My credit score dropped 23 points!

i haven’t had a penny in interest paid in 25 years .

all i do is use my cards and pay them off and have been in the 800’s for years

i would be closer to 850 but i dont have a loan of any type and many scoring systems like to see not only credit card use but things like mortgages or auto loans .

there are more than 50 different fico scores alone out there .

each industry uses a tailored one for their industry.

msny times what you see as a consumer score is not what a lender sees .

in fact citi bank just switched from showing a vantage score to a fico 8 score and many saw quite a drop in score because of how it’s measured
 

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horseless carriage said:
Talk about naive, I didn't even know that we are given a credit score, let alone what it is. My debit card is only used for withdrawing cash from the ATM. My credit card, I share with my other half, never gets used. It's been so long since I made a purchase with it that I have forgotten the security number. My preferred method of payment is always cash.

View attachment 432099

Cash is anonymous, retailers, banks and others cannot profile cash payments.
For the same reason, I don't have any store loyalty cards. Believe me, as the
economist, Milton Friedman once said: "There's no such thing as a free lunch."
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Due to that, you will have what is known as a horrible credit score..lol... seriously, you will have a very poor credit score, so if would be difficult for you to get credit anywhere...
 
mathjak107 said:
i haven’t had a penny in interest paid in 25 years .

all i do is use my cards and pay them off and have been in the 800’s for years

i would be closer to 850 but i dont have a loan of any type and many scoring systems like to see not only credit card use but things like mortgages or auto loans .

there are more than 50 different fico scores alone out there .

each industry uses a tailored one for their industry.

msny times what you see as a consumer score is not what a lender sees .

in fact citi bank just switched from showing a vantage score to a fico 8 score and many saw quite a drop in score because of how it’s measured
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I always pay my CC cards off in full as well ...hopefully I'll always be able to do that, but if not then at least I know the facility is there to pay less... if I need to....
 
hollydolly said:
Due to that, you will have what is known as a horrible credit score..lol... seriously, you will have a very poor credit score, so if would be difficult for you to get credit anywhere...
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plus if their state allows credit scores to be part of your insurance score , no credit history isnt good for getting lower rates .

42 states are allowed to price you based on credit score
 
OldOld said:
You can open more credit cards or raise your credit limit on the cards you already have. The more credit you have(and in good standing), the higher your credit score will be.
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This explains why my credit score dropped even though I had spent some larger amounts on my main card in December and paid them off immediately. My cards are set to pay off automatically on due date.

I had closed a store card because I rarely used it and their statements were vague and almost impossible to follow. I had tried to lower it online and instead it raised it by $3000. When I called to get this lowered they refused and I told her to cancel it. She said it would affect my credit score. Guess it did.

When I went to get another card through a bank, I was initially refused. She reran my numbers and couldn’t believe it either. She approached it another way and I got a small limit which is what I wanted. I wanted a card with a lower limit to put in my Wallet on the iPhone.
 
mathjak107 said:
it’s the old story

to get loans you have to prove you don’t need the money .

but a credit score not only means you have the ability to pay , it also demonstrates a want to pay .

both are important
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precisely that.. rock and a hard place for many people , particualrly those who have always paid in cash which was me a few years ago.

My husband paid/pays for everything using his Apple Pay... I was the opposite, I used ash , or debit card... so when he left I really needed to build myself some credit... I didn't have bad credit, I simply had none.. so lenders saw me as a bad risk because they had no way of knowing if I could pay.

I'd never owed anyone anything.. but I just had to find a way to build up my credit so as to secure my future now on my own....

I did that in a very short time thankfully.. but some people are not able to do that ..
 
Jules said:
This explains why my credit score dropped even though I had spent some larger amounts on my main card in December and paid them off immediately. My cards are set to pay off automatically on due date.

I had closed a store card because I rarely used it and their statements were vague and almost impossible to follow. I had tried to lower it online and instead it raised it by $3000. When I called to get this lowered they refused and I told her to cancel it. She said it would affect my credit score. Guess it did.

When I went to get another card through a bank, I was initially refused. She reran my numbers and couldn’t believe it either. She approached it another way and I got a small limit which is what I wanted. I wanted a card with a lower limit to put in my Wallet on the iPhone.
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yes the finance advisors always tell you not to close a credit card for the reasons you stated.. in fact in you don't want to use it.. you're better off just sending a minimal amount on it..like a dollar... and paying it off immediately, and it keeps it ''live''....

..because my husband took care of all the finances.. he paid all the bills electronically.. after I'd given him my share of them... I had no clue how to pay a bill through my computer and bank because the last time I'd paid any bills was before we were married when I lived alone, and paid paper bills ... so I hadn't a clue how to make standing orders, direct debits , bank transfers..etc...

It took me all of about a week or 2 to learn... and I read everything, ( I'm a researcher)... spoke to people, took advice from my daughter who is a a financial whizz... and learned so much about finances, credit, etc... that I probably now know more than even my Ex.... and to this day I'm signed up to a financial website that keeps me updated about all changes in interest rates, rules regarding all sorts of financial things changing.. and so on... on a daily and weekly basis
 
DGM said:
I paid off our last open account, our house. I have ZERO debt. So my credit score dropped 23 points. If I borrow money and pay interest on it, I can raise my credit score! What a wonderful system we have in place. I would seriously like to scream two words at the top of my lungs to the banking industry (you remember, the one the government bailed out in 2008) suggesting they go have sex with themselves.
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It should recover over time. Much of your credit score is based on credit utilization and credit mix. When you pay off debt and close an account that changes resulting in a lower score. Just Rejoyce in the fact you are debt free. You are doing it right. If you use a credit card to make purchases and pay it in full and on time every time your score should rise again in time. Congratulations on paying off your house.
 

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