How to know if I have credit
More than one of you will have heard the expression “passing the credit score” in reference to the loan you have applied for. But what is credit scoring? After reading this post there will be no doubts about what a credit score is, what information it needs and how it works.
In some institutions the scoring is merely informative, and serves as a test of contrast with respect to the human decision. In others they can condition such decision in certain cases, and in many others the scoring is decisive, unless there is an intervention of a superior with attributions to the manager who feeds the scoring.
It is often said that good scoring improves delinquency rates compared to human decisions. In fact, accounting regulations reward those risks granted under this model as opposed to the traditional one of the analyst or the committee.
A credit score processes the information for which it has been programmed. Generally speaking, it is the same information that a good risk analyst would use, since they are the ones who set the guidelines for the programmers in this respect. We can distinguish two big blocks of information, the one that does not require any documentation from the client, and the one that is necessary for the client to provide when processing the operation:
Credit scoring that is
The @AppleCard is such a fucking sexist program. My wife and I filed joint tax returns, live in a community-property state, and have been married for a long time. Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does. No appeals work.- DHH (@dhhh) November 7, 2019
As we already know, the Apple Card is a credit card and not a debit card, therefore, the user can borrow money in advance. But what is the reason for such abysmal credit differences in some cases? It all depends on the bank scoring and how the credit system works in the United States (and in general worldwide).
Before going on, we must remember that there is a second party involved here that has not been mentioned so far, namely Goldman Sachs bank. As we already know, Goldman Sachs is Apple’s ally and is in charge of the financial part of the Apple Card, while Apple provides the technology. That is to say, everything related to the credits granted, loans and their limits depends on Goldman Sachs, while Apple is in charge of the integration with the iPhone, the Wallet app and more. Since Apple is the one with whom the card is contracted and its name is on the card, users will obviously turn to Apple in the event of a problem.
Credit cards to start your credit life
Credit allows you access to a larger amount of money than you have in savings, quick access to money when you need it for emergencies or to take advantage of business opportunities. But since this money is in the form of a loan, you acquire the responsibility to pay it back on time including interest.
However, not everyone has the same indebtedness capacity, so knowing it is essential when thinking about acquiring a debt and not putting at risk the ability to comply with your payments, since non-compliance would lead to future credit problems.
We use credit when we borrow money from a third party, be it a bank or an institution. In return, the third party charges us an interest rate, which is the cost of using the money for the time it takes us to pay it back.
Before requesting money from a bank, you should be aware of your income and debts. This will help you determine if your budget allows you to be up to date with the bank obligation you are going to acquire. In addition, you should analyze if it is necessary to resort to this option, since you can resort to other inputs such as severance payments, savings, etc.
How to know if I have good credit
There are currently more than 643,000 people enrolled in DACA, the Deferred Action for Childhood Arrivals. The program was created by President Obama in 2012 to provide a temporary solution to deportations. Obama initiated DACA as an executive order after the DREAM (Development, Relief and Education for Alien Minors) Act failed to pass in Congress. Although the DREAM act never became law the people targeted by the law are still called “DREAMers.”
DREAMers have many of the same goals as other Americans: to get an education, raise a family, and have a home of their own. DACA provides security and stability to law-abiding DREAMers who fear deportation and seek opportunities such as homeownership. In January, news broke that Dreamers now officially qualify for FHA-backed loans, so if you are a DACA recipient, here’s what you need to know before you buy your first home. To read in Spanish, click here.