• thrawn@lemmy.world
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    3 months ago

    This is incorrect, of course. Anyone reading this thread, please do not pay interest for nothing.

    First, let me say this is not a defense of the credit score system which is unethical. I hate it too, but for the real reasons.

    Credit score is not determined by the bank. Your lines of credit report to an agency which considers your utilization but not whether you pay interest. Credit agencies don’t care if banks profit, they are already making money by collecting your personal data and selling it.

    I have never paid a cent of interest and do not have anything but credit cards on my file. My score is above 800. I hate to say it, but Lemmy has been consistently worse than Reddit for financial advice, and I’d suggest visiting the cRedit sub for accurate hate on the credit system.

    • Maggoty@lemmy.world
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      3 months ago

      Except they have different credit products for different things. Products specifically asked for by the banks. That’s their interest. There’s 3 credit companies and if one of them won’t take the info into account then the other two will.

      • thrawn@lemmy.world
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        3 months ago

        You won’t find a single source that indicates any of the big three agencies record interest paid.

        Banks already know you’re going to pay interest with auto loans. The credit check is to make sure you pay it back.