, auto loan), than your score alone.

Expanding on this: every credit card I've ever applied for has asked for my income on the signup form. They can easily get my credit score from any of the reporters, but they can only get my income by asking me for it.

Fair enough. In Sweden (my native country), the primary factors for a good credit rating are assets, income, and the lack of mismanaged credit.

I still believe credit card companies redline communities in America. I have gotten better cc offers in the better--strike better; richer postal codes. I can't prove it though.

One of my biggest mistake was using a credit card. I wish I threw out that first one I received upon graduation.

As an aside to your main point, I am curious about why you have a complete disdain for using credit cards. I'm certainly not advocating using a credit card to spend beyond your limits, but intelligent application of a credit card can just net you assets. I'd also like to point out that I find the motives of credit card companies to encourage people to spend beyond their limits through temporary/immediate convenience deplorable, but that is not the only use case for these cards.

For example I have a cash back credit card that I run every purchase that doesn't entail a fee for credit card usage through and pay it off immediately. I accrue/pay no interest, and still don't spend beyond my means, but I get a discount everywhere.

Exactly - hence why my wife who owns a house, a car and a thriving business couldn't get a loan, but our previously almost-bankrupt credit-addicted friend could. Because my wife had a single credit card she lost and forgot to pay the installments on @400 GBP credit, whereas our friend regularly paid hers off.

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