this post was submitted on 27 Dec 2025
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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.
There must be something else to it. I've never paid any interest on my credit cards and I paid off my mortgage early; by your logic I should have a low credit score, but it's actually in the "Excellent" range.
In another comment, someone mentioned that it’s not just repayment of interest that profits credit card companies.
Even if you pay all debts monthly before interest can compound, the CC companies still charge processing fees to merchants on a per-transaction basis (which merchants either pass directly to consumers or indirectly through higher prices). They still get their cut, even if you don’t see it on a line item.
Recently I had house work done. The contractor offered to charge me 5% less if I paid with cash or check instead of credit card.