I worked in a bank in the last decade in credit risk. Not a good time. Yes CDOs was part of the problem.
I feel the reason for that whole problem was greater laxity in lending standards full keel and off the charts. Add in greed to give $600,000 loans to strawberry pickers.
Fannie Mae and the banks and the loan officers and appraisers all went too far.
By the way many of us left banking before the implosion seeing how insane everything got and no one was listening.
Let's add in home owners who were refinancing like crazy.
It was madness. But I wouldn't blame it on alternative lending standards. For instance alternative lending standards have existed for a long time. Like usurious lending and option arm loans and the subprime lending market.
In fact the subprime loan lending market was doing very well before these changes in the last decade. You could always get a loan at any price. You still can.
It is smart move by T-Mobile. Responsible people can have bad credit for lots of reasons including divorce, temporary job loss, identity theft, ect.
Looking at the payment history of current customers as opposed to credit reports is more likely a better indicator of it's own customer's credit worthiness. It also saves T-Mobile money on obtaining credit reports.
There's usually a very good reason a person has poor credit. It's a reflection of their credit history! These things happen for a reason.
At risk to T-mo's profits Legere is chasing subscriber growth. Could possibly be that his salary or bonuses depends on him hitting an unrealistic customer growth target (which would not be unusual). Once the "good" customers have dried up, the risky customers are what is left.
There's usually a very good reason a person has poor credit. It's a reflection of their credit history! These things happen for a reason.
Both building new credit and fixing bad credit can take a long time, and there is plenty of reasons why one might have bad credit without having done anything wrong.
At risk to T-mo's profits Legere is chasing subscriber growth. Could possibly be that his salary or bonuses depends on him hitting an unrealistic customer growth target (which would not be unusual). Once the "good" customers have dried up, the risky customers are what is left.
Note, this option isn't for getting new subscribers, but getting current subscribers who have paid on time and in full for 12 consecutive months a bonus for being a good customer. This benefit for getting customers to get into the latest tech of their choice after a year of being an upstanding customer sounds like it's of little risk to T-Mobile US and of great benefit to the customer.
Comments
I worked in a bank in the last decade in credit risk. Not a good time. Yes CDOs was part of the problem.
I feel the reason for that whole problem was greater laxity in lending standards full keel and off the charts. Add in greed to give $600,000 loans to strawberry pickers.
Fannie Mae and the banks and the loan officers and appraisers all went too far.
By the way many of us left banking before the implosion seeing how insane everything got and no one was listening.
Let's add in home owners who were refinancing like crazy.
It was madness. But I wouldn't blame it on alternative lending standards. For instance alternative lending standards have existed for a long time. Like usurious lending and option arm loans and the subprime lending market.
In fact the subprime loan lending market was doing very well before these changes in the last decade. You could always get a loan at any price. You still can.
There's usually a very good reason a person has poor credit. It's a reflection of their credit history! These things happen for a reason.
At risk to T-mo's profits Legere is chasing subscriber growth. Could possibly be that his salary or bonuses depends on him hitting an unrealistic customer growth target (which would not be unusual). Once the "good" customers have dried up, the risky customers are what is left.
Both building new credit and fixing bad credit can take a long time, and there is plenty of reasons why one might have bad credit without having done anything wrong.
Note, this option isn't for getting new subscribers, but getting current subscribers who have paid on time and in full for 12 consecutive months a bonus for being a good customer. This benefit for getting customers to get into the latest tech of their choice after a year of being an upstanding customer sounds like it's of little risk to T-Mobile US and of great benefit to the customer.