3 ms·
They also don't necessarily correlate correctly with behavior. If you actively avoid debt, for instance, you are essentially penalized with regard to credit sco
by barbecue_sauce 7y ago
They also don't necessarily correlate correctly with behavior. If you actively avoid debt, for instance, you are essentially penalized with regard to credit score.
- fiddlerwoaroof 7y agoThat’s a feature, not a bug, the most profitable people are the ones that go into debt, never miss payments but also never pay it off.
- rjf72 7y agoI've read this as the explanation multiple times, but I think there's an even more obvious explanation: people that go into debt, never miss repayments, and never pay it off are more likely to continue paying their debt off on time than somebody who never takes on or retains debt. As but one component to this a person who never takes on debt has, tautologically, managed to live a life without any need of debt. That implies he would have little difficulty continuing to live a life without access to credit. Because of this, he will generally have substantially less concern about his credit rating than a person who depends on credit for their basic livelihood.
- ceejayoz 7y agoI'm not sure that doesn't correlate. If I avoid debt for a decade, suddenly seeking debt should be a bit of a red flag, and I should have a correspondingly low credit score.
- barbecue_sauce 7y agoBut the problem is credit scores are used as proxies for other purposes.