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> People get credit checks to even rent an apartment now Why wouldn't they? If you are entrusted with any asset, people want to know you can pay for damages.
by Chris2048 5y ago
> People get credit checks to even rent an apartment now
Why wouldn't they? If you are entrusted with any asset, people want to know you can pay for damages.
> not being in debt is not good enough criteria to have "good credit"
A history of no debt is meaningless if you've never borrowed anything - I've never once failed to return a million dollars in cash when given to me; I've also never been entrusted with a million dollars in cash.
Truth is, the best assurance that someone will pay, is they have assets you could go after, and no other creditors that might come first. The more you limit the ways creditors can recover their losses, the more upfront assurance they will demand to cover the risk.
- SyzygistSix 5y agoIf this were the case, one would think that having a well-paying job and not having to borrow money would give one a good credit score. But it doesn't. References from previous landlords, criminal history, and a lack of debtors would be a better indication of whether one would be a good tenant than if one financed a car and other things.
- Chris2048 5y agoWhy would it? Never having to borrow money means you've never had to; not that you can be trusted to pay it back.