That doesnt sound correct but maybe its just cooked in america. I believe the way it works here is that making obligation payments improves credit score and failing to pay on time reduces it. You can dispute any failed payments to have them overturned and they go away after 2 years. You do not need to get into debt to build credit, stuff like utility bills and internet bills will build your credit up to almost perfect. It seems fair to me but there are still a lot of people who have chopped credit and it affects being able to rent. My flatmate has dogshit credit and refuses to do anything about it and I have to do so much extra work just to secure places to live.
It doesn’t sound correct because it’s not. Financial literacy in the U.S. is awful and the ridiculous misconceptions about credit scores that propagate are one symptom of that.
That doesnt sound correct but maybe its just cooked in america. I believe the way it works here is that making obligation payments improves credit score and failing to pay on time reduces it. You can dispute any failed payments to have them overturned and they go away after 2 years. You do not need to get into debt to build credit, stuff like utility bills and internet bills will build your credit up to almost perfect. It seems fair to me but there are still a lot of people who have chopped credit and it affects being able to rent. My flatmate has dogshit credit and refuses to do anything about it and I have to do so much extra work just to secure places to live.
That’s because it’s not. It’s a commonly held belief of people who don’t understand credit very well.
It doesn’t sound correct because it’s not. Financial literacy in the U.S. is awful and the ridiculous misconceptions about credit scores that propagate are one symptom of that.