Submitted by astajaznan t3_11dff02 in explainlikeimfive
TehWildMan_ t1_ja8abof wrote
Reply to comment by astajaznan in Eli5 credit score please. by astajaznan
> Aren't people who use credit cards a lot more risky to the bank, in the sense that they might not have enough fund
Look at it another way, a person who for years has been able to handle having a few hundred dollars in revolving accounts, and never missed a payment, would appear as a lower risk than someone who has never had any kind of loan before.
astajaznan OP t1_ja8aymr wrote
I assume you are from America. In our country (in the Balkans), a completely different logic prevails. Although I believe that this principle will come to life in our country at some point, since we follow the trends, and America is always light years ahead of us.
Bensemus t1_ja9l0is wrote
Using the credit card responsibly looks good to the bank. However you can also use it poorly which looks bad to the bank. So just having a credit card isn't enough. They look at how you are using it.
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