Credit bureaus.

[TheBiggestJerk]

Credit score has got to be rigged like the stock market or is just one big mind fuck.

Last month I paid off $23,987 in credit card debt (x3 cards) and my truck $6200, and my credit score went DOWN by +20points.

WTF!?

I’ve never been later or missed a payment EVER! On anything.

 

[TheBiggestJerk]

Credit score has got to be rigged like the stock market or is just one big mind fuck.

Last month I paid off $23,987 in credit card debt (x3 cards) and my truck $6200, and my credit score went DOWN by +20points.

WTF!?

I literally paid off ALL Of my debt.

I’ve never been later or missed a payment EVER! On anything.

 

[midnightlaundry]

Where did the money come from??

 

[midnightlaundry]

If you closed the cards, that might be why..
My CC Company went to the FICO instead of the others..

 

[MadAsAHatter]

The "I love debt" score has some dumb ways of making calculations. You can have a massive income, no debts, and enough cash on hand to pay for anything and everything outright yet somehow have a low score because it's based on credit availability and your relationship with paying debt.

 

[napalmdeath]

It's typically the lenders that fail to report, not the bureau itself.

I have a couple cards that report when the feel like it. What really grinds my gears is they report when your utilization goes up, but not when I paid them down.

Like mentioned above, closing an account reduces your average length of credit, and it'll dip. I keep things open. I have 5 cards, and use a couple for everything because of cash rewards, (and less risk of debit card theft). Then pay them off monthly. The other 3 I use casually to keep active.

 

[napalmdeath]

The "I love debt" score has some dumb ways of making calculations. You can have a massive income, no debts, and enough cash on hand to pay for anything and everything outright yet somehow have a low score because it's based on credit availability and your relationship with paying debt.

Use your cards actively, and pay them off. That's the only thing that raises your score. People think being dormant and not using your cards will raise your score - it won't. Utilizing your cards and keeping the utilization low, and chipping away at them monthly does.

Like I mentioned, I use credit cards for everything. Literally. Gas, Food, prescriptions, Amazon, everything. I even have my car insurance, and Hulu autopay on credit cards. I get cash rewards which is essentially free money, and the lenders see you active, and responsibly paying them off. At any given time, my credit utilization is in the single digits. I take a 5-10 point hit when it goes to say 15%, (never let it get to 30%, that's when you'll see HUGE dips). The jumps in your score are much higher than the dips when you use/pay off. Most of the time, I pay no interest, ever, paying the balances the way I do.

 

[MadAsAHatter]

Use your cards actively, and pay them off. That's the only thing that raises your score. People think being dormant and not using your cards will raise your score - it won't. Utilizing your cards and keeping the utilization low, and chipping away at them monthly does.

Like I mentioned, I use credit cards for everything. Literally. Gas, Food, prescriptions, Amazon, everything. I even have my car insurance, and Hulu autopay on credit cards. I get cash rewards which is essentially free money, and the lenders see you active, and responsibly paying them off. At any given time, my credit utilization is in the single digits. I take a 5-10 point hit when it goes to say 15%, (never let it get to 30%, that's when you'll see HUGE dips). The jumps in your score are much higher than the dips when you use/pay off. Most of the time, I pay no interest, ever, paying the balances the way I do.

Exactly, It's an I love debt score.

 

[70 Mach 1]

its going to be a slow roll back down hill.
they just wont drop you 350 points in one cycle

 

[japetus]

Credit card companies don't like it when you pay off in full at once. It makes it worse if you cancel the card. Absolutely shitty but it's yet another evil trick they use.

 

[Geo]

I haven't owed money to any bank for 20 years now. My credit score fluctuates between 720 and 750.

Don't know why, and don't care. I will never need to borrow again.

 

[Chase42147]

I closed one of my credit cards a few weeks ago, and one day later found out that that also lowers credit scores... awesome

 

[Robostyle]

Credit card companies don't like it when you pay off in full at once. It makes it worse if you cancel the card. Absolutely shitty but it's yet another evil trick they use.

They make money off the interest. When you pay off early they get upset.

 

[Chase42147]

They make money off the interest. When you pay off early they get upset.

Is there any difference between paying it off early and paying it off on the due date? Or by paying it off early, do you mean as opposed to making payments over several months on it?

 

[Robostyle]

Is there any difference between paying it off early and paying it off on the due date? Or by paying it off early, do you mean as opposed to making payments over several months on it?

Sorry, i was thinking more about mortagages/cars etc.
Some have "early payoff" penalties.
Lending institutions lend money to make money off the interest.
Same as the shylock business.
Different credit cards have different rules about how they report stuff i think.
I'm not an expert.

 

[Chase42147]

Sorry, i was thinking more about mortagages/cars etc.
Some have "early payoff" penalties.
Lending institutions lend money to make money off the interest.
Same as the shylock business.
Different credit cards have different rules about how they report stuff i think.
I'm not an expert.

Ahh I gotcha. Yeah, such a scam that paying loans off early is penalized. Oh well, a small credit score hit is probably a lot cheaper in the long run than paying all the interest

 

[Floyd Eye]

Credit card companies don't like it when you pay off in full at once. It makes it worse if you cancel the card. Absolutely shitty but it's yet another evil trick they use.

They like revolving credit and on time payments. Once you know it’s pretty easy to get your score up pretty high.

 

[Floyd Eye]

Sorry, i was thinking more about mortagages/cars etc.
Some have "early payoff" penalties.
Lending institutions lend money to make money off the interest.
Same as the shylock business.
Different credit cards have different rules about how they report stuff i think.
I'm not an expert.

On a mortgage you pay the interest up front. Absolutely they’re going to get the interest. After all, that’s the only way they make any money off it. The ones that penalize you for early payoff should be avoided, although it’s usually not in your financial interest to pay it off early unless you either got a shit rate or you’re flipping houses.

 

[TheBiggestJerk]

Where did the money come from??

Legit income that I paid taxes on.

 

[midnightlaundry]

Legit income that I paid taxes on.

Now that you're debt free, it makes sense to have 1 CC open that gives points for purchases. I've had a Venture One for years now. I rack up points and redeem them for cash.. I have it linked with my Amazon because I'm always buying shit there.. I buy everything with it and pay it off every 2 weeks when I get a paycheck. It's just what I do..

Surely it's a trap, but if you're spending responsibly, you get money back. I assume most people don't because how else would they be able to do that??

I estimate I redeem 3-400 bucks a year..