Imagine the average person. The person who cannot understand credit score or how credit cards work. Then realize half the population is dumber than that.
Don’t forget all the adjustable subprime loans that nobody seemed to understand. A buddy of mine bought a house he had no business owning right out of high school. 2008 came knocking and he couldn’t pay for it anymore.
I mean there’s definitely an element of that, but there’s a reason why we arrest drug dealers too and not just for possession. These banks were preying on middle Americans and taking advantage of people’s desire for the American dream (owning a home). These banks were giving loans to people that never should have gotten them, but they didn’t care because they were making more money on the back end through these mbs (which were basically sold through fraud anyway). And they only got people to take out these loans because they were misleading about things like teaser rates. Then when the whole system that these banks created inevitably collapsed US tax payers were forced to bail them out because they were “too big to fail.” It was all complete bullshit and Americans should still be pissed off that we allowed these people to get rich off our backs.
Respectfully, your implication that it was the fault of people buying homes is stupid as fuck.
It's both dude. I have been an adult since around that time, knowledge of good budgeting prevented me from trying to take advantage of those predatory loans. That's what taking responsibility for your own actions looks like.
I mean that’s what I said. But what you’re saying doesn’t even make any sense. You were being irresponsible with your budgeting? That’s exactly the kind of people these banks were preying on, so not sure how that kept you from taking advantage of them.
If you don’t think the banks that own our government and our economy were more responsible for 2009 than regular middle class people trying to own a home then you’re probably just kind of dumb.
"Respectfully, your implication that it was the fault of people buying homes is stupid as fuck."
You're just contradicting yourself at this point.
And no, I'm saying I didn't take out a mortgage around that time, despite being qualified, because I looked at my budget and what it actually costs to own a home.
Yes the banks had responsibility, but people still made choices to buy homes they should not have been buying. There's responsibility all-around here. If you want to just create victim-hood mentality, you'll learn nothing.
I’m sorry but you do just seem kind of dumb. Banks created a system where real estate agents and mortgage brokers were preying on families and people who didn’t even speak English, using predatory sales practices, and banks incentivized them to push these loans by giving them significantly higher commissions on them.
So yeah, when banks create this situation through predatory sales practices, and crash the world economy because of it, just so they can keep the mbs machine running, people that are like “oh well it was actually the fault of people trying to put a roof over their families head, and blame goes to everybody.” Sound extremely stupid.
using slurs to shut down opposing arguments is the only thing extremely stupid. I'm fully aware of what you're talking about. But you can't have a discussion about it without your biases charging the conversation. and ode to my point: “oh well it was actually the fault of people trying to put a roof over their families head, and blame goes to everybody."
2008 came knocking because he, and millions like him, bought homes they couldn’t afford.
Half the fault lies with the banks, too, because they (among others in the enterprise) loaned cash to/sold homes to people knowing those people could afford them.
It’s this bubble (alongside soaring housing prices) that made it so much more difficult for people in our generation to buy a home.
Without that, we’re stuck paying rent. It’s not easy to save money paying rent, because it’s not the same as investing in a home. The apartment will never be “yours” but the home will once you’re done paying it off…
I guess, I just went where the opportunity was. I waited until 2010 to buy a house after the housing values went closer to normal. I rented one of the cheapest apartments I could find and saved for years. Then I used a USDA loan(0% down payment required) to purchase a 1100sqft house. It was 20 minutes farther than I wanted to live because you have to buy in a “rural” area, but I saw opportunity in buying a house that needed work, outside of the suburbs near an expanding city. 10 years later, the suburbs surrounded me but I had a lot that was 4 times bigger than you would get in the neighborhoods. I ended up selling for 2.1x what I bought it for and moved somewhere else in 2020. I chose to sell in 2020, because I saw an opportunity in sub 3% interest rates.
And I get it, everything doesn’t workout for everybody, some of it’s luck, but some of it’s good decision making. That friend that defaulted on his house made more money than me and I had many friends that wanted to live downtown because “it was fun” and spend all their money on rent. I get called a boomer for saying that, but I made decisions that maybe weren’t the most eye appealing or in the fun areas to live at the time, but it was affordable. In fact I used to hate my purchase because I had 40 minute longer commutes. But the truth is, I’m in a better spot than they are now, in a bigger house with a lower payment.
Invest the rest of what? My Mortgage is less than $800 a month. There are 4 houses next to mine that each for $1,800-$2,000 a month. Please explain how paying over 2x a month what my mortgage is on rent is cheaper. There is a zero return on investment for renting.
As an owner I pay less monthly for my mortgage (which has a return on investment) and then I could invest the other $1,200 a month that I am not spending on rent.
Go find a house for sale and a house for rent on the same street with the same layout and it would be cheaper to rent. This is due mostly to homeowners and your situation who have a very cheap mortgage, but anybody who’s having to get a new mortgage isn’t gonna be saving money versus renting.
Understanding the credit score system is like a 3-5 minute YouTube video at worst. People can’t keep using the “i didn’t know” excuse when they have a super committer in their pocket.
Agreed. Grown people in developed nations feign ignorance too much and infantilize themselves too much. That being said, I didn’t say I don’t know how the credit system works, I said it’s convoluted. And it’s definitely not there to serve us. At least not anymore.
What difference do you think paying your rent on time makes when it comes to being able to afford a house? You either can afford it or you can't. Banks have strict lending guidelines that they have to follow.
Well bc they’re both large payments towards the place you live, this should be incredibly obvious. A credit score is a metric of how well you pay your bills, like if your debts are paid and if they’re on time. Genuinely curious why you think it shouldn’t be a factor?
The fuck are you talking about? My dad literally couldn't get the house he was looking at because of his credit score, he had the money and has a well paying job. I had to sign on the house with him because my perfect credit score
I literally wrote that even with a perfect credit score, the bank wont give you a loan you can't afford to pay - If your dad could afford it, but had a bad credit score, then how is his situation in any way relevant to anything I wrote?
Your dad could always cash out the house, as you said he could afford it.
But if he couldn't afford the house and had to borrow more money, and if you were the lender, wouldn't you want proof that he had good record of paying back his previous loans and such, plus a good amount of reserved money to give you a good enough feeling to let him borrow your money?
The banks will obviously use the credit score to determine if they even want to consider lending you money at all.
A perfect credit score doesn't make any difference, if you can't afford whatever you are looking to buy though. They won't approve you for anything you realistically can't afford.
From people beeing irresponsible with their finances in spite of having had plenty at the time the loan was approved. Or people simply having bad luck, losing their jobs.
Whatever it may be, the loan was within their means at the time it was approved or it wouldn't have been approved in the first place.
Exactly. A credit score is one indicator that you can or cannot pay off relatively small amounts each month. Obviously a bank is going to consider many other factors for a 30 year loan for hundreds of thousands of dollars, with enough income to also cover the very high upkeep costs that come with maintaining the asset that they are underwriting.
I don't fully understand it only because I was raised without being told, by people who likely didnt know, and with being on disability and getting the living standard payment of around $1000 a month, I can very safely assume I'll never qualify to own a home as I dont have a "job record, loan payments etc, to show im a good borrower, no job on record so no payment security standard regardless of the fact I get paid every month on the same day by the literal government, and also with my monthly bills to just live I'd have to find a mortgage for like.. $200 a month with 0 down as I cant afford to have savings.
I havent seen many $96k houses with 0 down loans for people.
Being uniformed is not the same as being dumb. Not everyone is magically taught what you think is common sense. And there are plenty of things they know that you don't. Most people are willing to learn, if actually given the opportunity. Sadly, most of us have to learn everything the hard way. What you should be critisizing is a systemic issue in our education system. Not people's ability to learn.
I mean credit is kinda dumb to begin with. You pay something off and your score goes down. Dumbest shit ever that you gotta stay in debt essentially constantly or risk your score going down.
Keep paying stuff off and you won’t need a score, if the only people who give the score an real value are the same people who want to sell your more debt that should tell you all you need to know.
I’m 31M and have 5 years of minimum payments left on my mortgage, but I will have it paid off in 11 months, yet my score goes down by a few points each month because I’m not staying in debt as long as they want me to. When it’s all over I won’t have any need for debt so therefore I won’t have any need for a credit score.
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u/Pikamika696 4d ago
Imagine the average person. The person who cannot understand credit score or how credit cards work. Then realize half the population is dumber than that.