"Credit scores are skewed. The concept isn't "how good of a risk are you", the concept is "how good of an investment are you"
So, you're saying that financial institutions should be the equivalent of the Democratic candidates for president?
"HERE! HAVE A BUNCH OF FREE *expletive deleted*it THAT YOU'LL NEVER HAVE TO PAY FOR!"
The concept is actually BOTH how good of a risk you are and how good of an investment you are.
Someone who has a long-term credit history with no bankruptcies, defaults, late payments, hasn't tried to live beyond his means by leveraging lots of credit card debt, etc., has proven himself to be a capable money manager. With the rise of risk-based lending, those are the people who get the lowest term rates on unsecured debt loans.
We've all seen what happens when financial institutions either begin to ignore risk potentials as a business model or via government fiat -- you get the mortgage lending fiasco 2007-2009.
Are these paradigms infallible? Of course not. Life can happen. Someone can lose a job, get sick, or just decide screw it, I now believe Bernie Sanders is right that these companies are evil and I shouldn't have to pay them back so I'm not going to.
But they're accurate a lot more than not.