Credit score for ghee most part tries to assure lenders you can repay your debts.
Social credit score is about how close you hew to proscribed behavior at large.
Social credit score is about how close you hew to proscribed behavior at large.
Turns out, a lot of "bad" actions result in missed bill payments.
It used to be the merchant had to know you and you had to build up your credit with each merchant over time. Credit scoring made it easier for merchants and customers to issue and leverage we credit.
They absolutely solve the problem that you are pointing out. But they also serve to kind of solve a whole class of other problems around identifying behaviors that correlate with bad credit scores.
For example, if you're a land lord who vehemently opposes divorce, it's possible to use a poor credit score as cover to deny renting to this middle-aged guy who is clearly just gone through one.
Sure credit scores aren’t perfect but they are better than the legacy alternative.
What was the option for what? You're replying to a post about discriminating against a divorcee, but having the landlord hide it behind the justification of "bad credit".
Not to be the missing antecedent police, but are you referring to by 'ther option' the pre-existing excuse to paper over arbitrary discrimination, or to practice of lending/renting in general?
The answer is sadly important to the final assessment of meaning. I don't think you mean the former, but I figured I'd be daft and ask.
What do you suppose is a better tool you have or would build which hides this person’s history but can vouch for their creditworthiness or lack of it?
I'm still lost on the part where we're stuck on having to be able to lookup a datastore managed by some private party in order to facilitate these arrangements?
I have no interest in perpetuating the credit bureau system. If you're convinced that it's some priceless fixture we must have, then we can talk about setting up a public Bureau; with strict regulations around what type of information they collect, how it is used, how it is dispensed, etc, security measures around its access, but most importantly, synchronous notification of the reported on by the Bureau, with services provided to the notified to aid in prompt remedy, or failing that a means dispute or correct fraudulent information.
Other than that, I object vehemently to these types of datastores. Welcome to investing. Them's the risks.
I've worked in finance. Finance for its own sake is not high on my list of things to facilitate. I also prefer discriminatory people be required to appear discriminatory.
Looks at the how Japan handles apartment credit. It's a different system but in my estimation its a worse answer than Credit Bureaus are.
Worst case scenario, even in a city, you could sublet or get roommates while you rebuild your credit.
I suspect you are right. I walk down my block and every other building is owned by the same slumlord. It is bad.
I don't care for the credit companies, they're total scum. But I'm not sure how to do anything better.
When I graduated, rented, and paid all my student loans off early and did not have a credit card my credit score actually went down significantly until I opened credit cards and used them regularly.
Most folks in US can’t even afford a $400 emergency expense. Good luck doing even that when your credit is maxed out and your car breaks down so you can’t work.
>> Most folks in US can’t even afford a $400 emergency expense.
It looks like they can, and fortunately the number of people in poverty continues to decline: https://policyadvice.net/insurance/insights/average-american...
They’d much rather teach them activism than actually give them useful tools for evaluating their finances and making good decisions.
This is a great primer for those completely unfamiliar: https://www.amazon.com/Basic-Economics-Thomas-Sowell/dp/0465...
We are already there.
Currently saying "Lets Go Brandon" doesn't drop your credit score, in China you may lose quite a few points for posting that pesky bear that likes honey.
Again, we are already there.
I was arrested once and I got the charge expunged with community service. Hasn't affected my job applications so far.
They may be too busy with genocide though.
In the US, fines are mostly meaningless if you are poor as debtor prisons are (rightfully) illegal.
You're overwhelmingly correct, however someone is going to shortly reply to your comment with a link to a story about how someone somewhere got jailed over a debt and how debtor prisons are making a comeback. It's extraordinarily rare in the US.