Posted: 5/10/2017 9:57:34 PM EDT
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Curious about credit score..
My wife and I have paid off both vehicles in the last four months(one we owned for 2.5 years, the other for less than a year). We have no credit cards and no debt now that we've got both vehicles paid off and never had a late payment. Now we are socking cash away to buy a house. I haven't always followed my credit score closely to check for fluctuations. However, I noticed that my score dropped from 740 to 650 and my wife's dropped from 760 to 670 shortly after making our final payment on the pickup. Why is that and how important is it? It's kind of frustrating to see our credit scores drop when we are both fiscally conservative and responsible with our money. |
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You need trade lines. Its a bad idea not to have credit cards and use them responsibly.
Get 2 credit cards and use them. Pay off the ending balance minus a $10 each month. Profit. Having credit and not needing it is great. Needing credit and having a sub 700 score sucks. |
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Quoted:
You need trade lines. Its a bad idea not to have credit cards and use them responsibly. Get 2 credit cards and use them. Pay off the ending balance minus a $10 each month. Profit. Having credit and not needing it is great. Needing credit and having a sub 700 score sucks. |
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It's bullshit. I just canceled my USAA bankings accounts to include credit cards and the rep was telling of the horrors that my credit score was going to bring upon me.
Get a rewards card, use it for your discretionary spending, and pay it off each month. In six months you will be over 700. In a year you will be close to 800 providing there isn't any real bad shit on your report.. |
| A large part of your credit score is how much credit you have available to how much used. When you paid off your cars you ended your line of credit and lowered your ratio to zero. Go apply for 40K worth of cards and don't use them. Watch your score jump back up. |
| Just checked mine the other day, 827. I have a little left on the house, a vehicle I could pay off now but don't care because the interest rate is 0.9%, and three credit cards. The average age of my credit cards is 12 or 14 years if I remember right, my MasterCard just turned 20 years old. The age of your "credit" factors in as well. I pay the cards off every month but I use them for everything for points. Get a card with some cash back or points, my credit union VISA does triple points for groceries and double points for gas purchases and stuff like that, just cashed some points in the other day to get $200 in Amazon gift cards, have enough points left to get $600 more in gift cards, might do some gas ones next. |
| I looked up my credit score a couple of years ago, all crdit lines are in my name, it was 710. Just for reference my wife and I looked up hers, she basiically has zero credit. Two cars paid off, six lines of credit, and paid for house, even if you have the means make sure you are both on the credit lines. We have been married for over 12 years, We are both 34. If I die tomorrow she will be starting over credit wise even though we have tried to change it. |
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You don't have a payment history anymore. You ended it. If you have no open accounts instalment or revolving credit card types your score will suffer all sorts, your missing out on some of the factors in your score. Like other i suggest getting some credit cards, walmart is the best imo, easy to get, no fees, grows fast. You dont need to carry a balance on credit cards as others mentioned, just let it report a small balance one time then keep it payed. If planning to buy a house in the next year I wouldnt open more than 1-2, if waiting more than a year Id open 3-5. |
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QFT. Quoted:
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Credit scores are are one of the greatest scams ever created. The world runs on credit - figure it out and use it to your advantage! |
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Perhaps, but if you aren't a financial idiot - get a credit card, use it, pay it off, and profit! The world runs on credit - figure it out and use it to your advantage! Quoted:
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Credit scores are are one of the greatest scams ever created. The world runs on credit - figure it out and use it to your advantage!  
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You need trade lines. Its a bad idea not to have credit cards and use them responsibly. Get 2 credit cards and use them. Pay off the ending balance minus a $10 each month. Profit. Having credit and not needing it is great. Needing credit and having a sub 700 score sucks. |