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Anon tries to understand credit scores (thelemmy.club)
submitted 8 months ago by [M] to c/greentext@sh.itjust.works
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[–] 2 points 8 months ago* (2 children)

because you deeply misunderstand it.

it basically lets lenders know if you have a history of paying back your loans or not.

it's that simple. and in the USA medical treatment often requires loans, just like buying a house or car does.

missing a single payment does little to nothing to your score. missing several payments, and defaulting, tanks it.

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  • [–] 1 point 8 months ago (1 child)

    Then why do you need to engage in having debt and using credit cards to have a good score? If having no credit score is nearly as bad as having a bad credit score then something is wrong.

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  • [–] -3 points 8 months ago*

    when i hire someone for a job, how do I know they have experience without being able to verify they have held previous employment in a similar position?

    the point of the system is to show you have experience and you pay back your debts. it's not that anything more than that.

    a lender doesn't want to give someone a big loan if they have no experience. just like i won't hire you for a senior staff position fresh out of college. those things take like a decade or more to develop.

    my credit score at 18 was like 500. and my credit limit was $250. now it's 830, because I've paid back all my debts in a timely manner and have access and have six figures in credit available to me.

    if you want a a good credit score, go take out a card, make small payments with it, and pay them back.

    it's not a conspiracy anymore than the fact it takes years to get promoted at a job.

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