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by PrivateButts
700 days ago
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I didn't have student loans (went to a cheap college and was fortunate enough to have parents that could foot the bill) and had not needed to borrow money from a bank until I had finally had a good job and wanted to replace my beater car that was on it's last legs with a decent used car. I struggled to get any loan for more than a year, until I learned that we had access to a credit union through my job. The whole time no credit card company wanted to touch me, except Discover, who gave me a card with a $200 limit. I'm still with them, now with a more reasonable credit limit, and it's the only card I have. Between that and seeing how much the 'age of accounts' penalty was dinging my otherwise good score really left a bad taste in my mouth. It feels like they want you to be in debt from birth. I guess that's why they want to feed us daycare loans as the new student loans. |
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Not exactly. Banks want to figure out your financial riskiness, and in the absence of historical data they usually just assume the worst case scenario just short of ongoing bankruptcy.
So just having an open credit card account that is many years or even decades old and in good standing goes a long way towards your credit score, regardless if you even put any spend on it.
Inversely, if you have only have new credit cards the banks simply don't have much history to work with, and so you are scored lower.
Trust ("credit"!) takes a lot of time to build.