As opposed to being denied a loan in the 70s if your husband isn’t there or refusing to lend to Black customers
Yea now you can only be lent money if you don’t need it. Great system! Don’t worry though if you are black or divorced from the primary household earner and you need money, you still wont’ get it.
There’s more than two options
The way the score is calculated is hidden from the public
I mean…technically, I guess, the specific parameters are hidden? But the meaningful actions - the ways in which you can improve your score - are extremely clearly advertized.
Don’t get me wrong, I’m not exactly a passionate advocate for the system - but it’s nowhere near as obfuscated as people claim. And if you accept the premise that there needs to be some algorithmic way to evaluate someone’s creditworthiness, “their past reliability in repaying debts” is a pretty reasonable choice.
the ways in which you can improve your score - are extremely clearly advertized.
They are for the “credit score” they give you. There’s dozens of different credit scores that different lenders pull though. Ones that are specifically curated for their needs and that you’ll never see.
We have an equivalent system in Germany called Schufa, but you start at close to 100% reliability and only lose points when you seriously fuck up on paying back specific debts. The points do naturally regenerate with time, so you seriously need to lose control of your life to have a bad score long-term.
But sadly, still a secret algorithm. But from what I heard, the DSgVO might help uncover it.
Everyone’s like “Better than getting denied a loan for an arbitrary reason”, but we’re addicted to debt.
Private loans being exceptionally hard to obtain would drive down prices and hopefully promote individual austerity (setting aside discrimination and bigotry).
Private loans make the fairness problem worse.
Loans only go to the “right kind of people” with connections.
Without the ability to get loans for housing, it’s a landlord’s paradise.
