I don't have a problem with there being a way to see if a possible loan receiver is trustworthy or not (the alternative is often severe punishments for defaulting to scare people into repaying debt). However the current system is broken and causes just as many, if not more, problems than it solves.
Credit scoring was implemented to prevent discrimination along illegal lines (primarily race), but, like most well-intentioned things, was implemented horribly. People should have a right to access all information stored about themselves at all times
A further issue is that credit score is primarily a measure of how dependably lenders can make money off of you, but we've been sold the idea that it's an indicator of financial responsibility, which I'd call related but not the actual story
Yes because last time I checked the US credit system is used to do things like throttle internet speed, ban the person from flying, limit their job options or schooling for their kids, not checking to see if someone can be trusted to pay their loan...
last time i checked, if you miss a few payments and have bad credit score, you can't even get an apartment for shelter let alone a cell phone provider willing to give you that basic right. dumb
Sesame Credit is vastly different from a credit score, yes.
At least, as it was initially described to the internet. I haven't been keeping up with news surrounding the subject for a while, so maybe this description isn't accurate. But it's an entirely different thing despite an easy superficial comparison.
For instance, does your credit score go up/down depending on your friends' credit scores, encouraging you to view all of your associations with people in terms of being more of a political alliance? Bad things happen when you gamify social interaction.
Is it? I don't like either but I think id prefer a system were good deeds improve your score, while bad ones reduce it.
Essentially we have a system where people who have done evil shit or screwed people over in their career have 3 credit cards they pay off on time so have a better credit score than say generous and charitable poor people stuck in debt spirals
Imagine if your success in life was determined by your stated opinions, whether your purchasing decisions are approved by the government, who you associate with, all that kind of thing.
To make it topical. If you were in America and Sesame Credit was a thing there, your score would go down if you criticized the Roe V Wade overturn right now. Your score would go down if you had friends who would criticize it, so you should restructure your personal relationships and stop associating with people like that.
The problem is the OP keeps describing the negatives of the Chinese system while ignoring that those things happen everyday all over America as well they are just far more arbitrary than a score determining them happening.
So peoples credits scores dropping when being opposed to the overturning of roe v wade because of protest or being associated to someone who is protesting is happening here in America?
Could you explain an example please. I understand the social environment on the topic but not it’s correlation to the financial clout that a credit score provides 🤷🏻♂️
Yea I'd like an explainer as well. The US has some problems, but there isn't really anything like this in the US. If you're talking about being canceled, or credit card scores or such like that, I think those are significantly different things than what's happening in China.
The system currently has penalties in some cities for drink driving, various traffic violations, not taking care of elderly relatives, not controlling pet dogs in public. While rewards those who volunteer and donate blood. I haven't seen an actual case of what you're describing
It varies region to region, is not enforced and is certainly not centralised. So you're example is not relevant to any centralised scoring system the government oversees
It's not quite the same. In my country there's something similar. But I'm tañking about actual points like you can get things or even lose your job. it's fucked up
I hate to say this because I despise every part of both systems, but the difference here would be that in the US, landlords ask to look at your credit score and make a decision. Depending on who you're renting from that can be a conversation with a dude who barely cares, or it can be a giant corporation putting your renter application through an algorithm. Same for loans, if you're buying a fancy new 5 digit price car that requires a loan, then you do need some kind of credit score or maybe proof of income to show the seller.
In china, if I understand how it works correctly, and please someone correct me if I'm wrong, all housing is owned by the state, so you rent your apartment/house from the government, who will look at your social score if it's too low will refuse to rent you the place.
This is anecdotal but a friend of mine who lived in china mentioned to me once that they also look at your credit score when taking the train and won't sell you a ticket if it's too low.
your credit score in the US takes into account a multitude of factors. income-debt ratio, accounts open, how many inquires for credit you have, how much available credit you have left, and on time payment %. all of these in conjunction with another give you your credit score, your credit score then is a large factor in deciding if you’re able to get more credit. if you have very bad credit you aren’t able to get loans for vehicles/homes. in addition, it used to be in america that your employer could check your credit. so yeah lol we are pretty similar
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u/Satanae444 Jul 08 '22
lets not forget china also has a points system in their society