Your Credit Score
What’s your credit rating?
I don’t have it. I buy cash.
You are very bad for the economy. In fact, you are an enemy of progress. Borrow money in order to build up creditworthiness. I’ll never understand it even if I hear it a thousand times.
And what does creditworthiness mean, exactly? It is the ability to pay back loans, thus making you worthy of being given credit. To be in banks’ good books, so to speak.
Mark Zuckerberg the Meta chief and Aliko Dangote the Nigerian billionaire are one of the few that can buy cars, cash. You live on salary, so where do you go when you want to buy a house or car?
The bank. It checks if you took loans from somewhere and if you repaid them on time. You did not default, to use finance-speak.
How about bankruptcy? When does it kick in? Being creditworthy is good for banks, but bad for common sense. Being bankrupt is a finesse way of saying you’re broke. When did you become broke? It must be because of creditworthiness.
You had a history of paying back loans, so banks kept giving you money. The weather changed. Your luck went on vacation, the drought destroyed the crop or COVID-19 struck. That’s why you cannot repay your loans.
Build up your creditworthiness, build up your creditworthiness is a bank gospel, that leads to more loans, then the bubble bursts. Bankruptcy.
By: Nonqaba waka Msimang.
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