If I told you that a “credit score” was created by the lending industry to increase borrowing interest..?

Elfeeble75: If I told you that a “credit score” was created by the lending industry to increase borrowing interest..?
would you believe it? yes or no

Answers and Views:

Answer by Luis
Well one could make that argument and it it sound logical but I will give you this instead.

The credit score industry was invented mainly because somewhere someone found that there was a demand for the product. Since there was a demand, money could be made. Since lending is a big business, it makes sense, that probably a lot of money could/has been made.

But that is just me thinking

Answer by Le Bouchon
Certainly, “credit score” was created to see how trustworthy people are to lend money to, if they have any, and will they pay it back. It’s common sense that if you have had a steady job and you don’t have any non-payment judgments against you, you are a good risk.
younger people with no credit history (will they pay, can they pay?) are a high risk.
In society, people want to be judged, scored, evaluated, etc because people care what others think about them, and the “credit score” is a good way for naive people to have someone “judge” them.

there are only two reasons to even need credit; one is a house, the other MIGHT be a car.
But for both you have to have a steady job for a period of time.