You don’t need to loan money to get a credit rating, that is a total myth.
The credit rating is based on assets and income, debt actually has very little effect on it, only if you declare bankruptcy does it usually change the rating.
A person with a mortgage will always have a much better credit rating than the same person without a mortgage, not because they have a debt, but because the house is an asset.
House insurance on a mortgage is there to protect the lender, not the homeowner.
Its quite likely that paid off mortgage policy holders make more claims than mortgage owners and that would affect the risk rating.
You don’t need to loan money to get a credit rating, that is a total myth.
You’re right in that you actually need to be loaned money to get a credit rating, but you’re just entirely wrong overall.
The credit rating is based on assets and income, debt actually has very little effect on it, only if you declare bankruptcy does it usually change the rating.
What you’re saying directly contradicts what OP (the headline writer not the post they quoted) said - that paying off your debts lowers your credit rating.
You don’t need to loan money to get a credit rating, that is a total myth.
The credit rating is based on assets and income, debt actually has very little effect on it, only if you declare bankruptcy does it usually change the rating.
A person with a mortgage will always have a much better credit rating than the same person without a mortgage, not because they have a debt, but because the house is an asset.
House insurance on a mortgage is there to protect the lender, not the homeowner. Its quite likely that paid off mortgage policy holders make more claims than mortgage owners and that would affect the risk rating.
You’re right in that you actually need to be loaned money to get a credit rating, but you’re just entirely wrong overall.
You’re objectively incorrect. Please look into what the credit agencies say they use before you provide your opinion.
How much you owe and your payment history is 65% of your credit score alone. You literally have to be loaned money to have a credit score.
What you’re saying directly contradicts what OP (the headline writer not the post they quoted) said - that paying off your debts lowers your credit rating.