Suppose I’m penniless. I borrow $1000 from the bank, go to a roulette table, and bet it all on red. If I win, I pay back the $1000 and end up with a profit. If I lose, I declare bankruptcy and never pay the money back. What’s stopping people from doing this? Perhaps credit scores prevent this; if so, couldn’t you just get some false documents and do this anyway?
You can’t do this for a large amount without a decent amount of credit history and seven (I think) years of no credit is a very high price to pay for a 50% chance at some sum.
And if you try to do this for a large amount, the bank will want assurances of you being able to pay them back. If you do this with “false documents”, you will go to jail for fraud.
Suppose I’m penniless. I borrow $1000 from the bank, go to a roulette table, and bet it all on red. If I win, I pay back the $1000 and end up with a profit. If I lose, I declare bankruptcy and never pay the money back. What’s stopping people from doing this? Perhaps credit scores prevent this; if so, couldn’t you just get some false documents and do this anyway?
You can’t do this for a large amount without a decent amount of credit history and seven (I think) years of no credit is a very high price to pay for a 50% chance at some sum.
And if you try to do this for a large amount, the bank will want assurances of you being able to pay them back. If you do this with “false documents”, you will go to jail for fraud.