> Seriously though, how did credit scores come about Consumer demand. If given the choice between a lower rate loan that utilized people’s centrally collected

> Seriously though, how did credit scores come about Consumer demand. If given the choice between a lower rate loan that utilized people’s centrally collected credit history or a higher rate loan that didn’t rely on any centralized organization, the vast majority of people would take the lower rate loan with a credit score. It wouldn’t even be close. The bottom line is that centralized credit reporting is necessary to achieve the lowest rates. The threat of a reduced credit score is necessary to get a lot of people to pay back loans.