▲ 1066 ▼ Also, your credit score drops if you pay all your debts (discuss.online) submitted 1 year ago by bytesonbike@discuss.online to c/latestagecapitalism@lemmy.world 195 comments fedilink hide all child comments
[–] tburkhol@lemmy.world 32 points 1 year ago (1 child) Think of it as a profitability index rather than a diligence index, and it will make more sense. permalink fedilink source parent hideshow 2 child comments replies: [–] damnedfurry@lemmy.world 4 points 1 year ago (1 child) It will also be wrong. The only credit lines I have and have had for the last 7 years (which is as far back as the bureaus care, at maximum) are credit cards. I pay them off every month, so I'm charged zero interest, and they're rewards cards, so their profit off me is literally negative. My credit score is over 800. permalink fedilink source parent hideshow 2 child comments replies: [–] tburkhol@lemmy.world 4 points 1 year ago (1 child) Your 'reward' is less than the transaction fee they charge the vendors. You use your cards a lot, they make a lot of transaction fees. As long as you never miss a payment, you won't get the interest fee, but miss or be late with just one, any they will charge you interest on the full balance, every month, until you have a $0 statement. That's fantastic for them, but they're perfectly profitable on just your transactions. permalink fedilink source parent hideshow 2 child comments replies: [–] damnedfurry@lemmy.world 0 points 1 year ago* (last edited 1 year ago) Your ‘reward’ is less than the transaction fee they charge the vendors. And that has literally nothing to do with customers' credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how 'profitable' a borrower is, so it's meaningless to bring up this irrelevant fact I already knew. permalink fedilink source parent
[–] damnedfurry@lemmy.world 4 points 1 year ago (1 child) It will also be wrong. The only credit lines I have and have had for the last 7 years (which is as far back as the bureaus care, at maximum) are credit cards. I pay them off every month, so I'm charged zero interest, and they're rewards cards, so their profit off me is literally negative. My credit score is over 800. permalink fedilink source parent hideshow 2 child comments replies: [–] tburkhol@lemmy.world 4 points 1 year ago (1 child) Your 'reward' is less than the transaction fee they charge the vendors. You use your cards a lot, they make a lot of transaction fees. As long as you never miss a payment, you won't get the interest fee, but miss or be late with just one, any they will charge you interest on the full balance, every month, until you have a $0 statement. That's fantastic for them, but they're perfectly profitable on just your transactions. permalink fedilink source parent hideshow 2 child comments replies: [–] damnedfurry@lemmy.world 0 points 1 year ago* (last edited 1 year ago) Your ‘reward’ is less than the transaction fee they charge the vendors. And that has literally nothing to do with customers' credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how 'profitable' a borrower is, so it's meaningless to bring up this irrelevant fact I already knew. permalink fedilink source parent
[–] tburkhol@lemmy.world 4 points 1 year ago (1 child) Your 'reward' is less than the transaction fee they charge the vendors. You use your cards a lot, they make a lot of transaction fees. As long as you never miss a payment, you won't get the interest fee, but miss or be late with just one, any they will charge you interest on the full balance, every month, until you have a $0 statement. That's fantastic for them, but they're perfectly profitable on just your transactions. permalink fedilink source parent hideshow 2 child comments replies: [–] damnedfurry@lemmy.world 0 points 1 year ago* (last edited 1 year ago) Your ‘reward’ is less than the transaction fee they charge the vendors. And that has literally nothing to do with customers' credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how 'profitable' a borrower is, so it's meaningless to bring up this irrelevant fact I already knew. permalink fedilink source parent
[–] damnedfurry@lemmy.world 0 points 1 year ago* (last edited 1 year ago) Your ‘reward’ is less than the transaction fee they charge the vendors. And that has literally nothing to do with customers' credit scores/reports, and my point was to rebut the assertion that credit scores are intended to be measurements of how 'profitable' a borrower is, so it's meaningless to bring up this irrelevant fact I already knew. permalink fedilink source parent
