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Credit score is a poorly implemented modern invention. (discuss.online)
submitted 3 months ago by to c/whitepeopletwitter@sh.itjust.works
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[–] 2 points 3 months ago* (1 child)

The formula says you're lower risk if you use more types of credit responsibly.

And yet it says you're higher risk if you had more types of credit, but eliminated one by paying it off. Literally doing the thing you're meant to do.

And we all know that they can never alter the formula, so I guess that's that.

We're talking about why the formula is very stupid in certain cases, so "it's like that because the formula says so" isn't really an argument. Like... We know.

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  • [–] 1 point 3 months ago

    You've been saying the same bad advice up and down this thread.

    If you reliably pay your credit card bills in full by the due date, your score climbs and climbs. Not instantly, over time. Reliability isn't a one-off.

    If you cancel your credit card, you have less evidence that other institutions are happy to lend to you, and your score could go down.

    If you apply for a new credit card, your score can go down because that's also what people who are running out of money do, not because your borrowing to limit percentage is low.

    The highest credit scores are for people who have been loaned plenty of money, and who always make their payments.

    Deliberately causing them to charge you interest just makes you poorer and does not show that you're a good risk to loan to. It's the front door for ballooning debt, and that's what they want none of - people who get declared bankrupt or have other debt interventions are a massive loss to them, and what they want to avoid like the plague.

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