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0 pointsdarkhorn9y ago0 comments

>My US Bank clerk needed a few meetings to convince me that it is good to build go into monthly credits (creditcard) to support my credit score.

Uhmm, can't a bank see your salaries? Because in Turkey they want to see your salaries. You enter to www.turkiye.gov.tr and print out your last 12 months salaries with a validation number and then hand it to your bank. Or you ask from your employer, he ask it from Social Security, travels back to you and you hand it to your bank.

Then they check wheter you had missed to pay back your credit (even to another bank, because they share data). And they check wheter if you were rejected by an another bank (because they share data).

Basically, your score is high if your salary is high.

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acchow9y ago

The US system is kind of broken. They don't equate high salary with high creditworthiness - maybe it's because of the american culture of consumerism (which implies that you might make lots of money, but if you spend it all and are going into debt to fund your lavish lifestyle, then you're not creditworthy). So the American system rates creditworthiness by a history of paying off debt on time (usually credit cards, mortgage, car loan, etc.).

It's stupid.

It would obviously be better if we judged creditworthiness by your bank balance history. But this is apparently hard/impossible to show.

SilasX9y ago

Right. Their models are "trained" on people who have credit card debt. No history of using a credit card? "Ugh, weirdo, don't bother, send them to subprime."

Happened to me too -- I was working at my first job for 18 months but had never gotten a credit card. I had never had debts and was asking for a mortgage less than 2x my salary while making 3x the median income for the area and at its largest employer; still classified as subprime.

What's worse is that I could go to the annual credit report services and get my score, which would show it as 740, but then any actual lender I went to wouldn't see the 740; they'd see "no data", which puts you in the subprime bucket.

I would be auto-rejected even for $500-limit store credit cards.

(It's been since resolved and I've had a credit card for a while but still, very screwy.)

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