Lenders digging up more than your credit score before giving you a loan

[ThriftoRama]

Lenders Look Beyond Credit Scores to Gauge Who's a Risk - TIME

[poundwise]

Good. The FICO score is not the be-all-end-all and should not be the only measure of a person's creditworthiness. In the past, it mattered how you paid your rent, how long you had been on your job, etc. If we get back to where those sorts of things are at least a part of process, rather than just a number on a screen, then I think it will be better for individuals and lenders.

[kork13]

I agree, I think the more information lenders get about someone, they can get a better picture of their situation. That enables them to more realistically judge what sort of a risk they are.

Case in point, just this last week I finally pulled the trigger on applying for a new CC, which I'm using to essentially replace the 3 I currently have. I was actually surprised at some of the questions they asked as a part of the application... SSN obviously to get my credit score/report. But they also asked for my employer, how long I'd been there, my annual salary, any additional income I have, my monthly rent/housing costs, the number of cars I own, number of dependents, and more. In applying for a number of other loans/CC's I've taken in the past, I just put down my name and SSN, maybe my income, and that was it. At the time I filled out the application, I was surprised. But looking back, I'm actually impressed that they would try to get such a good picture of me before extending me credit. If that sort of practice becomes an industry standard, it would probably lead to fewer major defaults. (Admittedly, it might also make credit harder to get for some, but that, too, might be better than the alternative...)

[simpleyme]

about 20 years ago when we got a visa card they actually called my Dh employer to check his employment

we went with a small bank when we bought our house and they actually sent a loan officer to our house to interview us, then they chose to keep our loan in house since we were a good risk

I think getting back to old fashion lending is good for everyone, even the people who get turned down because of it

if only people would work as hard at paying their bills as they do trying to manipulate their credit scores

[rob62521]

I think the big picture tells more and it's time they look at lending money to those who are good about paying all their bills on time...it's those of us who have done that that are suffering now because of the mess caused by people who overextended themselves.