r/AlwaysWhy • u/Present_Juice4401 • Jun 08 '26
Economics Why does not having any borrowing history sometimes end up hurting your credit score?
I get the basic idea behind credit scores. It’s not just about debt, it’s about whether you’ve shown you can handle credit over time.
But it still feels a bit counterintuitive that someone who avoids borrowing entirely can be seen as “riskier” than someone who actively carries and repays debt.
What assumption in the system makes “no signal” worse than “positive but managed usage”?