Wait I can see in my notifs that you replied to someone else entirely, but here it doesn’t show me that comment and shows you replied to me??? Fediverse or Connect needs some work lol
The purpose of today’s credit score system is to eliminate bias. Before credit scores, borrowers were deemed creditworthy by lenders using factors such as income, referrals and even home visits. In 1974, the Equal Credit Opportunity Act disallowed credit-score systems from using information like sex, race, marital status, national origin and religion.
Today, FICO considers payment history, amounts owed, length of credit history, new credit and credit mix in its model. But that data may be influenced by generational wealth that many Black and Hispanic borrowers did not have equal access to, says Frederick Wherry, professor of sociology and director of the Dignity and Debt Network at Princeton University.
“We’re often told to stop talking about history, but history won’t stop talking about us,” Wherry says. “The data used in current credit scoring models are not neutral; it’s a mirror of inequalities from the past. By using this data we’re amplifying those inequalities today. It has striking effects on people’s life chances.”
The article you provided and states right there that those who do not have generational wealth don’t benefit from credit scores because several of the considered factors are things they don’t have.
I don’t know if I buy that they were created to reduce discrimination, but even if they were, it’s an incredibly flawed system.
If a person pays off a loan that is a good thing. That shouldn’t make tour credit score lower.
I paid off a loan and a card and consolidated my debt to a lower interest rate loan and my score dropped 20 points even though I had overall less debt and at a lower interest rate. All because the average age of my credit dropped.
I’m going to translate what you’re saying in simpler terms, maybe you’ll come to understand that what you’re saying isn’t quite alright.
“Back in the day they used to force feed horse shit to people”
“nowadays we put a lot of effort making the horse shit look more appetizing by wrapping it in a tortilla and sprinkling some chives on it and delivering it right to their doors. Can you believe those same people are still complaining? They got no idea how good they have it now”
We’re all waiting on you to propose an alternative to unbiased credit reporting. Unless, perhaps, and this is just a guess, you’re an angry teenager with no clue how all this works?
“Here’s a system where race is utterly anonymous, credit worthiness is determined by a formula. Beats hell out of interviewing in person.”
“That’s racist!”
Are your parents aware that you’re interacting with adults online?
Yo that’s a pretty mean comment. I’d appreciate if you could tone that down a bit.
Also people can point at a broken system and say “that’s broken” without having the expertise to tell you exactly how to fix it. Political policy is an area of expertise on its own and we can’t expect everyone to become an overnight expert
I agree with your sentiment but Lemmy is trying to replace Reddit. In addition to that I was originally replying to the low effort response “Proof or stfu”.
Also, people are going to do what they want if they can (in this case there’s quite a few people doing worse than me). I felt like calling someone stupid today, sorry bout that.
Proof or stfu
I regret to inform you sir that you have the stupid. Please get it checked out for everyone’s sake before you hurt yourself or others around you.
Wait I can see in my notifs that you replied to someone else entirely, but here it doesn’t show me that comment and shows you replied to me??? Fediverse or Connect needs some work lol
Guy above me explained exactly why it helped/helps minorities.
Forbes article.
The article you provided and states right there that those who do not have generational wealth don’t benefit from credit scores because several of the considered factors are things they don’t have.
I don’t know if I buy that they were created to reduce discrimination, but even if they were, it’s an incredibly flawed system.
If a person pays off a loan that is a good thing. That shouldn’t make tour credit score lower.
I paid off a loan and a card and consolidated my debt to a lower interest rate loan and my score dropped 20 points even though I had overall less debt and at a lower interest rate. All because the average age of my credit dropped.
Critical thinking skills and ability to do ones own research are essential life skills. But here ya go champ…
https://www.brookings.edu/articles/an-analysis-of-financial-institutions-in-black-majority-communities-black-borrowers-and-depositors-face-considerable-challenges-in-accessing-banking-services/
https://www.bostonglobe.com/2022/04/24/opinion/giving-credit-where-its-due/
https://medium.com/commonfuture/why-credit-scores-are-racist-da109fcfb300
https://www.cnbc.com/2022/10/11/how-structural-racism-plays-a-role-in-lowering-credit-scores.html
They can’t provide proof because it’s blatantly untrue. Perhaps they propose going to back to in-person interviews to determine credit worthiness?
“John goes to my church, solid guy. Approved.”
“I’m sorry Jamal, maybe come back when you have lighter skin?”
I’m going to translate what you’re saying in simpler terms, maybe you’ll come to understand that what you’re saying isn’t quite alright.
“Back in the day they used to force feed horse shit to people”
“nowadays we put a lot of effort making the horse shit look more appetizing by wrapping it in a tortilla and sprinkling some chives on it and delivering it right to their doors. Can you believe those same people are still complaining? They got no idea how good they have it now”
We’re all waiting on you to propose an alternative to unbiased credit reporting. Unless, perhaps, and this is just a guess, you’re an angry teenager with no clue how all this works?
“Here’s a system where race is utterly anonymous, credit worthiness is determined by a formula. Beats hell out of interviewing in person.”
“That’s racist!”
Are your parents aware that you’re interacting with adults online?
Yo that’s a pretty mean comment. I’d appreciate if you could tone that down a bit.
Also people can point at a broken system and say “that’s broken” without having the expertise to tell you exactly how to fix it. Political policy is an area of expertise on its own and we can’t expect everyone to become an overnight expert
There is none. However, implying that race effects your credit score is in fact a pretty racist thing to say. Classic Marxist mentality.
Do you have any idea what Marxist means?
I regret to inform you sir that you have the stupid. Please get it checked out for everyone’s sake before you hurt yourself or others around you.
While your reply is funny, it is personal attack and toxic. I would like to request avoiding doing it in fediverse. Alternatively there is Reddit.
I agree with your sentiment but Lemmy is trying to replace Reddit. In addition to that I was originally replying to the low effort response “Proof or stfu”.
Also, people are going to do what they want if they can (in this case there’s quite a few people doing worse than me). I felt like calling someone stupid today, sorry bout that.
Here ya go