• thrawn@lemmy.world
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      3 months ago

      Yes. Credit score is simply how much you borrow and how often you repay it. The thinking is that, with a thicker file (more accounts paid), there’s less risk.

      This can cause some real fuckery: they want to see different types of loans, so student loans with no missed payments is good for your credit despite being bad for your life. It doesn’t care if there’s interest. The misconception may occur because with almost every type of loan, there is interest.

      I’ve been fortunate enough to never need a loan and my credit did slightly suffer because of that. That said, any 18 year old can open a starter credit card and get a score of >700 within the year as long as they don’t miss a payment.