this post was submitted on 10 Aug 2023
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[โ€“] Toribor@corndog.social 10 points 1 year ago (1 children)

One way to make credit scores more consumer friendly would be to make it totally transparent what data is collected, retained and transmitted when calculating the score. If you want to open a new line of credit, instead of having businesses look up all this shit behind your back you'd request a letter of credit and provide it to the business yourself, knowing exactly what is in it.

But no, instead it's a total mystery how it is calculated and you just have to hope that they don't get confused and make a mistake because it can wreck your life if they do.

[โ€“] alokir@lemmy.world 13 points 1 year ago

In many countries, mine included, there's no credit score system. We recently took out a bigger loan to buy a house and what we had to provide was:

  • proof of a steady income (in our case from our employer)
  • 3 months of bank account history (to prove that we don't overspend)
  • written permission that they can request our data from the central (government operated) loan database

That's it. From these they could tell that we are safe to loan money to because we'll most likely be able to pay it back.

I don't see how a credit score system is essential when you can provide them with the necessary data only when it's needed.