Comment Re:Credit scores are not what you think they are (Score 1) 100
Basing a person's credit score on credit usage rather than payment history is part of the system's bullshit.
Sort of, but lenders aren't looking for people who have good financial sense.
Lenders are looking for people who will borrow a lot of money, then continue paying on that loan. Which is not the same thing as having financial sense.
Which is pants on head retarded.
Both from a moral level, keeping people in debt to ensure they're indentured to someone and from a business perspective as it's a imperial shitton (about 1.8 Metric fuckloads) of risk. In case you don't remember the last time the banks over-leveraged on risky customers, it was only 2008, there was a massive collapse we're still feeling the effects of.
I'm glad my country doesn't have anything of the sort. Experian are trying to "sell" their credit score system but no-one is buying. When you apply for credit here (I.E. home or car loan) your existing credit obligations including potential ones (like a credit card or phone contract) are listed as risks and detract from the amount you can borrow.