alt Hacker NewsOr you end up with the opposite end of the problem. I grew up in destitute poverty and was told all my childhood that credit was an evil trap - I should absolutely never use it.
Well, spring forward to me starting a pretty good career as a software developer and wanting to get my first reliable car. I had no credit history and ended up with a 19% APR. That really, really sucked.
It's been 10 years since then and I still get dinged for not having "enough" credit history despite having a couple car loans and several credit cards that I rotate bills on. The whole system feels like it's designed to punish anyone who doesn't fit into the role of a perfect consumer.
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> I still get dinged for not having "enough" credit history
Maybe the data is wrong? I took out a few loans over the years with strange comments from the lenders like "You don't have much credit history", but since it didn't impact anything I didn't think much of it. Somewhere down the line a lender was like "I don't think this is you". Turns out that it wasn't.
Why'd that suck so much? As a software dev couldn't you just pay it off a month or two later?
You didn't get fucked with 19% apr because you had no credit history. You got fucked with 19% APR because either the parameters of the loan were really bad or there were some other circumstances. Income less existing obligations vs payment size account for the lion's share of interest rate on an auto loan or just about any other consumer loan.
Credit history is massively over-sold as being impactful by the kind of idiots who live payment to payment.