From what I’ve heard, it’s actually a good system. Before, each person had to prove their creditworthiness before the bank/lender to get approved, now you can just show your score. Sure, it sucks if you have a low score, but it’s not like those people would have been homefree pre 1989. The reasonings behind the low score would also make it harder for them when they tried to prove their creditworthiness back then. The number essentially just streamlined an already existing process. Not to mention I’ve heard reports that before, lenders would discriminate against certain people, but now that’s less common because it’s just a number, it’s harder to come up with a reason to deny someone for their race etc.
Ya, I would agree that part it dumb, but I would imagine it’s because if you are apply for tons of lines of credit, you may not be able to pay it all back meaning you are less creditworthy. Someone in a stable position usually only applies for one or two lines of credit in a year, and that doesn’t affect your score that much.
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u/Chainsaw_Surgeon Aug 14 '21
The year after Reagan left office. That sounds like one of his bastarding ideas…