credit score calculations
Does this boost or give you a good credit score?
I already has two hypotethical credit questions before. heres my third. assume ur super rich and have $20 mill in the bank not net worth in the bank. and ur the type of person that never buys on credit but pays everything off instantly weather debit or check.
u buy a $5 mill home. u could pay it off instantly. but u decide to build a credit score. u get a mortage. u do some calculations pay higher than the minimum amount and pay off the entire mortage and interest in less than 12 months. would this boost ur credit score or even give u a perfect rating.
im only 14 and trying to understand how the credit score system works. if u read my previous questions i understand u might be irritated by now.
You will not have a perfect rating. If you are buying things on credit you are not paying it off “instantly”. If you mean “paying in full” then yes, that will help your credit tremendously.
There are very very very few people with perfect credit. Simply because the number of cards you have can hurt you… too few cards=not enough credit=bad. Too many cards=too much risk=bad. The limits on those cards can hurt you. The number of times you have a creditor pull information when applying for a card can hurt you. Some stuff is beyond your control, like the number of inquiries on your credit.
