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Rich people mightn't have a stellar credit score, but they're still creditworthy.

Your credit report is really a way of automating what a bank manager would have done at some point for every customer, i.e examine your finances, references, legal history, etc.

It's really just a model for consumer creditworthiness of someone earning under the 95% percentile of wealth. As it's needlessly laborious for a bank manager to examine you in depth for a $5'000 dollar credit card.

Credit scores are not a factor in nearly any big loan. One might be utilising most of their available credit (as their limit is low), or have failed a few hard searches. In the case of a big loan like a mortgage, it's not so automated and is worth digging deeper.

When you're rich, every loan is a big loan - and it's worth the bank's time determining how much they should lend to you on a case by case basis.




Great explanation!




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