I’m at a loss for where to go with this subject. I kept hitting dead ends, so starting in the more left leaning subs. This isn’t directly antiwork, but I think it has a tie, since almost 50% of employers use credit checks as part of background screening. Not to mention almost all rental housing utilizes credit scores to establish housing worthiness.
Because I’ve already had this conversation in a circle with a few left leaning people already: I get the original intent was to stop redlining. But then again the argument that credit scores are meant to be completely demographically unbiased & based only on your personal responsibility/reliability hasn’t been valid for over 40 years. They may stop banks from denying loans directly based on race, but since it’s using class related data scores often end up having the same effect.
The scoring models themselves seem heavily biased toward middle class to wealthy whites with equity, and predatory loan companies create their businesses around targeting lower income/low credit score individuals who are usually in BIPOC population. Between medical debt, student loans, check cashing/loan agencies (poverty ticks) it really works in the reverse of its intended purpose.
Credit scoring creates false hope for those struggling through systemic racism & poverty with its promises, but in practice has only maintained and magnified race & class inequality. Just instead of doing it to your face, it’s done in a completely legal, passive way by assessing data & targeting certain factors as “risks” that typically apply to certain populations for unrelated reasons.
Now that I’ve started looking for forums that deal with this I’m kind of surprised there’s not much more of an outcry. In fact I’ve actually found the opposite. I’ve had seemingly left leaning people get almost hysterical defending the system with the same 50 year old company lines that helped establish 3 companies as the gatekeepers of prosperity for all of us. People I’ve talked to recently seem to come absolutely unglued, spouting the same kind of vague, circular arguments you usually expect from creationists or flat earthers. It might seem kind of like an exaggeration but it feels like ..I guess, a cult. They truly seem to believe this system is genuinely altruistic & unbiased.
“Pay your bills on time. That’s the magic”
But your bills, cell phone, electric, etc aren’t part of your revolving accounts. They actually considered part of your file. If they are factored at all, it’s only minimally. And that’s only if your bank is one of Experian’s few partner banks, and in that way, that one credit bureau can track payment history. Of course, there’s three, and if Experian just happens to be the lucky hit for a particular check, the effect is usually negated if you have a “thin file”.
Got off on a rant for a minute, sry for the tirade. It has started to kind of frustrate me that this doesn’t seem to be a much bigger issue by now. “Seems” as in from where I am, just now starting to look. I’m sure I’m not looking in the right place to find this stuff.
It has to be there. I can’t be the only person that recognizes there’s a major issue developing that’s helping make the whole situation worse.
Sry for any formatting errors or typos. Mobile, etc. And if I’m actually wrong in my assessment of the debt industry or credit scoring, please correct me. I just ask that you pretend you’re starting from scratch and explain from the ground up, since I’m not exactly coming into this cold. But then again I’m far from an expert & not claiming to be one. I’m sure there’s info on either side of the argument I’m missing. I just don’t really just want a recycle of the same tired corporate propaganda. If you have evidence based info and statistics, some good reading you care to link, feel free. I’m open to admitting my perception might be skewed by a lack of better information.
In other words, if you don’t agree, don’t hit me with the same vague bullshit about minorities being hit harder without credit models unless you can draw a direct logical line to how that would occur in the present day were we to modify or do away with the current system.
If you’re gonna reply to disagree, go for it. Just don’t be low effort about it. Try, and I’ll try to meet in the middle.
Or if you’re already on board & have ideas on where to find FICO busting subs or also want to vent go for it.