The REAL Purpose of a FICO Credit Score

 

Most people don’t understand what the purpose of a credit score is.

They’re told by the credit companies that credit scores will help you determine your own creditworthiness and will provide you, as a consumer, a sense of how you should be borrowing and your patterns of repayment and all that.

The truth of the matter is – that’s basically a lie. The purpose of a credit score is to help financial services companies maximize their profits. Period.

It’s important to check your credit scores. But it’s also important that you not buy the line of malarkey that is foisted upon us ceaselessly, in an effort to make you think that credit scores are designed to do you a favor.