Received notification my credit score just dropped 40 points.

[AmBeRnEcTaR]

Some of the worst offenders for this type of **** is gyms...
New Years resolution peeps join gyms, realize it's not for them but don't read the contract in full.
Then, don't follow proper cancellation protocol and tell the bank/credit card company to stop payment when their doughy asses quit.

The gym won't notify them, and continues to attempt to pull funds.
After the 3rd failed attempt the case gets forwarded to a collection agency, and the instant that that happens the person's credit history is negatively affected.

Happened to a friend of mine recently so thought it was worth mentioning.

 

[Hall]

Credit Karma

Their numbers aren't accurate - in my case, their value is 44 points lower than my FICO value currently. At best, you can use their numbers for trending. If your CK # goes up, your FICO score is probably doing the same.

 

[BMWTurboDzl]

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.

ROFL..

No it's not. It's a tool used to measure an individuals experience in servicing debt. For example, would you trust a guy to tow a $200k car across the US who has had 10 yrs of trouble free experience or a guy who just picked it up again after 5 yr hiatus? It's the same premise.


Just put all your expenses on a CC which pays miles or whatever and pay it off every month like you would if you used cash. We've been doing this with Amex for over 20 years.

 

[Tdbo]

Ramsey: "I pay a higher car insurance rate because I have a zero credit score."
Well allrighty then.
His co-host almost says the quiet part out loud:
"I've never had any services that I wanted denied"
"Well not denied but-" [you had to pay more]

This is the point that I made earlier about Ramsey.
He was able to format and monetize commonsense as a mechanism for the financially inept to get out of debt.
However, he doesn't know jack about finance and statements like this confirm that.
I don't like the game either, but that doesn't mean that I get a free pass from playing it to get ahead.
Pay more for car insurance (or any insurance) because I wanna have an S fit over playing the FICO game?
His view is that one can do the same thing when shopping for a mortgage.
He has some real unique views on that saying there are people who will write paper on a mortgage without considering a credit rating.
If you truly can find one, it will be hard to get, be very expensive to obtain, and will require a huge downstroke (which most people don't have, at least starting out.)
Easy to say if you are a multimillionaire.

 

[Tdbo]

Forgot. Adding insult to injury. One of my credit cards dropped my credit limit by $10,000.

Like I care. Average month bill is normally less than $1500 and I pay it in full every month! Retirement has it's perks.

Same thing here.
However, now they are reaching out to me pleading for me to apply for an increase in my credit limit.
Same company. Same card.
I pay all my cards in full every month.
Only exception is if I have utilized a SAC deal that was too good to turn down.

 

[nwjones18]

I've noticed that having a higher credit card bill than normal, say $1k more than average, will drop my score 20-30pts that month, and it will rebound over the next couple months.. As long as it stays over 750 I don't think about it much..

 

[alarmguy]

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.

Same here, we sold in Nov 2022, no longer have a mortgage though we will have a small one once the new home is complete. So we do have a number of credit inquiries because I shopped five mortgage companies for rates.If that shopping is done within a certain period that is ok, credit report not affected but ours was drawn out because building a home, gets delay after delay and I expect that but I didnt sit around doing nothing. I was CONSTANTLY negotiating mortgage rates.

Anyway long story short, we have settled on the company which happens to be a full circle back to the builder mortgage, it worked out for us because using rate info from other companies they matched/beat it.
Then the Credit Reporting letters came in, which they do when mortgage companies run credit in most cases. I was surprised to see ours held up over 800 BUT just (no kidding) the end of last week my wife's score dropped to 798. First time in years she wasnt above 800. I still am over by a little bit.

One reason was the inquiries but the other was = darn it, my wife and I were just trying to find the letter so I could give you the exact words but there was something in there that made reference to no regular loans/mortgage payments. I KNEW it was related to the mortgage being paid off.

(more to follow in my next post on my thoughts)

 

[Pablo]

I don't think many picked up on my comment about locking credit.

 

[alarmguy]

...
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 enjoy our conversations BTW

Here are my thoughts on your second part above ^^
Im ok with banks charging higher fees for loan and mortgages based on credit score. It's really no different than what insurance companies do if you have a good driving record. Why should I pay insurance on someone who regularly gets DUIs or speeding tickets.

If I work hard maintain a high credit score I should get a better rate than someone who has a low credit score who has a higher risk of defaulting.
I would be more upset if I (and you) had to pay one flat interest rate no matter what your credit score is. Since you have a high score think about that. Why should you or I be subsidizing a lower interest rate for someone with a lower credit score and higher chance of default?
If you look at it that way, you really can change your way of thinking. You are being rewarded for your high score and honestly anything over 740 is considered excellent, 780 is just as almost or just as good as 825.
SO dont look at it as banks greed. No matter what, banks are going to work on the same markup profit per customer, everyone can pay the same rate might sound sensible but that would mean people with perfect credit are making up for the losses of careless people with poor credit. I like the current system for that reason.

Last and final ( I know thank god) You want to continue to use your credit cards, every day for everything you buy and simply pay them in full every month. That can work for your advantage in two ways. One if you get the right cards you will ALWAYS get 2 to 5% off everything you buy in life. I do and it's kind of cool letting it accumulate into well over a thousand dollars to buy a treat for one self or even invest it. One year just a couple years back I bought my Apple Mac Desktop with free cash back that accumulated and still more left over.

Paying everything in cash with no credit will cost you DEARLY in car insurance, home insurance and anything that does a soft credit and full credit check. A significant part of your insurance bill is based on credit score. If you dont have one or run it down, you will pay. I mean if you really think about it, dont take it personal from the banks or insurance companies, a credit score is the only measure of risk that can be standardized across the population. It's fact, of the behavior of people in every credit score category.

 

[alarmguy]

I don't think many picked up on my comment about locking credit.

Some people just beg to be victims. You can go to the government website they will which is posted at the end of this post ...
Or I made it easy;

Contact each credit reporting agency to place a freeze on your credit report. Each agency accepts freeze requests online, by phone, or by postal mail.

Experian
Online: Experian Freeze Center
Phone: 1-888-397-3742
By mail, write to:
Experian Security Freeze
PO Box 9554
Allen, TX 75013

Equifax
Online: Equifax Credit Report Services
Phone: 1-800-685-1111
By mail, write to:
Equifax Information Services LLC
PO Box 105788
Atlanta, GA 30348-5788

TransUnion
Online: TransUnion Credit Freezes
Phone: 1-888-909-8872
By mail, write to:
TransUnion LLC
PO Box 2000
Chester, PA 19016

Innovis
Online: Innovis Freeze Options
Phone: 1-866-712-4546
By mail, write to:
Innovis Consumer Assistance
PO Box 530086
Atlanta, GA 30353-0086

Your credit freeze will go into effect the next business day if you place it online or by phone. If you place the freeze by postal mail, it will be in effect three business days after the credit agency receives your request. A credit freeze does not expire. Unless you lift the credit freeze, it stays in effect.

Source = https://www.usa.gov/credit-reports


___

 

[Pablo]

Some people just beg to be victims. I dont understand why.
View attachment 139278
Source = https://www.usa.gov/credit-reports


___

Well yes.

But can be unfrozen with a verbal. In the past it was, so that may have changed.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
STORY: This was at the subie dealer, 2013 buying the last of the WRX 2014 Hatch (NLA) - had to order 6 months in advance from Japan and delivered to nearest dealer - THEN finding out there is no haggling . Long story but I took the 1% loan for a couple months. Silly me I only had $29K or something in the lounging account and car was $30K* roughly and simply did not want to dip in family accounts.................ANYWAY

Guy said well your credit is locked we can't proceed and all we need is for you to say OK and we will unlock it. Whammo. Loan approved on the spot. Just to check, later that week I locked my credit again.

Paid the loan off a couple months later because it was a pain - I hate payments.


*Toyota dealer gave me near this amount in 2018 trade!
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Point is: I am not that sure how great locked credit is against something or someone sophisticated.

I do lock my credit to this day

 

[ripcord]

I had the same experience as you, GON. Years ago, I paid off a student loan in one big payment and my credit score dropped from over 800 to 760. Go figure. That student loan was the only commercial loan I had.

 

[alarmguy]

Well yes.

But can be unfrozen with a verbal. In the past it was, so that may have changed.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
STORY: This was at the subie dealer, 2013 buying the last of the WRX 2014 Hatch (NLA) - had to order 6 months in advance from Japan and delivered to nearest dealer - THEN finding out there is no haggling . Long story but I took the 1% loan for a couple months. Silly me I only had $29K or something in the lounging account and car was $30K* roughly and simply did not want to dip in family accounts.................ANYWAY

Guy said well your credit is locked we can't proceed and all we need is for you to say OK and we will unlock it. Whammo. Loan approved on the spot. Just to check, later that week I locked my credit again.


*Toyota dealer gave me near this amount in 2018 trade!!

Paid the loan off a couple months later because it was a pain - I hate payments.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Point is: I am not that sure how great locked credit is again something or someone sophisticated.

I do lock my credit to this day

Well, if it makes you feel any better, around the same time 2014 or so. We bought on a whim a Mazda for my wife. Small loan, no big deal, wanted to just drive out of the place with the car. We typically put both our names on everything, but we could not put my wife's name because she could not get her credit unlocked over the phone. My wife, VERY intelligent is lacking in one area, it's almost funny, passwords. I cant remember at the time but they would not unlock her credit, the dealer had the credit agency on the phone. she did have an alert placed with them and I am sure that is what affected everything, so we put everything in my name.

Anyway, anything can be circumvented but Im sure you agree, you greatly reduce your chances of being a victim. The people that are that good at breaking into accounts will not be going after me, they would be going after big money, not that I am poor but there are much better targets! *LOL*
Another example, I was in security systems for a while when I moved south. All the home security systems. I would be maybe 80% successful in disabling it before it got triggered if I was breaking into a home but the VAST majority of burglars who are breaking into everyday middle class and even upper middle class homes would not be able to disable it, so they are protected. Really some of the easy ones are the new self installed ones like Simply Safe. Its almost laughable if you know what you are doing so easy to prevent a signal from being sent out but again, those systems will protect you from many (but not all since its so easy) neighborhood thieves.

 

[Creekside]

Mine varies a lot also. I have a credit card that I don’t really use for personal use simply because I don’t need to. I do use it for expenses when I travel for work and pay it off as soon as the check comes. It will trend up due to carrying a balance each month and then if I go a few months without traveling it will fall again. I don’t worry too much about it for those reasons.

I have several loans and all have 100% payment history and that’s what really affects it.

 

[PandaBear]

Why do you care if you are above 800? That's exactly how credit score works, it is not about how much money you have but rather how much debt you have and your track record of paying them off.

Think of it as casino's rating on how good a customer you are. If you no longer gamble you are not as good a customer as before you kicked the habit.

 

[alarmguy]

Why do you care if you are above 800?

Because it's a fun goal, even a hobby being in the "EXCEPTIONAL" range which is about 21% of the country.
This also can lead to exceptional rates on everything in life that requires a score of which insurance costs are a huge part of everyday Americans lives, home, cars, boats, motorcycles, life and most aspect of everything in your life requiring a score.

Never mind special rates and promotions with limits to only those with "exceptional credit" vehicle deals, leases ect.
Might make you more attractive to a home seller over other offers being presented. All things equal, will one choose the 725 credit score or the 815 credit score?

 

[KrisZ]

I don’t even know my credit score lol. I think it was showing around 760 on my mortgage application.
I have no problems locking down loans and getting low rates, beyond that I don’t care.

 

[BlueOvalFitter]

I have held an NTB (used to be TIRE KINGDOM) card for almost 36 years. The limit on it was $1K. About 3-4 years ago I received a letter from NTB stating that they had lowered my limit to $500. So, I called them, and they said they did it because I wasn't using my card enough! Seriously?

 

[hrv]

This is the point that I made earlier about Ramsey.
He was able to format and monetize commonsense as a mechanism for the financially inept to get out of debt.
However, he doesn't know jack about finance and statements like this confirm that.
I don't like the game either, but that doesn't mean that I get a free pass from playing it to get ahead.
Pay more for car insurance (or any insurance) because I wanna have an S fit over playing the FICO game?
His view is that one can do the same thing when shopping for a mortgage.
He has some real unique views on that saying there are people who will write paper on a mortgage without considering a credit rating.
If you truly can find one, it will be hard to get, be very expensive to obtain, and will require a huge downstroke (which most people don't have, at least starting out.)
Easy to say if you are a multimillionaire.

He also was broke and bankrupt at one time also...

 

[hrv]

My credit score dropped from 840 to 810 after retirement. Just SS income showing now. All my stuff is paid off and I owe zero.

Probably have enough $ in the bank, to never have to touch retirement funds. (shy of a nursing home)

No longer care about credit scores. Have no plans on borrowing $.

Same for me too....