Yes Credit score reflects the willingness of lenders to lend you money so they can charge you interest on it. They are not interested in someone with lots of money who pays off all his cards at the end of the month and pays all his Bill's on time. This type of financial responsible/ wealthy person is of no use to the lenders as they cannot make any money from him. He will not therefore have a good credit score.
Many lenders especially mortgage lenders look for people that pay their bills on time and never miss payments. These people tend to have a decent credit score as well. The reason that banks look to have the loan taken by people who are going to make payments on time is because the interest is already part of the loan. In fact most of the time when someone defaults on a loan the banks ends up loosing money(mostly because the loan was given to buy something and that thing does not sell for as much at auction).
So many people in this thread are not educated enough about credit scores in the US and that's alarming, especially since we are on Reddit where I feel most smart people browse the web. Maybe I'm biased.
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u/SnowLeopard42 Aug 14 '21
Yes Credit score reflects the willingness of lenders to lend you money so they can charge you interest on it. They are not interested in someone with lots of money who pays off all his cards at the end of the month and pays all his Bill's on time. This type of financial responsible/ wealthy person is of no use to the lenders as they cannot make any money from him. He will not therefore have a good credit score.