Quote:
Originally posted by sebastian_dangerfield
I have to respectfully disagree. I think the debt/income ratio trumps late payments these days, considerably so. It may not "technically" trump it, but in the current market, where lenders are giving money away, most lenders are more focused on the ratio.
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Words to live by.
Quote:
Originally posted by sebastian_dangerfield
I think credit scoring is scary. People are beginning to learn that they can game the system and not pay bills like they did in the old days. And the lenders sell off all their risk to other lenders, so there's no immediate relationship between default and pain to the bank.
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What are you talking about? Selling off bad debt is part of a lender's business, but the riskier the debt sold, the less made. And often, they are selling off bad debt at a loss. You act like they're saying, "Hey, it's no sweat. We'll just sell off our risky debt."
(Just call me willy wonka, wonking it up.)
TM
