Credit Rating Nonsense

JimmyJazz

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Steiner 425
Aug 8, 2020
273
108
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Pittsburgh, Pa
When a person with actual tangible wealth is penalized by society because they don't carry a load of debt from month to month you know something has gone real haywire.
This statement is not accurate. No one is penalized by society because they don't carry a load of debt. Credit cards are a good example of non collateralized lending. Any knucklehead with a social security number can just about get a credit card. The US banking system is in many ways the envy of the world. Banking is highly regulated but believe me if they don't make loans they go out of business. The ability to establish and maintain creditworthiness is vital to most all individuals and businesses here. No banks=no business=no jobs=no food........Wall Street finances the biggest and best achievements in human history. I see the glass more than half full on this one.
 

William1

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BX25D
Jul 28, 2015
783
22
18
Richmond, Virginia
My wife and I have zero debt. Last loan was a mortgage we paid off six years in 20 years ago. All bills do go on a credit card (5% cash back!!!) but it is paid in full every month. FICO credit score is 830 out of 850. Insurance expense (car, PU, motorcycle, house) is insignificant with tons of coverage. Credit history goes back fifty years and is spotless.
 
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Borane4

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MX5400
Dec 16, 2020
35
25
18
Texas
I don't disagree but those same 40 points may have a substantial impact with a different starting score. You could be charged higher interest rates or not get a loan at all even though you did nothing wrong.
Perhaps...See the great explanation in #15 above. You can buy just about whatever you want above 800...
 
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Magicman

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I use a CC for almost all of my purchases and the balance is automatically subtracted each month from my checking account. Strangely enough, my credit score would be higher if I paid a note each month instead of paying it off.
 
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Henro

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B2910, BX2200, KX41-2V mini Ex.
May 24, 2019
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My wife and I have zero debt. Last loan was a mortgage we paid off six years in 20 years ago. All bills do go on a credit card (5% cash back!!!) but it is paid in full every month. FICO credit score is 830 out of 850. Insurance expense (car, PU, motorcycle, house) is insignificant with tons of coverage. Credit history goes back fifty years and is spotless.
5% CASH BACK????!!!!

Please share the card name. I though mine was the best for me at 2% on ALL purchases...

5%! I want one...and I do pay off the balance every month, otherwise the cash back would be meaningless to me...

Now on to read the rest of this thread...perhaps that was a typo...

Edit: I see there was not much more to read... :LOL:
 

MSG H

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L3901 HST RETIRED MIL.
Dec 20, 2020
36
17
8
VA
Remember 2008, when the BANKS where to large to fail. Uncle Sugar bailed them out. Mortgaging home loans to buyers that didn’t normally qualify for home loans (Balloon loans, multiple loans for one mortgage, etc.) What’s the banks credit score? We get penalized for not carry debit and the banks get rewarded for failing to manage theirs.

 

Magicman

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I too would consider that 5% back card. I use a Cabala's card that credits 2% to my "points" balance which can be spent at Cabela's or Bass Pro. 5% on purchases from them.

I just cashed my points in for Carhartt work clothes.
 

Nicfin36

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L2501 HST, BH77 Backhoe, QA Loader
Jun 19, 2019
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Decatur, AL
Discover Card gives 5% in their Cashback Bonus program, which depends on what you buy. Right now, you get 5% back if you shop at grocery stores, CVS and Walgreens. Next time, it will be gas stations and some other stuff. But it is 1% all other times.

Discover Card has paid me over the years to use their card because of that. I have never paid them a dime in fees.
 

ipz2222

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L235, bx2670
May 30, 2009
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5
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chickamauga ga usa
And to add insult to injury, if you have a saveing account that you don't use much, they can consider it abandoned. Don't know what the time is , but I almost lost mine. Had the account since I was a teenager.
 
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Henro

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Discover Card gives 5% in their Cashback Bonus program, which depends on what you buy. Right now, you get 5% back if you shop at grocery stores, CVS and Walgreens. Next time, it will be gas stations and some other stuff. But it is 1% all other times.

Discover Card has paid me over the years to use their card because of that. I have never paid them a dime in fees.
Before Citibank, Discover was my card of choice.

But retired now, we do not buy much gas, do not eat much so groceries are small purchases, with covid do no travelling, and so on. So a net 2% back on everything works best for us. My backup card offers 1.5% back on everything...I cancelled the Discovercard.

But Discover could really work for someone who just used it for the high cash back categories, and a different good paying card for all else. I just did not want to bother keeping track.

I would jump on a card that paid 5% back on everything...even something paying 2.5 % maybe. 3% certainly.
 

mcmxi

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BX25DLB, MX6000HST
Feb 9, 2021
139
83
28
Montana
How the heck are you guys getting credit scores in the 800+ range?!! :unsure: I've never made it to 800 and am currently sitting around 760 or so. I guess the new tractor purchased using Kubota 0% financing will ding my credit score even more. This thread got me looking at how our credit scores are calculated. I wonder if 401K balances are figured into the calculation, or checking/savings balances.

  1. Payment history: The record that demonstrates whether or not you make timely payments on your account. It accounts for 35% of your credit score.
  2. Credit utilization: The percentage of your available credit you have used. A lower ratio is better. This accounts for 30% of your credit score.
  3. Age of credit: How long you’ve had credit and how old your accounts are. It accounts for 15% of your credit score.
  4. Types of accounts: The diversity of your credit mix. This accounts for 10% of your credit score.
  5. Application history: How many times you have applied for various forms of credit in the past two years. This accounts for the last 10% of your credit score.
 

William1

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BX25D
Jul 28, 2015
783
22
18
Richmond, Virginia
5% CASH BACK????!!!!

Please share the card name. I though mine was the best for me at 2% on ALL purchases...

5%! I want one...and I do pay off the balance every month, otherwise the cash back would be meaningless to me...

Now on to read the rest of this thread...perhaps that was a typo...

Edit: I see there was not much more to read... :LOL:
Chase Visa Rewards. They stopped offering the card over ten years ago and constantly try to get me to close the account and sign up for other offers. '7% on all goldfish purchases and 1% on everything else....' Nope, I stayed 'grandfathered in'.
 
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je1279

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I've cost Discover quite a bit as well but I'm considering a new 2% card on anything to use in the months where there not a 5% special on that area.
 

je1279

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Chase Visa Rewards. They stopped opffering the card over ten years ago and constantly try to get me to close the account and sign up for other offers. '7% on all goldfish purchaes and 1% on everything else....' Nope, I stayed 'grandfathered in'.
You really need to love goldfish to take that deal...
 
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Nicfin36

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L2501 HST, BH77 Backhoe, QA Loader
Jun 19, 2019
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I've cost Discover quite a bit as well but I'm considering a new 2% card on anything to use in the months where there not a 5% special on that area.
That would certainly be a better deal. Most of the Discover 5% cashback places I don't buy from anyway. And, there is a catch too. If you have coupons or discounts already, the 5% cashback doesn't apply.
 
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Oliver

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L2501
Feb 2, 2011
421
42
28
Preston County, WV
FICO score has always been a pet peeve of mine if for no other reason because I periodically get a notice from Nationwide disclosing "that my credit score may affect my rate." Why in the f*** would that be the case as I've been with them for years? Shouldn't the history they have on me paying every premium in full be more meaningful than some score from FICO? I asked my daughter who's in corporate banking and she just laughed saying "you'll have a hard time getting a top credit score because you haven't had credit." And that has been true. Let's see I'll check my score now on my Bank Of America App........ it's 787. Why not higher? It says "your lack of recent installment loan information", and "too few accounts currently paid as agreed".

I have two credit cards (one issued by BOA) I use for most purchases which are promptly paid off multiple times each month. I guess that doesn't count. I have accounts totaling, well I won't say sitting in their bank. Property owned free and clear include my home and acreage, a 27 unit apartment building 100% occupied, two other commercial properties leased including one to a bank. Another commercial property I sold and am carrying the note on. But since the last debt I had (the apartment building construction and a mortgage) were paid off over 20 years ago my credit rating is always under 800.
 
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D2Cat

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The only people needing to be concerned about their credit score are those who need credit to make a purchase.

I get multiple calls a week informing me I need to do something about the warranty on an automobile. I hang up, or don't answer, or play phone games with them. I sure don't get concerned about my lack of an extended warranty!

I think sometimes people enjoy problems!
 
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D2Cat

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Not true. Also people who want the lowest insurance rate.
Well, you can stay up nights worrying about it, but if it is 787 and you have the resources you list, is life really worth the increase in your blood pressure? Or do you enjoy worrying for your friends, family and neighbors? ;)
 
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