My credit score is good, but not great. Why? Because I don’t have debt. The only loan I’ve taken out in 24 years is a home loan. I have a good income, a savings account and I live well below my means. I don’t think I’ve ever been late on any payment in my life. I didn’t have credit cards because I didn’t need them.

After I got divorced I opened some cards just to have available debt, because apparently being able to go into debt is a good thing. Whatever. It’s counterintuitive to me but I suppose only buying things you can afford makes you a risk. If I liked tinfoil hats I’d say it’s a risk because if you don’t owe anyone anything, then nobody owns you.

So I’m playing the game a bit and my score is slowly improving. I think I need one more home loan and one more car loan in my life and then I can close a couple of these stupid cards and get out of the game.

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.

Not at all true. I have no debt. I paid off my last car loan in 1979, paid off my last credit card balance in 1990 and paid off my house in 1994.

My credit score varies between 820 and 830

I was routinely checking my scores and growing more frustrated as I did. I try to pay off everything monthly and had very low debt to income, but never saw it get more than 800ish.

Now I realize that, like reflexively turning on the evening news, it is one of those triggers in life that I just don't need. So, I ignore it and may look quarterly just to see that no anomalies pop up.

My grandfather helped raise me, and he said save your money until you can afford to buy "it" with cash, whatever the "it" was at the time. Outside of a house, this is pretty much my life mantra.

Seems that CreditKarma disagrees with ol' grampa.

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 850 for years when I had several rentals with mortgages. Sold them all and paid off the house my score immediately dropped 25 points and has stayed around 830 since.

The History of Credit Scores

Link to article on Credit Scores popped up today, it's like my browser is reading the posts on SF...

Excerpt from the Article:

How is your credit score calculated?

Your FICO score is a combination of five factors:

Payment history: 35% of your score

How much you owe on loans and credit cards: 30% of your score

Length of credit history: 15% of your FICO score

Types of accounts you have: 10% of your FICO

Recent credit activity: 10% of your FICO

Within that broad framework, there are a lot of variables, so the fiddly details that determine your number are periodically updated and tweaked.

Some years ago, buying a house I couldnt afford and a divorce forced me into bankruptcy. I worried about the effect it would have on my credit rating. Until.... Immediately after the discharge hearing, two people were in the hallway outside the hearing room offering me brand new credit cards! Why? Because they knew I couldnt refile for bankruptcy for 7 years. I declined the cards. Then, about a month later, the local Suzuki dealer contacted me and offered me a "bankruptcy special" on a new 4X4. I took advantage of that deal.
After these shenanigans, I stopped worrying about my credit rating or score.

Mine was steadily between 800 and 830 until we paid off the house, which was the only debt we had. Then it dropped like 100 points. I don't know what it is now, and I don't care...I'm not taking out any loans. I'd rather be debt-free with a crappy score.

I went from 820 to 785 after I paid off the house.

Now I cruise at about 785 with no mortgage and only two cards.

Amex and a capital one card that’s hardly ever used like only once a year with Siriusxm.

Silly really.

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.

I hit an official 850 when I was getting a free-to-me paid Experian account. I had just sold off my house and had no credit card debt except what I paid off every month. The trigger was getting below 3% credit usage.

I've never used as much as 5% of my available credit and have my 3 cards on auto pay for at least 10 years. Credit score ranges from 800-810.

No mortgage or installment loans will bring your credit score down a little - so what?