I always assumed credit scores were an integral and historic part of the American financial system.
They were not, they are very recent，most of your parents didn’t have credit scores growing up, and as you can probably tell or at least intuit, it’s mostly just a b******* scheme for those with capital to accrue more capital by invading your privacy.
Right, but in order to have “good credit” others must have “bad credit”. There has to be a frame of reference to create a risk profile on a person. Capitalism is a zero sum game. If everyone is paying their bills on time and never missing payments and leveraging themselves responsibly, but you are $1 less leveraged than your neighbor, your neighbor will have a better credit score than you.
the system is build primarily around whether you pay back your debt or not.
if you have debt you can’t pay… you have bad credit.
good and bad credit have like 300 point spread. not 3. nobody cares if your score is 810 vs 812.