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There has to be a way for lenders to assess risk. Otherwise, they have no idea what is or is not an acceptable loan.
It's simple, those who are responsible with their money maintain the ability to secure credit easier than those who don't. That said, I do understand that bad financial disasters happen to people that are unforseen and they are otherwise careful with their money. But if they had strong credit before, it's easier to get back.
No, I think the system works pretty well with credit scores and such.
They gave credit amnesty for the last ten years to anyone if they wanted it. Even the government allows bankrupay. I really don't know what people want.
There has to be a way for lenders to assess risk. Otherwise, they have no idea what is or is not an acceptable loan.
It's simple, those who are responsible with their money maintain the ability to secure credit easier than those who don't. That said, I do understand that bad financial disasters happen to people that are unforseen and they are otherwise careful with their money. But if they had strong credit before, it's easier to get back.
No, I think the system works pretty well with credit scores and such.
I can appreciate clinging to a simplified and objective standard for consumers. But you're seemingly quite content with lenders employing complex and subjective standards when it suits them.
So tell me what happens to the credit industry--the lifeblood of the American economy right now--if they must rely solely only on consumers who rarely borrow; who maintain a zero balance when then do; and who pay little or no interest?
Sounds almost Biblical. I believe that was part of Jewish law in the Old Testament. That is, once every 50 years, debtors were to be forgiven, and their debts cleared.
Sounds almost Biblical. I believe that was part of Jewish law in the Old Testament. That is, once every 50 years, debtors were to be forgiven, and their debts cleared.
Actually, it's every 7 years (it's in Deuteronomy).
I can appreciate clinging to a simplified and objective standard for consumers. But you're seemingly quite content with lenders employing complex and subjective standards when it suits them.
So tell me what happens to the credit industry--the lifeblood of the American economy right now--if they must rely solely only on consumers who rarely borrow; who maintain a zero balance when then do; and who pay little or no interest?
Actually, someone that rarely borrows would actually have a lower credit score in many instances. Lenders want to see that borrowers have a history of being able to maintain running balances on their credit. Lenders are pulling back right now. They don't need to continually add more and more loans to their portfolio, they are busy weeding through all of the bad loans they have made. Now, they are focusing on makign good loans to offset the bad.
(b) We may be forced to that. But it won't ever include cars as it doesn't need to. Remember, the one & only reason people get car loans is that an insurance carrier stands behind the risk.
(.
What? So most people have 10,000 to whatever to shell out for a car?
Actually, someone that rarely borrows would actually have a lower credit score in many instances. Lenders want to see that borrowers have a history of being able to maintain running balances on their credit. Lenders are pulling back right now. They don't need to continually add more and more loans to their portfolio, they are busy weeding through all of the bad loans they have made. Now, they are focusing on makign good loans to offset the bad.
That is exactly right. Banks and credit issuers don't make money on people who keep low-or-no balances. Consumers who are responsible with their money; don't engage in debt-spending; and maintain a healthy savings, aren't as attractive to the credit market as people who must have credit in order to make ends meet.
This brings me back to my earlier point. Banks were forced to admit that they'd been depending on an irresponsible, debt-consuming public in order to survive. And when they (the banks) got their ransom money from the government, they held on to it rather than lend it to the same irresponsible, debt-consuming public.
In other words, the banks received a form of amnesty. They partnered with an irresponsible, debt-consuming public and made money while we bought Big Screen TVs and BMWs. But thanks to the gov't, the banks get a financial do-over. We deserve one, too.
Location: Living near our Nation's Capitol since 2010
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Are you freaking NUTS? This is one of the most idiotic ideas I have ever read here. Lemme get this straight, under your plan, irresponsible, greedy people get a pass while the rest of us who have been responsible, fiscally restrained and diligent to good personal financial habits get yet another kick in the teeth. NO THANKS!
But wait! If this were ever somehow to come to pass..will ya please, PLEASE gimme about a 3 month heads up so I, too, can run out and scoop up all the expensive crap that nobody really needs but seem to love so much. Heck, I guess I could get on the gravy train for once myself!
It's sounding a lot like..."Billy got to do it why can't I?"
I was once irresponsible with my credit and guess who bailed me out? Me.
Only me.
Why did I have to live in a dump, walk to work and eat ramen noodles to get back on track and others won't have too?
Kinda like the grading scale in school. Why did I bust my butt to get a good grade when the deadbeats got a good grade because someone was afraid feelings would be hurt?
Now if you want to talk about taking it case by case, I might go along with it.
God knows there were innocent bystanders, but help them out not the greedy idiots that got caught with their hand in the cookie jar.
But I'm done with free passes.
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