Why do you think that the customers with good credit worthiness often default to pay back loans?

[Stardom22]

I have realised that, in most cases the majority of loan defaulters are the people with good credit reports. I wonder why that happens with all the best record in loan repayment?

 

[Fire&Rain]

You will find that those people lack the skills to manage their finances properly. They end up getting to a point where they cant afford to repay loans they took.

 

[eLdavis]

It's possible things didn't go as planned, or along the line, they ended up misusing the money. Things like this can happen to anyone.

 

[Kross]

Good credit worthiness is just statistics. It is not an indicator of financial responsibility to pay debts.

 

[Augusta]

It's possible things didn't go as planned, or along the line, they ended up misusing the money. Things like this can happen to anyone.

Yes this could just be the reason. Things didn't go as initially planned. it isn't a deliberate act

 

[eLdavis]

Yes this could just be the reason. Things didn't go as initially planned. it isn't a deliberate act

Yes anything can happen at anytime. Life can be pretty unpredictable, things happened, things we don't plan for.

 

[magnus2022]

I have realised that, in most cases the majority of loan defaulters are the people with good credit reports. I wonder why that happens with all the best record in loan repayment?

The only people that have good credit score are those that doesn't loan at all. Loan is easy way to be in financial mess because in most cases you will be under pressure to pay back.

 

[Augusta]

Loan default can happens when you miss one of your repayments, and don't repay it within an agreed amount of time due to no money