If all credit scores were set to 850 for everyone would that help a New economy grow?

a reply to: Ophiuchus 13

Since they didn't ask my opinion when they decided to give all that money away I don't think I need to offer a solution to the mess it created.

a reply to: Ophiuchus 13

i'd like to see a fixed rate low interest loan. maybe a rate of 0.1% for people with good credit. and a history of responsible finances.

originally posted by: Sillyolme
a reply to: Ophiuchus 13

There will still be people who wont pay back the loans. This is why we have credit scores. So we know who is trustworthy and who is not.

Who is paying back unemployment-Covid19 Cares and other support money like?

I hear you and you make valid points, but more loans and money spent should help stabilize the global economy from the direction it may be about to go.

a reply to: JBIZZ

originally posted by: JBIZZ
Credit score has nothing to do with if you make payments or not. I also been at the same job for 15 years & own 2 condos outright, 60 ounces of gold & 300 ounces of silver. After my current auto loan is paid I will make it a point to never get another loan again in my life.

Wrong. A major component of a credit score is paying your loans on time. Now, the fact that you have gold and silver is what has nothing to do with your credit score. They don't know. And if you "never get another loan in your life" then you credit score will, predictably, go down. In fact, when you paid off your car loan, your score probably went down a few points. Mine did--just because I now have zero installment loans and my house is paid off. If I stopped using credit cards for online shopping, my score would go down again.

You may consider that a good thing. After all, if you refuse to get loans, why would you need a high credit score? Just don't be surprised if your car insurance goes up, because they also use credit scores. Putting lice on sick people will not make them well. Giving everyone a high credit score will not make everyone reliable. It's a naive idea.

originally posted by: Ophiuchus 13

originally posted by: Sillyolme
a reply to: Ophiuchus 13

There will still be people who wont pay back the loans. This is why we have credit scores. So we know who is trustworthy and who is not.

Who is paying back unemployment-Covid19 Cares and other support money like?

Unemployment is paid by a payroll tax on wages. It's usually about 3.5%, but the laws in the various states are very complex and include "experience ratings" and the like. The money used to pay unemployment will quickly be used up. The Congressional "relief funds" will just be added to the national debt. There will be a price to be paid eventually, and the only guarantee is that you won't like it.

a reply to: Ophiuchus 13

A max. wage would help the economy grow.

a reply to: Ophiuchus 13

I'll be a devil's advocate when I say this, the banks will give you what ever or how much you want.

They could or would hypothetically speaking give you a billion dollars if you asked for it. The problem is, is that they are going to want it back at some point where as credit record would be a form insurance on theirs. All the while they mainly make money through interest, while running the risk of not making money off the interest and even the amount they originally leant.

Which would leave them screwed which is why they aren't pushovers an why they have so much influence.

They can be lenient or patient with certain thing though, mainly out of their own interest so long as you can communicate with em. Like a house for example, from I what I understand they dont like to possess or repossess houses, or real estate. Simply because it would be a liability for them, an cost them money like property taxes since it would be in their possession, and the government would want those taxes.

They mainly keep credit scores for reference much like a criminal record.

originally posted by: Ophiuchus 13
The objective with a higher credit score is to give access to loans faster to pay debts up to date.

a reply to: schuyler

OP, the objective you describe here doesn't seem to compute.

Access to loans faster.....to pay back debts.

"I need more debt, to pay back my debt, which was taken to pay back my earlier debt..."

That's what we call in my profession, 'turtles all the way down'.

In all seriousness though, what you describe is the fundamental elimination of the worldwide rule book for responsible personal finance management.

We can all agree that for those with lower credit scores, there is some mixture of % of people that incurred a poor credit record due to circumstances out of their control, health problems, employment issues, dog ate your homework, force majeure, and so on. Accordingly there is some corresponding segment of those who got a poor credit score due to their own irresponsible borrowing.

Let's set aside how to break down the group above, although my contention is the size of latter set of people (poor personal spending habits) far exceeds the former (just bad luck). For those of us who have followed the rule book, managed our personal finances responsibly, paid our debt on time (as Jerry Cantrell once sang), and generally made sound decisions with how we borrow.....what do we get out of this reset?

"Thanks for playing; your parting gift is the board game Monopoly: Global Reset Edition".

Maybe it's just me, I don't get the idea behind these debt forgiveness schemes. It's just amounts to tearing up rule books that have outlined well-established financial practices for modern society. If you didn't follow the rules, of course you'd want this reset. Then you're pretty much on even ground with those that DID follow the rules for good credit management.

IDK if you're going to clear away debt, the only way you're going to get buy-in from folks without debt is if you incentivize them in some fashion. I just don't see it happening.

Why not just give everyone a million dollars to invest on the pretense you live off the interest ?

That would be a good way to restrict the economy, not help grow it. Think of it this way. If you made money lending to people you trusted to pay it back with interest. Then all of a sudden the government did away with your only way to determine who you could trust to pay you back. Would you still lend your money?

This is the reason there is no secretive cabal aka TBTB running the world. Too many differing opinions.

a reply to: lakenheath24

So the question is, who/what is preventing the 'powers that be' from using FACT, instead of OPINIONS?

Because the fact is, boom/bust cycles are alot easier to manage when you have billions. Not so much when you make 24k a year.

Boom/bust needs to be replaced.

originally posted by: scraedtosleep
a reply to: Ophiuchus 13

Why not do away with the concept of credit scores entirely?

This IS the answer. The only sane and rational conclusion to the calamity that has befallen.

Day of Jubilee then start from scratch.....credit score not allowed. Nor spending more on military than you do for education.

Hopefully there won't be a need for a one global currency to fix things...

Yes access to loans that help people pay back mortgages/ back rents/ back car loans / back student loans and any other backed up payments accrued and projected to be accrued during the pandemic recovery periods.

Helping everyone that was or was not doing well credit score wise pre Covid19 is part of the process of re-igniting a potential cooling economy with a global population that has money now from loans (that can be paid back) to inject into the global economy. Instead of possibly more money being used to support the global population until the economy resets itself somehow however long that will take.

a reply to: SleeperHasAwakened

It is not about how well you may or may not have managed your credit pre pandemic.

The credit reset-upgrade response is specifically to the current pandemic shutting down many families jobs, those who were well off and those who weren't well off so it's not about how well you did following the banking-credit rules and how others may have not.

This response to reiterate is in concern. A concern that if things are not managed correctly NOW with supporting people, helping people who will be and already are financially strained from becoming jobless, losing the potential breadwinner of the family to Covid19 or even becoming overwhelmed with medical bills associated with having or a family member having Covid19 that the end results will be large sums of money - financial support spent to help many.
Large sums of financial support that may take time to be distributed, that may have negative effects on the countries providing support as well as their economies as that money is rebalanced. That rebalancing processes can have negative effects on the already strained needing help now and those eventually like you who feel you do not have worries like they do...

a reply to: Ophiuchus 13 all it would do is make a reposser job secure,would end up the same way,some can't use credit,dumb idea

a reply to: Ophiuchus 13

I'm all for helping those who've had their lives and livelihood disrupted by this pandemic. There must be ways of achieving this without a credit reset. Enabling a pause on current debts for X number of months, or moving current debt obligation out into the future, seemed pretty reasonable options to me.

Only way it ends up the same way, maybe is if there is another pandemic shutdown or something similar that causes massive job loss which in turn causes people who had bad and good credit to start having lower credit scores as they adapt to not working and NOT being able to pay their bills at all or on time.
I see many rejections as expected...some do not realize or are in denial that we as a planet have taken a step into a new world, like it or not. So many of the old world approaches to this problem WONT work. They won't work because trying to stick a bandaid on this issue to peel off on future generations ya know the old world approach will only cause financial strife on future generations. Financial strife caused from countries and their governments having to spend for free large sums of support money THAT IS NEEDED on the Covid19 responses.
I guess many of you feel all that money will just be printed and borrowed by governments with no financial repercussions later sort of like if a country goes to war how much it costs said country and how much the PEOPLE of said countries must pay the price of the war.

a reply to: Oldtimer2
Sorry you feel my idea is dumb your idea or solutions are welcome, unless you feel sitting around why people have no jobs and are losing money daily is a better approach. Thanks

Loans and debt are just a modern form of slavery so I really doubt this scheme, which is essentially to extend this insidious system even further would address the issue.

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