Quote:
Originally posted by ltl/fb
Credit scoring has way, way more to do with whether you've ever made even one late payment, even on a $21 credit card bill. The debt to income ratio is another thing that they take into account, but a credit report doesn't care about your income. It cares whether you pay your debts on time.
ETA I don't think you had that "old days are over" part in your post when I wrote this, and I don't think that they are necessarily over. It depends to some extent how recent the nonpayment is, but they still fuck you if you have recent late payments. Possibly it just results in you paying an extra percentage or so on your mortgage or car loan or whatever.
|
I have to respectfully disagree. I think the debt/income ratio trumps late payments these days, considerably so. It may not "technically" trump it, but in the current market, where lenders are giving money away, most lenders are more focused on the ratio. I was concerned about this because I got tagged on some credit card where I owed $100 years ago. I forgot to forward it, forgot I had it and didn't know my credit was even blemished until I got a car loan a few years back. The lender looked at my salary and minimal debt load and said "whatever."
But you are absolutely on spot about making late payments on important loans in the recent past. You pay your mortagage or student loans 90-120 days late and you can hurt yourself. the lenders think you're in a cash crunch. But you can fuck over your gas company or the cable people or anyone else you might try to hit your credit with little negative effects. Just stay current on the mortgage, car and student loans.
I think credit scoring is scary. People are beginning to learn that they can game the system and not pay bills like they did in the old days. And the lenders sell off all their risk to other lenders, so there's no immediate relationship between default and pain to the bank. I don't know where it goes, but if people start thinking they don't have to pay shit, we'll have some troubles.
