And it determines where you can live, what jobs tou can hold, and wheree your kids can go to school.
How? Wealth determines that, not your loan repayment history. You can be barely making ends meet (and therefore very limited in the above stuff) with a perfect credit score, and a millionaire (and therefore practically unlimited in the above stuff) with a shitty one, or none at all if you inherited enough wealth that you never had to take any loans.
You are not gonna believe where the majority of the wealth of the majority of USA residents comes from.
Also can’t look at credit score system without loan system (they are linked by default) - and loan-worthiness cames from not only paychecks, but also where (which street/neighborhood) you currently live, you job history, criminal convictions, etc.
It does what the West says the Chinese social credit system is doing tho the later isn’t that consequential & focuses on convictions.
And rich people (millionaires aren’t rich anymore, just the last thrashes of a middle class) don’t need a credit score at all, they all take out business loans, not personal loans.
The credit score system wasn’t invented to oppress the rich.
The credit score system wasn’t invented to oppress, period. It was invented to keep lenders from having to guess whether someone they lend to is ‘good for it’. Before that, it was all based on assumptions, which naturally led to conclusions being drawn based on things like appearance, race, sex, etc.
I’d rather be judged based on the fact that I can prove I repay my debts, and nothing else. A credit score system is the means of proving that.
The scoring system has also been critiqued as a form of classification to shape an individual’s life-chances—a form of economic inequality. Since the 1980s, neoliberal economic policy has created a correlation between the expansion of credit and a decline in social welfare—deregulation incentivizes financing for the consumption of goods and services that the welfare state would alternatively provide. Credit scoring systems are seen as scheme to segregate individuals creditworthiness necessitated by the loss of these collective social services. The credit scoring system in the United States has been compared to, and was the inspiration for, the Social Credit System in China.
Lenders don’t guess, there are strict rules that FED oversees.
Your probability of repaying your loan is depending on your wage & on collateral.
You can’t prove you will repay your debts in the future. You might lose the income you depend on & some new guy that just got a job might have it for 40 years. How easy will you get another job also depend on factors that the credit score doesn’t include.
How? Wealth determines that, not your loan repayment history. You can be barely making ends meet (and therefore very limited in the above stuff) with a perfect credit score, and a millionaire (and therefore practically unlimited in the above stuff) with a shitty one, or none at all if you inherited enough wealth that you never had to take any loans.
You are not gonna believe where the majority of the wealth of the majority of USA residents comes from.
Also can’t look at credit score system without loan system (they are linked by default) - and loan-worthiness cames from not only paychecks, but also where (which street/neighborhood) you currently live, you job history, criminal convictions, etc.
It does what the West says the Chinese social credit system is doing tho the later isn’t that consequential & focuses on convictions.
And rich people (millionaires aren’t rich anymore, just the last thrashes of a middle class) don’t need a credit score at all, they all take out business loans, not personal loans.
The credit score system wasn’t invented to oppress the rich.
The credit score system wasn’t invented to oppress, period. It was invented to keep lenders from having to guess whether someone they lend to is ‘good for it’. Before that, it was all based on assumptions, which naturally led to conclusions being drawn based on things like appearance, race, sex, etc.
I’d rather be judged based on the fact that I can prove I repay my debts, and nothing else. A credit score system is the means of proving that.
wiki/Criticism_of_credit_scoring_systems_in_the_United_States
Lenders don’t guess, there are strict rules that FED oversees.
Your probability of repaying your loan is depending on your wage & on collateral.
You can’t prove you will repay your debts in the future. You might lose the income you depend on & some new guy that just got a job might have it for 40 years. How easy will you get another job also depend on factors that the credit score doesn’t include.