Ever been late on a credit card?

[alarmguy]

Ours shows 900. Silly game I tell you!

View attachment 236859

You wouldn't believe it unless I posted it, so here it is, we are tied!
There are many different types of scoring. Score 8 is one example. Typically such as home mortgages the standard is still use and that is on an 850 scale. Different scoring systems for different purposes now. Such as car financing might use one scoring system because it might better reflect if you will default on an auto loan vs the standard Fico score 850 used for a home
This is the 900 scale, the majors also report standard 850 products.

Here is an example (below) of 850 scoring, back around 2021 I had a perfect 850 for 3 months, not that I care but its a hobby of mine, took a hit in 2023 when we moved to around 800 now bouncing back and at 839 out of 850
In this you will see credit utilization as explained in my post #60 it has nothing to do with income, credit bureaus do not track or know your income.

 

[Pablo]

Your income has nothing to do with credit scores.

I was very clear in my posts. Or so I thought!

They definitely do when setting a credit limit and as your own link says................yes I know, lenders set the limit.

Let me be more direct. Say the same income person has a credit limit of $20K and charges $10K that month = 50%! Then magically without changing income gets a credit limit of $100K and uses $10K = 10%.

From your link "Rates greater than 30% can do serious damage to your score, but in general, the lower, the better."

So who gets a higher limit? Higher incomes.

NOW I am NOT saying people with higher incomes are better or worse with credit, just saying income can and does impact credit score.

 

[Pablo]

You wouldn't believe it unless I posted it, so here it is, we are tied!
There are many different types of scoring. Score 8 is one example. Typically such as home mortgages the standard is still use and that is on an 850 scale. Different scoring systems for different purposes now. Such as car financing might use one scoring system because it might better reflect if you will default on an auto loan vs the standard Fico score 850 used for a home
This is the 900 scale, the majors also report standard 850 products.

View attachment 236876

Here is an example (below) of 850 scoring, back around 2021 I had a perfect 850 for 3 months, not that I care but its a hobby of mine, took a hit in 2023 when we moved to around 800 now bouncing back and at 839 out of 850
In this you will see credit utilization as explained in my post #60 it has nothing to do with income, credit bureaus do not track or know your income.

View attachment 236878

Proof that it's all FAKE hahahahahhaaha I think we have a few less accounts, maybe utilization a bit higher, the rest the same. Even length...............of credit

Are you like, my Twin?

 

[alarmguy]

I was very clear in my posts. Or so I thought!

They definitely do when setting a credit limit and as your own link says................yes I know, lenders set the limit.

Let me be more direct. Say the same income person has a credit limit of $20K and charges $10K that month = 50%! Then magically without changing income gets a credit limit of $100K and uses $10K = 10%.

From your link "Rates greater than 30% can do serious damage to your score, but in general, the lower, the better."

So who gets a higher limit? Higher incomes.

NOW I am NOT saying people with higher incomes are better or worse with credit, just saying income can and does impact credit score.

It's not the credit agencies setting credit limits, it's the company issuing the credit. Credit agencies do not know or track your income
Income does not impact credit score, the amount of credit that you use based on how much is available to you impacts score.
It doesn't matter if you have 20k or 100k credit limit as long as you only use a small portion of it. The person with a 20k limit can have a much higher credit score than the one with a 100k credit limit if the person with less available credit uses a smaller portion of that credit every month.
There is also part of the calculation of having too much available credit. Its not cut and dry, its how much percentage of the credit you are using vs what is available to you.

 

[Pablo]

It's not the credit agencies setting credit limits, it's the company issuing the credit. Credit agencies do not know or track your income

Did you even read what I wrote??????????

I never once said THAT.

 

[alarmguy]

Proof that it's all FAKE hahahahahhaaha I think we have a few less accounts, maybe utilization a bit higher, the rest the same. Even length...............of credit

Are you like, my Twin?

scary is what it is

 

[thescreensavers]

There is usually a grace period but you are definitely past that unfortunately. I would setup automatic minimum payment for every credit card going forward so this does not happen again.

 

[opus1]

Once by my own doing. I'd received the bill and set it aside and forgot about it. Found it the day after the due date, of course.

I've had a couple of cases where I sent payment in plenty of time and the payment posted late so I've started tracking things more closely so I can make a minimum payment online if needed.

And I learned something interesting many years ago. I had charged a trip on my card, and the trip operator had to cancel the trip. The payment for the trip posted on one statement because, of course, the charge just made it in by the cutoff date. I received the statement and knew that the credit would post in the next cycle, so I sent a check in for the charges that wouldn't be affected by the credit, so as an example, if it was a $1000 balance owed and I knew the $200 credit was coming, I sent a check for the $800 left and on the closing date, the outstanding balance would be zero. Next statement comes, credit posted in time, and I see that I got dinged with interest. I don't remember the amount, other than it was very small, but it was the principle of the situation that got me so I called customer service. Took the rep a minute or two to figure it out, but, apparently, the system was set up that if you paid *anything* other than the full amount billed on the last statement, even though the credit plus my check covered the billed amount, the system didn't consider that a full payment and charged interest on the amount I didn't pay.

 

[alarmguy]

Did you even read what I wrote??????????

I never once said THAT.

Maybe we are talking about the same thing is different ways. But I can't see how I can read this any other way.

Credit agencies and credit scores have nothing to do with your income as I posted.
I think I am reading your words wrong because in your reply you say "they definitely do" but they do not. Your income is only known by the institution you are applying credit for, the institution will use a formula on how much credit to extend. My companies have no clue as to my income BTW

Im sure a twist on words, happens in forums.

 

[Pablo]

Maybe we are talking about the same thing is different ways. But I can't see how I can read this any other way.
View attachment 236883

Credit agencies and credit scores have nothing to do with your income as I posted.
I think I am reading your words wrong because in your reply you say "they definitely do" but they do not. Your income is only known by the institution you are applying credit for, the institution will use a formula on how much credit to extend. My companies have no clue as to my income BTW

Im sure a twist on words, happens in forums.

I think the key word (could be wrong) is USES (or use of)

Everyone is correct. Credit agencies do NOT USE your income. They do not. Not as a dollar sign number. They don't ask for it. Don't dig it up. Estimated it or other wise use the number alone to give all of us a credit score.

They do USE utilization of credit limit. And how is that limit derived? BY THE LENDER from income stream and to my surprise, sometimes free/available $ accounts (aka CASH in the bank/investment account (not sure about stocks and bonds, but I digress)). SO..............Hark back to my example and your link. If you have LOW utilization you generally will have a better credit score. If you have a low credit limit and you are banging up against that ceiling, because say the limit is low because your income is low, you will have a lower credit score. Understand?

 

[SHOZ]

I've missed payments before but have a high credit score. I usually claim the dog ate the bill and they have always forgiven the charges.

 

[alarmguy]

I think the key word (could be wrong) is USES (or use of)

... If you have a low credit limit and you are banging up against that ceiling, because say the limit is low because your income is low, you will have a lower credit score. Understand?

Yes, I think I indicated the same. But this can also happen if your income is in the millions and you have multiple 6 figure credit limits on your cards and "banging up against the ceiling" That person with income in the millions can have the same score as someone making 40k "banging up against the ceiling" it what I was trying to convey.
Meaning its all relative, no matter your income, its how you handle credit, Plenty of wealthy people with large credit limits max them out and go bankrupt and the 40k earner who pays his bills each and every month with a 10k limit can have a higher score.

All good I think we now know what each is saying

 

[Pablo]

Yes, I think I indicated the same. But this can also happen if your income is in the millions and you have multiple 6 figure credit limits on your cards and "banging up against the ceiling" That person with income in the millions can have the same score as someone making 40k "banging up against the ceiling" it what I was trying to convey.
Meaning its all relative, no matter your income, its how you handle credit, Plenty of wealthy people with large credit limits max them out and go bankrupt and the 40k earner who pays his bills each and every month with a 10k limit can have a higher score.

All good I think we now know what each is saying

Indeed. I've said this before when the wife has car or house envy (rare, but she has a tone). I say "Those people look rich but they are banging up against their credit ceiling" hahahahahahahaha

I think the frustration from some here with life they have nicely increased their income streams, maybe credit limits are a bit low at this point for the spending habits (based on income X years back). They buy a nice patio set, couple bags of groceries, a ZT mower, order some oils - you know say $12000 on the card............and whammo "WHAT my credit score dropped 50 points!!"........"Marge!!!!" (see what I did there)

 

[CKN]

Yes it does. We pay $188 for full coverage for two vehicles. In Michigan which ranks top 5 for most expensive auto insurance rates.

That's abnormally low. Liability Limits? Type of vehicles" Type of Coverage? Miles driven? Age of drivers? Name of Company? AM Best rating for insurance Company in question?

 

[alarmguy]

It may be state dependent, but it can affect your insurance rates.

Absolutely it can and does in almost any state except these states which you can almost guess right off the bat the top one outright ban.

"The eight states that have strict limitations on the use of credit with auto or homeowners policies are California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah." No surprise here but with that said, notice the word "limitations" some states do not outright ban using the credit score on new policies.

Source- https://www.experian.com/blogs/ask-...ict-the-use-of-credit-based-insurance-scores/

 

[Pablo]

WA tried. Struck down.

https://www.insurance.wa.gov/facts-about-credit-scoring-ban-rule

Depending where you stand..........well the limitation is supposed to keep rates down

 

[alarmguy]

WA tried. Struck down.

https://www.insurance.wa.gov/facts-about-credit-scoring-ban-rule

Depending where you stand..........well the limitation is supposed to keep rates down

yeah, keep rates down for people who are statistically more likely to be in a car accident where the responsible people have to make up the cost difference
We live in an era of rewarding irresponsible behavior or better said government mandating to private businesses what they must do.

 

[tbm5690]

That's abnormally low. Liability Limits? Type of vehicles" Type of Coverage? Miles driven? Age of drivers? Name of Company? AM Best rating for insurance Company in question?

That is more than double what I pay for two vehicles that are newer than his.

2014 MDX, 2019 GLI...I am 34 and my wife is 37. $500K liability, full comp and collision, and $1K deductible I am about to renew my 6 month premium at $451 so about $75 a month. North Dakota is hilariously and wonderfully affordable when it comes to anything auto-related.

 

[alarmguy]

That is more than double what I pay for two vehicles that are newer than his.

2014 MDX, 2019 GLI...I am 34 and my wife is 37. $500K liability, full comp and collision, and $1K deductible I am about to renew my 6 month premium at $451 so about $75 a month. North Dakota is hilariously and wonderfully affordable when it comes to anything auto-related.

I think it's more responsible behavior. Living in the south since moving from NY, first SC and now NC for the last 18ish years I dont think I ever paid more than $1000 +/- $100 for car insurance on two vehicles for an entire YEAR. Meaning both cars about $475 every 6 months.

ALWAYS carry 500k liability AND the same 500k for under insured and uninsured (which is the most expensive part of a policy)
I have now dropped collision on a 2012 Mazda but kept comp and our main car now with 75k on it is a 2017 Chevy Traverse with still full collision and comp. I think anyone can get dirt cheap insurance if they have a good credit score, no violations or accidents and dont live in CA or HI since credit scores are not allowed in those two states.

I agree that we talk about insurance in here without knowing the details of policies, here are mine.

 

[jdmfish]

That's abnormally low. Liability Limits? Type of vehicles" Type of Coverage? Miles driven? Age of drivers? Name of Company? AM Best rating for insurance Company in question?

You can PM me if you’d like. This thread isn’t about insurance.