It's a vicious cycle, and it's really never going to stop.

Perhaps EX wants to be the first CRA that gets to feed off the next round of bailouts.

---

FrugalRican wrote:

It's a vicious cycle, and it's really never going to stop.

---

It's fueled by greed on both sides of the equation. That part I get. What I don't get is why we'll be obligated to act surprised or cry "predatory lending" when a bunch of people are further in the hole after being approved with a formula designed to 'help' those unable to qualify for sub, sub prime lending.

---

drkaje wrote:

---

FrugalRican wrote:

It's a vicious cycle, and it's really never going to stop.

---

It's fueled by greed on both sides of the equation. That part I get. What I don't get is why we'll be obligated to act surprised or cry "predatory lending" when a bunch of people are further in the hole after being approved with a formula designed to 'help' those unable to qualify for sub, sub prime lending.

---

Breaking my own rule on no longer posting on this topic, but why would they necessarily be further behind?  Even in subprime, just like prime, there's various tiers of credit.  If you get your APR from 400 down to 200% you win, if you get it further down to 100% you win again, and finally if you get it down to 25% which is the entry secured cards, hey you win further.

 

You don't get to go from 400 (or worse, 600% in some cases) to 25% directly unless you have cash laying around that isn't already earmarked for something else, and how many people really have that these days with savings dwindling across the board?   Not only that, if they had cash laying around, they wouldn't need PDL's in the first place.

 

Too many ivory tower assumptions in this thread, maybe it's only because I've worked in a subprime lender and seen our clients that I even remotely come close to grasping the situation, but I'd strongly suggest that people look at some of their ideas held in this thread, or actually get out and go look at some places in life you've never been in before.  

 

The only way up for anyone FICO wise is to get credit and use it responsibly.  This score might allow more people to get their feet in the door and actually give them an opportunity to help themselves; however, many of you seem more desirious to deny them that chance over some frivolity regarding another score being used.  Why would you care on that point, when it is NEVER going to be used for you in the first place?  

@ Rev,

 

I believe once people do the work of rebuilding, credit is appreciated/valued more. If people had kept throwing money at me, despite late payments or being over-extended, I would have never had that sober moment, realized credit is not a available cash, and admitted it was time to change stuff.

 

I realize the comments likely read as ivory tower but it gets a little frustrating when we automatically grant victim status to everyone, regardless of what led to needing rebuilding. At some point we'll be admitting the main beneficiaries of increasing service to the "under-banked" ended up being collection agents and banks that got bailed out. I'm getting it out of my system now, LOL! When it happens and everyone is holding hands singing Kum ba yah, resisting typing this will be causing my hands to cramp.

I'm fairly new to these boards and by no means am I an "expert" on anything credit-wise but I just wanted to say something about this. I'm in the process of rebuilding my credit from some mistakes I made in my late teens/early 20's when I first began getting credit. During what I refer to as my "credit exile" I was unable to get any credit anywhere...and as a single mother/student/working class individual there were times when I ran short financially and needed extra funds. Well, I had no CC's to fall back on, couldn't get any personal loans from a bank or CU so I had no choice but to use payday loans/ finance company loans. Now, this is the point to my tirade: I think that if someone is able to pay back a loan of say 1K at 436% interest, in full, with no lates that they should be commended. Its a lot harder to pay back 1K at a 400% interest rate than it is to pay back 1K at say a 0-10% interest. So, yes, I believe that people who have no choice but to use these places should be rewarded for their financial responsibility. And actually, because some of these places report to the CRA's they actually helped me on my road to rebuilding. When I got my first loan back in 2007 my score was below 500. After years of being financially responsible and with the help of this forum I have built my scores up to almost 700. Not as impressive as some of your scores I'm sure, but considering where I started and where I am now I'm quite pleased. Just remember, debt is debt....just because its from a "prime" lender doesn't make it any better than a loan from a local "CashYoCheck" payday loan place. That's all

Any way they can plug you into the Matrix.....Nonetheless, sounds like a tax deduction self writing program. That is, providing help to the under-reported............

---

psychoinhell wrote:

Next time a cop turns around when you are driving down the interstate, jump off at the rest area and run into the bathroom.

 

Had a cop follow me into the bathroom, I threw my wallet out to him and told him he was going to have to wait to write me a ticket, I had a 911.  He actually ran my license and then told me he understood (no ticket)

---

 

Hilarious!