For a credit application the creditor may not pull all credit bureaus. You’d be wise to get a credit karma account to see Transunion. Plus doing your free annual credit reports as others have stated. At the end of the day the credit freeze is your best bet. Stops all hard inquiries unless you thaw your credit for whatever you want to apply to at a given time.
Received notification my credit score just dropped 40 points.
- Thread starter GON
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Discover is very impressive with their credit monitoring. Trust me in the last year being in contract on one home and actually approval and contract on another and shopping 5 mortgage companies for rates. I’ve had a ton of inquiries and Discover has been right on point pretty impressive for free service.
Is that enough?
Well, it’s certainly something that is very good but nothing will replace doing a free credit lock on all three major credit bureaus plus one called innovis.
For the most part Discover alerted me within 24 to 48 hours, but sometimes a long time frame went by and I didn’t really pay much attention.
The key is to simply lock your credit, and then you have nothing at all to worry about, and then as a back up peace of mind, knowing that Discover would alert you to other things on the dark web.
I’ll never pay for a credit monitoring service when you can simply lock your credit for free. And then have discover as a back up which isn’t even really need it but nice to know.
I have Discover because all summer long I get 5% off all the restaurants I go too
Its 2023 everyone, lock your credit. There should be no question about if you should lock your credit or not. Its completely free
If you apply for credit the system will state its locked and you can just temporarily unfreeze it. Super simple these days.
Do not forget to freeze Innovis as well.
If you apply for credit the system will state its locked and you can just temporarily unfreeze it. Super simple these days.
Do not forget to freeze Innovis as well.
Don’t forget groceries for this quarterI have Discover because all summer long I get 5% off all the restaurants I go too
. Pretty good rotational categories like the chase as well.YesDon’t forget groceries for this quarter
we do all of them!Our cash back adds up to well over a $1000 a year. I love it and use the money for fun stuff, it’s been a while and I’m sure all of the cards added together is close to 2k
5% for quarters in Discover and my wife’s Citicash card for the highest spending category in any month pays 5% which we use for whatever category Discover isnt 5% so right now that is restaurants for 5% and as you said Discover for 5% groceries. I have a different Citicard and WellsFargo that pays 2% all year.
I also have a chase card that rotates 5% unfortunately right now it’s the same groceries so I have it put away for now.
It’s cool during Holidays with Amazon and Walmarts 5% at times
It’s really fun!
Prepaid Visa/Mastercards at the local grocery store here is $500 for a $5.95 purchase fee. Around 3.8% back in points when you net out the fees on a 5% grocery card fwiw.Yes
Our cash back adds up to well over a $1000 a year. I love it and use the money for fun stuff, it’s been a while and I’m sure all of the cards added together is close to 2k
5% for quarters in Discover and my wife’s Citicash card for the highest spending category in any month pays 5% which we use for whatever category Discover isnt 5% so right now that is restaurants for 5% and as you said Discover for 5% groceries. I have a different Citicard and WellsFargo that pays 2% all year.
I also have a chase card that rotates 5% unfortunately right now it’s the same groceries so I have it put away for now.
It’s cool during Holidays with Amazon and Walmarts 5% at times
It’s really fun!
Don't try opening any new bank/credit union, etc, accounts with Innovis frozen.
As somebody who has a crappy fico score, I can tell you you want a good score.
Low score means you will likely pay more for things like insurance and is a factor when jobsearch.
fat biker
Low score means you will likely pay more for things like insurance and is a factor when jobsearch.
fat biker
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I had perfect FICO on Experian 9, for months. When I paid off the house? It dropped 16.
Does anyone think to themselves, who cares? It's not like one's blood pressure or cholesterol, it's rather meaningless actually.
In other words, imho the algorithm is like UTQG in the tire business. By design, it's to reward the lender or the tire mfg.
Although nobody truly knows how FICO works, I think we do, based on so much observation. If one owes a lot, and one pays back regularly, the score goes up. But imho having a perfect FICO is no reason to go into debt.
Of course, someone will likely step forward and say I have perfect FICO and I have no debt. But all I can say is again, paying off the house and having the loan discharged, caused my FICO to drop 16 from 850.
Does anyone think to themselves, who cares? It's not like one's blood pressure or cholesterol, it's rather meaningless actually.
In other words, imho the algorithm is like UTQG in the tire business. By design, it's to reward the lender or the tire mfg.
Although nobody truly knows how FICO works, I think we do, based on so much observation. If one owes a lot, and one pays back regularly, the score goes up. But imho having a perfect FICO is no reason to go into debt.
Of course, someone will likely step forward and say I have perfect FICO and I have no debt. But all I can say is again, paying off the house and having the loan discharged, caused my FICO to drop 16 from 850.
Exactly.
As I wrote in shorthand back in February:
"Mine flexes like that too. Up 40 down 40 - seems like it didn’t used to do this.
I just decided to ignore it as I have no need for a loan."
I haven't even looked at my score in 2023. And I get emails saying to check it etc - mainly because "data breeches" on the part of lousy company control - including the credit check agencies!
I wonder, do some people in China obsess about their social credit score similar to how some people in America obsess about their credit score?
I would imagine they are.
We are teaching our kids to build the credit score so they can “afford” a house down the line, which is a mortgage.
Why aren’t we teaching kids how to save money and budget spending?
If one has a perfect score, no dept and buys everything outright, what’s the point of that perfect score?
I believe all these credits score that are shrouded in mystery how they are calculated have a bigger psychological impact on us then we realize. It’s not just a tool for the banks IMO. Although it started as one, it is more than that now.
I think those that obsess about their credit score today, will be more willing to accept a form of social score similar to China.
I think that is the impact of all these credit scores and why we are constantly being told to watch and build up our credit score.
I would imagine they are.
We are teaching our kids to build the credit score so they can “afford” a house down the line, which is a mortgage.
Why aren’t we teaching kids how to save money and budget spending?
If one has a perfect score, no dept and buys everything outright, what’s the point of that perfect score?
I believe all these credits score that are shrouded in mystery how they are calculated have a bigger psychological impact on us then we realize. It’s not just a tool for the banks IMO. Although it started as one, it is more than that now.
I think those that obsess about their credit score today, will be more willing to accept a form of social score similar to China.
I think that is the impact of all these credit scores and why we are constantly being told to watch and build up our credit score.
Credit scores are one of those things I don't think, let alone worry about. A bit like contracting cancer. I've lived the way I have lived. I don't even know, (or care for that matter), what my "credit score" is.
Whatever it is, it has never affected my life in a negative manner, so I've never given it much thought. And if doing something financially responsible, like paying off your house causes it to drop, then it can't mean much as far as I'm concerned.
Whatever it is, it has never affected my life in a negative manner, so I've never given it much thought. And if doing something financially responsible, like paying off your house causes it to drop, then it can't mean much as far as I'm concerned.
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I don't remember what website it was, but I googled myself, and it gave a reputation score.
Now I proceeded to google my brother, and friends.
There would be teasers like, "Criminal history may be available!" It was a rabbit hole. But spooky when search engines can compile info about us and present it for free, and it's that easy....I did take delight that my reputation was intact lol
What was a scam I think, was that if your reputation were bad, you could pay to fix it....
I don't have an issue with your point in fact 100% agree teaching the saving and budgeting is vital, and should be a much bigger portion of managing personal finances but why not do both?
Plenty of aspects of managing one's credit score that make sense and are good lessons (don't apply for too much credit, pay your bills on time) that aren't counterintuitive like the mortgage payoff example. The reality is many individuals are going to take out a loan at some point, or have their score pulled for something.
Don't they charge extra for using a card ?
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.
Ebay or Costco or Walmart? No.
Yes PM dealers do and I don't buy direct because of their prices and card fees. It's just silly when the same company sells on eBay or through Walmart at lower prices!
This is my own wild guess/speculation but @GON :
at the time they knew your original loan balance,
assumed that was an asset worth the original loan balance,
you paid off that loan balance,
suddenly they cannot assume you still have that asset,
poof went 40 points.
hence agree its a flawed metric/mechanism, but they are also encouraging you to "buy more! use credit!"
at the time they knew your original loan balance,
assumed that was an asset worth the original loan balance,
you paid off that loan balance,
suddenly they cannot assume you still have that asset,
poof went 40 points.
hence agree its a flawed metric/mechanism, but they are also encouraging you to "buy more! use credit!"
Interesting. I've used eBay for bullion before but only though the mint direct on eBay. I never knew about Costco or Walmart.
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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
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?
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