Essentially, the credit score agencies came up with a reason they are needed. In the past, it was at the discretion of the bank manager on whether or not to ap

Essentially, the credit score agencies came up with a reason they are needed. In the past, it was at the discretion of the bank manager on whether or not to approve a loan. The bank manager's job was to know people who banked there, and what type of person they were, upstanding, shady, etc. Credit scores removed that risk from the bank manager's job, so large banks loved the idea. Now, loans get approved because of some score, and it's the same across all loans for a bank. You don't have the possibility of some employee just approving loans, and making huge mistakes about who to lend to. They also don't need bank managers like they did before, so they can also cut back their responsibilities...and pay. The whole credit score is actually a really oppressive tool against the poor, and that's why everyone is concerned about it. It affects almost everything you do. Need a car, credit card, etc. Yep, it determines if you get a loan, and how much interest you are going to pay. Guess who gets lower rates, people with higher scores who probably make more money, so they pay their bills easily. It gets worse. The other thing that it affects....is employment. Employers are allowed to pull someone's credit score, when they apply for a job. A number of places equate low scores with irresponsibility and a larger chance of stealing, and so they don't hire people below a certain credit score. Does this make sense? Not really, but the credit score companies make it sound really good. It's a broken system that is heavily biased against certain classes of people.