If all credit scores were set to 850 for everyone would that help a New economy grow?

originally posted by: cmdrkeenkid
I've worked over the last few years to bring my score up from the low 400s to the high 700s. Paid off over $30k in bad credit debt. Thanks for the proposed slap in the face.

Awesome job and congrats on all the hard work. I too find it disgusting that people who put in all the hard work are just disregarded with all these "free everything" schemes.

...people with poor lifestyle management and decision making skills

This is the part no one wants to face. There are for sure people out there struggling through no fault of their own, but many it's just due to their own poor choices. Responsible people don't need to be constantly bailing them out.

It would help a lot of schools would teach financial literacy instead of leftist propaganda.

originally posted by: rickymouse
I gave you a star and flag for this comedy thread.

I have a credit score of around 825. It is not great, but adequate. My oldest daughter has a credit score of about six hundred, she blows more on things she wants than what she actually needs.

People with high credit scores mean they pay their bills on time. You can work at a job making ten bucks an hour and have a credit score of eight hundred if you were responsible and did not waste money on things that you do not need, only buying essential things. You can have a decent car and have a car payment you can afford, that will build your credit score, buy the basic new car without all the fancy stuff on it, the less on it the less can go wrong. Using your credit card and paying it off every month gives you a good credit score.

Nope. People feel like they're entitled to everything Joe down the street has. He worked 30 years to build himself up to being able to afford the things he has, but that's not fair and stuff. We should all be given it now.

Just having a car is not fair, I should have an expensive car. 70" TV, 3000 square foot house. New iPad and iPhone every year. You know, the bare essentials. Greedy rich people should pay for it all.

a reply to: rickymouse

You pretty much nailed it.
All a credit score does is show how well you pay your debts...
There are other factors too like if you have over a 50% balance on some credit cards, that will lower your score.

Say a person with an 850 credit score only has $150 disposable income per month.
A bank will not give them a car loan with a $450 a month payment.

a reply to: Ophiuchus 13

No of course not, it would actually destroy the economy because no one would lend anything. Credit ratings are exactly that. They are worth something because they give lenders a valid risk reward of the loans.

Reset it and lenders can't know what the risk would really be so they wouldn't lend to anyone instead of everyone like you seem to think.

Jaden

Changing everyone's credit score will not guarantee they'll pay their debt. If previous debts were erased through a jubilee, maybe that will help. The banksters also have negative interest rates as a tool to stimulate the economy. Under negative interest rates, with good credit, banks pay you to get a loan but they also charge interest on money deposited into one's bank account. Negative interest rates will be implemented in the near future, along with no more cash & a micro chip needed in order to buy, sell or trade. This way one is forced to deposit their money in the bank, with negative interest rates. COVID19 is in part a ploy to get rid of cash & cash transactions.

I hear many rejections but not many solutions.
What is being suggested by some is sit and wait why right now many who had good/bad credit and jobs no longer have jobs and so bad credit may follow. So to all the pessimistic responding what are your solutions other then sit and wait?

Ever day we sit and wait more money (free money) in large sums will be spent anyway.

We bought a new Forester last fall, the last new car we had was in 95. We have bought some used vehicles since then, good deals that needed some work, but I am getting old and my back limits my ability to fix cars now. So we needed to buy something more reliable, as simple awd car basic unit. We do not want to be buying more than we really need. We did purchase the eight year eighty thousand mile extended bumper to bumper warrantee from Subaru because I do not want to be changing the screen in the dash myself when I am in my seventies. I can do the brakes yet, and I taught my granddaughter how to do brakes, so she can help me with those when I get older.

originally posted by: Bluntone22
a reply to: rickymouse

You pretty much nailed it.
All a credit score does is show how well you pay your debts...
There are other factors too like if you have over a 50% balance on some credit cards, that will lower your score.

Say a person with an 850 credit score only has $150 disposable income per month.
A bank will not give them a car loan with a $450 a month payment.

For auto and mortgage loans, our local credit union does not rely on credit score, but many of the auto financing companies do. Young people do not know that, your local bank or credit union uses a lot more than your credit score to determine eligibility. Assets vs liabilities is used more than credit score at our credit union, but a low credit score does make your interest rate higher, adding a percent or two to your interest rate....but the credit score makes way more impact at car dealerships, often your own bank or credit union can give these young people a better rate than the dealerships. The dealerships also charge a fee for handling it, like five hundred bucks sometimes on a used car, the bank does not usually do that, that fee is actually given to the salesmen in those car dealerships for their processing the loan paperwork and selling the car as a bonus. They split it with the person hired to handle the financing at the dealership sometimes. I ran into that at a dealership where we looked at a new Toyota, the salesman gave us a paper with a breakdown which had a five hundred dollar fee added to the estimate if the financing went through them. I went down the street and bought a new Subaru....no fee, in fact they threw in some bonuses and came down a lot on the new 2020 car. We sent three people there and they bought cars.

The only solution is a revolution against corrupt government & the bankster owned/operated Federal Reserve Bank & then reestablishing the U.S. treasury based on limited money like gold, silver or a limited cryptocurrency, as it was originally intended. To have any change for the good, many banksters and politicians will need to be executed in public squares as examples to others not to repeat what they have done. Nearly every politician is an oath breaker & deserves execution for treason & sedition. Under our new governmemt, our constitutional republic should be restored & followed, along with term limits for politicans. Political office is a service to uphold & defend our constitutional rights to liberty, not a puppet show career for banksters & their cronies.

According to the U.S. constitution, congress is supposed to regulate & maintain the weights & measures of money (gold & silver). Congress has not upheld its responsibility since the Federal Reserve Bank was established in 1913. Now instead of money maintaining or gaining value over time, it loses value over time. The U.S. dollar has lost @ 90% of its value since 1971, when NIxon took us off the gold standard. Now every dollar one makes today is worth less tomorrow, increasing the ongoing wealth gap between the rich & poor. Assets increase in value through inflation of the money supply, while hourly wages remain mostly the same. This will continue to get worse, the faster the money supply inflates.

Even if they did a reset, some would use it as blessing while other would just dig themselves another, but deeper hole again.

A Credit Score is not a magic number. It is derived from an algorithm that measures your credit worthiness, your ability to pay off your debts. Giving everyone the top score will not suddenly give you the ability to pay your debts. A high score means you are less of a risk to a lender and eligible for low interest rates. That's because the lender has a high degree of confidence that you will repay the debt on time. People with high scores are low-risk.

Your idea reminds me of the logic used in some cultures in the world. In many places still people carry lice. If they get sick their temperature rises and the lice leave. It's too hot for them. The elders would take lice and put them back on the sick person believing that would cure their sickness. Well people have lice. Sick people do not have lice. Quite obviously lice is the answer. Giving high credit scores to high-risk people is like putting lice on sick people to make them well.

True, this is where the loan providers will have to show some mercy and patience.

reply to: Specimen88

The objective with a higher credit score is to give access to loans faster to pay debts up to date.

a reply to: schuyler

Until the folks who dont deserve an 850 credit score start doing what they do. Then all those loans that shouldnt have been given default. Kind of like when all those house loans were being given to folks who couldnt afford a house.

a reply to: Ophiuchus 13

There will still be people who wont pay back the loans. This is why we have credit scores. So we know who is trustworthy and who is not.

a reply to: Ophiuchus 13

What is your solution?

Solution to what?

a reply to: Ophiuchus 13

Wellx that would make it harder to keep the poor people poor. The better the credit the less you pay back on loans and the better chance at some jobs better rates on auto insurance I'm sure probably other stuff it's used for most people dont know about.

This will never happen!

a reply to: Ophiuchus 13

You didnt initially ask for a solution. Then you asked one person.
You kind of just asked what everybody thought of your plan.
And they told you.

Credit scores are not all that is needed to qualify a person for a credit card or loan. You also need to consider debt to income ratio so you know that a person can afford to pay back a loan. Unless it's a house or a car the money from the bank is gone. You can't repossess a vacation or clothes or dinners at five star restaurants or cash advances. And that is not going to change just because someone was given a false credit score. The job they have and the skill sets they have and their earning potential is not going to change much unless they are very young and just out of school.

The road to financial security is one that must be traveled at a steady pace. You work you earn you save you get a little credit card. You pay it off. You earn some more. They lend you some more. Maybe now enough for a car. Later after you show you can maintain a job and pay off the loan you may qualify for a house. You have by this time learned to manage your money and barring any catastrophe will probably be able to pay for that house. Thats how it works. You get rewarded for being responsible.

I've never been late on a car payment my whole life on 3 new car loans, yet my credit score is still below 700. My current new auto loan from April 2018 has a 10% interest rate. My last new auto loan from August 2015 had a 12% interest rate & my 1st new auto loan from October 2007 had a 9% interest rate. Credit score has nothing to do with if you make payments or not. I also been at the same job for 15 years & own 2 condos outright, 60 ounces of gold & 300 ounces of silver. After my current auto loan is paid I will make it a point to never get another loan again in my life. The trick is not to get a loan in the 1st place. If you can't afford a new car buy a used one with the down payment money you'd spend on a new one. If you can't afford a home, live in a van or boat, eat dollar store food until you save up enough to buy a home. There's no need for one to give their hard earned money to the globalist banksters.