3 ms·
This is how it worked 20 years ago at least. I built up ridiculously good credit (by accident), when one of my first employers who didn't have a functional purc
by oceanghost 5y ago
This is how it worked 20 years ago at least. I built up ridiculously good credit (by accident), when one of my first employers who didn't have a functional purchasing department.
My boss and I would take turns maxing out our credit cards (mine were rather meager having just graduated) to purchase equipment for the company and then being reimbursed.
However, credit score isn't really a measure of how likely you are to pay back a loan, but rather how profitable you will be doing so. My understanding is, the ideal customer always pays his bill in the end, but may take some time doing so to rack up extra interest charges.
- loeg 5y ago> However, credit score isn't really a measure of how likely you are to pay back a loan, but rather how profitable you will be doing so. That isn't true. It's purely a measure of how likely you are to repay a loan on time. > My understanding is, the ideal customer always pays his bill in the end, but may take some time doing so to rack up extra interest charges. This is true, for credit card customers in particular. Banks want people who make exactly the minimum payment on time. Everytime you pay less than the full statement balance, you're essentially taking out a new high-APR loan for the balance. Banks love customers that do that. It doesn't increase your credit score.
- oceanghost 5y agoAll fair points, thank you!