• merc@sh.itjust.works
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    2 days ago

    So, you can basically declare bankruptcy? That’s good.

    Why is it you think a three strikes system is better than a score?

    • lime!@feddit.nu
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      2 days ago

      no, your debts stay through a personal bankruptcy. this is different.

      with a strike system, you’re good until you’re not. a score system means you can be rejected from some places and accepted at others, giving scummy lenders an in.

      also, there’s none of that “your score is low because you have nothing to pay off” nonsense.

      • merc@sh.itjust.works
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        1 day ago

        No, the whole point of bankruptcy is that your debts are cancelled.

        At the end of the process, your qualifying debts will be discharged, meaning you’ll no longer be responsible for them, so long as you satisfy the bankruptcy terms.

        https://www.investopedia.com/terms/b/bankruptcy.asp

        with a strike system, you’re good until you’re not.

        How is that better?

        a score system means you can be rejected from some places and accepted at others

        And that’s worse than being universally rejected? In reality, if you’re completely shut off from credit, it will just encourage illegal loans from loansharks, etc.

        also, there’s none of that “your score is low because you have nothing to pay off” nonsense.

        You don’t have a history of dealing with debt, so they don’t assign you the ultra-safe score. If another place doesn’t have that, they’ll simply have to charge a higher rate to everybody because they can’t tell who is going to be good at handling debt and who isn’t.

          • merc@sh.itjust.works
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            24 hours ago
            No, the whole point of bankruptcy is that your debts are cancelled.
            

            no:

            yes:

            the answer was literally the sentence after the one you quoted.

            No, it claimed without evidence that somehow a strike system prevented “scummy lenders”, whereas the reality is that it would result in the scummiest lenders of all, loansharks.