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Old 11-14-2010, 10:09 PM
 
Location: Over There
5,124 posts, read 4,971,970 times
Reputation: 1205

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Ugh great so when my husband and I work our butts off to pay our bills so that we can keep our credit score up it is all for nothing. Do people realize that it was this kind of crap that got us into this mess. Lowering the bar for mortgages because well everyone should have a house. Ummmm NO!!! Not if they can not afford it.
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Old 11-15-2010, 12:01 AM
 
Location: Canada
2,158 posts, read 1,792,903 times
Reputation: 876
Quote:
Originally Posted by JazzyTallGuy View Post
If you don't have a job and you don't have an income what are you going to do? There are people out there you under normal circumstances i.e. they are employed are perfectly willing to pay their debts. Once the income goes so does the ability to pay debts. Not everybody that has bad credit is a deadbeat per se. Some people are obviously in circumstances that just don't allow them to pay their debts. Credit scoring companies are finally realizing it's foolhardy and bad business to just shut the door on people who would normally pay their debts if they had the means to do so.
Yeah, I know the kind of people of which you speak. The ones who, while working, stretch themselves so thin with unnecessary debt that they have to live paycheck to paycheck.
It was exemplified beautifully when G.M. was at risk of becoming defunct. So many G.M. workers near here were writing letters to the editor complaining that the government (i.e. - taxpayers) had to bail the company out because they wouldn't be able to afford their mortgages otherwise. These were people who had, by their own admission, worked for G.M. for more than twenty years. It seems that their own foolishness was lost on them in that they had worked so long for a very well-paying company but had neglected to save one dime over that period!
No, I have no sympathy for people who do this. Their whole attitude is to spend freely and never plan for the future and then expect the government (i.e. - me and other taxpayers) to bail them out.
As for the bankers (upper management), they're a bunch of greedy, amoral people who will do anything to get people in more debt so that the bank gets fatter and fatter.
That's two ends in an equation of irresponsibility that I want no part of.
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Old 11-15-2010, 04:45 AM
 
Location: Texas
14,076 posts, read 18,471,668 times
Reputation: 7746
As usual, a lot of outraged verbiage without even attempting to understand what's going on. You people are a trip!

Your credit scores today are based almost exclusively on your payment history. The big credit reporting agencies only track how well you've met your past or present obligations and your credit score is based upon that. In other words, it looks at your track record up to the point where you apply for credit again.

This new idea, which has nothing to do with the government, involves simply a new way of looking at credit worthiness which goes beyond payment history and includes such things as income, work history etc. in an effort to determine if you're likely to pay your bills in the future. Instead of your credit worthiness being based upon your past, it's an attempt to create a methodology for predicting your future credit worthiness.

May I ask what's wrong with that?
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Old 11-15-2010, 04:46 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,391,658 times
Reputation: 6374
Quote:
Originally Posted by Patton360 View Post
I guess folks like you and I would be viewed by many as some kind of killjoys for not spending like drunken sailors.
Honestly, too many people are walking around who will do stupid things because some banker or mortgage broker told them they could live beyond their means. What's next? Will they offer three magic beans in exchange for half your assets?
Tell me more of these beans.
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Old 11-15-2010, 06:31 AM
 
Location: Central Maine
4,697 posts, read 5,783,547 times
Reputation: 5032
Quote:
Originally Posted by stillkit View Post
As usual, a lot of outraged verbiage without even attempting to understand what's going on. You people are a trip!

Your credit scores today are based almost exclusively on your payment history. The big credit reporting agencies only track how well you've met your past or present obligations and your credit score is based upon that. In other words, it looks at your track record up to the point where you apply for credit again.

This new idea, which has nothing to do with the government, involves simply a new way of looking at credit worthiness which goes beyond payment history and includes such things as income, work history etc. in an effort to determine if you're likely to pay your bills in the future. Instead of your credit worthiness being based upon your past, it's an attempt to create a methodology for predicting your future credit worthiness.

May I ask what's wrong with that?
There's not a thing wrong with that. From the article (that I'm guessing some posters did not read before they posted):
The resulting VantageScore 2.0, which is expected to be rolled out nationwide to lenders in January, focuses on the subtle warning signs of credit stress that might have been missed earlier and penalizes or rewards consumers with higher or lower risk scores than they would have received before.
So if you're like me - went into the Great Recession with a high credit score, continued to pay your bills on time, didn't get in over your head with a mortgage, etc. - your credit score will remain the same or go higher.
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Old 11-15-2010, 06:55 AM
 
Location: Land of debt and Corruption
7,529 posts, read 7,542,444 times
Reputation: 2861
Quote:
Originally Posted by JazzyTallGuy View Post
If you don't have a job and you don't have an income what are you going to do? There are people out there you under normal circumstances i.e. they are employed are perfectly willing to pay their debts. Once the income goes so does the ability to pay debts. Not everybody that has bad credit is a deadbeat per se. Some people are obviously in circumstances that just don't allow them to pay their debts. Credit scoring companies are finally realizing it's foolhardy and bad business to just shut the door on people who would normally pay their debts if they had the means to do so.
And next we'll be hearing about predatory lending to these very same people.
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Old 11-15-2010, 10:01 AM
 
Location: liberal paradise/conservative hell
5,646 posts, read 4,337,911 times
Reputation: 991
Quote:
Originally Posted by JazzyTallGuy View Post
I knew this would happen. You can't have a credit based economy if you start excluding large numbers of people due to unemployment, foreclosure etc.
They're not being excluded, though. They just pay a higher rate, which makes sense. If you screwed up in the past, we don't know yet if we can trust you, therefore, you're going to pay more for the money we lend you. That's the bank's mentality and rightfully so.

Besides, if you have no job, you don't need credit extended to you b/c therefore you cannot make the payments. If you've had your house foreclosed, obviously you can't handle the responsibility you took when you originally got the loan, maybe you overextended yourself in the first place.

Does the personal responsibility just stop when the economy takes a turn?
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Old 11-15-2010, 10:03 AM
 
Location: liberal paradise/conservative hell
5,646 posts, read 4,337,911 times
Reputation: 991
Quote:
Originally Posted by JazzyTallGuy View Post
If you don't have a job and you don't have an income what are you going to do? There are people out there you under normal circumstances i.e. they are employed are perfectly willing to pay their debts. Once the income goes so does the ability to pay debts. Not everybody that has bad credit is a deadbeat per se. Some people are obviously in circumstances that just don't allow them to pay their debts. Credit scoring companies are finally realizing it's foolhardy and bad business to just shut the door on people who would normally pay their debts if they had the means to do so.
But they don't have the means to do so!
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Old 11-15-2010, 10:42 AM
 
3,151 posts, read 3,262,622 times
Reputation: 1077
Quote:
Originally Posted by andrea3821 View Post
This is sad news. Let's make those of us who have busted our butts to get our good credit scores more on the level of those who haven't worked quite as hard. Maybe I should stop paying my mortgage, no one will care and that's a lot of extra money I could spend elsewhere each month!
Just evening the playing field...social justice...
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Old 11-15-2010, 12:18 PM
 
6,898 posts, read 6,849,157 times
Reputation: 2014
Quote:
Originally Posted by stillkit View Post
As usual, a lot of outraged verbiage without even attempting to understand what's going on. You people are a trip!

Your credit scores today are based almost exclusively on your payment history. The big credit reporting agencies only track how well you've met your past or present obligations and your credit score is based upon that. In other words, it looks at your track record up to the point where you apply for credit again.

This new idea, which has nothing to do with the government, involves simply a new way of looking at credit worthiness which goes beyond payment history and includes such things as income, work history etc. in an effort to determine if you're likely to pay your bills in the future. Instead of your credit worthiness being based upon your past, it's an attempt to create a methodology for predicting your future credit worthiness.

May I ask what's wrong with that?

Because its much easier for some to stand on their high horse and look down on others as deadbeats without reading and comprehending. Its much easier for them to judge without knowing, makes them look smart I guesss.

I think this is a great idea. You could have someone working for the same company for 20 years and very little debt only to find themselves layed off for a period. Things happen and EVERYONE will encounter hard times.
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