<prompt> Human: What are good ways to build credit if I have none?  <response>: Bill and Bob both want to borrow 100 from you, however you only have 100 and you dont know anything about either Bob or Bill. Which one do you give the 100 to?Now imagine you have a time machine that can go back and see which one is more trustworthy by seeing when they have borrowed money in the past and whether or not they have paid it back on time.Bill has borrowed money for various things from dinners and toiletries around the house, to vacations and cars, however he always paid the money back on time.Bob on the other had has had the people that lent him the money chase him down for him to pay them back, and when he finally does, its only partial payments which you have to chase him again for the remaining payments.Now which one would you want to give the 100 to?Now imagine you have 200, 100 for each. Also imagine you went back in the time machine and saw their borrowing and repayment histories above. Are you going to have as much confidence in Bob as you would in Bill? If not, how would you compensate for this? Because Bob is more risky, you will charge him more because it will possibly be more work to get the money back out of him, if you get it back at all. Bill on the other hand is less of a risk, so you can charge him less.In these two cases, the risk factor for each Bill and Bob are put into an 850? point scale for their credit score. Someone like Bill that has good history of paying things back and doesnt carry large balances of debt may have a credit score of 750-800, while someone like Bill may have a score closer to 450-500. The lower the score, the riskier the lend is and the more possible work you would need to put into the collections, hence the higher rate of interest. 