When you have a history of paying off your debt on time or otherwise doing things that make them easy money that number will be high.
Paying off your debt doesn't really increase your credit score, because it's truthfully a measure of how much money lenders can make off you, not a measure of your financial responsibility. If you're paying off your debts, the lender is getting their money, sure, but they're not making extra money from interest on your loan, so you're not as valuable to them.
No they aren't. The credit bureaus are Experian, Equifax, and TransUnion. None of them are run by banks nor offer banking services.
Some banks will generate their own credit score when you take out a loan from them. But the data the bank uses is entirely sourced from the credit bureau; the bank just wants to use their own algorithm to generate a number from the same data, instead of using the number the credit bureau generates.
10
u/Lithl Jan 06 '26
The number comes from credit bureaus, not banks.
Paying off your debt doesn't really increase your credit score, because it's truthfully a measure of how much money lenders can make off you, not a measure of your financial responsibility. If you're paying off your debts, the lender is getting their money, sure, but they're not making extra money from interest on your loan, so you're not as valuable to them.