this post was submitted on 27 Dec 2025
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[โ€“] stoy@lemmy.zip 138 points 4 months ago (35 children)

Credit scores are used to tell companies how much they can earn on lending you money.

Paying back quickly reduces the amount they can earn, lowering your credit score.

Not paying it back obviously lowers the score.

The way I understand it, to raise your credit score you need to slowly pay back your loans, so you pay back maximum interest.

Note however that I am just a cynical IT guy in Sweden with zero actual exposure to US/UK style credit scores, and that I may be talking out of my ass.

[โ€“] echodot@feddit.uk 6 points 4 months ago

I always pay my loans back on time and every now and then the bank rise my credit limit. I think it's because I also have a bank account with them and they can see I have the money ready to go. I don't make much money for them, but I do make a consistent amount and the banks like that too.

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