My credit card company offers me "free credit score reporting." Okay, great. I don't put a ton of stock in it, but I take a look at it monthly.

This evening, I see that my credit score (not bad at all) decreased by three points. Why? Well, let's take a look.
Seems my available credit went up somewhat, and my total outstanding debts went down somewhat. (Remarkable coincidence, right?)

So... let me get this straight. I owe less today than a month ago, my balance sheet looks better... and my score goes down.

What in the world...?

I think scores across the board will slip some with the current financial problems. Lower scores mean higher rates. Obviously 3 points isn't shit, but other peoples' swings will be bigger.

It is witchcraft.

I’ve been anti debt so long I don’t exist.

It's because you are not utilizing debt to your fullest potential. Think of it as an "I love debt" score. You have less debt and more debt available to you(not being used). Of course your I love debt score is going to go down, run your debt as high as possible and pay on time. You will have the best score around.

I think it's just a coincidence. Plus I don't know if the credit score you get is an "Official" credit score and of the several official credit scores, which one is it.

I have several credit card companies that give me my credit score and none of them are in the ballpark of the one I used to get from Experian which I had for free for a couple of years because some organization had been hacked. That's when I also learned there are several categories of official credit scores. You have one for buying a house, a car, etc.

I pay on time, for sure, but the goal is to get free of it -- not to incur more of it.

Good point, Jeff. I hadn't thought of it as an "I love debt" score, but as an "I make good decisions with my money" score.

I can see my credit score with the Discover card I have. At one time my credit score was a perfect 850. I then paid off my mortgage when I sold another property I owned. Although I always pay my credit card in full every month, my credit has never been at 850 again.

Perhaps this "credit scpre" you speak of is intended to estimate how potentially lucrative you might be as a credit customer? IOW the calculation is done for the interests of credit issuers rather than debtors. "This guy doesn't need to borrow, so we aren't likely to make money off of him, lower his credit score, and when he comes back, we can charge him a higher rate == BONUS!"

No magic is involved with the credit cartel.

It's all pay to play.

quote:

Originally posted by wcb6092:
I can see my credit score with the Discover card I have. At one time my credit score was a perfect 850. I then paid off my mortgage when I sold another property I owned. Although I always pay my credit card in full every month, my credit has never been at 850 again.

In 42 years of banking, I never saw a perfect credit score from one of the 3 bureaus. Darn tuff to get past about 830.

Your score will go up just on the types of credit you have, home, student, car.....etc. the more you have the higher your score.

quote:

Originally posted by mcrimm:

quote:

Originally posted by wcb6092:
I can see my credit score with the Discover card I have. At one time my credit score was a perfect 850. I then paid off my mortgage when I sold another property I owned. Although I always pay my credit card in full every month, my credit has never been at 850 again.

In 42 years of banking, I never saw a perfect credit score from one of the 3 bureaus. Darn tuff to get past about 830.

Mine was 840s til recently, opened Macy's card for 20% off cost me 24 points.



Helps I have a degree in finance and worked in financial services for 5 years. Fair Isaac's isn't voodoo to me, it's math.

I can't explain it better than Dave Ramsey, so here is a 6 minute video outlining it.
https://youtu.be/nzoOCbgO8CI

You don't put much stock in it but you check it monthly? Don't fall for the scam.

I've had a mid 800's for 20 years and I have more money than I ever have and no longer have a single loan yet my score is barely in the 800's.

All the credit score is how much you have borrowed over the years so when you brag about your credit score you are bragging about how much you have borrowed over the years.

It is not a credit score, its a "debt score". They are only interested in how much debt you possess, how long you have maintained debt, and if you pay on time.

My favorite credit score story is when I moved to Canada for 2 years. I sold my US home which paid off my only debt (ie mortgage), reduced my US footprint to a forwarding PO Box, continued to pay my US credit cards on time (BTW, zero international transaction fee credit cards), and cancelled a credit card that was doing a shit job on ID protection. My credit score dropped 60 points.

In the real world - My money market is chalk full of equity from being a homeowner for 16 years, I'm living in company paid housing (aka free), maxing out 401k, maxing out IRA, and getting paid expat premium. SMH.

When my employer transferred me to Texas, my credit score went up 40 points for taking out a modest mortgage. I have less free cash flow and less savings in Texas than I did in Can-eh-duh. However, credit score has nothing to do with either one of those.

my scores used to never change, now if i run up the credit card, scores drop 20+.

i pay the bill before it's due, score goes backup 20+.

quote:

Originally posted by Skins2881:
Mine was 840s til recently, opened Macy's card for 20% off cost me 24 points.

Helps I have a degree in finance and worked in financial services for 5 years. Fair Isaac's isn't voodoo to me, it's math.

Then you know anything over 800 and anyone making credit decisions will happily hand you whatever you want. People sweat this stuff a bit too much. Years ago I bought a car for something like $25k over 60 months. The following month my credit score went 'up' ~15 points. Its not really voodoo, it more closely resembles what falls out of the southern end of a north bound bovine.

quote:

Originally posted by SIG4EVA:
It is not a credit score, its a "debt score". They are only interested in how much debt you possess, how long you have maintained debt, and if you pay on time.

The 'type' of debt you have, by category, also plays a significant role in your final score. When I opted to finance the purchase of my current cellphone (interest free installment debt over 24 months) instead of just purchasing it out right, my credit score went up.