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.
Tbf personal credit cards have only been around since a couple decades before that.
But they primarily use credit scores to deny mortgages to people. Getting a CC with a bad credit score is very easy. The rates will just suck. And we’ve had mortgages, car loans and business loans a lot longer.
Just wait till you learn what they used to deny people mortgages before the invention of credit scores.
It was their eyeballs and racism!
I mean, they still use racism to do that. Now they also have credit scores to do so for poor people.
Credit cards, but not credit. Home, auto, business, and other loans have existed long before that.
And those loans were far more restrictive than modern day and usually more references and cosigners.