My credit score dropped 23 points!

D

DGM

Member
Location
Willow Spring NC
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.
 

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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yes it's the same here... you need to have credit to get a good credit score. If you don't have any debt you credit score will go down.. because lenders can't see tht you're a good risk... nuts I know.. I've been there . I used to never even have any credit cards.only debit cards.. but because of this situation I got credit cards, and suddenly I was every lenders dream...
 

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!
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Yes, when you close accounts, you have a dip in your score.
However you do NOT need to carry interest on credit cards accounts to raise your score.

I will pay off my car loan next week, and I know my score will temporarily go down.
It really doesn't affect anything though, as my credit score will still be in the excellent range.
Having zero debt is a good thing, but (as hollydolly says above) that does not show anyone that you can manage credit well (which is the purpose of a credit score).
 
There are sites that you can grant access to your credit information and they can provide an analysis and credit score improvement suggestions.

Things that factor in include your history of on-time bill payments, the number of credit cards you have in good standing, amount of carried credit card debt, and information about mortgages and car loans and such as well as your payment history on them.

I doubt there is much point in "gaming" this once you've reached 780 or above because it doesn't gain you much in terms of credit qualification and rates until you get closer to 820 or so.

I don't think they are allowed to look at things like where you live.

How are FICO Scores Calculated? | myFICO
 
I might use my credit cards a few times a year. Other than that I forget about them and usually just wait for them tell me my score has changed.
 
On the other thread I was embarrassed to confess that I used to travel with as much as $3000 in my socks (apparently that means I was either stupid or a criminal;)). It was because I didn't qualify for a credit card and banks weren't issuing POS cards or ATM cards at that time.

I have never had a credit card because I've never had a good credit score because I've never had a credit card.

At the time I was working as a loan officer in The Pentagon Federal Credit Union and it was helpful, when I had to turn down a loan application, to be able to tell the member that it wasn't personal, I didn't qualify either. To get a loan you need to show ability to pay (regular income for three years) and willingness to pay and that's proven by getting a loan and making regular payments on time.

I've managed to buy furniture, cars, and houses without credit and over the years I've saved many thousands of dollars by never once paying a finance charge.
 
Della said:
On the other thread I was embarrassed to confess that I used to travel with as much as $3000 in my socks (apparently that means I was either stupid or a criminal;)). It was because I didn't qualify for a credit card and banks weren't issuing POS cards or ATM cards at that time.

I have never had a credit card because I've never had a good credit score because I've never had a credit card.

At the time I was working as a loan officer in The Pentagon Federal Credit Union and it was helpful, when I had to turn down a loan application, to be able to tell the member that it wasn't personal, I didn't qualify either. To get a loan you need to show ability to pay (regular income for three years) and willingness to pay and that's proven by getting a loan and making regular payments on time.

I've managed to buy furniture, cars, and houses without credit and over the years I've saved many thousands of dollars by never once paying a finance charge.
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I still carry large amounts of cash sometimes and make big cash purchases sometimes, even though I have credit and debit. Haven't had a problem in several decades. I won't be a sheep for big businesses and banks to tell me not to carry cash so they can take it, a little at a time.
 
Oldeagle66 said:
I still carry large amounts of cash sometimes and make big cash purchases sometimes, even though I have credit and debit. Haven't had a problem in several decades. I won't be a sheep for big businesses and banks to tell me not to carry cash so they can take it, a little at a time.
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Good for you. In the very unlikely case of someone pulling up my pant leg and pulling down my knee socks to take my cash, I would still have been better off losing that 3000 than having them take my bank card and suck my bank acct dry.

When I was at the Pentagon making car loans for the colonels an generals, the interest rates were sky high. (the 1980's) . If they bought a 60,000 dollar car with payments over five years, the total cost of the loan would be over 100,000. I would always point that out, but they would just laugh and say, "Don't tell me."
 
We have used credit cards, to the exclusion of cash (mostly), for 50 years. Having good credit has given us better loan rates and of course, 10's of thousands of dollars in cash back over the decades. We even pay utilities with credit cards. Having high credit score gets us better cc's with better rewards too.
I truly don't understand why everyone doesn't use cc's when everything you purchase can get you 1-5% cash back.
 
We no longer have a mortgage or are not in debt for anything. We do however use credit cards for purchasing stuff and for paying bills. We just pay off the card before it collects interest. We actually get 3 % pay back.
Now we have all kinds of offers for credit cards.
 
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Got into the cash back rewards game a few years back. I had 7 cash back cards at my peak. Found I was spending & buying more useless 'stuff' the deeper I got into the chase. Finally decided to cut back on my spending & chasing rewards, Now I have 1 card with a 2% anytime cash back. Easier than trying to juggle that many cards & reap or miss the best return. 2% back was my choice, 1 bill & balance to keep track of. I make on the average of $250-$350 annually on all my purchases.

Since COVID - don't fly, don't eat out as much. seldom or never stay in a motel at all. Just things we need to sustain our limited lifestyle. Very basic needs or wants. Less to keep track of or worry about. Have a high limit to maintain my FICO score. No debt, paid my 2021 used auto off in less than 2 years, never carry a card balance. To each their own, but not for me. Good luck with the chase. My wife usually uses cash for her habits & needs, never takes the card. Do use card for security, purchases & paper trail.
 
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Our house is paid for and every month I pay off our credit card bills. I typically get 1-3% back on purchases so I never use cash. Like @retiredtraveler mentioned I pay the utility bills with my credit card as well. I paid our property taxes with my American Airlines credit card and received enough miles to keep me at Gold level for 2025.

My '17 car had been paid off for years but when I went to buy my '25 model I got the best possible terms on my loan. It goes up and down but typically not by an alarming percentage. I receive monthly notifications from several companies re: my credit score.
 

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