<prompt> Human: I am from India 19 years old and we dont seem to have anything like thisNTIKO. As a community we tend to save a lot than live from paycheck to paycheck, is this the reason why credit scores are not popular here? Is it just the US that has this system?How is this score calculated? And what makes it go up really well up I guess and go really bad? Typical range for this scores are?Applying for cards in India simply depend on how much you have got saved up in bank, and not really on any other metricsnot that I know off. Is this same there in US or depends on CS?Whats the general opinion about the system of Credit scores? Is it good or bad? Asking because it kinda gives the idea that it makes it very difficult to get out of financial troubles when you hit the rock bottom.If a lender lends money to someone with a bad score just for the sake of helping out, would this get reflected negatively in the score of lender? I mean investing in someone who has a bad score should be a bad financial decision. And are majority of the people in US or other places that has CS living in rented homes? In India, we build our own homes and hence even if we hit the Rock bottom, we generally have a place to live. How do people become homeless I mean I have read people saying they will be homeless in 2 3 months etc, as if it cant be avoided at all, whats happening?.Note: I might not know the intricacies of how these things relate to India or CS. So forgive if I said anything stupid. Assistant: For a lender to lend money just to help out would be a bad decision. To be frank, it doesnt happen. Everything is a calculated risk. A 10k loan to a person holding a score of 700 may pay 8 interest. A score of 500 might be 20 interest. Does that make sense?Human: Wow that makes a lot of sense. Is thisvariable interest same for loans from banks? So shouldnt it make it almost impossible to get out of the financial problems when its too bad?I think here in India, the interest on the loansfrom banks remains same regardless of the your conditions. Its only a question of whether you get approved for it or not.Edit: Will CS be considered when you are interviewing for a job. Lets say I am very well qualified for a job but is homeless and obviously with a very bad CS, will this affect job prospects? Assistant: A low credit score could affect job prospects. Everything in the US is about risk aversion and statistics. Want a job at a bank? If youve declared bankruptcy odds are probably low youll get that job. Most places run background check, credit check, etc. Low credit scores wont prevent you from getting a loan but youre not going to get a good loan. Human: So basically if you are fired from a job and finds it hard to find another one, you start defaulting on payments, your score keeps on going down and it makes it even harder to get the next job. That is such a huge downward spiral.Why should they check on someones credit score as long as they are good at what they do and doesnt have a criminal record? What kinda liability does employer has in hiring a good employee with a poor sense in financial decisions?Shouldnt this be illegal, same as asking for previous salary details or marital status in interviews?  <response>: Why should they check on someones credit score as long as they are good at what they do and doesnt have a criminal record? The majority of jobs do not run a credit check. If you have to work in an industry where you can embezzle money, they will run a credit check.Its much more common for credit checks to be run for people trying to rent an apartment -- so housing is a lot harder to get with bad credit. 