• biribiri11
    link
    fedilink
    arrow-up
    1
    arrow-down
    2
    ·
    8 months ago

    For the opponents, what is the proposed alternative?

    I’d imagine this is the crux of the problem. Banks need some way to determine if someone will pay back their loans, and what better way than to tabulate their history of doing just that? Should banks be willing to take risks in a system with stuff like the 7 year rule?

    • Default_Defect@midwest.social
      link
      fedilink
      English
      arrow-up
      9
      ·
      8 months ago

      If it was about the ability to pay back loans, then why does it go down when I finish paying the loan? Its about your ability to pay as much interest as possible.

      • Elaine@lemm.ee
        link
        fedilink
        arrow-up
        6
        ·
        8 months ago

        This. Paid off my house and my excellent credit score dropped by almost 20 points.

      • biribiri11
        link
        fedilink
        arrow-up
        2
        ·
        8 months ago

        Part of your credit score is also the present. It’s more than a bit predatory, but not having any current financial responsibilities looks bad. For example, if you have no loans whatsoever but paid back a bunch in the past, there’s little evidence saying you can currently pay them off. At least, that’s the theory of it.