Comment on Anon tries to understand credit scores

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damnedfurry@lemmy.world ⁨1⁩ ⁨day⁩ ago

you are a good investment if you are reliable to pay back your loans at maximum interest.

That sentence is correct only if you omit the last three words. The credit reporting agencies don’t even know what the interest rate is on a given loan. Also, your credit score goes up from paying a credit card off (i.e. down to a $0 balance) every month, which means you’re paying literal zero interest.

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