this post was submitted on 27 Dec 2025
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Anon tries to understand credit scores (sh.itjust.works)
submitted 13 hours ago by Early_To_Risa@sh.itjust.works to c/greentext@sh.itjust.works
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[–] snooggums@piefed.world 4 points 8 hours ago (1 children)

It was never a system that existed to just verify the ability to get a loan. Banks were the ones who did that.

The credit score was always a measure of how individuals took on an paid off debt in a way that the creditors wanted for maximum profits. That's why it wasn't something individuals even had access to until they came up with a way to have people interested enough that they would pay for the privilege of being able to see their personal debt monkey score.

It has always been a shit system for the average person.

[–] damnedfurry@lemmy.world 1 points 4 hours ago

The credit score was always a measure of how individuals took on an paid off debt in a way that the creditors wanted for maximum profits.

This is demonstrably bullshit.

Someone who maxes out a credit card, and then only pays minimum payments, and always makes them late, is, via interest accruing and late payment fees, making the lender basically the maximum amount of profit possible. And yet doing this will result in a garbage credit score, because using every penny of your credit limit is very detrimental to your credit score, and not making payments on time is extremely detrimental to your credit score.

Meanwhile, take me, someone who never pays a cent of interest, because he pays off his card every statement cycle (and on time, naturally), and because of card rewards, I’m the one profiting, the lender is literally the one paying me, and ‘yet’, my credit score is in the 800s.

So how do you reconcile that with your assumed truth quoted above? It’s very hard to understand how anyone can arrive at the conclusion you did, while also knowing (as I assume you do) that late payments simultaneously hurt your credit score and increase profit for the lender, just as one example.