Heard someone say credit scores are "just a scam" and now I'm confused

Overheard my coworker at the water cooler yesterday. He said credit scores are a scam designed by banks to trap people. Said he hasn't checked his score in 6 years and doesn't care. I've been working on my score for 2 years now. Got it from 540 to 680 by paying down cards and never missing a payment. But now I'm wondering if I wasted all that effort. Anyone else hear this argument and feel thrown off by it?

2 comments

2 Comments

richard_shah7d ago

Heard a financial guy on a podcast say the same thing, argued that the whole system just rewards debt rather than actual financial health. But missing payments or ignoring your score still means worse loan rates and harder time renting an apartment, so pretending it doesn't exist doesn't help you. Your hard work paid off from 540 to 680, that's legit progress even if the system is rigged.

richard_shah7d ago

That line about "the system just rewards debt" hit home for me. A buddy of mine had a crazy experience with this. He had zero debt, paid cash for a 10 year old car, and had a solid job. But when he tried to rent a nice apartment, they turned him down because his credit file was too thin. Meanwhile, his coworker who was drowning in credit card payments and a car loan got approved instantly. The coworker had a lower income too, but the system saw his debt payments as proof he could manage money. My buddy ended up having to take out a small loan and pay it off just to build a score. It's wild that you basically have to play their game to get anywhere, even if you're doing everything right financially. You agree it's stupid you have to take on debt just to exist, right?