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Anon tries to understand credit scores (thelemmy.club)

submitted 5 months ago by Early_To_Risa@sh.itjust.works to c/greentext@sh.itjust.works

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[-] merc@sh.itjust.works 1 points 4 months ago

Also worth mentioning: what's the alternative?

If there are no credit scores but there are still loans, the banks / entities making the loans have no real way to know if their loan is going to be paid back. Because of that, the loans are a lot more risky. What happens when a loan is riskier? The interest rate is higher, or people are just outright rejected.

[-] Candice_the_elephant@lemmy.world 2 points 4 months ago* (last edited 4 months ago)

Either or, depending on the risk tolerance of your lender.

A low limit credit card with 0 interest if you pay off in full before it's due is a great way to build your credit score.

Just buy stuff on it you'd normally buy without credit, then pay it off ASAP. And you'll build a reliable reputation as someone who can handle credit. Just don't spend more than you can pay off by the time it's due.

[-] RamenJunkie@midwest.social 1 points 4 months ago

Yes, but why is this game even required?

this post was submitted on 27 Dec 2025

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