The great credit score scam
Credit scores aren’t a reflection of your credibility as a borrower. They are an estimation of your profitability as a customer. The higher your credit score is the more likely you are to borrow large amounts, make lots of money and be able to repay those borrowings.
Think about how perverse that is. The banking system has created a measure of your profitability to them and then made the whole financial system rely on it. You can’t get a phone plan without a credit check these days.
I have a 750–760 credit score. Never missed a payment in my life that hasn’t been the banks fault. I asked a banker the other day how I get a 800 or 850, he said I’d need to take out different types of loans: auto, personal, student etc.
I don’t need a car, I have enough money to make personal purchases and I’m no longer a student. I don’t understand how a person who takes a auto-loan out is a more secure borrower than the person who paid cash for it.
The only way I can improve my “imperfect credit” if by taking out more credit — credit which I don’t need, but the financial industry wants to give me.
There is no such thing as too much credit…right?