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Source on that? I'd want to see some pretty convincing evidence before I'd even consider doing that. For starters you'll be paying interest by doing that, whi
by Vraxx 11y ago
Source on that? I'd want to see some pretty convincing evidence before I'd even consider doing that. For starters you'll be paying interest by doing that, which I guess is a "good" quality from the lender's point of view, but I'm certainly not going to start forking over interest in hopes that it'll improve my credit score.
- etjossem 11y agoIt's not true. Lenders review the credit report (the "credit score" is a simplification), which includes data on whether you made the full payment or only the minimum. Making only the minimum payment is often correlated with an inability to repay the full amount. Per Experian (2014): People who paid in full were 63% less likely than average to default six months later, while people making a little bit more than the minimum payment were 86% more likely than average to default within six months. Cubano's suggestion is a particularly risky thing to do if you have a history of paying in full. Switching from full payments to the minimum can be read as a leading indicator of delinquency.
- Vraxx 11y agoThanks for that info. It's also good to know that my BS detector is still in working order.