• SaakoPaahtaa@lemmy.world
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    10 months ago

    Idk if that’s a passive or active you, but anyway that level of effect sounds quite large, maybe folk should find ways to make their credit rating better.

    But I restate I have no clues as to the inner workings of this “credit rate” and if it’s indeed impossible or otherwise unrealistic to effect, I’m willing to grab an implied L on that one.

    • AnalogyAddict@lemmy.world
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      10 months ago

      You positively affect your credit rating over long periods of time by taking out loans and paying them back. If no one will loan you anything, you can’t affect your score. If you can’t pay the loans back, it damages your score.

      • SaakoPaahtaa@lemmy.world
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        10 months ago

        What happens if you don’t take loans at all before applying for a mortgage/house loan? You’re just at like a N/A rating?

          • SaakoPaahtaa@lemmy.world
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            10 months ago

            That’s just kind of nonsensical, isn’t it better for someone to not have needed a loan before? To me that seems like the more mature creditor compared to someone who’s pulling credit constantly, regardless how well they pay it back.

            That indeed does seem to suck, apologies for having to deal with a system as shit as that sounds.

            • braxy29@lemmy.world
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              10 months ago

              this is what i thought and did not use credit cards for years. i was only able to buy a car with a co-signer. since then, i pay for everything with credit and pay it off all the time to build a credit history. i will need another car at some point.

              • SaakoPaahtaa@lemmy.world
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                10 months ago

                It just seems silly to “force” people to use credit just for that. Out here credit cards are only used for international payments, if even that. I mean I don’t have a credit card and probably never will.

        • kmkz_ninja@lemmy.world
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          10 months ago

          You have to take loans and make financially risky maneuvers to prove you can pay back the bank (which incidentally is covered by FDIC, unlike the average person).