Category: Musings

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Credit Scores are Bullshit

Through my bank there is a portal to the Transunion Credit Bureau.

I sometimes look at the score, although it no longer has the meaning to me that it once did.

At one time I worked very hard to have a good rating. Then around 2008 or so, overnight my A+ credit rating simply disappeared.

I didn’t miss a payment, I didn’t open a ton of new credit, in fact I had done nothing.

What happened was a “Correction” because the banks suddenly realized that they had written a shit ton of bad loans and they were covering their asses, begging for money from the taxpayers, and in short screwing everyone by downgrading all of our credit even though there were a ton of people like myself who’d not used our homes like piggy banks and gone on spending sprees.

That day I realized that the whole credit score thing was bogus. Since then I’ve had a “whatever” attitude about it because the banks and the system can fuck us all anytime they want to. The recent bank failures are reminders of that.

This morning I was looking at my accounts, making sure that the bills were scheduled to be paid, and thought, “eh, it’s here and free, let me click on this just to look.”

I did, and my credit score is respectable, it’s not what it once was thanks to that morning in 2008 but it’s okay. At least I’m not obsessing over it like I was back then. As I was looking at the data on the web page, a comment jumped out at me and my brain rebooted.

“Having a low debt balance relative to your available credit signals to lenders you’re more likely to make on-time payments.”

That used to be called a debt ratio, it had nothing to do with on-time payments (they were a factor,) it was a measure of how much you owed versus your income, and real possessions. This was used to determine credit worthiness and your ability to repay the amount that you’d borrowed.

I know in this day and age when college loans are supposed to be paid by the tax payers and no-one is responsible for anything they’ve done, old ideas like repaying the loans you’ve taken out are passé. But there was a time when you could get into real trouble with credit and you only had two choices, get a better paying job, or bankruptcy.

What should signal to lenders you’re more likely to make on-time payments is actually right there on the same web page.

It Looks something like this:

Open Accounts – 5
Total Late Payments – 0
Accounts in Collections – 0
Inquiries (last 2 years) – 0
Age of Credit – 35 Years

Factor this data with the real assets I have, (equity – how much of my home loan I’ve paid off and current value of my home, for example,) plus my income, and a financial person should be able to determine if I’m able to reasonably take on additional debt or NOT.

You also have to factor in the cost of the loan. High interest rates for example can really screw your ability to pay the loan off. For reference see Debt Ceiling!

I learned this over time, the hard way. I wouldn’t take on additional debt right now because I’m a little close to my personal discomfort zone.

The way things are, I wouldn’t get the kind of favorable interest rate I’d want, so taking on additional debt is out of the question. I know this because I have a handle on my finances. The credit bureau isn’t telling me anything new.

Laughably, the bank and credit bureau would still give me a shit ton of credit which would be more likely to push me as an individual into default.

Financial institutions are supposed to be about profit and part of the way they do that is through responsible lending. Ideally a financial institution should be concerned enough about their customers that they take the time to explain why a customer should or shouldn’t take out a loan and that the customer understands the risks.

While foreclosing on real property does make the bank money it’s a pain in the butt. Unsecured credit such as that associated with credit cards is a losing proposition, if the bank allows a customer to over extend themselves.

Why loan someone a bunch of money you’re never going to get back?

That makes no sense unless the banks are inflating their losses then billing the FDIC somehow.

With interest rates increasing the way they have I’m betting there are going to be a lot of bankruptcies in the next few years. I’ve got some credit cards that are suddenly at 18%. I haven’t seen those interest rates since the 1980’s.

There’s a part of me that says pay off the credit cards and close those accounts. Logically you’d think that would be the wisest path because it limits your liability. But doing that would reduce your credit score.

That’s another part of the Scam. They force you to keep accounts open but unused because it inflates the arbitrarily calculated number.

I understand mostly how this works. I understand that the numbers are supposed to equalize us all and allow computers to make approve or deny decisions. I just have no faith in the numbers or how they’re created.

I suppose that why the noise over the debt ceiling makes no sense to me.

I’ve completely lost faith in the credit score system. Credit Scores are bullshit and have been for at least a decade.

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I got to thinking about the whole Video Interview Thing…

Something about the “One-Way” interview has been bugging me. I tried to sort it out in the blog post here. I failed to clearly analyze what it was that concerned me.

I was denying my suspicious nature. A couple of good night’s sleep later and my concern clarified when I started down this path.

Have I become too suspicious? It that suspicion justified? Have there been simply too many bullshit recruiters and promises?

As I was thinking about it, I found myself asking this question.

“Why the one way video interview?”

The hiring manager still has to make time to review the video. Then they have to arrange to call the candidate back for another interview. This whole one way video interview paradigm saves no-one any time.

Why not just Zoom meeting or FaceTime, or whatever in the first place? Why add a layer of complexity?

Then it hit me.

The one way interview does allow for isolation, racism, and sexism.

The candidates are speaking blind to a dispassionate recording system. But the managers can review the video and easily allow racial, gender, or age bias to guide their candidate selection for second interviews. Since the hiring manager reviewing the videos doesn’t have to actually connect with the candidate, they can forget them without guilt.

It’s all done in the privacy of their office with no oversight or questioning of their choices or motives. It’s unlikely that anyone will take the time to review the reject pile.

If the manager said candidate X, Y, or Z isn’t appropriate, who’s going to go look at a video? Who will have the time to notice that the hiring manager is only interviewing candidates of a particular color or gender…

I’ll grant you, this can happen in any interview situation. But since most interviews are done with a minimum of an HR representative and the Hiring Manager present there is some oversight.

The old, “sort through resumes,” pick out those that have the skills you need and call those people for an interview tended to prevent racial stuff because you couldn’t justify hiring a less qualified candidate over someone more qualified, if you were hiring only on the merits of experience.

Looking at a resume you only had the name of the individual. I’ll grant that in more recent years, it became possible for racist bias to rear its ugly head because of the names some parents gave their children. “John or Julie Green” was pretty generic. (I’ve worked with two John Greens. One was white, the other black. Both were great guys and excellent programmers.)

With “Jose or Julia Verde” you could infer that they were of Spanish/Latin origin, but from where was the question. Spain, Mexico, Costa Rica, El Salvador? You might be able to narrow things down if they’d attended college or trade school in another country. If all their education was in country, you’d be fairly certain that they were at least first generation, so communication wouldn’t be an issue.

When you get to “DeKanye and Shaquanda Green” well, the parents of these children set their kids up to be victims of racism. It’s not right, but it is sadly true.

This name thing also works the other way. My surname screams white, and possibly NAZI to boot. So in this period of time I’m as susceptible to racial bias as poor Shaquanda. The only way we truly escape bias is if everyone changed our names to numbers. Perhaps our phone number or our social security number would eliminate all name based bias.

But we’d still have the physicality bias to contend with. The only way to eliminate that is to have everyone work from home and no video conferencing at all.

Which brings me back to the things that had been bugging me about the whole “One-Way” interview process.

1 It doesn’t save anyone time.

2 The candidate has little or no control over how the interview is used.

3 The “One-Way” interview can promote racism or sexism with no oversight.

4 This interview format imposes technological barriers such as compatibility and internet speed.

5 Technological barriers may indicate the economic level of the candidate, and be used in an exclusionary way or result in lower offered wages for the same work.

Now that I’ve worked through it I can tell my brain to work on something else. I hate it when my brain is chewing on something but can’t figure out what caught my attention.

If you’re looking for a job, consider the “One-Way” interview carefully. It may not be as much of an advantage as it’s purported to be.

I’d welcome an interactive video conference interview. That would in fact save everyone a lot of time and prevent un-necessary driving around.

Now I’m off to figure out why something Apple related isn’t working after their latest software update. I think it’s a bug but need to check out my settings before contacting Apple.

Talk about a company that needs good old fashioned manual testing and human eyes looking at their products…

Oh well, that’s never going to happen!

Have a good day.

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I’m not sure this is a good idea.

I just got an invitation from some of The Other half’s circle of old friends, to attend a beginning of summer event.

Generally speaking members of the group are okay people. There’s one however who drinks too damn much and then becomes an asshole.

NO, It’s not me… I’m an asshole ALL the time! I don’t need booze to become one.

On the one hand I’d like to see some of these guys and I’m sure they have questions about the Other Half’s passing. They deserve answers and I suppose it’s out of a sense of duty to the Other Half that I’m considering going to the event.

I’ll admit to an ulterior motive in going because the asshole likes to pick on people he considers to be “less than”. This particular person is an academic elitist with an Art degree of some sort and considered people like me “less than,” in spades.

I’m not an academic, and I was actually involved in the production of goods and services. He’s always liked getting under my skin, it was somehow amusing or entertaining for this guy to sour every single party we attended. I was always restrained so that I didn’t embarrass the Other Half.

But now the Other Half isn’t around, and he wouldn’t be embarrassed if I just said exactly what I thought.

You see, even after I stopped going to the events hosted by the Other Half’s friends, the drunk elitist simply turned his venom on my Other Half. Within a year or two my Other Half stopped accepting invitations to their parties as well. I don’t think my Other Half had seen this group of old friends for at least 4 perhaps 5 years.

It might be cathartic, hell it might just be dang fun to inflict pain on someone that offended me and my other half on so many occasions. I can’t decide if ignoring this particular bloviating asshole or confronting him directly and brutally would be the best path. I think I’ll have to make that decision on the fly if I decide to go to this event in the first place.

It will probably be the last time I see any of these people and as such… Well I might as well go out with a bang!

I would like to spend time with the hosts and at least one if not two of the other guys. If it becomes too much I can leave. Since I’ll be alone I won’t have to worry about forcing the Other Half to cut the evening short.