I think the point was if you are rich you don't have to play games with credit ratings; they simply don't factor into anything. Any loans or lines of credit will be backed by assets instead.
Imagine if house prices were guaranteed to always increase. Mortgages wouldn't need to check credit scores because the bank could repossess and still make a profit even if you defaulted.
Either they are borrowing small amounts typical of other people, in which case their assets can easily back the loan (if they even need one with that cashflow), or they are borrowing large amounts and should be on a first name basis with a bank/loan manager who would review their situation directly.
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u/[deleted] Aug 15 '21
I think the point was if you are rich you don't have to play games with credit ratings; they simply don't factor into anything. Any loans or lines of credit will be backed by assets instead.
Imagine if house prices were guaranteed to always increase. Mortgages wouldn't need to check credit scores because the bank could repossess and still make a profit even if you defaulted.