If I have a lot of money in the bank then does credit score even matter? Generally confused as now I feel it’s getting crazy some of the prerequisites required to rent or finance or put money down.
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It’s an easy and quick way for creditors (credit card companies, banks, loan agencies, etc.) to assess how big of a risk it would to offer you credit.
If you have a history of living within your means and paying off your debts, then you’re a good customer for a company to give credit too because they have every reason to believe that you’ll pay it back.
But if you have a history of maxing out credit cards and not makin car payments, then you are huge risk that could cost the creditor even more money than the value of the loan offered.
Credit scores came about to have a pretty universal way to determine credit-worthiness fast and efficiently as more people needed credit and banks stopped being neighborhood institutions that knew everyone’s personal story.
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