Received notification my credit score just dropped 40 points.

I agree that both ways will get you a good standing, however one teaches discipline and the other spending.
Because let’s face it, a young adult going to school with no job, but a credit card, will likely use it even though he/she cannot pay it off. It gets them hooked on credit.
That’s the goal and why banks give out credit cards to high schoolers now.
And if they were told it will built their credit score, then they will justify going into debt a lot easier too.
Seems like that is a perfect example of why it is important to teach both about budgeting and saving in addition to building credit.

Yeah, the jobless young adult in school/high schooler in that example likely doesn't need a credit card. But the person getting their first house likely needs a mortgage where a good score makes sense to have. Both extreme examples, other more tangible reasons to manage a credit score for say a 20 something would be insurance rates.
 
I don't think you can have a perfect score with no debt. It needs to see your ability to properly manage "debt", which having none to them is bad. If that logic sounds flawed, remember their bankers not people :ROFLMAO:

Also, not having a good credit score will cost you more on insurance for example - which is another reason to keep track of your score or at least keep it clean. However there is a point - I forget exactly but I think 760 - that anything above that is just window dressing for most things.

Based on this thread back in February I signed up for the "free" bank of unamerica fico score tracker. It started perfect - hadn't looked at it in at least a decade. Its since bounced down 10 points. I don't much care but I literally have changed nothing. The only thing I can think of is the balance on one of my cards this month was a little higher than usual - like $6K on a card with a $30K limit. It was paid off in full when the bill arrived. So that shows how fickle the score thing is I guess?
You look like a flight risk :) haha. I get dinged whenever I charge a few grand in a month too. As you touched on credit utilization is a big factor, but like you, I think to myself, who cares. Solution for those that do is to pay down the balance before the bill gets cut.
 
Seems like that is a perfect example of why it is important to teach both about budgeting and saving in addition to building credit.

Yeah, the jobless young adult in school/high schooler in that example likely doesn't need a credit card. But the person getting their first house likely needs a mortgage where a good score makes sense to have. Both extreme examples, other more tangible reasons to manage a credit score for say a 20 something would be insurance rates.

The debt statistics speak for themselves, we obviously do not teach both.

All this “build” you credit score or “manage” it is blown way out of proportion IMO. One would have to work for cash and have no utility payments or a bank account to have no credit score.
If one is managing their finances properly and watches their spending, the credit score will be fine all by itself. You don’t need to be in dept to have a good credit score. I don’t think a credit card is even needed.

But that is why how credit score is calculated is such a well kept secret.
 
Interesting. I've used eBay for bullion before but only though the mint direct on eBay. I never knew about Costco or Walmart.
WalMart.com is most often the best WITH the CapOne WalMart card. It's a very specific card that I ONLY use for Walmart.com with a 5% rebate that I just use against the balance.

Ebay is close with your own 2-3% rebate card, as the ebay prices from the big names can SOMETIMES be a bit lower than Walmart.

Bottom line PM purchases can be had very close to spot, so heck with paying fat premiums.
 
The debt statistics speak for themselves, we obviously do not teach both.

All this “build” you credit score or “manage” it is blown way out of proportion IMO. One would have to work for cash and have no utility payments or a bank account to have no credit score.
If one is managing their finances properly and watches their spending, the credit score will be fine all by itself.
I agree, many don't teach both - or realistically either.

Bank accounts and utility payments aren't typically reported to credit bureaus, unless perhaps the utility payments are in deliquient.
 
I agree, many don't teach both - or realistically either.

Bank accounts and utility payments aren't typically reported to credit bureaus, unless perhaps the utility payments are in deliquient.

We don’t know what’s reported. It’s a big mystery for a reason.

When I first came to US my credit score was 0, they don’t look at Canadian credit score and I don’t even know what that score was.
Naturally I couldn’t get a mortgage. I went through a Canadian lender that was doing US mortgages.
About two years later I find out my US score is something like 760 and my wife’s is 770.
She was only on the deed for the house, the mortgage was under me. She had no credit card or any other loan.
That was a shocker to me that my score was so high after only few years and that my wife’s was even higher.

They must look at income and your spending to asses you ability to pay on debt.
 
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We don’t know what’s reported. It’s a big mystery for a reason.

When I first came to US my credit score was 0, they don’t look at Canadian credit score and I don’t even know what that score was.
Naturally I couldn’t get a mortgage. I went through a Canadian lender that was doing US mortgages.
About two years later I find out my US score is something like 760 and my wife’s is 770.
She was only on the deed for the house, the mortgage was under me. She had no credit card or any other loan.
That was a shocker to me that my score was so high after only few years and that my wife’s was even higher.

They must look at income and your spending to asses you ability to pay on debt.
My understanding is scores don't start at 0 (as widely stated online) but is non-existent until calculated the first time when one's credit worthiness is evaluated (referring to FICO scores not the various FAKO scores that are available). We also know what factors are publicized as the inputs to your score, which people are free to believe or not, as well as various ways to pull your credit file. Inputs not the calculation.

FWIW, seems like not being able to get a mortgage for lack of credit history though, is a perfect example of my point.
 
FWIW, seems like not being able to get a mortgage for lack of credit history though, is a perfect example of my point.

Well yeah, for some like me that just literally popped into this country. But for someone born here and has a job, a bank account, pays for insurance, rent whatever, it’s not going to be an issue.

I’m not debating that the credit score doesn’t matter, I just don’t see how it has to be managed carefully for years and years and that this process needs to start from high school or college with getting a loan or a credit card.
 
Having your credit locked is handy when you’re trying to buy a car and the guy keeps wanting to talk about payments rather than price.

“My credit is locked and I don’t remember the password, so don’t bother asking me to fill out a credit application.”

If I ever borrow money again it’s because something has gone horribly wrong.
 
I buy my gold and stuff with my 3% or 5% cards. Never carry a balance and use the points to pay off as well. Win win
I use PayPal 6 months same as cash. It usually uses up most of the credit limit. First time I got a -50 point hit for using so much credit. So I called PayPal an asked them to double my limit. They willingly complied.
 
Having a high credit score saves boatloads of money in all types of insurance. If you decide to take out a loan for something it will save you money there too.
It's up to you if you want to play the game and the system. I play and maintain a high score for my wife and I.
We save hundreds (or more) a year in insurance costs
 
Credit Karma doesn't know what to spam me with. My score may go down 100 pts in a month then rise back in a couple. Currently somewhere in the 800s. I pay all off but the 0% ones every month. Use the credit cards for almost all buying.
 
Having a high credit score saves boatloads of money in all types of insurance. If you decide to take out a loan for something it will save you money there too.
It's up to you if you want to play the game and the system. I play and maintain a high score for my wife and I.
We save hundreds (or more) a year in insurance costs
WA outlawed using score for rates. Guess what? Everyone's rates went up!
 
Well yeah, for some like me that just literally popped into this country. But for someone born here and has a job, a bank account, pays for insurance, rent whatever, it’s not going to be an issue.

I’m not debating that the credit score doesn’t matter, I just don’t see how it has to be managed carefully for years and years and that this process needs to start from high school or college with getting a loan or a credit card.
Seems like we mostly agree. 🍻

My point was not every high schooler or 19 year old needs a credit card or a loan, but no reason that the fundamentals of managing a good score to set a kid up for success, given it's likely that people are going to be measured based on their credit score at some point.

In my case, denied for my first credit card application at 18 or 19, lack of credit history and low income (shame on me for applying for a Discover card rather than a student card). Score likely in the high 600s or low 700s at the time, I know I got the free report that came with the denial and the score wasn't terrible but I don't remember it. I'm sure my score got bolstered by other things then future credit cards I applied to, student loans most likely being a contributing factor. I also ended up with a mortgage at 24, and I can say by then my score didn't hurt my interest rate. Don't think I would have fared so well having no credit history at 24 and hunting for a mortgage.
 
I have zero debt, and a 800+ credit score. Although I have zero debt, I do have a car loan just to keep a loan on my credit report, but it is under 3k.

My credit union just sent me a note saying TransUnion vantage dropped my score 40 points because I no longer have a secured rela estate loan. So, if one pays off their house, their credit score takes a hit.

This credit score stuff is just another wall street banker game to find ways to justify a consumer paying more for a loan.

I am getting to the point I am only going to pay cash for everything, and encourage my family and friends to do the same. I know a few are saavy enough to game the credit card and associated systems, but giving the banks a cut of every transaction a consumer makes ..... Has made the banks greedier than ever.
I dont give a sh!+ what my credit score is.. sounds like you shouldn't either as you have the same reasons I don't.
 
Having your credit locked is handy when you’re trying to buy a car and the guy keeps wanting to talk about payments rather than price.

“My credit is locked and I don’t remember the password, so don’t bother asking me to fill out a credit application.”

If I ever borrow money again it’s because something has gone horribly wrong.
I haven’t borrowed since 2013 (paid off it recently, as it was a 10 yr first lien position home equity that at the time paid off the mortgage and took its place at a lower rate and higher payment), but I’m thinking if we were to get a 2025 Tahoe I’m not realistically going to take out $80k cash (maybe 20-25). What I am thinking is that if the rates are high and the prices inflexible or over list, I just won’t buy it. I am curious if I will ever be in a position where I have no choice but to get a new car. I don’t think so. That’s not to say a car couldn’t have a $5000 repair. But that’s small compared to a $80,000 new car…
 
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