Received notification my credit score just dropped 40 points.

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.
It's the smart play. I haven't had a mortgage since 1985. And I had one car loan in 1970 that my mother signed for, to teach me a lesson. It worked. I never borrowed money again to buy a vehicle.

We do use credit cards because today you have to if you're going to shop on the Internet. But they're paid off immediately. I've never understood all of this credit card "gaming". And playing the game to get a, "higher credit score".

To me the whole thing is like a dog chasing its tail. Yet there are people who live by constantly playing this whole "credit score" game. I have no idea what my credit score is, nor do I care. If I want something, I simply buy it. The "best credit rate", is no rate at all.
 
alarmguy said:
Why do they have to know assets as long as you pay your bills on time?
Since ability to pay should be a factor if you are a good credit risk.
Maybe this will explain my post better (I've been trying to keep my posts shorter *LOL*)
The ability to pay is in your credit score. A good score no matter what income, assets ect means you will move heaven and earth to pay your bills on time no matter what means you use.
If we take into account assets that doesnt mean much and here is why. Just because you have assets doesnt mean you will pay and if they have to ever go after those assets it would/could cost more legally and administratively than the debt itself. Here is an example banks HATE to foreclose on homes, it could cost them tens of thousands of dollars to get you out of your house, they much rather work with you.

Ok, back to assets. Another problem is it would take weeks to get a loan if assets were to be taken into account, the problem with assets just because one is putting them on an application, the bank would then have to make sure you are the legal owner of that property, "title search" once that is done, the bank would have to know if there are loans on the property, expenses, income, taxes, insurance. Every aspect has to be proven.
If someone has assets they may just as well take out a HELOC Home equity loan on the property. Credit reporting agencies could not possibly check the assets of every American in the USA and once they did they would have to then check "if there are loans on the property, expenses, income, taxes, insurance" every single detail which would be impossible to interview every American in the USA and then confirm what they are saying.

If this helps here is a personal example, BTW I dont want to come off as a know it all, my post is only because I experience what I typed above. My wife and I about to take our a small mortgage on a home we are building, 800 + credit scores but even then, its a PITA because I own a commercial asset free and clear, rental income with no expenses to me known as a "triple net lease" to the tenants. I dont even want to put the income from that asset on the mortgage application because the additional income is not needed, but the banks insist on it and of course its going to be on your tax return.

I then have to PROVE that I own the asset, PROVE it is paid for, Prove its insured, Prove there are no expenses "triple net lease" Prove property taxes, the list goes on, the reason explained is, even if all is true, that asset could become a liability if I cant pay the expenses on the asset and possibly lead to a default on the small mortgage that I am trying to take out. So in reality the bank is technically more at risk than someone who doesnt have something like I own even though I didnt want to nor need to list it as income.
It's an interesting subject and I only learned this myself over decades of dealing with my asset which is kind of substantial in my life but by no means more then many other peoples assets in this forum.
 
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In my experience the "Exceptional" and "Very Good" tiers are usually lumped together for most loan products.
Yes, agree, more so for mainstream mortgages/loans.
With that said, (example) those tricky marketing car sales with special rates or special anything marked with a * where at the bottom in that TINY writing it says something to the effect "for those with exceptional credit score 800+" or 780+ ect

I think most mortgage companies only care about 740/760+ but I have had in my past NY life home buyers making offers on high demand homes with multiple offers and would willingly present their credit score/preapprovals with the offer to show how qualified which is VERY powerful to see an 800 (out of 850) or more score, even 780 to a homeowner selling a home.
 
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This discussion has been very educational. The act of freezing one’s credit report has been mentioned by a few contributors. I’m not sure what that means in practice. Does it freeze the credit score or perhaps prevents the credit bureau from updating the financial information that is sources to come up with your score? Or perhaps it just prevents them from disclosing your score to others?
 
It's the smart play. I haven't had a mortgage since 1985. And I had one car loan in 1970 that my mother signed for, to teach me a lesson. It worked. I never borrowed money again to buy a vehicle.

We do use credit cards because today you have to if you're going to shop on the Internet. But they're paid off immediately. I've never understood all of this credit card "gaming". And playing the game to get a, "higher credit score".

To me the whole thing is like a dog chasing its tail. Yet there are people who live by constantly playing this whole "credit score" game. I have no idea what my credit score is, nor do I care. If I want something, I simply buy it. The "best credit rate", is no rate at all.
Some employers will look at credit scores or run a credit report while screening new employees.

Granted if you have terrible credit because you have no debt, that's not quite what they are looking to avoid.
 
This discussion has been very educational. The act of freezing one’s credit report has been mentioned by a few contributors. I’m not sure what that means in practice. Does it freeze the credit score or perhaps prevents the credit bureau from updating the financial information that is sources to come up with your score? Or perhaps it just prevents them from disclosing your score to others?
ConsumerFinance.gov states:
prevents you or others from opening accounts in your name. Security freezes can be useful in preventing an identity thief from opening a new credit account in your name.

Only a limited number of entities can see your file while a freeze is in place, including:

  • Creditors of accounts you currently hold
  • Certain government entities like child support agencies
Companies that you've hired to monitor your credit file

I froze mine last year and immediately noticed the pre-approval credit junk mail has stopped except for banks that I use.
 
ConsumerFinance.gov states:


I froze mine last year and immediately noticed the pre-approval credit junk mail has stopped except for banks that I use.
Enlightening! Thank you.

I am surprised that there isn’t some sort of two factor authentication system built into the credit reporting agencies credit number disclosure process. I have turned on two factor authentication for every financial company I use - generally it is a text of a code number to my previously authenticated cell phone number. Without my inputting that number into the form, any inquiry or transaction is frozen.

Seems like credit bureaus should be required to offer that same protection to the public. A consumer can’t op out of a credit rating, therefore the credit agencies should be on the liability hook for any financial damage or identity theft caused by them.
 
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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.
Credit scores are the most important social credit system and blacklist for the Americans. It has its rewards and punishments and it not only affects your ability to get credit but will affect employment prospects as well.

And no, it's not only your banking habits that build your social value - these two companies gather absolutely all commercially available data about you. You should hear the things Experian knows about you. It's a nasty centralized tool to determine the social worth of the Americans.
 
Earlier today received this in an e-mail from USAA:

"Effective April 3, 2023, USAA will begin to use a credit-based insurance score in combination with other information to determine renewal premiums for Renters insurance. Your score will be developed from information contained in your consumer report. We will order your insurance score for any new policies and every 2 years for renewal policies."

Guess I am going to go buy a crappy lot somewhere for $5,000. I will put down $4,000, and finance $1,000 for ten years. That will give me a secured real estate loan on my credit report.....lol
 
Earlier today received this in an e-mail from USAA:

"Effective April 3, 2023, USAA will begin to use a credit-based insurance score in combination with other information to determine renewal premiums for Renters insurance. Your score will be developed from information contained in your consumer report. We will order your insurance score for any new policies and every 2 years for renewal policies."

Guess I am going to go buy a crappy lot somewhere for $5,000. I will put down $4,000, and finance $1,000 for ten years. That will give me a secured real estate loan on my credit report.....lol
I wonder if my Renter's insurance will go down as my credit score is rock solid, when USAA incorporates credit score into insurance rates.

I suspect my insurance premium will not go down.
 
I wonder if my Renter's insurance will go down as my credit score is rock solid, when USAA incorporates credit score into insurance rates.

I suspect my insurance premium will not go down.
IIRC, State Farm allows you to request a re-evaluation based on credit once every maybe 24 to 36 months. Guessing it is the same elsewhere. Probably worth looking into if you are concerned about it/your rate changes. Guessing your score will bounce back after 3 to 8 months.
 
IIRC, State Farm allows you to request a re-evaluation based on credit once every maybe 24 to 36 months. Guessing it is the same elsewhere. Probably worth looking into if you are concerned about it/your rate changes. Guessing your score will bounce back after 3 to 8 months.
99S,

Thanks- I am not worried so much if USAA finds a way to increase my premium, I am worried about the mental difference on a job application, offer on a purchase of a home, etc--- between a 790 credit score and an 810 credit score.

A realtor saying the "Buyer has an 800 plus credit score", simply holds more mental weight than saying the buyer has a 790 credit score.

Two weeks ago, I finished a 24-week course at Northwestern University. The course required formal submission of six to nine assignments for 22 of the 24 weeks. I had a 94.5 GPA, until the last four weeks. I received a poor grade on an assignment that had a heavy weight on my GPA. I dropped to a 93.87 GPA. An "A" in the course is 94.0-100. A An A- is 93.99-90.0. Just a fraction of a percent is the cut line between a A and a A-. One doesn't think it matters, but I was filling out a job application yesterday, and sure enough the employer wanted to know my letter grade.

And on a dumb side note- most employers expect a student in a master program to have a very high GPA, anything less than a A is often looked at as the person is not so driven. And who wants to hire someone with a master degree that is not so driven. My Wife who has an advance degree hates my assessment of this, but it is what I have observed.
 
99S,

Thanks- I am not worried so much if USAA finds a way to increase my premium, I am worried about the mental difference on a job application, offer on a purchase of a home, etc--- between a 790 credit score and an 810 credit score.

A realtor saying the "Buyer has an 800 plus credit score", simply holds more mental weight than saying the buyer has a 790 credit score.

Two weeks ago, I finished a 24-week course at Northwestern University. The course required formal submission of six to nine assignments for 22 of the 24 weeks. I had a 94.5 GPA, until the last four weeks. I received a poor grade on an assignment that had a heavy weight on my GPA. I dropped to a 93.87 GPA. An "A" in the course is 94.0-100. A An A- is 93.99-90.0. Just a fraction of a percent is the cut line between a A and a A-. One doesn't think it matters, but I was filling out a job application yesterday, and sure enough the employer wanted to know my letter grade.

And on a dumb side note- most employers expect a student in a master program to have a very high GPA, anything less than a A is often looked at as the person is not so driven. And who wants to hire someone with a master degree that is not so driven. My Wife who has an advance degree hates my assessment of this, but it is what I have observed.
GON,

I can understand the psychological aspect and the points made about GPA as an example. Not in any way to downplay the what ifs that might not get someone a house, job etc. because yeah, the one that gets away could be the deam one but as an opposing view... I think those are huge YMMV situations. I have not listed or been asked my GPA as an example since a few years post graduating grad school, TBH at this point I would probably laugh and have to go check my transcript.

In any event to the topic of credit score, I was curious about how employers treat credit scores/checks and came across this at the top of my results. Can't verify how factual that is but multiple articles on the first page stating the same thing - employers don't see the actual score.

Sharing not to say one view is right or wrong but that IMO 790 vs 810 - don't lose sleep. ;)🍻
 
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ConsumerFinance.gov states:


I froze mine last year and immediately noticed the pre-approval credit junk mail has stopped except for banks that I use.
Weird, I’ve never frozen my credit and the junk mail hasn’t been that high lately on the applications. Just the occasional one from our bank, and even that seems less lately (probably because it’s not worth trying, rates too high to advertise).
 
This discussion has been very educational. The act of freezing one’s credit report has been mentioned by a few contributors. I’m not sure what that means in practice. Does it freeze the credit score or perhaps prevents the credit bureau from updating the financial information that is sources to come up with your score? Or perhaps it just prevents them from disclosing your score to others?
Hope this helps.

When a consumer freezes their credit report no one can access it unless you give permission by unlocking it.
What that means to you is, no one can take a loan out in your name, or use your credit information in any way by pretending they are you.
Dozens of ways with identity theft. Buying cars, apartment leases, credit cards anything that requires a credit report pull.

With that said, this does not in anyway affect companies REPORTING your credit activities, which is typically on a monthly basis.


Another thing many people do not do is get their FREE annual reports!!!!!
The link is supplied in the above government website and I posted it below as well but as a reference you shouldn't take anyones word for it other than .gov websites !
I mean, one simple click, fill out the info and learn EVERYTHING the 3 major reporting agencies have on you!! If there is an error you just click to dispute and they will look into it! It's ALL FREE.
The benefit to you is, if there is incorrect information in there correcting it MIGHT improve your score which could lead to better rates on everything including all types of insurance.
In many cases you may see things on your report that you never did, that would be mistakes by companies who posted stuff under the wrong person.
AnnualCreditReport.com
 
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GON,

I can understand the psychological aspect and the points made about GPA as an example. Not in any way to downplay the what ifs that might not get someone a house, job etc. because yeah, the one that gets away could be the deam one but as an opposing view... I think those are huge YMMV situations. I have not listed or been asked my GPA as an example since a few years post graduating grad school, TBH at this point I would probably laugh and have to go check my transcript.

In any event to the topic of credit score, I was curious about how employers treat credit scores/checks and came across this at the top of my results. Can't verify how factual that is but multiple articles on the first page stating the same thing - employers don't see the actual score.

Sharing not to say one view is right or wrong but that IMO 790 vs 810 - don't lose sleep. ;)🍻
Yea. Either one is an excellent score and to fret about it is nonsensical IMHO. Let's fret over something else like " thick vs. thin" :)
 
I have free basic credit bureau monitoring as part of my Discover card benefits. It continuously monitors one of the three credit bureaus (Experian) and will immediately alert me via a text to my phone regarding any action (credit inquiry, new credit application, etc) on my record.

I also get this (see bullet points) once a month as a FYI email. Is this enough credit protection? I would expect any credit pull or new credit taken in my name would show up on all three credit bureaus at approximately the same time.

  • No new accounts on your Experian® credit report
  • No new inquiries on your Experian® credit report
  • No Social Security number found on the thousands of Dark Web sites we monitor
 
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