2) If a loan was fixed to USD and serviced by a third party a la point #3, if a person wanted to use their real identity to obtain the loan, it is possible to have it report to the credit bureaus.
3) With regard to what I'm getting at, there is no selling of the loan. The original person who owns the loan still owns it, just a third party does all the work overseeing payments and such. This is to enable it to be reported to the "real life" credit bureaus. In this case, the third party has no control over the interest rate or anything (since we mostly see fixed rate loans).
Topic: Yet Another Credit Reporting Thread (Read 872 times)
1) Depends, some loans it's better to fix it to BTC, some it's better to fix to USD, depends on the loaner and borrower
2) not sure how this would work... not sure at all...
3) I really, really do not agree with the ability to sell loans until they've fallen into nonpayment, I've seen several friends get royally fucked by the banking industry, they'll get a low interest rate loan, then the bank will sell it to another bank, who doesn't have to agree to a damn thing in the original agreement, thus they jack up the rates
2) not sure how this would work... not sure at all...
3) I really, really do not agree with the ability to sell loans until they've fallen into nonpayment, I've seen several friends get royally fucked by the banking industry, they'll get a low interest rate loan, then the bank will sell it to another bank, who doesn't have to agree to a damn thing in the original agreement, thus they jack up the rates
So, since the idea of credit reporting has been kicked around a lot lately... and I've been thinking about it for a while too, I have a few questions (which are incredibly US centric):
- What is the general view toward fixing loans in USD (or other fiat currency) and not BTC?
- Would borrowers be okay with having their Bitcoin payments reported to their "real life" credit report?
- Would lenders be okay with having a third-party company service their loans (like how US student loans and mortgages are done -- you give the money and own the debt, but somebody else is responsible for collecting and such for it)?
I ask these questions because there's a lot of talk about wanting real life credit reports. It's a good idea, but unless you're going to trust borrower-provided reports, a hard inquiry results in a ding to a credit score. Since reporting a loan in BTC is extremely difficult and doesn't happen at present, it's inherently unfair for the borrower to get a ding to their credit score for a BTC loan with no hope of it reporting. Soft inquiries are an option, but can only be done for certain reasons. I also realize some of these things go against the anonymity-hawks desires, but I think if you're seeking to borrow a significant amount of money, anonymity gets to take a backseat.
- What is the general view toward fixing loans in USD (or other fiat currency) and not BTC?
- Would borrowers be okay with having their Bitcoin payments reported to their "real life" credit report?
- Would lenders be okay with having a third-party company service their loans (like how US student loans and mortgages are done -- you give the money and own the debt, but somebody else is responsible for collecting and such for it)?
I ask these questions because there's a lot of talk about wanting real life credit reports. It's a good idea, but unless you're going to trust borrower-provided reports, a hard inquiry results in a ding to a credit score. Since reporting a loan in BTC is extremely difficult and doesn't happen at present, it's inherently unfair for the borrower to get a ding to their credit score for a BTC loan with no hope of it reporting. Soft inquiries are an option, but can only be done for certain reasons. I also realize some of these things go against the anonymity-hawks desires, but I think if you're seeking to borrow a significant amount of money, anonymity gets to take a backseat.
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