If it was about the ability to pay back loans, then why does it go down when I finish paying the loan? Its about your ability to pay as much interest as possible.

[–] Elaine@lemm.ee 6 points 4 months ago

This. Paid off my house and my excellent credit score dropped by almost 20 points.

[–] biribiri11@lemmy.ml 2 points 4 months ago

Part of your credit score is also the present. It’s more than a bit predatory, but not having any current financial responsibilities looks bad. For example, if you have no loans whatsoever but paid back a bunch in the past, there’s little evidence saying you can currently pay them off. At least, that’s the theory of it.