Eh… The US economy is practically driven by lending to the individual consumer. Banks created a system to identify risks to lending to individuals. Higher scores mean less risk of a bank losing money on an individual. So those high scores are presented with higher credit limits and lower interest rates.

The issue with the individual credit score is that it has become ingrained in society as a litmus test for trustworthiness and credibility. So low scores are rewarded with higher interest rates, lower credit limits, and hit with bigger deposit requirements. Background checks for employment and housing are probably the biggest issue in this regard. If there is a score-tanking event in your life (such as bankruptcy due to healthcare emergencies, for example), it becomes exponentially more difficult to bring yourself back to financial stability because your bankruptcy is reported to the credit bureaus, they tank your score, and you then struggle to find a good job to bring you up again.

A lot of people who happily get credit cards without knowing if they can pay do not fully understand the consequences of not paying. It goes far beyond a bank merely telling you “no”.