https://www.inc.com/quora/too-many-people-fall-into-this-one-huge-financial-trap-good-news-its-easy-to-avoid.html
Quote
Your credit score should really be called a "sucker score" because it's a number that exists for only one reason: to tell banks how much money they're going to be able to make off of you. The higher it is, the more of your money goes to them.
That's not how they sell it, of course. They sell it as a metric for determining "credit worthiness". But if you really break down what makes a credit score higher or lower, you'll see that they aren't being honest about what it actually is.
For example, if you're the type of person who doesn't use credit all that much, but can make large purchases and pay them off in a matter of days or weeks, that should be an indicator that you're the most "credit worthy" person on the planet. Right? Shouldn't the people who do that have the highest credit scores?
Nope. You're actually penalized for that, and your credit score goes down. Banks hate you, because you don't carry debt long enough for them to make anything off of you.
That's not how they sell it, of course. They sell it as a metric for determining "credit worthiness". But if you really break down what makes a credit score higher or lower, you'll see that they aren't being honest about what it actually is.
For example, if you're the type of person who doesn't use credit all that much, but can make large purchases and pay them off in a matter of days or weeks, that should be an indicator that you're the most "credit worthy" person on the planet. Right? Shouldn't the people who do that have the highest credit scores?
Nope. You're actually penalized for that, and your credit score goes down. Banks hate you, because you don't carry debt long enough for them to make anything off of you.
No kidding.