Kudos (?) to the team. My guess is that they will want to roll out their own credit score system when paying by installments, rather than rely on Barclays as the credit broker as they currently do.
As far as the UK is concerned, neither. There is no Apple Card in the UK (or indeed Europe for that matter, AFAIK).
In America apple doesn’t use Goldman for their financing of products unless it’s financed via Apple Card.
These are good ideas. Many people have debt from all kind of life issues and it kind of seems insane to lock them out of financing for … a phone or the like.
The credit score system is the OG social credit system that China ain’t got nothing on.
Why is that insane? Why would a company essentially loan money to people they think are unlikely to pay them back? A £1200 iPhone is certainly not essential when there are serviceable equivalents for < £100 without the need for a contract.
Overall, I cannot fathom how we tied the credit system to something necessary like housing. It’s absurd to think you are fucked out of housing options for 7 years.
growing up, this has been my idea and i cannot imagine tying myself "in future" to an item of convenience or luxury if i can't already pay it in cash.
a large part of it comes from the reason that i am not a government employee who traditionally have enjoyed a "get employed and you will get your salary till you die", those people can certainly portion off their salary, future even because there is essentially 0 risk of being let off. OTOH, being a professional with no "assured" income, this is not possible.
i know people, like many who sport a credit card, own a vehicle for the lulz and the "experience" of making heads turn but i can't care less about neighbours idea of me owing or not owing an iphone or a top line car. meh
With that attitude, about 99% of people couldn't ever afford a house because there is no way on saving the cash needed and paying rent at the same time.
Also somewhere there is a succinct explanation of how when you want a loan from a bank for a new property, they go to the central bank and get one to finance you, thereby creating money out of thin air, and adding to monetary inflation... but please correct me if I'm wrong
you are right about housing though. i agree. in my town, the property prices double in 4-5 years. In the 25 years we have built our home, land prices have gone up 68x and they are growing fast.
my argument was on credit cards and disposable income spending.
Well, maybe.
Underwater mortgages are a thing.
2. Taking a huge loan out when you have little prospect of being able to pay it back is a persons own responsibility. I've been in debt, I know lots of people in debt, and in almost all cases it's due to my/their own poor decisions. This conversation changes if you live in the US and experience medical debt (not something we deal with in the UK).
3. Again, depends on your jurisdiction, but housing is typically available in some form (just not ownership) even to people with poor credit ratings.
Student loans, if that's what you're referring to, are basically 0-risk because they'll either get wiped out by the government at some point, or the person will eventually pay it off within their lifetime; this is helped by how you can't discharge student loan debt in bankruptcy.
I am with you there. But unfortunately, many entities check credit to decide whether they want to rent you an apartment, whether they want to install pre-paid home internet to your house or hire you for a job in many instances.
So my argument is simple, if you want to check my credit to rent me an apartment, then the credit system should use my rent payment to increase my credit score, and this should apply to every bill I pay, be it prepaid or post paid.
Of course, that friction has greatly been reduced due to computers and internet, so it is possible to get a more granular look at people’s ins and outs to more precisely establish credit.
I think checking accounts or an equivalent should basically be a government utility at this point, available to all.
If you have zero credit history, yes, you are risky because what's unknown (including to you) is how your personality interacts with debt and what's known is that you have zero experience managing debt.
That's a US (and maybe some other countries as well) perspective, but not the same for all countries. e.g. in The Netherlands, your credit report is mostly concerned about how much debt you have (vs capacity to pay) and if you have debts in arrears. I understood historic debt payments don't really factor into it here.
Note that different debts do have different weights. e.g. a car loan for 20k can reduce the limit of your max mortgage by 50k because its a bigger impact on your capacity to pay.
The current system incentivizes card swipes for credit cards, not borrowing.