Maybe what you are criticizing is a particular input in that calculation? I notice you don't mention repayment of past debts, for example.
My "credit score" exists for 30 minutes while my bank gets my proof of income and ID, and that's it. In the same way, my landlord does not get access to any of these files, because it's none of his business. It is illegal to keep track of individuals like this. In the US, this incentivizes keeping individuals in poverty, and its ease of access means that it is easy for any predatory lending institution to explicitly target people with low credit scores. It creates de facto castes.
https://www.federalreserve.gov/econres/notes/feds-notes/are-...
As shown in the three panels, credit scores are distributed over the entire support for all three income groups, and, apart from the distribution of the high-income group having a larger mass at the high end of the distribution support, the shapes of the histograms of high- and middle-income groups are broadly consistent. Indeed, even among the high-income consumers, a significant mass of consumers have credit scores lower than 680, commonly known as "nonprime" or "subprime" borrowers.
Nor does any score in the US - none of the inputs, even bankruptcy, last more than several years.
> In the same way, my landlord does not get access to any of these files, because it's none of his business
Your reliability in paying definitely seems like it would be their business.
> In the US, this incentivizes keeping individuals in poverty
This is not supported by the data.
Hahahaha, that's a fantasy.
I got in a motorcycle accident at 18, and had to learn to walk again. You know what I couldn't do during that time? Pay my bills because I couldn't work. You know what I can't get despite making six figures these days? A decent credit card, a car, or a house. I have to pay cash, because going bankrupt at the literal beginning of your life, follows you for life.
Sure, the inputs are gone, but the evidence is there. When you go bankrupt and finally get back on your feet and can get credit again, there are only certain types of credit you can get. Eventually, the original negative inputs go away, but the types of credit still tell the same story. It can take decades before you are able to wipe away most of the evidence and get treated with some modicum of trust.
Ah, it's all good then, the completely arbitrary score handled by private companies reselling data on your every move only exists for seven rolling years.
>Your reliability in paying definitely seems like it would be their business.
Nope. It's law enforcement's business. If I do not pay, they go see the police, and a judge will handle it if necessary.
>This is not supported by the data.
Yes it is.
https://socialchangenyu.com/review/credit-reportings-vicious...
In most of the US failure to pay rent (and virtually all debts) is not a crime.
Will you? We don’t know. It’s not unheard of for people to make lots of money and also avoid paying debts. And thus we need to know your payment history.
Similarly, even if you have a poor debt to income ratio, it might not matter much if you have a long history of always paying your debts on time no matter what. And that’s how poor people get to have nice things.