• HopFlop
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    9 months ago

    Who would you rather give a loan to? A person who you know is currently able to pay you back or a person you know was able to pay back the loan 10 years ago?

    • RoosterBoy@lemm.ee
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      9 months ago

      The person who just paid me back, because they can obviously pay me back.

      • HopFlop
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        9 months ago

        Exactly, so that answers the question. When you finish paying your loan, you stop paying back money and thus your credit score is slightly lower than when you were actively paying back.

        • RoosterBoy@lemm.ee
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          9 months ago

          That’s the opposite of my point. Let me correct myself here. The person who just *finished paying me back because they can obviously *make every payment until it is paid back again, as they have obviously demonstrated.

    • UnderpantsWeevil@lemmy.world
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      9 months ago

      The grade dropped as soon as the account was closed, not ten years later.

      So this is

      1. Person who is currently carrying a loan
      2. Person who just successfully discharged a loan

      And the answer would definitely be 2).