[lotsofpulp]

>That never fails to completely throw financial institutions for a loop; they can't conceptualize it.

They can conceptualize it. No one has come up with an automated way to adequately predict someone's ability to repay a loan other than the current credit reporting system that greatly factors in one's history of repaying previous loans. If you have a better idea, it's probably worth a lot of money.

>Ironically it means that if I was to apply for a credit card it would be very difficult to get it.

It wouldn't be very difficult to get. You would just have to submit proof of your assets and possibly history of expenses.

[spiritplumber]

That's the thing though: someone who has bought their car and their home in cash isn't a high-risk borrower, rather, he or she is someone who is able to save in order to do that, so he or she should be considered a low-risk borrower. That's simple logic, really.