What if credit scores did not exist?

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As a pick-up from yesterday (click here) regarding why credit scores are so important I thought I would offer another side of credit scores:  What if credit scores did not exist?  Having worked with borrowers for more than a decade I can tell you that a credit score is a real data point that banks and lenders have to know to determine what type of risk a borrower might be.

A credit score is the result of many different factors including the following: Continue reading “What if credit scores did not exist?”

Just because you can doesn’t mean you should

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In keeping with my theme from yesterday (click here) I continue today with the question:  “Should renters be able to pay their rent with their credit cards?”  I fully appreciate that on the surface this may seem like a silly question however stop for a moment to consider the implication.  As with anything there may be a group of people who can handle their credit card properly and making a rent payment using their credit card would not cause undue financial strain.  However, I think it is fair to consider that there may be a larger group of people who would experience additional financial strain if they were given the opportunity to pay their rent with their credit card. Continue reading “Just because you can doesn’t mean you should”