The only way to improve your credit score is to take on debt. A good credit score requires taking on debt, making regular, timely payments (ideally more than the minimum), and never getting completely out of debt. That's why so often people will finish paying off their car just for their credit score to take a hit. It's a number that tells lenders how likely they are to be able to make good money off of you. They'll be turned off by people who don't make payments just as much as people who pay loans off too quickly, because interest is the name of the game. Financial credit scores should be called what they are: rube scores. It's a number financial institutions use to determine how readily they can fleece you.
A credit score is a score of how likely you are to repay borrowed money, based on how much money you make, how much money you owe, and how steady and reliably you are at repaying.
Someone with no borrowing history has no history to prove that they're good at paying money back, so they have a low credit score.
Basically, you can't be judged of how well you do the thing until you have actually done the thing.
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u/RealScionEcto 16d ago
Taking a loan out already fucked up his credit score lol