this post was submitted on 27 Dec 2025
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[–] ryper@lemmy.ca 17 points 9 hours ago (5 children)

There must be something else to it. I've never paid any interest on my credit cards and I paid off my mortgage early; by your logic I should have a low credit score, but it's actually in the "Excellent" range.

[–] NOT_RICK@lemmy.world 8 points 8 hours ago

Yeah paying back early doesn’t affect it as far as I can tell. Lenders just want to know if you’ll leave them in the lurch or not. If you pay back early that just means they can reinvest the cash sooner.

[–] snooggums@piefed.world 4 points 8 hours ago

You have great interest paying potential because of your reliable handling of finances, so your score is high to make it easy for you to take on a lot of debt down the road.

[–] Monument@lemmy.sdf.org 4 points 6 hours ago

In another comment, someone mentioned that it’s not just repayment of interest that profits credit card companies.
Even if you pay all debts monthly before interest can compound, the CC companies still charge processing fees to merchants on a per-transaction basis (which merchants either pass directly to consumers or indirectly through higher prices). They still get their cut, even if you don’t see it on a line item.

Recently I had house work done. The contractor offered to charge me 5% less if I paid with cash or check instead of credit card.

[–] echodot@feddit.uk 3 points 8 hours ago

Well the back need some safe bets as a baseline.

[–] damnedfurry@lemmy.world 2 points 4 hours ago

There must be something else to it.

Massive understatement—it'd be more accurate to say they're completely wrong, lol.