ST Alpha - "I wish Credit Karma had existed when I was 20." (Reading a Post)

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I wish Credit Karma had existed when I was 20.

Posted by David (aka David) Apr 13 '12, 12:20

I am amazed by the madness of the arcane credit scoring madness. One dude posted about how a friend went into bankruptcy over a $750k house yet has the same credit score as him because the latter guy fell two payments behind on an $8k car. How does that make sense to anybody?

Responses:

I can only imagine there is more to the story than what we're being told. -- nm - znufrii Apr 13, 12:35
Tangent: What is Credit Karma's business model? Free Credit Reporting now? -- nm - ty97 Apr 13, 12:29 2
- Same as Mint. Referrals for credit cards and other loans. -- nm - spamlet Apr 13, 12:30 1
  - And they must do fairly well since they have to pay for licensing those reports from Transunion. -- nm - David Apr 13, 12:33
i always found it stupid that if you re late with a payment you get bitch slapped with userous interest, even if you are paying hundreds over the mini - zeitgeist Apr 13, 12:27
That's crazy. - ty97 Apr 13, 12:23 1
- Reviewing the post, they were the same year, 2009. - David Apr 13, 12:26
If you don't pay your bills, the creditors don't care how much the underlying debt is. - spamlet Apr 13, 12:22 27
- Clarifying, he caught up in the third month. - David Apr 13, 12:24 1
  - I'd also bet there are other issues. I'd imagine that the car isn't the only problem. - spamlet Apr 13, 12:27
- Dude two fell behind two payments on one debt. Dude one filed bankruptcy thus killing basically all his debts. -- nm - ty97 Apr 13, 12:24 24
  - If you're a creditor, do you care? - spamlet Apr 13, 12:26 23
    - Absolutely. Person two was two months late but paid me. Person one didn't pay anybody. - ty97 Apr 13, 12:28 2
      - [deleted] 1
        
        The calcs on these are maddening. People's scores oftentimes drop when they pay off auto loans early. - David Apr 13, 12:35
    - Two months late is not a default, though. They got their money plus interest and late charges. - David Apr 13, 12:27 18
      - but, conversely, if someone can't keep up with smaller payments, why would you trust them with anything larger? -- nm - Andie Apr 13, 12:40 1
        
        If I make the assumption that they have made all of their payments over the last two years, I would, yes. - David Apr 13, 12:43
      - It's a warning sign. - spamlet Apr 13, 12:29 15
        
        1. Do you work in lending. 2. If #1 is yes, can you name your employer so I can sell my stock? - ty97 Apr 13, 12:38 4
        
        You'd rather lend to someone falling behind on their payments rather than someone who has cleared their debts? - spamlet Apr 13, 12:39 3
        
        I'd rather lend to someone who feel behind on one payment than someone who proved a willingness to screw over all their lenders, yes. - ty97 Apr 13, 12:44
        
        would you lend your own $100 to someone after a friend told you they borrowed from them and then were blown off when it was time to pay it back? - zork Apr 13, 12:42
        
        The manner through which they clear their debts matters a lot. - David Apr 13, 12:40
        
        To me, this is the difference between a teenager stealing a CD and Walter White in season four of Breaking Bad. -- nm - David Apr 13, 12:32 1
        
        Again, I doubt that the car was the only issue. - spamlet Apr 13, 12:35
        
        worked through? no, he's abandoned. nobody will make money from him now but will actually lose. people will still make plenty off #2 -- nm - zork Apr 13, 12:30 7
        
        The bankruptcy was 2009. It's already in the past. -- nm - spamlet Apr 13, 12:31 6
        
        it won't be in the past until 2016 or so. -- nm - zork Apr 13, 12:32 5
        
        On the credit report, yes. But from a lending standpoint it is. -- nm - spamlet Apr 13, 12:33 4
        
        we *are* talking about credit in this thread. you're moving the yardstick. -- nm - zork Apr 13, 12:34 2
        
        I'm trying to explain *why* the credit score would be what it is. - spamlet Apr 13, 12:37 1
        
        You are? -- nm - zork Apr 13, 12:40
        
        From a lending standpoint, he's the guy who never paid what he owed. -- nm - David Apr 13, 12:34
    - i'd think they'd care far more about a bankruptcy and discharged debts than they would about a slow pay. -- nm - TFox Apr 13, 12:27

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I wish Credit Karma had existed when I was 20.

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