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Parking tickets could affect credit score

Texashiker

Texashiker

Lifer
With so much focus being put on credit scores, here is yet something else to worry about. Some cities are are turning over parking tickets to collection agencies.

http://moneyland.time.com/2011/11/03/feed-the-meter-save-your-credit-score/

Wouldn't it be shame if you did not get that new job because you had an outstanding parking ticket that hurt your credit score? After all, not paying that ticket means you have a disregard for authority and do not care about paying your debts.

Personally, I think credit scores in a lot of cases (not all cases) hurt the poor more then middle class or wealthy. People that get down on their luck are treated as not being trustworthy because they could not pay their bills.
 
This whole credit-score-as-a-measure-of-a-person stuff is terrible, and it's just going to make the de facto stratification of society worse. I have a great credit score, so I guess it benefits me, but I don't think it's fair to people to use credit scores to see who's a good job candidate, car insurance risk and so forth. There are too many things that can influence a credit score that have nothing to do with whether someone is a good person or not.

Credit scores as a measure of whether someone is a good lending risk is fair, you're not judging the person, just their ability and willingness to pay their bills.
 
1) don't break the law, and 2) pay your bills. These two points I agree with whole heartedly.

Now, getting "down on their luck " - I feel there should be some help/relief/exception for such a situation. People who do work hard and are given a bad hand in life do deserve to get a little push to get past the trouble spots in life. Especially if they properly utilize the help.

Those with chronic bad hands do indicate they aren't really living the proper lifestyle.

However, most fingermen on these forums associate monitary problems (even the occational frequency) with being unable and therefore unworthy of provided with help. Or, they are so fearful of ANY entity, that anything outside of their being is met with distrust.

Of course, unless that entity is a "job creator" - then that entity can pee on little baby Jesus if it means money will somehow be generated.

Anyway, this is going to happen. America has let the corporations get into their government and personal life - where the government now acts like a corporation.

It is sad that corporations are praised (because they pursue capitalism to ANY and ALL extents - even working with communists to make more money; China) and a democratic government is contantly thrown under the bus when issues arise. You can't praise the greedy and punish the servants for the bad things the greedy do. But, that is what has been happening all along.

And, the greedy know they can do whatever they want, still get your praise and worship, and when things get back - the gubnament is at fault. Some of you are picking on the wrong entity; and it's not by accident either.
 
PokerGuy said:
This whole credit-score-as-a-measure-of-a-person stuff is terrible, and it's just going to make the de facto stratification of society worse. I have a great credit score, so I guess it benefits me, but I don't think it's fair to people to use credit scores to see who's a good job candidate, car insurance risk and so forth. There are too many things that can influence a credit score that have nothing to do with whether someone is a good person or not.

Credit scores as a measure of whether someone is a good lending risk is fair, you're not judging the person, just their ability and willingness to pay their bills.
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QFMFT. Credit scores should be used ONLY to determine whether or not to lend money. It should not be considered for hiring or anything else not related to the lending of money. We need to clamp down on this practice.
 
People are mistakenly comparing credit score to wealth which is a huge fallacy. Just because you are poor doesn't make your credit score automatically worse. Same goes for rich people, its not automatically better. The problem is, poor people tend to make bad choices and its those choices that affect the credit score. Hell, I had better credit than my mom did when I was just out of college and she made three times what I was making, which was barely $25K a year.

You don't pay a debt, regardless of the source, you can expect your credit to be affected. Not sure why that is such a hard concept to master.
 
xBiffx said:
People are mistakenly comparing credit score to wealth which is a huge fallacy. Just because you are poor doesn't make your credit score automatically worse.
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Not having enough money to pay for basic essentials is a factor.

Car broke down, lady lost her job, and then lost her home because she lost her job - http://www.latimes.com/business/buy-here-pay-here/la-fi-buyhere-payhere-20111103,0,6688116.story

Is it her fault that the car broke down and caused a cascade of events that left her family homeless?
 
xBiffx said:
People are mistakenly comparing credit score to wealth which is a huge fallacy. Just because you are poor doesn't make your credit score automatically worse.
Click to expand...

Yes, it sorta does. For starters, you have less of a buffer available, so if for example your employer screws up your paycheck and it takes a week or two to fix, you might not have the funds available to cover all your bills, and you might end up with late payment hits on your credit report. You might be a very responsible person, but the wealthier you are, the more of a buffer you have to handle issues that crop up.

Also, if you have less income (less wealth), you're probably going to have lower limits on credit cards or HELOC's, which means a smaller purchase will have a negative impact on your debt-to-available-credit ratio and thus lower your credit score.

Those things are fine to consider if you're thinking about lending money to someone, but it doesn't make sense to use the credit score for other stuff without further analysis.
 
Texashiker said:
With so much focus being put on credit scores, here is yet something else to worry about. Some cities are are turning over parking tickets to collection agencies.

http://moneyland.time.com/2011/11/03/feed-the-meter-save-your-credit-score/

Wouldn't it be shame if you did not get that new job because you had an outstanding parking ticket that hurt your credit score? After all, not paying that ticket means you have a disregard for authority and do not care about paying your debts.

Personally, I think credit scores in a lot of cases (not all cases) hurt the poor more then middle class or wealthy. People that get down on their luck are treated as not being trustworthy because they could not pay their bills.
Click to expand...

I think being a scofllaw does say something about your creditworthyness.
 
It would be nice if more peoples' credit scores were downgraded so that the Fed will create less credit. If anyone has a poor credit score, they can just buy and save gold and then use that in place of credit.
 
Texashiker said:
Not having enough money to pay for basic essentials is a factor.

Car broke down, lady lost her job, and then lost her home because she lost her job - http://www.latimes.com/business/buy-here-pay-here/la-fi-buyhere-payhere-20111103,0,6688116.story

Is it her fault that the car broke down and caused a cascade of events that left her family homeless?
Click to expand...

Of course its not her fault that her car broke down. It is her fault that she let this event dictate the rest of her life instead of doing something about it. Cars break down everyday and people learn to work around the issue. Again, bad choices affect credit. Does it make sense to buy a vehicle and rely on it to get you to work everyday and not keep it maintained. If you can't afford the entire cost of a vehicle, be prepared for when its not there. Hell, I bet most people can relate to the shitstorm that happens when your car breaks down. I'll also bet that most of these occurrences weren't life changing events, regardless of finances. Having a backup plan is a good choice..not having one and throwing your hands up in the air is just stupid. Cry me a river.
 
Anarchist420 said:
It would be nice if more peoples' credit scores were downgraded so that the Fed will create less credit. If anyone has a poor credit score, they can just buy and save gold and then use that in place of credit.
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Nah, the fed would just lower the score requirements, similar to how the banks did away with mortgage lending regulations. It's in their benefit to lend you money as long as there's something to collect in case you default.
 
PokerGuy said:
Yes, it sorta does. For starters, you have less of a buffer available, so if for example your employer screws up your paycheck and it takes a week or two to fix, you might not have the funds available to cover all your bills, and you might end up with late payment hits on your credit report. You might be a very responsible person, but the wealthier you are, the more of a buffer you have to handle issues that crop up.

Also, if you have less income (less wealth), you're probably going to have lower limits on credit cards or HELOC's, which means a smaller purchase will have a negative impact on your debt-to-available-credit ratio and thus lower your credit score.

Those things are fine to consider if you're thinking about lending money to someone, but it doesn't make sense to use the credit score for other stuff without further analysis.
Click to expand...

I make a substantial amount of money and missing a paycheck would pretty much screw me as well. I am sure there are plenty of people who make decent money and the screwing up of a pay check is no small issue.

Obtaining less credit because you make less only makes sense. What does someone making $20K a year need with a credit card with a $20K or even $10K balance? If you own a house and have a HELOC and can't afford it, then we already know you make bad decisions.

Credit scores can, but not always do, tell you a lot about a person's priorities, organizational skills, decision making ability, and trustworthiness. This is why it is used in many instances where you aren't applying for more credit. Don't like it, don't eff up your credit. Its not like you aren't in full control of how you score.
 
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Why does having several credit cards with a 1/3 balance of the credit limit, make you a better credit risk? Than someone with no credit cards?

Answer: It doesnt have anything to do with you paying off your bills.
 
xBiffx said:
I make a substantial amount of money and missing a paycheck would pretty much screw me as well. I am sure there are plenty of people who make decent money and the screwing up of a pay check is no small issue.
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I know, that's what my point was, if you have more money you can better buffer yourself from such things, whatever the reason.

Obtaining less credit because you make less only makes sense. What does someone making $20K a year need with a credit card with a $20K or even $10K balance? If you own a house and have a HELOC and can't afford it, then we already know you make bad decisions.
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That's all true, which is why I believe credit scores are a reasonably valid indicator in terms of financial credit worthiness. My issue is with it's use for all the other stuff.

This is why it is used in many instances where you aren't applying for more credit. Don't like it, don't eff up your credit. Its not like you aren't in full control of how you score.
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It disproportionately impacts those with less of a buffer, creating a spiral effect. And yes, as I already pointed out, you don't always have full control of your credit as you seem to think you do. There are many factors out of your control that impact your score. That's why it should not be used for things it was not meant for.
 
xBiffx said:
Name one. Besides mistakes on the part of the credit reporting agency or identity theft. Both of which have fixes.
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Card companies raising interest fees out of the blue.

Getting sick

Getting cancer

Divorce

Losing your job

Company shuts down

Child support office makes a mistake and takes more money out of your paycheck
 
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hal2kilo said:
I think being a scofllaw does say something about your creditworthyness.
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They give parking tickets out for the most bullshiat of reasons.
I received a parking ticket for not having my wheels angled far enough while parked on a modest incline.
I don't have the time to spend days downtown at the courthouse fighting it, so I paid the $60.

Would you think I would be less credit worthy if I had decided to call them on their BS and not pay the ticket?
 
I'm with Biffix here. Credit scores are a pretty good indication of personal responsibility.

What the financial mess of the last few years has taught me is that there a lot of irresponsible Americans and a lot of irresponsible lenders. The appropriate solution would be two-pronged with better lending practices (take your pick: more regulation or let banks that risk too much fail) and some education in credit and personal debt as part of normal education.

There is one area where people can be unfairly shafted and that's when it comes to major health issues. Health care expenses are the top cause of bankruptcy filings because of the way health insurance works in the US. Individuals can do things to lower the liklihood of major illness but stuff like cancer can happen at anytime to anyone.
 
MovingTarget said:
QFMFT. Credit scores should be used ONLY to determine whether or not to lend money. It should not be considered for hiring or anything else not related to the lending of money. We need to clamp down on this practice.
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Except that people with bad credit are also more likely to steal, since credit is an indicator of general financial stability, and many jobs handle money or assets in some way so using credit as a screen is perfectly valid.
 
CrackRabbit said:
Would you think I would be less credit worthy if I had decided to call them on their BS and not pay the ticket?
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If you decided not to fight, impliedly agreeing that the fine was valid, and then just refused to pay? Yes, you would be less credit worthy.
 
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