I was curious about the adoption thing and didn’t wanna just weigh in on vibes, so I took 5 seconds to search it and yall…
Some of this is bleak.
time.com/6051811/private-adoption-america/
Anne Moody, author of the 2018 book The Children Money Can Buy, about foster care and adoption, says the system can amount to “basically producing babies for money.”
Claudia Corrigan D’Arcy, a birth-parent advocate and birth mother who blogs extensively about adoption, says she routinely hears of women facing expense-repayment pressures. Some states, such as California and Nevada, explicitly consider birth-parent expenses an “act of charity” that birth parents don’t have to pay back. In other states, though, nothing prohibits adoption entities from trying to obligate birth parents to repay expenses when a match fails.
Asafum@feddit.nl 3 months ago
“Since I got my first credit card, I used it for all my purchases but paid it in full each month, building a good score — or so I thought. When I went for a car loan, I was denied because I was a ‘thin file,’ meaning I never paid any interest.”
My friend just got denied a mortgage because of this bullshit. Like what the actual fuck!? You’re a responsible borrower but you committed the ultimate sin of NOT PAYING THEM INTEREST!
… Like what the fuck?
return2ozma@lemmy.world 3 months ago
Yes, it’s a real thing. When I worked at a major bank the customers that would pay in full monthly on their cards were considered the “bad” customers. Those that paid only minimum and got hit with late fees were our “good” customers.
Omgpwnies@lemmy.world 3 months ago
From their perspective, they make nothing off of people who don’t pay interest or fees. Thus, it only makes sense that the “best” customers are the ones carrying a balance, because they’re the ones who generate profits.
thrawn@lemmy.world 3 months ago
This part is true but is separate from credit scoring. Banks don’t like unprofitable credit card customers.
But it’s actually good for your credit, and they’ll keep approving you as long as you’re not churning. Churning can look like the lead up to bust out fraud too
criticon@lemmy.ca 3 months ago
This is weird. They probably only have 1 cc with a very low credit limit that doesn’t let create a good picture of how they are managing debt
I’ve never paid interest but I have 7 credit cards and about $50k in credit. I was able to get 2 loans for cars and I’ve been offered good mortgage rates
Maggoty@lemmy.world 3 months ago
The people doing the car loan see that 50k in available credit as an emergency back up too, so to a point, having credit available can get you more credit. It’s also in a ratio with your income too though.
Philippe23@lemmy.ca 3 months ago
This Experian FAQ article indicates “thin file” is about number of credit accounts, not amount of interest.
experian.com/…/what-is-a-thin-credit-file-and-how…
thrawn@lemmy.world 3 months ago
Yes. Credit score is simply how much you borrow and how often you repay it. The thinking is that, with a thicker file (more accounts paid), there’s less risk.
This can cause some real fuckery: they want to see different types of loans, so student loans with no missed payments is good for your credit despite being bad for your life. It doesn’t care if there’s interest. The misconception may occur because with almost every type of loan, there is interest.
I’ve been fortunate enough to never need a loan and my credit did slightly suffer because of that. That said, any 18 year old can open a starter credit card and get a score of >700 within the year as long as they don’t miss a payment.
Maggoty@lemmy.world 3 months ago
They want a profitable client. So yeah they basically want you to pay an invisible premium for your credit score. I routinely carry a small balance over and my credit rating is far better than people who pay everything off right away. They want a reliable profit, not a reliable payer, if it makes more sense that way. Think of it like your subscription to credit. It doesn’t need to be a large amount either, literally just a couple dollars a month when you math it out.
HasturInYellow@lemmy.world 3 months ago
I’d rather they choke on their own blood thanks.
piccolo@ani.social 3 months ago
Credit score? More like profitablity score.
thrawn@lemmy.world 3 months ago
This is incorrect, of course. Anyone reading this thread, please do not pay interest for nothing.
First, let me say this is not a defense of the credit score system which is unethical. I hate it too, but for the real reasons.
Credit score is not determined by the bank. Your lines of credit report to an agency which considers your utilization but not whether you pay interest. Credit agencies don’t care if banks profit, they are already making money by collecting your personal data and selling it.
I have never paid a cent of interest and do not have anything but credit cards on my file. My score is above 800. I hate to say it, but Lemmy has been consistently worse than Reddit for financial advice, and I’d suggest visiting the cRedit sub for accurate hate on the credit system.