It’s literally because people tend to close accounts when they pay off a card, so it’s still their fault. Just keep the card open and it is recent credit, and your average credit age doesn’t go down.
People argue about this shit but it’s like the tamest aspect of capitalism IMO. It’s easy to understand math they use to let you borrow shit or sign up for things and trust you’ll pay them.
Part of the problem with capitalism is that it fucks over people who can’t do the math. I agree it’s pretty tame, but you gotta realize just how research and math hating many are
they know. then they bury the terms in fine print nobody reads and rip-off 20% on unpaid balance while pushing the minimum payment which looks tempting to people not knowing it’s mostly interest (see terms) and almost nothing towards principle. balance goes up. title loans are insane rates. compounding is beyond average math skills so they lose their cars and max out cards fast.
It’s literally because people tend to close accounts when they pay off a card, so it’s still their fault. Just keep the card open and it is recent credit, and your average credit age doesn’t go down.
People argue about this shit but it’s like the tamest aspect of capitalism IMO. It’s easy to understand math they use to let you borrow shit or sign up for things and trust you’ll pay them.
Part of the problem with capitalism is that it fucks over people who can’t do the math. I agree it’s pretty tame, but you gotta realize just how research and math hating many are
they know. then they bury the terms in fine print nobody reads and rip-off 20% on unpaid balance while pushing the minimum payment which looks tempting to people not knowing it’s mostly interest (see terms) and almost nothing towards principle. balance goes up. title loans are insane rates. compounding is beyond average math skills so they lose their cars and max out cards fast.
Which kills me, because it’s not like compounding interest is a complex math subject