this post was submitted on 23 Oct 2023
1273 points (96.0% liked)
4chan
4101 readers
2 users here now
Greentexts, memes, everything 4chan.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Yeah I want to emphasize this too. It doesn't "require you to take debt", it checks to see if you pay your debts on time. If you carry a $5 credit card bill and pay it next month that has a positive effect. If you don't pay that it doesn't matter how much it is, you missed a payment, that's a negative. You don't have to have a bunch of loans to have a good credit score, you have to pay your bills.
Thats why having a credit card can be good for your credit score because you are effectively borrowing money until the end of the month, then paying it back. That signals on your credit score "hey this person borrows $1000 a month, and pays it back every time. They're a reliable borrower"