this post was submitted on 23 Oct 2023
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[–] qyron@sopuli.xyz 21 points 1 year ago (4 children)

I was just considering this the other day.

Taking this logic to the extreme, wouldn't someone with liquidity but no credit score face serious issues towards accessing housing and services, as per the post?

[–] ChickenLadyLovesLife@lemmy.world 19 points 1 year ago (1 children)

I'm in this boat and it kind of sucks. I have a lot of savings after a few decades being a programmer, but my credit history consists of nothing but a few late bill payments over the years - never had a credit card or a house or car loan. To rent an apartment I always had to get my brother or father to co-sign the lease, or else I would just rent a room from somebody (which usually never required a credit check). I can't get a credit card from a bank or even cards from stores.

On the other hand, it kind of doesn't suck since I have no debt whatsoever, and I just bought the house I'll spend the rest of my life in for cash. For the last fifteen years I've driven cars I bought for cash on eBay or Autotrader. There were times in my life when if I'd had access to easy credit I would have dug a big hole for myself, and the (very rational) unwillingness of anybody to lend me money saved from financial disaster.

[–] PunnyName@lemmy.world 15 points 1 year ago (2 children)

For the most part, it depends on the liquidity.

10k in reserves, you'll get a few chances.

10 mil in reserves, they'll let you fuck them. Rawdog.

[–] orrk@lemmy.world 13 points 1 year ago

owe the bank 1million, the bank owns you

owe the bank 100million, you own the bank

[–] qyron@sopuli.xyz 3 points 1 year ago

That was not a pleasant image!

[–] rchive@lemm.ee 5 points 1 year ago (1 children)

My mortgage company didn't even look at my credit score once they saw my savings and income, which were REALLY not that much, just OK. But apparently good enough. So, I think credit score is only one thing they look at, and other positive things can outweigh a negative score.

[–] AstralWeekends@lemm.ee 0 points 1 year ago* (last edited 1 year ago) (1 children)

What were your savings, if you don't mind? I managed to get a house priced at 274k this year with only 20k saved, but a really good credit score, and about 100k income between me and my partner.

[–] rchive@lemm.ee 1 points 1 year ago

I don't remember exactly, but it was probably not far off 20k saved with more like 50k income. House price was quite a bit lower than that, no equity from any previous homes owned.

[–] Dkarma@lemmy.world 3 points 1 year ago

Credit score usually just determines what your interest rate is. Not whether you get the loan or not. Your cash flow (direct deposits) are more indicative of whether u can pay the loan vs credit score.