Risk is a money maker.

Assigning risk isn't always quite logical.

For example:
Your electric bill is late. What do they do? Take on a late fee to 'penalize' you.

But obviously, if you had money, chances are you would have payed the electric bill on time and in full- not partially or late.
Adding to the cost doesn't seem very sensible...

The point is- People still end up, at some point, having to pay the bill including all penalties and fees. So with this monopoly, they are able to make their money plus a lot extra.

Yes, credit can sometimes determine risk. Anyone providing a billed service or a loan needs assurance that they will make profit as well as make their money back.
How else can they encourage proper payment, insure they will get their return and teach people responsibility? You cannot always collact collateral (Pawn shops) or take out a contract on the first born...