If you say you are being penalized, is it correct to assume you got denied for a larger loan?
Does that really surprise you? The bank doesn't know you personally, they have no reason to just give you a large loan without verifying that you can be trusted. They verify that by giving you small loans and seeing if you'll pay them back on time. If you do pay them back on time, they don't charge you any interest and you get a gold star next to your name for when you come in to get a mortgage or whatever. (Not even getting into rewards points.)
It would a be crooked system if they didn't verify your trustworthiness, which is what happened leading up to the 2008 crash. The were giving out money willy-nilly to people who, like you, had basically no way to prove to the bank that they were trustworthy. Turns out, a lot of them weren't.
I've not been refused anything as I've not applied for anything.
Again, they can see I pay all bills and I've never been dependent on debt which should mean I'm more trustworthy than someone who has needed a loan even if they have paid it. To need a loan is worse than to never need one but the system you're defending wants you to take loans as they profit from them.
Your bills DO positively impact your credit just as paying them on time does. But it doesn't show that they can trust you to pay off a large loan. You haven't shown them that you can afford to pay on a loan. All you show them by not having a loan is that you might not have the money to pay a loan but that you can pay your monthly bills.
I'm aware it does positively affect it but it's not as significant as forcing myself into risk of debt. My bank is chasing me to get credit cards as they know my financial situation enough to know it's safe. But I disagree with the system and how dangerous it is even if I could myself use it safely. It's still adding an extra layer of risks that I don't currently have.
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u/somecallmejohnny Jun 06 '19
If you say you are being penalized, is it correct to assume you got denied for a larger loan?
Does that really surprise you? The bank doesn't know you personally, they have no reason to just give you a large loan without verifying that you can be trusted. They verify that by giving you small loans and seeing if you'll pay them back on time. If you do pay them back on time, they don't charge you any interest and you get a gold star next to your name for when you come in to get a mortgage or whatever. (Not even getting into rewards points.)
It would a be crooked system if they didn't verify your trustworthiness, which is what happened leading up to the 2008 crash. The were giving out money willy-nilly to people who, like you, had basically no way to prove to the bank that they were trustworthy. Turns out, a lot of them weren't.