Until they try to get a phone contract, or a broadband contract, or even an electricity supply they can pay from a bank account.
I know people who have had problems with all of the above because of poor credit.
I agree that the credit industry relies on extortion. I also know for a fact that some debt collectors act as front men for 'legit' banks and credit card companies who use them to extort extra interest from written-off debt. So they get a double profit - a tax write-off, and some or all of the principal back, with interest.
The lenders should - and I guess do - run actuarial models which give them a good idea what current and future default rates are.
I know there's at least one credit card company in the UK that deliberately lends to people with poor credit - not because it's run by nice people, but because it knows it can maximise profit by taking defaulters to court and foreclosing on their houses.
It's a vile, despicable business run by failed human beings.
I know people who have had problems with all of the above because of poor credit.
I agree that the credit industry relies on extortion. I also know for a fact that some debt collectors act as front men for 'legit' banks and credit card companies who use them to extort extra interest from written-off debt. So they get a double profit - a tax write-off, and some or all of the principal back, with interest.
The lenders should - and I guess do - run actuarial models which give them a good idea what current and future default rates are.
I know there's at least one credit card company in the UK that deliberately lends to people with poor credit - not because it's run by nice people, but because it knows it can maximise profit by taking defaulters to court and foreclosing on their houses.
It's a vile, despicable business run by failed human beings.