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Posted: 5/9/2024 7:16:38 AM EDT
[Last Edit: Bollocks44]
I don’t use a lot of credit-I got in trouble with credit cards when I was young and haven’t used one since 1997. I pay my bills and keep my nose clean, this was a problem when I bought my house in 2013 becuase the mortgage guy was like “for all we know you were in prison because you have no recent credit history…” I was able to buy the house using bill payment history, albeit at a higher rate and the didn’t let me put the whole 20% I had on hand down to avoid paying points on the mortgage.
Fast forward to today, I have one credit card that I have never used and keeps getting shut off, and I have had one truck loan paid off, one motorcycle loan paid off, and one current motorcycle loan I owe $4k on and can afford to just pay off since I bought the house. Well, I paid the house off 2 weeks ago…. I have already gotten two warning emails from Experian and Equifax telling me that my credit score has dropped… These motherfuckers really want to keep a guy on the hook and paying. I’m so glad to be off of that hamster wheel. Never again. |
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TX, USA
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Posted: 5/9/2024 7:20:21 AM EDT
[Last Edit: Its_Raining_Lead]
[#1]
They should ban alcohol because some people drink too much.
Grats on paying your stuff off. |
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Posted: 5/9/2024 7:20:27 AM EDT
[#2]
If you can manage your money well, credit isn’t a problem and has a lot of benefits.
If you can’t, or married someone who can’t, it’s the devil. Good for you for not getting trapped in consumer debt. |
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Posted: 5/9/2024 7:23:28 AM EDT
[#3]
I froze my accounts with all 3 agencies to help fend off fake new credit cards and I get an email at least once a month before I pay off my credit card as they run their search and find I now have $ X in debt (even though I pay it off in the same month) and this makes my credit score go down until I mail the monthly check to the CC company.
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Posted: 5/9/2024 7:25:06 AM EDT
[#4]
I bought out my car lease this week, so the dealership pulled my credit. When they came to me with the paperwork I was all “WTF is this?” so I went and got my own, sane financing. Credit hammered, next day. Inquiries! *gasp*
Meanwhile, I’m paying off the debt I took on in my divorce in huge chunks at a time, and that takes months to show up. It’s a rigged crock of shit. |
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NC, USA
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Posted: 5/9/2024 7:25:34 AM EDT
[#5]
Ignore it. Same thing happened to me but it will come back up fairly soon. A bug/feature in the algo.
840 checking in!! |
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Posted: 5/9/2024 7:28:06 AM EDT
[#6]
The credit system is designed to keep people using it, and then game them.
Get two credit cards. Buy a coffee or burger on them once a month and pay it off. That will keep the credit score going. |
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Posted: 5/9/2024 7:28:26 AM EDT
[#7]
Originally Posted By TheOtherDave: I don’t use a lot of credit-I got in trouble with credit cards when I was young and haven’t used one since 1997. I pay my bills and keep my nose clean, this was a problem when I bought my house in 2013 becuase the mortgage guy was like “for all we know you were in prison because you have no recent credit history…” I was able to buy the house using bill payment history, albeit at a higher rate and the didn’t let me put the whole 20% I had on hand down to avoid paying points on the mortgage. Fast forward to today, I have one credit card that I have never used and keeps getting shut off, and I have had one truck loan paid off, one motorcycle loan paid off, and one current motorcycle loan I owe $4k on and can afford to just pay off since I bought the house. Well, I paid the house off 2 weeks ago…. I have already gotten two warning emails from Experian and Equifax telling me that my credit score has dropped… These motherfuckers really want to keep a guy on the hook and paying. I’m so glad to be off of that hamster wheel. Never again. Congratulations! It used to be that if you never used credit, you could not give a shit about what your credit score was. Then they decided to tie your insurance risk rating into your credit score. Get billed for something you disagree with and just blow them off? Watch your score dive 150 points and your homeowners and auto rates climb. Ask me how I know. 
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Posted: 5/9/2024 7:29:17 AM EDT
[#8]
A credit score isn't a report on the actual health of you finances as much as a probability index of your taking of loans with interest and being able to pay them back without issue, amalgamated into a shorthand score that's for THEIR benefit not yours.
By definition, people who don't dabble in taking out loans won't have a high score. The more you look disconnected from the usery dairy farm, the less you resemble a dairy cow and thus the lower your expected gallons of milk per month. |
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Posted: 5/9/2024 7:33:45 AM EDT
[#9]
Do you travel at all? If so, get a credit card that gives you points for airfare or hotel status. Use it for gas or groceries, and pay it off every month.
Gives you a credit history, with a benefit. |
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Posted: 5/9/2024 7:35:19 AM EDT
[#10]
Quote HistoryOriginally Posted By TLD05: The more you look disconnected from the usery dairy farm, the less you resemble a dairy cow and thus the lower your expected gallons of milk per month. Nice. |
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Posted: 5/9/2024 7:35:41 AM EDT
[#11]
I racked up thousands in debt years ago. Paid a huge chunk of it off. Now I pay for groceries on a card with rewards. Pay the grocery bill off close to the end of the month and just rack up rewards.
When I was just paying em off and not using em, credit went into the shitter. Now it stays over 800. |
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Posted: 5/9/2024 7:36:50 AM EDT
[#12]
Paid off our house 4 years ago. I use a credit card with a good rewards program to pay for basic expenses and pay it off each month. Credit score is 830.
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Posted: 5/9/2024 7:38:20 AM EDT
[#13]
Quote HistoryOriginally Posted By TLD05: A credit score isn't a report on the actual health of you finances as much as a probability index of your taking of loans with interest and being able to pay them back without issue, amalgamated into a shorthand score that's for THEIR benefit not yours. By definition, people who don't dabble in taking out loans won't have a high score. The more you look disconnected from the usery dairy farm, the less you resemble a dairy cow and thus the lower your expected gallons of milk per month. |
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OH, USA
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Posted: 5/9/2024 7:40:06 AM EDT
[#14]
When I paid my house off my score dropped 50~60 points.
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MI, USA
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Posted: 5/9/2024 7:40:32 AM EDT
[#15]
The entire credit score system is a scam.
Banks, prior to the credit score system: "We need to maximize profits. We have no idea who is safe to loan money to, and who isn't. On top of that, it seems like the people who can afford to pay back loans with interest would rather just save up and pay cash, instead of borrowing. We need to figure out a way to rank people in terms of risk/profitablity for us, while simultaneously incentivising them to borrow instead of save. We've got it! We'll create a "score" system. We'll push it as a status symbol! Humans are competitive and everyone will want a high score! But the score can't just be based on risk. The guy sitting on a pile of cash is very low risk, but he's also unlikely to borrow. So we'll give him a lower score than his neighbor who is in debt to his eyeballs, but is still able to make the payments. That will make him take out loans and pay us interest even though he really doesn't need to! It's brilliant!" |
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Posted: 5/9/2024 7:40:36 AM EDT
[#16]
Your “credit score” is actually your CHUMP SCORE. It is not a rating of your ability to pay your debts. It is a rating of how likely creditors are TO MAKE MONEY OFF LOANING YOU MONEY.
Creditors don’t want you to pay off your debt. They WANT you to make minimum payments for the rest of you life, to be a slave to consumer credit. That is how they make their money. Remember, the creditors “risk’ isn’t just from delinquent debt, it also comes from servicing accounts that don’t generate interest income. Your credit limit encumbers their ability to loan, so there is lost opportunity if they are not making money off YOU. FWIW, my “chump score” is over 800  |
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Posted: 5/9/2024 7:41:11 AM EDT
[Last Edit: Waldo]
[#17]
I don't have a mortgage on either home. I've found that just using a cash back credit card for everyday stuff like gas, groceries and paying it in full every month is enough to keep my credit score up.
You're probably getting dinged for not having a credit line or a small limit on your card. Credit utilization is a thing. A card you don't use much with a $20K limit is better than a card with a $1K limit. |
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Posted: 5/9/2024 7:41:49 AM EDT
[#18]
Quote HistoryOriginally Posted By TLD05: A credit score isn't a report on the actual health of you finances as much as a probability index of your taking of loans with interest and being able to pay them back without issue, amalgamated into a shorthand score that's for THEIR benefit not yours. By definition, people who don't dabble in taking out loans won't have a high score. The more you look disconnected from the usery dairy farm, the less you resemble a dairy cow and thus the lower your expected gallons of milk per month. Great metaphor. |
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Posted: 5/9/2024 7:41:58 AM EDT
[Last Edit: FALARAK]
[#19]
The game is so easy to master.
It’s a shame so many never learn how to play it GD credit score threads are always good for a laugh. GD fears what it doesn’t understand. |
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Posted: 5/9/2024 7:45:50 AM EDT
[#20]
Quote HistoryOriginally Posted By TheJMan1: Paid off our house 4 years ago. I use a credit card with a good rewards program to pay for basic expenses and pay it off each month. Credit score is 830. I'm in this category, no debt of any kind but a rewards card and a gas card that get paid off at the end of the month. Credit score fluctuates between 825 and 835 depending upon when I make the card payments. |
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Posted: 5/9/2024 7:48:30 AM EDT
[#21]
I love reading about people crushing their mortgage and getting off the hamster wheel of doom. Excellent work OP!
$42k to go on mine and I will be free at last! The last thing I’m worried about is my credit score. The whole system can pound sand. |
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Posted: 5/9/2024 7:53:37 AM EDT
[#22]
I just have a card that we pay for most everything on and then pay off monthly and get a 2% kickback on it. Had my card compromised so many times it just makes sense for us- would rather the credit card company deal with fraud rather than my bank account. I don't buy from any sketchy places either.
Because I don't have a big loan my score hovers around 790ish. |
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Posted: 5/9/2024 7:54:57 AM EDT
[#23]
If you pay off an installment loan (i.e. mortgage or auto loan) you credit score WILL drop.
Great job repaying the loan, because of your great work we will lower your score (up to 60 points). 
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NC, USA
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Posted: 5/9/2024 7:55:19 AM EDT
[#24]
This is the way.
I too got in trouble with debt right out of school and mental burden set me on the right track. I "care" about my credit score just in case. My score bounces around between 830 and 850 and I have no idea why this happens. One thing I've always done in dump any autopays that allow a CC to a 2% cash back card. I'm already paying the premium in the price of everything that takes cards, might as well get a small margin back. Perhaps this has helped my score. |
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Posted: 5/9/2024 8:03:18 AM EDT
[#25]
I don't care what the credit industry thinks of my ability to use credit as I pay cash for things.
My FICO Score 9 from Experian is 815 "exceptional". |
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NY, USA
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Posted: 5/9/2024 8:07:57 AM EDT
[#26]
I don't understand the fear that some have about using a credit card for every day payments. Just keep it reasonable and pay it off every month.
Now I have an 820 credit score and the only debt I have is my mortgage. |
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Posted: 5/9/2024 8:11:29 AM EDT
[#27]
I use a credit card for everything and try my best to not use my debit card at all. Then pay it off at the end of the month.
Especially when I travel. The reason is I got my debit card skimmed and had to deal with a fraud case and fight to get my money back. If my credit card get skimmed I don’t have to worry about my bank account being compromised. I just turn the card off and report it to the credit card company. I have no issue playing the credit game. It’s just important to manage it responsibly. |
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Posted: 5/9/2024 8:12:58 AM EDT
[#28]
My daughter has a small trust account from her grandfather. Nearing college graduation, we decided it was time to for a newer, reliable vehicle for her next chapter. Also using the opportunity to build her credit
Her credit was insufficient (as expected) so I cosigned. When they pull our credit, the loan officer was surprised. "You haven't had car loan since 2001." Fast forward a few months and daughter gets accepted to her preferred veterinary school. In the British Virgin Islands.  It is an intense three year program with no breaks, so selling the car....but her credit is vastly improved.
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Posted: 5/9/2024 8:13:20 AM EDT
[Last Edit: runcible]
[#29]
If you're not buying anything big, why do you even care what your credit score is?
My score is as close to perfect as it's ever been... and it doesn't matter to me in the least. Originally Posted By Fushaw: If you can manage your money well, credit isn’t a problem and has a lot of benefits. If you can’t, or married someone who can’t, it’s the devil. |
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Posted: 5/9/2024 8:15:00 AM EDT
[Last Edit: runcible]
[#30]
Double tap.
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FL, USA
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Posted: 5/9/2024 8:24:06 AM EDT
[#31]
We've been debt free for a few month also. Haven't received any warnings like that.
We still use 2 credit cards but we pay them off every month. Credit score last month was 828. |
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TN, USA
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Posted: 5/9/2024 8:24:54 AM EDT
[#32]
It's a screwed up system, but you can't make an omelette without cracking eggs.
One huge benefit of a credit card outside of the points is the security it provides. Especially with online purchases, hell all purchases really.. For example, a friend had agreed to a payment plan with a hospital system and gave them their banking info to do monthly withdrawals. They ended up taking the whole payment "accidentally" right at the beginning of the month. Did the credit union help them get their money back? Nope. But a credit card company would have reversed the transaction immediately and reached out to the hospital telling them to fix it. Just my 2 cents.. |
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PA, USA
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Posted: 5/9/2024 8:25:30 AM EDT
[#33]
I have an old credit card account that I set up to auto-pay about a total of $300 worth of bills every month. Then my bank account is set up to auto-pay that card in full every month. I have the actual physical card buried in my documents and never use it for anything else. Nice automated way to keep a consistent credit history without risking burying myself in debt (which I can be easily prone to doing). I check on it once in a while to make sure nothing's getting out of hand, but otherwise I can pretty much leave it to do it's thing.
Also have another old account that was permanently deactivated but never actually closed. So it still counts as a credit line I have even though I can't actually charge anything to it anymore. I was going to close it but decided to just leave it open since it effectively counts toward my overall credit availability and since it never has a balance, helps keep my credit utilization percentage down. Can't charge anything to it even if I wanted to so no chance of getting in trouble with it. |
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Posted: 5/9/2024 8:25:32 AM EDT
[#34]
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MS, USA
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Posted: 5/9/2024 8:26:30 AM EDT
[#35]
Quote HistoryOriginally Posted By Gunner226: The entire credit score system is a scam. Banks, prior to the credit score system: "We need to maximize profits. We have no idea who is safe to loan money to, and who isn't. On top of that, it seems like the people who can afford to pay back loans with interest would rather just save up and pay cash, instead of borrowing. We need to figure out a way to rank people in terms of risk/profitablity for us, while simultaneously incentivising them to borrow instead of save. We've got it! We'll create a "score" system. We'll push it as a status symbol! Humans are competitive and everyone will want a high score! But the score can't just be based on risk. The guy sitting on a pile of cash is very low risk, but he's also unlikely to borrow. So we'll give him a lower score than his neighbor who is in debt to his eyeballs, but is still able to make the payments. That will make him take out loans and pay us interest even though he really doesn't need to! It's brilliant!" This is exactly why I don't play the game. Not interested in status symbols or competing with debt scores. |
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KY, USA
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Posted: 5/9/2024 8:26:48 AM EDT
[#36]
That's the problem with credit scores, you have to keep playing their game to have a good score.....
....and that is how they get ya! Fact of the matter is you get cheaper interest rates borrowing from a bank than from credit cards. |
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Posted: 5/9/2024 8:27:11 AM EDT
[#37]
Quote HistoryOriginally Posted By Creatyre: I don't understand the fear that some have about using a credit card for every day payments. Just keep it reasonable and pay it off every month. Now I have an 820 credit score and the only debt I have is my mortgage. It may be a cultural thing. I was raised the in the ways of the old country where debt was a risk to your independance/ freedom. I carry no debt that is "visible" to the reporting agencys. Any carried money stays within private family trusts/ personal agreements and doesn't get reported. My outward facing financial profile does NOT reflect my actual position and therefore my credit score is artificially low. I fully intend to keep it that way... |
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Posted: 5/9/2024 8:43:15 AM EDT
[#38]
Debt free for a bit. Own everything.
Have 2 cashback type of cards that get paid off every month. No fucking idea what my credit score is and don't care either. I will never borrow money again. |
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Posted: 5/9/2024 8:50:34 AM EDT
[#39]
Great score is easy to keep.
Get a basic rewards credit card like the Fidelity 2%. Put some reoccurring expenses on it and set it to auto pay. You'll maintain a good score and get paid for it. That will get your score high enough to take care of any insurance or other issues that will cost extra for not having any credit. Don't worry about fluctuations from paying off home or car loans. |
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Posted: 5/9/2024 8:52:31 AM EDT
[#40]
Quote HistoryOriginally Posted By Fushaw: If you can manage your money well, credit isn’t a problem and has a lot of benefits. If you can’t, or married someone who can’t, it’s the devil. Good for you for not getting trapped in consumer debt. Credit is a great slave but a terrible master. |
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IL, USA
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Posted: 5/9/2024 8:52:40 AM EDT
[#41]
Quote HistoryOriginally Posted By ED_P: I froze my accounts with all 3 agencies to help fend off fake new credit cards and I get an email at least once a month before I pay off my credit card as they run their search and find I now have $ X in debt (even though I pay it off in the same month) and this makes my credit score go down until I mail the monthly check to the CC company. who mails a check is this even an option? |
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TX, USA
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Posted: 5/9/2024 8:54:41 AM EDT
[#42]
I have $90k to go at 2.2%. I'm paying the absolute minimum per month. That's free money in this economy.
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Posted: 5/9/2024 8:56:07 AM EDT
[#43]
Quote HistoryOriginally Posted By JKH62: When I paid my house off my score dropped 50~60 points.  Paid MY house off in February.... |
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Posted: 5/9/2024 8:58:39 AM EDT
[#44]
Pay off your no fee CCs, leave them open but lock them. Keeps your score high via 'available credit'. Use a Fidelity cash back card and roll the rewards back into an investment account. Use it for everything and pay off every month. My wife and I are going to europe for 10 days this summer from less than one year's proceeds from doing that.
The scores themselves are an enigma in large part to me. I average high 700s close to 800 except for one new credit monitoring service i signed up for via rocket mortgage (Experian 2) shows me at 630 while Experian is 785 lol. No clue why. |
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USA
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Posted: 5/9/2024 9:02:00 AM EDT
[#45]
Great job OP! I have about two years left on my mortgage at this rate.
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AZ, USA
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Posted: 5/9/2024 9:03:50 AM EDT
[#46]
We use a CC for all purchases and then pay it off each month, our credit score goes up and down with each charge and each payment. It usually on varies by 10 points or so.
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Posted: 5/9/2024 9:06:47 AM EDT
[#47]
How can they tell that you are reliable at repaying loans when you have no loans to repay?
A good practice might be to use that CC to pay your recurring bills (electric, water, gas, trash, internet, etc) and just pay the card off every month. Bam! It really helps your credit. |
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Posted: 5/9/2024 9:07:07 AM EDT
[#48]
OP - stop giving a fuck. You paid your house off so you don't need the credit.
Let em have their bullshit financial slavery scheme. It can't touch you anymore. |
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Posted: 5/9/2024 9:07:51 AM EDT
[#49]
I understand you don't want to be in debt.
Get a credit card with a rebate. Put your gas, groceries, and restaurants on it. The stuff you were going to buy anyway. Pay it off every month. It sounds like you're very attentive with money. If you do the above, you won't be in debt and you'll build your credit score. Then if you need to buy something on credit, like if you move or need a new vehicle, you could get a better rate on the next loan. I understand people who hate being in debt, but at some point you're going need to finance a big purchase and good credit will get you a lower interest rate and actually save you money. |
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NE, USA
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Posted: 5/9/2024 9:08:58 AM EDT
[#50]
It is about using credit wisely and showing that you are a good credit risk should the need arise.
Use a credit card say for gas purchases only and pay off monthly. This isn't a big help to your score, but does help. My wife and I are not credit users. But we do use a credit card for gas and groceries, paid off monthly. Paid mortgage early. Don't plan on any large purchases that require applying for a loan. |
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