What would that world look like? When you wanted to borrow money, how would the lender expect that they have a good idea of your risk profile? You could tell them all of the companies with which you've had a good relationship, but ignore the ones where you've failed to pay them. If you could default or discharge your obligations without any repercussions, that would essentially end the ability for people to get loans without collateral. Apartment rental companies wouldn't know whether you had broken leases in the past. This would make the entire world much more conservative with their money because they'd have to treat everyone as the same risk profile. There would be no benefit for good economic behavior.
By statute, credit agencies can only keep 7 years of credit history on you. Wouldn't lenders be even better served without that 7-year limit? Yet the limit remains in place, because ultimately the point of all of this is to serve consumers and society at large, not just lenders. It's about finding a balance where economic value is maximized while reasonably protecting consumers. And given the Equifax breach it's not unreasonable to question whether the appropriate balance involves this system continuing to exist at all in its current form.
