157
What's a bit of good advice that's really bad advice?
(lemmy.world)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 31 Mar 2024
157 points (93.9% liked)
Ask Lemmy
26890 readers
1366 users here now
A Fediverse community for open-ended, thought provoking questions
Please don't post about US Politics. If you need to do this, try !politicaldiscussion@lemmy.world
Rules: (interactive)
1) Be nice and; have fun
Doxxing, trolling, sealioning, racism, and toxicity are not welcomed in AskLemmy. Remember what your mother said: if you can't say something nice, don't say anything at all. In addition, the site-wide Lemmy.world terms of service also apply here. Please familiarize yourself with them
2) All posts must end with a '?'
This is sort of like Jeopardy. Please phrase all post titles in the form of a proper question ending with ?
3) No spam
Please do not flood the community with nonsense. Actual suspected spammers will be banned on site. No astroturfing.
4) NSFW is okay, within reason
Just remember to tag posts with either a content warning or a [NSFW] tag. Overtly sexual posts are not allowed, please direct them to either !asklemmyafterdark@lemmy.world or !asklemmynsfw@lemmynsfw.com.
NSFW comments should be restricted to posts tagged [NSFW].
5) This is not a support community.
It is not a place for 'how do I?', type questions.
If you have any questions regarding the site itself or would like to report a community, please direct them to Lemmy.world Support or email info@lemmy.world. For other questions check our partnered communities list, or use the search function.
Reminder: The terms of service apply here too.
Partnered Communities:
Logo design credit goes to: tubbadu
founded 1 year ago
MODERATORS
The entire "credit rating" system is totally insane and dystopian for people outside the US. Where I am from, we only ever register bad credit, not good credit. If you want to buy a house and need to get a mortgage they can ask for your credit rating. But that only shows how much your current obligations to other creditors are, and whether you have had trouble paying them. And you only cartain obligations are allowed to be shown on such a report.
In my country, someone with no credit card history whatsoever is in a better position to get a mortgage than someone who has a credit card and pays it off every month. The fact that the US is the reverse is just mad.
The test is to see if you can handle having access to credit you don't use. Can you operate within the current financial system without going bankrupt?
It is also the reason why recent inquiries on credit can also tank a credit score. You're riskier to lend to because you are trying to get more debt than you were used to.
There’s probably a healthy middle ground. We shouldn’t be handing major loans to people with no experience with credit either
We absolutely should. As long as they have enough stable income to support it. Rough guidelines in The Netherlands is that you can get a mortgage for about 4-5x your yearly income (subtract any other loans like credit cards, phone contracts or cars), and for no more than the house is actually valuated at (unless you're going to remodel, then you can borrow for the estimated value after it is done).
Why not? The concept is fairly easy to grasp and if I want a loan for a house, the bank can ask me to prove that I was able to put aside enough money beforehand to be able to chip away at a credit from now on.
What about people who have good-paying jobs, but lots of other debt? Or a history of defaulting on debt (maybe they can’t hold jobs very long)
Usually you’d go to the bank with the project and they ask you for securities, oftentimes the house your building or the ability to garnish your wages. Also they demand to know how much you’ve saved so far. Can’t give loans to everyone?