Makes sense. The most available credit I've ever had was about 80k (between 2-3 cards) so I guess there is some unknown threshold where an increase in credit starts to ding your score.
Another involuntary credit card being closed- Lowes/ Synchrony
- Thread starter GON
- Start date
Yes to all this. When you need credit, you can’t get it and nobody will give it to you. When, once you establish a history and have good score, everyone is tripping over themselves to give you a card you don’t want or need.
The banking industry has gotten lazy and no longer wants to pay a human to make a judgement call about someone’s credit worthiness. If you’re 18, just finished high school, graduated with a solid GPA and are gainfully employed, only bottom feeders with usurious rates are willing to give you credit.
Yet if you are 25 and up to your eyeballs in debt already, pre-approved offers will come into your box every month.
I think mostly it’s a result of the consolidation of the banking industry. I think the best think a young person can do is open checking and savings accounts at a small local credit union. They still typically have humans involved, yet since they are affilated with the NCUA and such, they have full credit reporting and access and one could begin building a credit history.
Normal because credit scores to some extent are the measure of profitability for the lender. High score, low default risk, more profitability. It’s not like they are giving higher score people lower rates on credit cards and such…
Sometimes a higher score actually translates into lower cost credit to the bottower. But especially for unsecured debt, it’s really just less risk to the lender with no reward to the borrower.
Whether it will hurt your credit score depends on the age of your Lowes card compared to age of other cards.
If your Lowes card was 20 years and you had a bunch of other cards from 1 to 5 years of age then it would hurt
If your Lowes was 20 years of age and you had 5 others also 20 years of age it would probably not hurt at all
If your Lowes card was 20 years and you had a bunch of other cards from 1 to 5 years of age then it would hurt
If your Lowes was 20 years of age and you had 5 others also 20 years of age it would probably not hurt at all
One of the bigger issues is that a single internal metric, used to assess risk by lenders, has been turned into and promoted as a pseudo social-credit score.
Worse, many don't know what it encompasses, how it is used, and resist gaining a better understanding, while harboring an unhealthy obsession over it.
Then there are those who proudly proclaim to be debt-free, which is a admirable goal, if not practical for a lot of folks, then expect to be rewarded in some fashion for not demonstrating the very thing that the metric is designed to measure -- the responsible use of credit.
Trying sitting down in an job interview with no relevant, or recent experience, or blank employment history, and then explaining to the interviewer why they should hire you, since you haven't demonstrated that you'll be able to do the job, and see how that goes.
Then imagine it's a lender, not your potential boss expecting the same when you attempt to borrow money. Neither is just going to blindly accept your word, or give you credit for being the good employee you say you have been, without showing it. And both will be considering more than the words on your CV to make their assessment.
It's a game, no doubt, but their game, and their rules. The lucky can choose not to play, but for those who must be a player, if behooves one to understand the rules of the game, and how it is played.
Worse, many don't know what it encompasses, how it is used, and resist gaining a better understanding, while harboring an unhealthy obsession over it.
Then there are those who proudly proclaim to be debt-free, which is a admirable goal, if not practical for a lot of folks, then expect to be rewarded in some fashion for not demonstrating the very thing that the metric is designed to measure -- the responsible use of credit.
Trying sitting down in an job interview with no relevant, or recent experience, or blank employment history, and then explaining to the interviewer why they should hire you, since you haven't demonstrated that you'll be able to do the job, and see how that goes.
Then imagine it's a lender, not your potential boss expecting the same when you attempt to borrow money. Neither is just going to blindly accept your word, or give you credit for being the good employee you say you have been, without showing it. And both will be considering more than the words on your CV to make their assessment.
It's a game, no doubt, but their game, and their rules. The lucky can choose not to play, but for those who must be a player, if behooves one to understand the rules of the game, and how it is played.
All anyone has to do is pay their bills on time, there's no need to worry about credit inquiries, age of accounts, etc. Credit utilization might be the only thing to watch.
Hard to answer that one, other than, if you mean you have no other debt then that would reduce your credit score because there is nothing left to "score". If that is the case, open a credit card or some other form of credit and pay it on time every month. They can't give a score if there is nothing left to score. Has always been this way I understand it. Credit companies like to see steady monthly on time satisfaction of debt paid. It's not a one time shot.
Anyone can build up credit if they have no money. They can get a prepaid (secured) credit card and build credit that way.
An example of what I am talking about
https://www.credit-land.com/secured-credit-cards.php?crt=79577364826640&kwdid=kwd-21047639536:loc-190&clkid=9b2441b8eb0f15d1079d29d13e2c8882&net=o&querystr=secured credit card&dev=c&loc=81578&link=56593870&msclkid=9b2441b8eb0f15d1079d29d13e2c8882
If you think about it and you want credit the only way to create a score is to use credit and prove you are reliable. No one if forced to have a credit rating, you can pay cash but if you want to have them lend you money, then you have to play their game.
In my experience cancelling (or having this type of card cancelled) has minimal effect.
I'll be faced with that again, eventually.
I have a 830+ FICO.
I also have a Discount Tire and a Select Number CC, both through Synchrony.
I probably will never again use the DT card again, as their competitiveness has gone away, as well as the quality of their stores in my market.
It is useless unless I buy more tires from them.
The Select Number card was the result of buying a new mattress about 18 months ago or so,
Was offered 36 mos SAC with the card. Did that.
Then, Synchrony pulled a bait and switch about three months in stating that there was a 2% fee if I continued the SAC deal.
So, I called Synchrony for a pay off #, wrote a check, and avoided the 2% fee.
So, no love lost between me and Synchrony.
However, in the grand scheme of things, how useful are these cards are for anything else?
I might buy a set of tires for my four vehicles on average every two years. It usually plays out that I have to buy multiples during the year in question.
Besides, got an update that the DT card is subject to the same 2% fee. So, I'll just go to Costco, buy my tires with my Costco card, get a 2% rebate instead, and pay it off at the end of the month.
And really, how many Select Number mattresses is a 63 year old going to buy? I've probably bought the last one I'm ever going to need.
These cards aren't even MC, Visa, or AMEX, so it isn't like one could use them for an occasional grocery order, or a tank of fuel to keep them viable. So, I'll eventually take a hit on them.
However, as long as I am over 800, I'll be in good shape for any credit that I will need to access.
I'll be faced with that again, eventually.
I have a 830+ FICO.
I also have a Discount Tire and a Select Number CC, both through Synchrony.
I probably will never again use the DT card again, as their competitiveness has gone away, as well as the quality of their stores in my market.
It is useless unless I buy more tires from them.
The Select Number card was the result of buying a new mattress about 18 months ago or so,
Was offered 36 mos SAC with the card. Did that.
Then, Synchrony pulled a bait and switch about three months in stating that there was a 2% fee if I continued the SAC deal.
So, I called Synchrony for a pay off #, wrote a check, and avoided the 2% fee.
So, no love lost between me and Synchrony.
However, in the grand scheme of things, how useful are these cards are for anything else?
I might buy a set of tires for my four vehicles on average every two years. It usually plays out that I have to buy multiples during the year in question.
Besides, got an update that the DT card is subject to the same 2% fee. So, I'll just go to Costco, buy my tires with my Costco card, get a 2% rebate instead, and pay it off at the end of the month.
And really, how many Select Number mattresses is a 63 year old going to buy? I've probably bought the last one I'm ever going to need.
These cards aren't even MC, Visa, or AMEX, so it isn't like one could use them for an occasional grocery order, or a tank of fuel to keep them viable. So, I'll eventually take a hit on them.
However, as long as I am over 800, I'll be in good shape for any credit that I will need to access.
That's really the best advice. Payment history (35%) and amount owed (30%) account for 2/3rds of your score. By comparison, length of credit history 15%.
Pay your bills on time, don't rack up a huge amount of debt, and the rest takes care of itself. Common sense.
Opening new lines of credit that are unlikely to be used again, just to get that fleeting one-time promotion offer, isn't the most prudent practice either. Especially when closer to planning to apply for a truly important loan, like a mortgage.
A credit score is a dynamic figure, that regularly changes in the course of financial life. Obsessing over every little fluctuation or digit change is pointless. Lenders don't look at them that way, and there's no reason borrowers should either.
And for most people, where the largest loans they will ever take out to are to finance a home, a vehicle, or a business, a credit score is but one factor, and a not the most significant one that they'll be considering.
GON
$150 Site Donor 2025
Holistically agree
percent with your post Two outliers, one is employment..I applied for a job the required a extensive background check that typically takes six months to one year to complete. A handful of factors had the background check streamlined.for.me,. including credit score.
Another issue is home buying in a hot market place. Two bids.of equal prices and terms are submitted..one buyer has a credit score of 710, the other buyer credit score of 820. Which buyer did you think has the advantage to be selected to purchase the home by the seller?
Holistically agree
Two outliers, one is employment..I applied for a job the required a extensive background check that typically takes six months to one year to complete. A handful of factors had the background check streamlined.for.me,. including credit score.
Another issue is home buying in a hot market place. Two bids.of equal prices and terms are submitted..one buyer has a credit score of 710, the other buyer credit score of 820. Which buyer did you think has the advantage to be selected to purchase the home by the seller?
That's one of the problems, credit scores being used for purposes outside of the scope they were designed for. Not unlike SSNs being used as de facto universal IDs.
Having a higher score can be advantageous, and a worthy goal, but not obsessively so. And context is important as well, such as when preparing to apply for a loan, or a job, but for most people, those are not regular occurrences.
110 points is a big gap. But three points, as cited above? In most circumstances, a fluctuational norm. Where it could make a difference is when straddling the line between two segments, which can mean the difference between qualifying for a more favorable rate, or a less favorable rate. But those segments aren't stratified to the single digit level, and there are ways to address those situations. And again, it's important when it's important, which leaves the rest of the time when it isn't enough to worry about.
People don't usually worry if tomorrow's weather is 72 degrees, versus 75 degrees today. What will be noticed if it will be close to, or below freezing, or hot enough to raise risks or make a significant impact on comfort.
GON
$150 Site Donor 2025
No argument for me, your posts make perfect sense. I am a person who thinks having no credit is better than having credit. Unfortunately, the world requires the vast majority of us to have credit to live a life with options (such as renting a car, renting a hotel room, etc). I know there are work arounds to not having a credit card, but all require supplemental actions.
For grins, two bids come in exactly the same for a home, terms and conditions are exactly the same. Bids arrived at the same time. One buyer has a credit score of 803. The other buyer has a credit score of 797. Which offer does the seller except? If the seller accepts the 797 score, is the seller liable to be sued from the buyer with the 803 credit score?
Thing about credit score and credit card is, it is a score for lenders to know how likely you are going to default on your loan. If you compare someone with only 560 vs 810 you are going to see a huge difference, but not someone at 780 vs 810 (which is about how much closing an unused credit card is going to hurt you, likely at most 10 or so point).
Most landlords I know cutoff at 720. You won't get a lower mortgage rate going above 780 or something. Closing 1 credit card won't matter much unless that's the only legit card you have and your other cards are all new and maxed out.
If you suddenly open a bunch of cards and max them out lenders may think you are up to something and in distress. You absolutely need credit living in the US, even if you are just renting that's a good way to screen out someone who may very likely not pay rent on time and you have to evict them.
Seller can accept whoever they want to sell to, and nobody is going to see a difference between 797 vs 803. They are going to look at something else, even whether someone will cherish the house they bought from you or trash it and upset all your former neighbors.
Most landlords I know cutoff at 720. You won't get a lower mortgage rate going above 780 or something. Closing 1 credit card won't matter much unless that's the only legit card you have and your other cards are all new and maxed out.
If you suddenly open a bunch of cards and max them out lenders may think you are up to something and in distress. You absolutely need credit living in the US, even if you are just renting that's a good way to screen out someone who may very likely not pay rent on time and you have to evict them.
Seller can accept whoever they want to sell to, and nobody is going to see a difference between 797 vs 803. They are going to look at something else, even whether someone will cherish the house they bought from you or trash it and upset all your former neighbors.
GON
$150 Site Donor 2025
C
The lawsuit would be based on disparaged treatment. If everything else is equal except buyer had a higher credit score, why would you go with a lower score. Must be one of the below reasons is what might come the sellers way. Not right, but real-life.
Can a Homeowner Legally Refuse to Sell a Home to a Potential Buyer? - FindLaw https://share.google/OaS7N6kkcYH78zJl0
You are correct, but that doesn't stop a buyer from filing civil suit and tying up the property claiming on or more of the below allegations against federal housing law.
The lawsuit would be based on disparaged treatment. If everything else is equal except buyer had a higher credit score, why would you go with a lower score. Must be one of the below reasons is what might come the sellers way. Not right, but real-life.
Can a Homeowner Legally Refuse to Sell a Home to a Potential Buyer? - FindLaw https://share.google/OaS7N6kkcYH78zJl0
Anyone can file a civil lawsuit for illegal discrimination; however, proving it in a court of law would require substantial documented proof.
A young couple I knew with a 2 y.o. daughter bought their first home in the uber-competitive 2021 housing market for $20K below two other competing bids. Against the listing realtor's advice, the widow selling the home told them she did not need the extra profit and wanted her home to be enjoyed and maintained by the couple and child who reminded her of her family's roots when they built the house in the 1960's. She also stated that her decision was heavily influenced by a very polite and complementary letter that was written by the couple after viewing the home during an open house.
Would this situation be considered to be in violation of the Fair Housing Act?
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Federal Housing Law does not apply to private sales.
Your link shows, "if its on the internet" its true. But as individuals our mind see's what we want to read.
This is where one needs to read the words and why government sites are best. (just discussing, hope you know me well enough by now)
In your link = "However, sellers cannot discriminate against individuals protected under state and federal law"
Private sales are not protected under federal law unless a certain number of multiple units are owned.
Many people do not understand this.
We live in a free country, we can sell to whomever we like as a PRIVATE individual.
"What Types of Housing Are Covered?
The Fair Housing Act covers most housing. In very limited circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family houses sold or rented by the owner without the use of an agent, and housing operated by religious organizations and private clubs that limit occupancy to members."Source = https://www.hud.gov/helping-americans/fair-housing-act-overview
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