Credit Score Changed ?

Discussion in 'The OT' started by jimmie57, Aug 2, 2019.

  1. Aug 2, 2019 #1 of 13
    jimmie57

    jimmie57 Hall Of Fame

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    Credit scores are Nuts.
    My credit score was 817.

    I made a purchase and used my CC.
    Purchase was $4,000, CC has $5,000 limit.

    I paid in full and on time, like I always do.
    Score dropped to 750 .
    Reason given was the debt was too close to the limit.
    That is just Nuts !
     
  2. Aug 2, 2019 #2 of 13
    AntAltMike

    AntAltMike Hall Of Fame

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    Same thing happened to me last year, with less impressive numbers.

    Actually, your 817 could more accurately have been described as nuts. One thing that probably contributed to my reduction, more than anything else, was that my credit card company had not been regularly reporting how close I was to depleting my available credit with them. A few years earlier, they had massively increased my credit limit, giving me all kinds of room on that card, but as I gradually loaded it up, they were not reporting that monthly. All they had been reporting was that I was making my monthly mandatory payment. Then, when I hit hard times for a couple of months and missed two payments in a row, not only did they report that, they also reported that I was at about 98% utilization, and my score dropped like a rock, like it should have.

    I am now back earning and paying, but I doubt I will live long enough to get my score back to where it was, and unless you win the Power Ball, you probably never will, either.
     
  3. Aug 2, 2019 #3 of 13
    jimmie57

    jimmie57 Hall Of Fame

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    I think my 817 is accurate. It has been over 800 since I bought my Kia in 2012.
    Maybe because I use a CC to pay for everything, even if it is a few dollars.
    I like the 2% cash back.
     
  4. Aug 2, 2019 #4 of 13
    Jim148

    Jim148 Godfather

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    I wouldn't get too hung up on a specific number. If I recall correctly, the Big 3 credit bureaus can rate the same person with slightly different numbers. At the end of the day, if you qualify to get loans you want at the most competitive rate, who cares if you are 790, 805 or 820?
     
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  5. Aug 2, 2019 #5 of 13
    Rich

    Rich DBSTalk Club DBSTalk Club

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    Yeah, I gave up on worrying about the actual score. Doesn't seem to matter as long as it's over a certain number.

    Rich
     
  6. Aug 2, 2019 #6 of 13
    jimmie57

    jimmie57 Hall Of Fame

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    When I bought the Kia, I financed it with them. Got $1,500 off for financing it with them.
    I usually do that and finance it for 3 years. I then make payments for 1 year and on the 13th payment I pay them off.
    The finance guy said that when they look at a credit rating all they care about is did you finance a car in the past and how did you pay your payments on the finance.
    If you do it that way, in my mind, you have a finance record, you made payments on time and you paid off the loan early. All this helps to keep your score up.

    Having said all that about the score number, did you know that the Home Insurance and Car Insurance people are looking at your score and charge you more if your score is low. My second son was being charged 20% more than if I was the name as the Homeowner.
     
  7. Aug 2, 2019 #7 of 13
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The number does not matter as long as you can get the next loan. :)

    While being near the max of your current credit limit is seen as bad, it is also bad to have too much available credit. I had a card raise my limit to $10,000 ... I called them and said $5,000 was enough. They are in the debt industry ... Making money off of people who don't pay immediately and businesses paying processing fees.

    The good news is paying down or paying off a debt usually helps ... So the "too close to the limit" negative may go away when the prompt payment is reported.
     
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  8. Aug 2, 2019 #8 of 13
    glrush

    glrush Cool Member/Supporter DBSTalk Gold Club

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    My FICO score (and my wife's) always are in the low 800's, usually between 805-810. We pay our cards off each month, and have no current debt including car and home.
    Several years ago, we took out a car loan because of the 0% interest rate. We put the loan in my wife's name because we were trading her car in. You'd think that her score would go down taking on debt but nope, hers went up by 15 points while mine dropped almost the same amount. Oh, and when we payed the loan off, yup you guessed it hers went down and mine went up. I am convinced there is some giant wheel there that randomly generates the scores every month.
     
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  9. Sep 7, 2019 #9 of 13
    jimmie57

    jimmie57 Hall Of Fame

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    Update on Score.
    A month after I paid for the refrigerator and the piers under the house,
    the score updated and it came up to 798 which was almost back to where it was before it took the drop.
     
  10. Mark Holtz

    Mark Holtz New Texan

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    Yup, had the same thing happen when I moved to Texas. The moving company put the entire cost of the move on my credit card, which almost maxxed out my credit card. My credit score dropped from a 812 to a 753 because it exceeded the credit utilization percentage when determining your credit score. Fortunately, that hit came after I got a new credit card with my new local credit union. Fortunately, it didn't hurt when I applied for 0% financing when I needed to replace my electric panel on priority (since paid off). When I applied for refinancing on my home (yes, within six months of purchasing it), the credit scores were excellent, and I just completed the refinancing deal for a nice lower interest date.

    Have you considered talking to your credit card and increasing your credit limit?
     
  11. jimmie57

    jimmie57 Hall Of Fame

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    No. I actually never knew what mine was until the CC company included it with their services.
    I will probably die right here in my house that I have owned for the past 25 years and buying a car is never a problem. When I bought my Kia they told me they really did not care too much about the score, they wanted to see if I had bought a car on finance and how I paid on that loan.
     
  12. Lord Vader

    Lord Vader Supreme Member

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    As a high school Social Studies Teacher, one of the courses I teach is Economics, and one of the most significant units is personal finance and credit. I spend a lot of time explaining to my students the importance of credit score and how this number is and will remain the most important number "grade" they will ever receive.

    Having twice been the victim of identity theft, I learned a lot about the credit scoring system and how literally it's actually one big joke for the consumer, especially considering that the credit reports WE see as consumers are nowhere near the same ones at which creditors look. We get just bare bones reports; whereas creditors see our complex, lengthy credit reports, ones that have credit scores based on a lot more information than we have in our own reports. This is ridiculous and should NOT be allowed! Unfortunately, don't hold your breath waiting for Congress to intervene (they're the ones who would have to change this unfair process).

    One thing I noticed in reading this thread is that a few folks opened new credit cards. While this can often be good, more often than not it's a bad thing as far as your credit score goes. There are several reasons for this: it decreases the overall age of all of your credit cards (the length of time you've had them, in other words) by introducing into the mix a new card whose age is near zero; when the new card is applied for, it shows as a hard inquiry on your credit report, which remains on your report for 2 years and lowers your score (albeit just a little, usually); IF the opening of this new card is met with your closing an older card, your score may take a significant hit. Always try to keep open your oldest credit cards, even if you never use them, because this keeps your credit history length in a nice, old range. If you have old cards that you don't even use, don't just cut them up or toss them aside or ignore them, because over a period of extended time of non-use, said cards can be closed by the issuing bank. If this happens, your average credit age can suddenly and dramatically change, thereby causing your score to drop significantly. I highly recommend that you pull out your old, unused cards and keep them open, at least, by making a small purchase with them once every month or two, then pay that off. For example, buy a pack of gum or an item on Amazon that costs five bucks, or anything similar to this. Pay it off when you get the bill, then file away that old card till next month. This way, that old card stays on your credit report and keeps the overall age of credit to a high, ancient number.
     
  13. Mark Holtz

    Mark Holtz New Texan

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    Oh, I get what you are saying and agree with you. I was just operating under some interesting circumstances by moving from California to Texas. There are several tests applied by the California Franchise Tax Board, as outlined in FTB Publication 1031, to determine if you are a resident. There are several tests that are mentioned in section G, two of which are where your primary residence is, and where you keep your financial accounts. Since my old credit union was located in California, I elected to close out my credit card there and establish a new credit card account with a Texas credit union. My other three credit cards (two of which aren't used) are by national institutions, so it was just a matter of updating the address.
     

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