And how exactly is guessing your credit worthiness based on those factors a better system than literally keeping track of what happened each previous time money was lent to you, when it comes to making a decision on lending money to you?

This is like arguing it's a better idea to select NBA players by their height, than by their performance in high school and college basketball games.

[–] Catoblepas@lemmy.blahaj.zone 1 points 5 months ago (1 children)

Sorry, I’m not sure how to answer “how is measuring your credit worthiness based on your income a good way to determine how much to lend you.” I would think it’s pretty obvious that your capacity to repay a loan is dependent on your current income, not how many loans and credit cards you’ve had active in the past.

[–] damnedfurry@lemmy.world 1 points 5 months ago (1 children)

1 in 4 households earning over $100,000 a year live paycheck to paycheck--not because they can't make ends meet, but because their money management sucks. A high income has very little relationship with responsible borrowing, despite what many would assume.

[–] Catoblepas@lemmy.blahaj.zone 0 points 5 months ago

If you stop paying your car or home loan it gets repossessed, people with bad money management still have incentives to pay those on time.