this post was submitted on 22 Apr 2024
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[–] [email protected] 9 points 8 months ago (2 children)

If it was about the ability to pay back loans, then why does it go down when I finish paying the loan? Its about your ability to pay as much interest as possible.

[–] [email protected] 6 points 8 months ago

This. Paid off my house and my excellent credit score dropped by almost 20 points.

[–] [email protected] 2 points 8 months ago

Part of your credit score is also the present. It’s more than a bit predatory, but not having any current financial responsibilities looks bad. For example, if you have no loans whatsoever but paid back a bunch in the past, there’s little evidence saying you can currently pay them off. At least, that’s the theory of it.