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by delfinom 542 days ago
That seems to defeat the narrative of "the consumers are struggling due to high interest rates". If they have the cash in their accounts, they shouldn't be the ones largely defaulting.
2 comments

I think the story is that the COVID stimulus checks meant that people who normally live paycheck to paycheck were for the first time showing a healthy bank balance which increased their credit score just enough to qualify. Once the checks stopped they stated defaulting.
Since when is bank balance considered in credit scores and checks?
Since forever? Part of the assets/debt ratio.
They had cash when they signed up, they don't anymore