Quote:
Originally Posted by Rain Man
My understanding is that a credit rating isn't about your net worth or your ability to pay so much as it is your actual history of paying. A person with debt who pays on it unerringly is perceived as a very positive risk, even better than a person without debt who doesn't have a record of unerring payment.
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Agreed, history to repay, but additionally, your profitability to banks. Explains why so many old guys' credit score drops from 825 to 798 when they have their house paid off, even though they are making more money than they ever have, and have never missed a payment in their life.
They aren't being as profitable to a bank, so their score drops