Kenny West
Veteran
It never ceases to amaze me how there is always someone willing to defend this fukked up system.
Credit score system getting exposed
- Thread starter the elastic
- Start date
The thing is though, the alternative was worse. Before credit they’d give someone a loan because they “knew you’re father and he was good guy.” Imagine being black and walking into a bank back then. SOME system had to be created or else all the racists working in banks would deny any black person, regardless of how capable they were of paying off the loan.
Is the credit system perfect, no…. But what’s a better alternative when we also don’t have many black banks and the black banks don’t have the scale of available resources as larger banks?
MasterOfAllHeSurveyz
All Star
I understand redlining and loan officers flat out denying qualified black applicants mortgage loans, but this sounds like bullshyt from the dude in the vid.
The ECOA was signed into law in '74. Credit scoring wasn't invented in '89 as it's been in existence for over 100 years with Equifax being founded in 1899 and TransUnion and Experian's original company being founded in '68. What was invented in '89 was the FICO score which was almost a generation later (15 years) than the passage of ECOA. The company that created the FICO score has been in existence since '58. FICO didn't get big until '96 when Fannie Mac required all mortgage lending to use it.
My grandparent's loan/settlement statement for their home (bought in '52) had a credit score on them ranked from Poor to Very Good. Attached to my parent's HUD-1, is the bank's statement of my parent's credit worthiness from when they purchased their first home (first quarter of '96) before the FICO requirement went in effect for all mortgages.
The ECOA was signed into law in '74. Credit scoring wasn't invented in '89 as it's been in existence for over 100 years with Equifax being founded in 1899 and TransUnion and Experian's original company being founded in '68. What was invented in '89 was the FICO score which was almost a generation later (15 years) than the passage of ECOA. The company that created the FICO score has been in existence since '58. FICO didn't get big until '96 when Fannie Mac required all mortgage lending to use it.
My grandparent's loan/settlement statement for their home (bought in '52) had a credit score on them ranked from Poor to Very Good. Attached to my parent's HUD-1, is the bank's statement of my parent's credit worthiness from when they purchased their first home (first quarter of '96) before the FICO requirement went in effect for all mortgages.
something about this information seems very off. 
At taking history lessons from Tik Tok videos in the first place.
At taking history lessons from Tik Tok videos in the first place.
Lets see how many people even bother to read this post before going on some faux militant, woe is us tirades.
Mike Nasty
Veteran
I was waiting for the part where he explained where your race lowers or raises your credit score
1st off what is the thing in op. Naps transgender twin? Fr tho. Obviously the system was invented to gatekeep non whites from getting mortgages. But if by 2022 you havent learned to take care of and manipulate your credit score to your advantage thats on you.
CashmereThoughts
Veteran
This is wrong and plain stupid advice. Managing utilization is we’re most people fukk their credit up
Mike Nasty
Veteran
Can you explain? Are they over or under utilized?
Vandelay
Life is absurd. Lean into it.
He's partly correct.
The 1989 date he references only refers to the date the current algorithm was put in place, but they'd begun the practice decades earlier. Credit scores been around for some time, it wasn't until the 1970's and 1980's when computers and electronic transmissions came about did they nationalized the practice.
Credit scores are or at least were an attempt to remove bias and discrimination from lending. You could argue lending went from discriminatory to predatory post credit score era, but let's not pretend lending to minorities, specifically blacks was better pre-credit score era.
I need to get on this social media/TikTok wave to make videos full of half-truths. It's very lucrative.
The 1989 date he references only refers to the date the current algorithm was put in place, but they'd begun the practice decades earlier. Credit scores been around for some time, it wasn't until the 1970's and 1980's when computers and electronic transmissions came about did they nationalized the practice.
Credit scores are or at least were an attempt to remove bias and discrimination from lending. You could argue lending went from discriminatory to predatory post credit score era, but let's not pretend lending to minorities, specifically blacks was better pre-credit score era.
I need to get on this social media/TikTok wave to make videos full of half-truths. It's very lucrative.
CashmereThoughts
Veteran
With out getting into granular detail…
Most people keep credit card balances much higher than they should. If you wasn’t to have great-excellent credit you should be keeping your balances at 0-5%. The common misconception is that 30% utilization is good but anything over 10% your leaving major points on the table.
In addition to that there are several other factors to manage like age of accounts that people don’t understand. Making your minimum payments on time is the bare minimum
Tribal Outkast
Veteran
All I know is the credit system is all fukked up smh. You damn near get punished for having your bills paid on time and keeping your credit minimal. These fools want you paying off shyt your whole life and it sucks. I got a breakdown of how the putting money down on a car shyt world and it’s crazy smh. Worst invention ever
Cobalt Sire
All Star
Black people have lower credit scores on average. Average Credit Scores Across Different Racial Groups
It's being used against us, for those in the back.
It's being used against us, for those in the back.
Mike Nasty
Veteran
This was one thing that confused me. I have a low % and they say it's good, but then you hear 30% and that didn't make sense to me, and it wasn't something I was planning on doing.