“I’m sorry, asking what your credit score is makes your credit score drop 30 points. No, you’re not allowed to see the algorithms we use to determine your credit score either.”
I know nothing directly about American credit scores, but I’ve always thought that it actually makes sense (in a capitalist society trying to make a profit) to give higher scores (and thus more loans with less risk) to those most likely to end up overpaying. So taking loans, paying interest on them, and always paying the minimum to lengthen the time that you provide profits to the creditor is the best way to max score.
This makes perfect sense. The fact that this score is used to distribute resources instead of just calculating likelihood of paying back/likelihood of profit is what makes this huge contradiction arise. But the scores make perfect sense for being bad when you are “responsible”. The score is how profitable it is to loan you money.
It makes sense, the credit score is a measure of how much money banks and other financial institutions think they can extract from you. Doing things that minimize your total payments loses them money, and so those things lose you points.
“I’m sorry, asking what your credit score is makes your credit score drop 30 points. No, you’re not allowed to see the algorithms we use to determine your credit score either.”
Paying off a debt also lowers your credit score too! I lost 80 god damn points for paying down my student loans!
I forgot about that lol. I finally got debt free assuming my score would go up and it just tanked.
Nah, score is all about how much/goof of a debt slave you are.
So it’s entirely built off of you always having some debt not about if you pay it
I know nothing directly about American credit scores, but I’ve always thought that it actually makes sense (in a capitalist society trying to make a profit) to give higher scores (and thus more loans with less risk) to those most likely to end up overpaying. So taking loans, paying interest on them, and always paying the minimum to lengthen the time that you provide profits to the creditor is the best way to max score.
This makes perfect sense. The fact that this score is used to distribute resources instead of just calculating likelihood of paying back/likelihood of profit is what makes this huge contradiction arise. But the scores make perfect sense for being bad when you are “responsible”. The score is how profitable it is to loan you money.
It makes sense, the credit score is a measure of how much money banks and other financial institutions think they can extract from you. Doing things that minimize your total payments loses them money, and so those things lose you points.
utilization baybeee