I think everyone acknowledges that there are flaws with the way credit scoring works - it has some perverse incentives and definitely misses a lot of people who would be great credit risks but have lowish credit scores. But I think there's a decent defense of them as well: if one has a thin credit history, it's hard to determine based on objective data if you are a good credit risk. If you want a widely usable metric, you need to base it on something, and credit history is a fairly reasonable start.Originally Posted by GGT
In other words, using one's credit history is a pretty crappy metric to predict credit risk. Especially for people who have avoided debt.
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