If you had 34 trillion in debt and a centuries-long history of making on-time payments, you’d have a perfect credit score.
Yeah, this is just people not understanding how credit scores work, part #57294, lol
Credit rating also depends on credit to debt ratio. You want to keep it below 35%, so you would need a credit line of $100T or more to have a great rating.
I think sovereign debt would work like an AmEx Platimum with “no fixed limit”, which makes the algorithm ignore utilization.
Worth pointing out that credit scores are completely detached from the government. They are entirely private industry, that is collecting and selling your financial info without your consent or opt in. If you were born before 2004, then they have also accidentally leaked literally all your personal info to the dark web, with literally 0 consequences.
Nah uh! We forced them to pay an hour’s worth of profits to their own charity!
Credit scores are just some fake shit that boomers made up. It’s so dumb.
Only people who are bad credit risks ever come up with this take, lmao.
The sole function of credit scores is to benefit people who are reliably ‘good for it’ when they borrow money. Without them, everyone is treated as just as high a risk as the worst borrowers who are least likely to pay back their debts, and you gain no benefit from reliably paying back your debts. But with them, your good borrowing is kept track of, and good reputation means lenders trust you more to pay your debts back, so they’re willing to lend more, and they are willing to charge less interest.
Removing credit scores changes nothing for bad borrowers, and hurts good borrowers.
You’re discounting the people who have always lived within their means and so never took on debt. They also don’t have good credit. They’ve never missed a payment. They’re good for the money. But they don’t have a history showing that because they’ve never needed that.
You’re discounting the people who have always lived within their means and so never took on debt.
No I’m not. Those people are unknown quantities, and so also suffer if credit scores go away, because bad borrowers are worse than first-time borrowers, so without credit scores, first-timers will be treated worse.
I’m saying people who don’t play this credit game but otherwise are good financially also think it’s dumb. Not just bad risks.
Credit scores require you to get some kind of debt. This is because it’s not a score of your financial health. It’s a score of how reliably you repay your debt.
Well, since the billionaire class doesn’t pay it’s fair share of the tax burden, that money has to come from somewhere.
Terry Pratchett’s “Making Money” taught me enough economics to know that individual debt and national debt are two different things.
How much does the USA have in assets? I’m willing to bet more than $34,000,000,000,000.00.
They could sell Wyoming to Canada, that’d be alright with me.
Canada couldn’t afford it, their monopoly money is worth almost nothing.
I heard that the us still has good credit because although it owes trillions, it is worth quadrillions (all lands and assets), so not really a concern
if it makes you feel any better you’d go to prison if you decided to run a ponzi scheme… unless you’re a bank, that is
Wait a bank is a Ponzi scheme
Not literally. I bet the poster notices the overlap between ponzi and fractional reserve lending and doesn’t care about the differences
Which is?
Lota of differences but the key is: A ponzi scheme pays returns out of future investment. Fractional reserve lending pays returns from interest collected on investments.
Whats really neat is that modern credit score systems are only 40-50 years old
And what’s sad are the number of people that act like credit scores are a force of nature we just have to accept
The US also has a credit score but with other countries they do business.
Countries can print money. If the debt is denominated in your own currency you will never not be able to pay them.
I get your point, but they cant just “print” currency so we could actually not be able to pay when people/countries stop buying the bonds or lose faith in the system.
But you do have to pay that shit back … forever. And printing money leads to currency devaluation, makes everything else more expensive
Even if you don’t think the debt itself is unmanageable, you start having problems like
The economist ewww. The limits to how much money you can print is defined by the productive capacity of your country. If you print more money to increase productive capacity then it’s generally not a problem. The debt is simply an accounting fiction at that point.
Tell me you don’t understand how credit score works without telling me you don’t understand how credit score works
And it’s rising at $1 trillion per 100 days in interest.
I’m not even one trillion in debt
