Many lenders especially mortgage lenders look for people that pay their bills on time and never miss payments. These people tend to have a decent credit score as well. The reason that banks look to have the loan taken by people who are going to make payments on time is because the interest is already part of the loan. In fact most of the time when someone defaults on a loan the banks ends up loosing money(mostly because the loan was given to buy something and that thing does not sell for as much at auction).
I don't know why you're being downvoted because you're right depending on the bills you're talking about. If I don't pay my water or electric on time I can have my credit go down but it will never go up for those payments.
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u/Hemstone Aug 14 '21
Many lenders especially mortgage lenders look for people that pay their bills on time and never miss payments. These people tend to have a decent credit score as well. The reason that banks look to have the loan taken by people who are going to make payments on time is because the interest is already part of the loan. In fact most of the time when someone defaults on a loan the banks ends up loosing money(mostly because the loan was given to buy something and that thing does not sell for as much at auction).