POLITICS Democratic Nominee 2020 Lollapalooza

Discussion in 'Politicants' started by Unimane, Feb 6, 2019.


Who will win the Democratic nomination for president in 2020?

  1. Joe Biden

  2. Kamala Harris

  3. Hillary Clinton

  4. Beto O'Rourke

  5. Kirsten Gillenbrand

    0 vote(s)
  6. Elizabeth Warren

  7. Julian Castro

    0 vote(s)
  8. Bernie Sanders

    0 vote(s)
  9. Cory Booker

  10. Someone not listed

  1. Indy

    Indy Irrational and hormonal

    The internet tells me that my credit score represents the risk a lender takes in lending to me. Seems like closing accounts early suggests relatively low risk.

    But anyway, why would the fact that I no longer hold long term debt negatively impact their likelihood to make money off of me? Whether the account is closed or still has $100 left to pay on it, it shows that I can take on a long term debt, never miss a payment, and pay off that debt within a reasonable timeline. Shouldn't that suggest they're more likely to make money off me again in the future?

    And what about credit cards that I pay off immediately so as not to accrue any interest? They're not making any money off of me there either, but as long as I don't close the account, it still positively impacts my credit score. If I keep these credit card accounts open for the next 10 years, won't they increase my credit age and, as a result, my credit score, even if they never make a dime of interest off of me?
  2. kmf600

    kmf600 Has VIP access/energy vampire

    Payday loans are the devil
    justingroves and IP like this.
  3. IP

    IP Grusader Knight Errant of the 8th Order

    I'm not the internet. I take how I am told the score is calculated and what hurts it, and interpret through the lens of why it would work that way. It's a sort of "risk" to lend someone money who doesn't let interest build up over time-- an opportunity cost, not to mention the cost of processing and servicing that account. There's your "risk."
  4. JudgmentVol

    JudgmentVol Member

    That's not how that works. Having a longer track record of accounts being maintained and repeatedly paid off shows a consistently disciplined and responsible individual. Closing an account and ceasing to replicate that repayment responsibility doesn't display that trait.

    They calculate the average age of accounts. The higher the average age, the better the score. So whenever you close an account, that account cannot age, and any new accounts opened automatically reduce your AAoA and negatively impacts your credit score. So you do want to keep accounts open as long as is feasible. That said, there's no penalty for not paying interest on your credit cards-- that's a complete misnomer.

    The immediate short term hit to your credit score means you don't have a lot of credit outside of those student loans. That I can almost guarantee is true, so any credit card balance that's reported is likely a significant percentage of your debt-to-income ratio. Also, the fact you're not that old means your AAoA isn't very high and is significantly reduced since you don't have many accounts and every subsequent account opened has a high impact on that calculation. But it also means your score is volatile. It'll rebound quickly as long as you don't miss any payments and keep your debt utilization low.
    Tenacious D likes this.
  5. warhammer

    warhammer Chieftain

    I don't doubt that all of this is true. Many years ago when I actually worried a bit more about my credit than I do now, this is how I understood it to work, but through the lens of Indy's original question and within the context of this thread's last several posts, is this "fair" to the consumer? It's obvious that it works that way. Otherwise, Indy's question wouldn't exist. Should it work that way is the real question. I also get that this is a bit of a smaller issue than what has been mentioned before, but if you're going to open up debate about credit scoring, shouldn't this be on the table?
  6. Indy

    Indy Irrational and hormonal

  7. JudgmentVol

    JudgmentVol Member

    I'm simply clearing up the misconceptions held. I'm sure Indy thinks he had a clear picture of the scenario, but his comments didn't align with that idea.

    I have nothing of value to contribute to a "What *should* it be?"
  8. GahLee

    GahLee Director of Conspiracy Theories, 8th Maxim

    Perhaps they should open a bank account and understand that before mortgage companies lend you an obscene amount of money, you first have to establish you have some. Anyone operating on a cash-only basis only has themselves to blame.

    I think your total expenses should be examined. How else can you effectively loan someone money? That said, the basic framework for getting a home loan can be achieved in one search.
  9. justingroves

    justingroves supermod

    They shouldn't have to open a bank account. If you pay your bills, you're good
  10. GahLee

    GahLee Director of Conspiracy Theories, 8th Maxim

    I don't think having traceable income is asking too much when trying to secure a six figure loan.

    The last meeting we had with a home lender they told us straight up that all the cash we've saved is basically worthless because we couldn't prove where it came from.

    So here we are practically laundering our own money to put it in to a bank account. It's silly to me but I don't make the rules.
  11. Unimane

    Unimane Kill "The Caucasian"

    Yes, so there should be new rules. If you demonstrate you've been paying bills, including rent, then this should be factored into the equation.
  12. GahLee

    GahLee Director of Conspiracy Theories, 8th Maxim

    I think all expenses should count, we agree there but there is still going to be guidelines to follow. Having traceable income is about the easiest among them.
  13. droski

    droski Super Moderator

    It’s not overly difficult to get a credit card and pay it off every month.
  14. Tenacious D

    Tenacious D The law is of supreme importance, or no importance

    Can’t hide money.
  15. Unimane

    Unimane Kill "The Caucasian"

    So? What's wrong with demonstrating your ability to pay off bills in any number of manner and including those within a consideration of loaning money to pay off a different bill?

    I just never find the arguments of "we've always done it this way" or "it isn't too hard to do this" as really good explanations to not explore different options.
  16. kmf600

    kmf600 Has VIP access/energy vampire

    Can I borrow 200,000 coconuts?
  17. Unimane

    Unimane Kill "The Caucasian"

    No, I gave all my money to hat and he just ditched us.
    kmf600 likes this.
  18. droski

    droski Super Moderator

    What’s wrong with doing what you need to do to grow credit?

    If you want to blame someone. Blame the Obama administration. They are the ones who took the control away from the banks and forced these arbitrary standards. 12 years ago these people would have gotten loans.
  19. VolDad

    VolDad Super Moderator

  20. NorrisAlan

    NorrisAlan Super Moderator

    What is the statute of limitations on ideas and things said by people? This is not a politics thing, really, but something I often think about.

    30 years ago I said all black people looked alike. I was saying it as a joke, but I said it, and kind of meant it because I was struggling telling two characters apart in a movie. No shit, being totally truthful.

    So how long can we hold what someone says against them?

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