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Subject: "Credit Score is some bullshit" Previous topic | Next topic
legsdiamond
Member since May 05th 2011
69888 posts
Tue Oct-20-20 07:20 AM

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"Credit Score is some bullshit"


          

I swear every time I think I know my score it comes back all fucked up.

Shit is a racket.

That is all.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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Topic Outline
Subject Author Message Date ID
Do you have the free score check through your bank or credit
Oct 20th 2020
1
I do. An ALL them shits be different. My scores be GREAT..but different ...
Oct 20th 2020
2
Yes, and it’s off by 70 points.
Oct 20th 2020
4
      Don't close your cards or allow a bunch to close from lack of use....
Oct 20th 2020
8
      Yes. This I know
Oct 20th 2020
14
           I paid off mine & my wifes CC this year.. credit score went down..
Jun 09th 2021
44
                Yep same thing happened to me. I have a myFICO account so I
Jun 09th 2021
46
      I found out the hard way that they don’t all use the same scoring syst...
Oct 20th 2020
12
https://www.businessinsider.com/credit-score-around-the-world-2018-8
Oct 20th 2020
3
Track your actual FICO credit scores.
Oct 20th 2020
5
Interesting. I didn't know about that.
Oct 20th 2020
6
Exactly. That being said, it's reportedly being changed for FICO score
Oct 20th 2020
9
i definitely need to up my game
Oct 20th 2020
7
Multiple monthly payments aren't bad at all.
Oct 20th 2020
10
It shouldn’t matter how quick you pay it off
Oct 20th 2020
11
      is it good to avoid charging anything to it right before the statement d...
Oct 20th 2020
13
           Definitely wait until after the statement date
Oct 20th 2020
15
           Exactly. I literally track all my card statement dates and stop using
Oct 20th 2020
17
Thanks for that information.
Oct 20th 2020
16
Credit inquiries account for 10% of your FICO score.
Oct 20th 2020
18
bookmark
Oct 20th 2020
19
posts/posters like this is why I hope they never pull the plug on okp
Oct 20th 2020
23
any thoughts on Experian Boost?
Oct 20th 2020
26
      It's legit - I use it.
Oct 20th 2020
27
It's definitely a racket.
Oct 20th 2020
20
I used personal loans as well
Oct 20th 2020
21
      credit karma is that okey doke fr.
Oct 20th 2020
22
           I have 2 cards with no balance
Oct 20th 2020
24
                oh cool. you're good to go.
Oct 20th 2020
25
                     Yeah, after the personal loan
Oct 20th 2020
28
Soulfunk, if you're around, riddle me this.
Jun 09th 2021
29
Credit score is determined by different components...
Jun 09th 2021
30
      this..
Jun 09th 2021
31
      LOL yup.
Jun 09th 2021
37
      Thank you for the prompt response.
Jun 09th 2021
32
      This is all spot on...
Jun 09th 2021
38
      Length of history should only matter with CCs
Jun 09th 2021
41
finally got my score above 750
Jun 09th 2021
33
My score was over 815 but it has dropped below 750 in two months
Jun 09th 2021
34
      its foul how paying off a car is seem as a negative
Jun 09th 2021
35
           sadly, there are no credit scores that say cash is king.
Jun 09th 2021
36
           Yep, I agree
Jun 09th 2021
39
           For the lenders, the credit score is a risk calculation. Someone who
Jun 09th 2021
40
                Yes but if I can pay my car debt off on time
Jun 09th 2021
42
                paying a debt off early should never be viewed as a risk to lenders
Jun 09th 2021
43
                It's one piece of the puzzle.
Jun 09th 2021
45
                ^^^^dat knowledge
Jun 09th 2021
48
LONG AS YOU OWE ME
Jun 09th 2021
47
A minor correction
Jun 09th 2021
49
Tay Day
Jun 11th 2021
50

Teknontheou
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Tue Oct-20-20 07:26 AM

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1. "Do you have the free score check through your bank or credit "
In response to Reply # 0


  

          

cards? I use that to monitor it monthly, so no surprises.

  

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FLUIDJ
Member since Sep 18th 2002
43614 posts
Tue Oct-20-20 07:33 AM

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2. "I do. An ALL them shits be different. My scores be GREAT..but different ..."
In response to Reply # 1


  

          

each and every one of them joints lol....
And they all are supposedly reporting my scores for the 3 agencies too...
So....Wells Fargo's free credit score has different numbers from the ones on the American Express & Citibank & Chase AND Discover card free credit scores....

Like Legs said....it's a racket...


"Get ready....for your blessing....."
"Bury me by my Grand-Grand and when you can come follow me"

  

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legsdiamond
Member since May 05th 2011
69888 posts
Tue Oct-20-20 08:12 AM

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4. "Yes, and it’s off by 70 points. "
In response to Reply # 1


          

How the fuck is my score on the bank app so different than the score once they run my shit?

Now I did just refi and closed an account with another bank but it shouldn’t hurt my score that much.

Hell, why should it even hurt my score at all?

Pay off a car.. credit takes a hit
Pay off a card.. credit takes a hit

This some bullshit.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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FLUIDJ
Member since Sep 18th 2002
43614 posts
Tue Oct-20-20 09:25 AM

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8. "Don't close your cards or allow a bunch to close from lack of use...."
In response to Reply # 4


  

          

That can adversely affect your credit score because it fucks up the ratios....

A balance with high credit availability is better than having balances along with low credit availability.

Sometimes the assumption is made that having zero debt and zero credit cards is good....but it's not...it's kinda bad...

  

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legsdiamond
Member since May 05th 2011
69888 posts
Tue Oct-20-20 09:46 AM

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14. "Yes. This I know"
In response to Reply # 8


          

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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My_SP1200_Broken_Again
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Wed Jun-09-21 03:10 PM

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44. "I paid off mine & my wifes CC this year.. credit score went down.."
In response to Reply # 14


  

          

...keep in mind i didn't cancel them, i just paid off the balance!! the whole shit is a scam

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blkprinceMD05
Member since Nov 29th 2004
41277 posts
Wed Jun-09-21 04:05 PM

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46. "Yep same thing happened to me. I have a myFICO account so I "
In response to Reply # 44


  

          

Called and the rep “explained” it’s better to have a little balance, under 3%, than to pay the cards off in full. He said when the balance is zero they can’t calculate a percent so it’s “worst”. It’s all a BS game, but if u know the rules u can work it. I leave ten bucks balance on all my cards month over month and my score shot up, across all three of the major credit bureaus

prototype

stand ur ground, believe in urself,
believe in love, prepare urself for love, remove the negativity from ur life, and accept the love u kno u deserve

  

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JFrost1117
Member since Aug 12th 2005
23028 posts
Tue Oct-20-20 09:31 AM

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12. "I found out the hard way that they don’t all use the same scoring syst..."
In response to Reply # 4


  

          

Credit Karma had me feeling myself earlier this year when I was trying to qualify for a loan and the score I got on my rejection letter was like, 100 points lower. I did have some past financial dumbassery to correct but even now, Experian gives a closer score to the “official” notices I get when applying for things.

____________
Twitter & IG: @rulerofmyself
SC: rulerofmyself17

Yes! She's on the drugs. (c) BoHagon

  

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MEAT
Member since Feb 08th 2008
20979 posts
Tue Oct-20-20 07:59 AM

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3. "https://www.businessinsider.com/credit-score-around-the-world-2018-8"
In response to Reply # 0


  

          

https://www.businessinsider.com/credit-score-around-the-world-2018-8

------
“There is no fate that cannot be surmounted by scorn.” -Albert Camus

  

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soulfunk
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Tue Oct-20-20 08:57 AM

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5. "Track your actual FICO credit scores. "
In response to Reply # 0
Tue Oct-20-20 09:04 AM by soulfunk

  

          

Almost all free credit score services (Credit Karma, Credit Sesame, most scores that come free with bank and credit card accounts) are not actual FICO scores, and use different scoring like VantageScore. They are fine for following trends as you work on your credit, but if you’re about to make a major purchase like a home, a car, or a refinance, you need to know your actual score.

You can track your actual FICO score for free from Experian. They will also let you track your FICO scores from Transunion and Equifax but you have to pay for that. MyFICO will let you track all three as well, if you pay for it. You don’t need a subscription - if making a major purchase it’s worth it to pay $20 to know what your actual scores are.

Notice I said scores in plural - it isn’t just the 3 bureaus that have separate scores. There are many different versions of each. FICO 8, FICO 9, FICO 2, and all the industry specific versions - separate FICO scores used by mortgage companies, for auto loans, for credit cards, etc. The paid versions of MyFICO and Experian will let you track all these different versions. If making a major purchase you can research which version that company will use. For example most mortgage companies will use the FICO mortgage score 5, and they will typically pull all 3 bureaus and use your middle score of those 3. Auto financing companies and credit card companies will typically pull the industry specific FICO score from one bureau. So for. Example when buying a Toyota and financing from Toyota Financial Services you might research and find out they use the Transunion FICO Auto Score 8.

Again - it is absolutely worth it to pay MyFICO or Experian for your actual scores when making a major purchase. It WILL save you money.

In addition to this the biggest tip I’ll give on boosting your credit score is using credit card utilization to your advantage. Utilization makes up 30% of your FICO score - second only to payment history which is 35%. But with utilization it’s calculated every month - so if you have credit card accounts and pay them off before the statement date to get your utilization down to zero it will boost your score. (Insert disclaimer about only using credit cards if you a responsible enough to pay them and to not carry a balance.) Even if you are currently paying them off every month, if you pay after the statement date, before the due date, the statement balance counts against your utilization. So for example if you have one credit card with a 1000 dollar limit, and the due date is the 1st of the month, the statement date might be a couple weeks before that. If you charge $500 on your card, and pay it on the 25th, before the due date, you are paying after the statement date and you utilization is at 50% which is not good for your credit score. If you paid it off on the 14th before the statement date, your utilization would be zero percent.

  

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PimpTrickGangstaClik
Member since Oct 06th 2005
15364 posts
Tue Oct-20-20 09:11 AM

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6. "Interesting. I didn't know about that."
In response to Reply # 5


  

          

Seems like a dumb system if a significant part of the score is able to be gamed like this.
Two people with the exact same ability to pay will have different scores just based on the timing of their payment. Even if the both pay of balances in full each month? Is that what you're saying


>But with
>utilization it’s calculated every month - so if you have
>credit card accounts and pay them off before the statement
>date to get your utilization down to zero it will boost your
>score. (Insert disclaimer about only using credit cards if you
>a responsible enough to pay them and to not carry a balance.)
>Even if you are currently paying them off every month, if you
>pay after the statement date, before the due date, the
>statement balance counts against your utilization. So for
>example if you have one credit card with a 1000 dollar limit,
>and the due date is the 1st of the month, the statement date
>might be a couple weeks before that. If you charge $500 on
>your card, and pay it on the 25th, before the due date, you
>are paying after the statement date and you utilization is at
>50% which is not good for your credit score. If you paid it
>off on the 14th before the statement date, your utilization
>would be zero percent.

_______________________________________
You ain't the only one whose got problems. You ain't the only one who knows pain. Get up off your ass and just solve them. You still got a chance to try to change, try the shit again.
Devin tha Dude

  

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soulfunk
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Tue Oct-20-20 09:25 AM

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9. "Exactly. That being said, it's reportedly being changed for FICO score"
In response to Reply # 6


  

          

version 10. With FICO score 10 instead of being calculated every month just based on that months utilization, it's supposed to be a moving average of the last several months - which would mean you would have huge spikes or dips in your score just based on the timing of your payment. That being said, it takes years for lenders to actually start using the newest versions of FICO scores, so most will still use FICO 8 or 9 or the next several years.

>Even if the both pay of balances in full each month? Is that
>what you're saying

Yes, exactly. This is easy for you to see even on free Credit Karma/Credit Sesame accounts - look at your credit card accounts and the reported balance. If you pay them off every month but after the statement date, the reported balance is whatever is actually on the statement (statement balance). Your goal should be to have a statement balance of zero (some people think you should have a balance of a dollar or something, just so you have actual usage being reported).

  

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mista k5
Member since Feb 01st 2006
14043 posts
Tue Oct-20-20 09:21 AM

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7. "i definitely need to up my game"
In response to Reply # 5


  

          

on your last point, is it possible to pay a credit card balance too soon? especially for the cash back offers? or i can charge something to it in the morning and pay it off at night?

i got a new credit card in the beginning of the year that has cash back but i didnt touch it for months. recently i started using it for things i would usually use my debit card for with the intention to pay it off before the payment date. i havent been on a strict schedule but usually pay off a purchase within two weeks. to be honest i havent used it regularly as i am scared i dont have the discipline. i need to get past that. i think knowing how soon i can pay off a charge would help.

i probably wouldnt pay it the same day, if it even posts the same day but i would be paying it within a couple days. maybe pay it off every friday? are multiple monthly payments bad?

  

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soulfunk
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Tue Oct-20-20 09:27 AM

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10. "Multiple monthly payments aren't bad at all."
In response to Reply # 7


  

          

I set a calendar reminder for all of my cards to pay them off a couple days before the statement date.

It also isn't possible to pay it off too soon. Most card companies won't let you pay until the transaction is posted.

  

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legsdiamond
Member since May 05th 2011
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Tue Oct-20-20 09:27 AM

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11. "It shouldn’t matter how quick you pay it off"
In response to Reply # 7


          

But weekly sounds like a good idea. However, like she said, find that date when they report and make sure you don’t carry that balance on that statement day.

Shit pisses me off because it seems like every time I go for an important purchase my score dips dramatically as soon as I say run my shit.

Shit feels racist af.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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mista k5
Member since Feb 01st 2006
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Tue Oct-20-20 09:37 AM

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13. "is it good to avoid charging anything to it right before the statement d..."
In response to Reply # 11


  

          

you want to have the balance be zero (or as low as possible) each statement date?

  

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legsdiamond
Member since May 05th 2011
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Tue Oct-20-20 09:53 AM

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15. "Definitely wait until after the statement date"
In response to Reply # 13


          

Like she said.. if your statement date is on the 25th. Don’t charge a large item on the 24th. Wait until the 26th.. or a few days later.

This is what fucked be up. My balance went up by a few hundred and my score dipped significantly even though I pay it down every few days. It was just a timing thing

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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soulfunk
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Tue Oct-20-20 10:04 AM

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17. "Exactly. I literally track all my card statement dates and stop using "
In response to Reply # 13


  

          

them a week or two before the statement dates. I've been burned before by having a transaction take a bit longer to post, and end up posting right before the statement date bumping up my utilization.

It's not a big deal unless you're making a major purchase that month - if your score drops 30 points one month you'll jump right back up 30 points the next month by getting your utilization back down to close to zero. But it's definitely something to be aware of.

  

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Numba_33
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Tue Oct-20-20 10:00 AM

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16. "Thanks for that information."
In response to Reply # 5


  

          

I had no clue there were additional credit scores outside of the ones from the three major credit bureaus. I can't imagine they are that divergent from the main three though. I suppose it makes sense to pay for the actual report if you plan to buy a house or a car since getting accurate information about ones credit is important. While I know the score isn't on there, the info from the free annual credit report should be somewhat helpful I though think since it does show payment history from all three of the major bureaus.

Is it true having your credit score checked repeatedly in a short amount of time can hurt your score? I read that a while ago, but I have no clue how true that is.

"Sean sparks like John Starks, nah, Sean ball like John Wall" - Rest In Power Forever Sean Price.

  

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soulfunk
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Tue Oct-20-20 10:13 AM

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18. "Credit inquiries account for 10% of your FICO score. "
In response to Reply # 16


  

          

Hard pulls on your credit will stay on your report for two years, but won't affect your score after one year:

https://www.nerdwallet.com/article/finance/how-long-hard-inquiries-stay-on-credit-report

>Is it true having your credit score checked repeatedly in a
>short amount of time can hurt your score?

This depends on what you're doing. If you are buying a house or refinancing then multiple hard pulls on your credit get counted only as one if within a month - because they know you have to shop around for different mortgage companies. But multiple credit card pulls within a month all get counted individually, and will affect your score for the next year. That being said, inquiries only count for 10% of your FICO score, so if everything else is good (payment history, utilization, age of credit history, mix of accounts) then the number of credit inquiries won't really matter.

  

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Amritsar
Member since Jan 18th 2008
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Tue Oct-20-20 10:29 AM

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19. "bookmark"
In response to Reply # 5


  

          

_______________________________________________
"Mindless populism embodied by Trump and Sanders are like a malignant wart on our body politic"

  

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kfine
Member since Jan 11th 2009
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Tue Oct-20-20 11:23 AM

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23. "posts/posters like this is why I hope they never pull the plug on okp"
In response to Reply # 5
Tue Oct-20-20 11:24 AM by kfine

          

lol

thank you and well done.

  

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sosumi
Member since May 30th 2012
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Tue Oct-20-20 01:35 PM

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26. "any thoughts on Experian Boost?"
In response to Reply # 5


  

          

boosting your score by counting utility/mobile payments...

feels dubious no matter how much I read about the equity it could create for those (me) with limited credit resources

thanks

  

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soulfunk
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Tue Oct-20-20 02:09 PM

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27. "It's legit - I use it. "
In response to Reply # 26


  

          

I'm currently getting a boost of 8 points on my Experian report because of Boost (mobile phone, the electric company, my internet service.)

The issue is the boost is only for Experian - those utility accounts won't show up on TransUnion or Equifax. It would be helpful if I was applying for credit from a lender that specifically uses Experian, but not much more than that. So you have to balance that benefit with the potential negative of giving Experian your bank account information to connect with and find accounts. Just depends on how private you want to be with your information.

  

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tariqhu
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Tue Oct-20-20 10:33 AM

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20. "It's definitely a racket."
In response to Reply # 0


          

that's why they made it so secretive years ago. its still shady, but it's easier to find out your score now.

once I figured out the utilization thing, I started using it to my advantage. shoots the score way up by having more available credit.

another item to consider is type of debt. loans (not counting student loans) will help your score much more than credit cards. loans can help show the trend of paying stuff down consistently. cards tend to go up and down and will effect your score more frequently.

my personal loan helped me get rid of my card debt. and I was in position not to that card debt back up. I actually did close multiple accounts, although its not recommended. I wanted to make sure I wasn't going to be using those cards again and didn't have the discipline not to.

eventually my score went up way up and I was able to get cards with much lower rates than before. I use them periodically, but my utilization is no more than 2% max.









Y'all buy those labels, I was born supreme

  

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legsdiamond
Member since May 05th 2011
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Tue Oct-20-20 10:52 AM

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21. "I used personal loans as well"
In response to Reply # 20


          

now I only have 2 cards with revolving debt but my score goes up and down 70 points on credit karma every few months.

Going to pay these 2 joints down and sit still for a while.

We just knew we were straight. Got our reports back like “WTF???”

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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tariqhu
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Tue Oct-20-20 11:05 AM

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22. "credit karma is that okey doke fr."
In response to Reply # 21


          

have you feeling all spicy. then you apply for something and see the real deal.

I'd say open up another card and don't use it or buy something small to pay it off. your utilization will go down and your score will go up. just be mindful of which card you're getting. that's the game I play now.

Y'all buy those labels, I was born supreme

  

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legsdiamond
Member since May 05th 2011
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Tue Oct-20-20 12:03 PM

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24. "I have 2 cards with no balance"
In response to Reply # 22


          

I don’t need another one.. lol.

I have one I use a lot for cash back with 0%APR. I need to pay it down. I use it a lot for the cash back. Just have to get better at keeping that balance low before the statement date.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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tariqhu
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Tue Oct-20-20 12:35 PM

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25. "oh cool. you're good to go. "
In response to Reply # 24


          

Y'all buy those labels, I was born supreme

  

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legsdiamond
Member since May 05th 2011
69888 posts
Tue Oct-20-20 02:16 PM

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28. "Yeah, after the personal loan "
In response to Reply # 25


          

Discover IT raised my credit limit to like 12 stacks.

Umm ok. I ain’t touching that card.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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Numba_33
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Wed Jun-09-21 10:51 AM

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29. "Soulfunk, if you're around, riddle me this."
In response to Reply # 0


  

          

I paid off my student loans in full via an ECH payment to fully pay off the principal some months ago. Ever since then, my Experian credit score that was in the mid 800's dipped to the high 700's. How does paying off a loan result in that credit score dipping?

My Equifax score is still in the mid 800's and I don't have access to my Transunion score for free, so I don't know what that score is.

"Sean sparks like John Starks, nah, Sean ball like John Wall" - Rest In Power Forever Sean Price.

  

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PimpTrickGangstaClik
Member since Oct 06th 2005
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Wed Jun-09-21 11:05 AM

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30. "Credit score is determined by different components..."
In response to Reply # 29


  

          

Each component has different weights: https://www.myfico.com/credit-education/whats-in-your-credit-score

So when you paid off your student loans, two components in the score were probably negatively affected: length of history and credit type mix.

It's likely that the student loan was one of your longest running accounts. So paying that off could bring the average age of your existing accounts way.
And if the student loan was your only no-credit card type of debt, then your score will be negatively affected after paying it off since you no longer have installment loans on your history.

It's a dumb system, but that's just the way it is. But I wouldn't worry about it unless you have immediate plans to get new credit (car loan, mortgage). You score will eventually go back up if you keep doing the right things.



  

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tariqhu
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Wed Jun-09-21 11:17 AM

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31. "this.."
In response to Reply # 30


          


>It's a dumb system

Y'all buy those labels, I was born supreme

  

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Brew
Member since Nov 23rd 2002
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Wed Jun-09-21 01:51 PM

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37. "LOL yup."
In response to Reply # 31
Wed Jun-09-21 01:52 PM by Brew

          

>It's a dumb system

Financially responsible enough to save up and pay off a loan entirely ........... your score suffers.

WHAT ?!

Just one in a long line of examples of why this country is dumb/oppressive as fucking fuck.

----------------------------------------

"Fuck aliens." © WarriorPoet415

  

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Numba_33
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Wed Jun-09-21 11:43 AM

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32. "Thank you for the prompt response."
In response to Reply # 30


  

          

I suppose it's a good thing there are two other major credit scores outside of Experian. Still frustrating to get dropped to a lower credit scoring tier as result of being responsible with my loan, but it is what it is I suppose. Almost comical that I got dropped to a 799 instead of a 800.

"Sean sparks like John Starks, nah, Sean ball like John Wall" - Rest In Power Forever Sean Price.

  

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soulfunk
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Wed Jun-09-21 02:15 PM

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38. "This is all spot on..."
In response to Reply # 30


  

          

>Each component has different weights:
>https://www.myfico.com/credit-education/whats-in-your-credit-score
>
>So when you paid off your student loans, two components in the
>score were probably negatively affected: length of history and
>credit type mix.
>
>It's likely that the student loan was one of your longest
>running accounts. So paying that off could bring the average
>age of your existing accounts way.
>And if the student loan was your only no-credit card type of
>debt, then your score will be negatively affected after paying
>it off since you no longer have installment loans on your
>history.
>
>It's a dumb system, but that's just the way it is. But I
>wouldn't worry about it unless you have immediate plans to get
>new credit (car loan, mortgage). You score will eventually go
>back up if you keep doing the right things.

  

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calij81
Member since Jan 17th 2007
12430 posts
Wed Jun-09-21 02:20 PM

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41. "Length of history should only matter with CCs"
In response to Reply # 30


          

Things like home, student and car loans aren’t supposed to be forever, they even have an end by date so as long as you pay it off on time or early your score shouldn’t suffer but the system is dumb.

  

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legsdiamond
Member since May 05th 2011
69888 posts
Wed Jun-09-21 11:46 AM

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33. "finally got my score above 750"
In response to Reply # 0


          

pay attention to the last day of your billing cycle

i thought I knew but i had the wrong date.

no one to blame but myself. smh.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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calij81
Member since Jan 17th 2007
12430 posts
Wed Jun-09-21 12:34 PM

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34. "My score was over 815 but it has dropped below 750 in two months"
In response to Reply # 33


          

1. I bought a house
2. Paid off my car
3. Got a loan for solar
4. Ran up some CCs to buy stuff for the new house

All of these have resulted in my credit score dipping considerably but I’m not worried because I don’t plan making any major purchases in the next 12 months that would require my credit score to get pulled again.

  

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legsdiamond
Member since May 05th 2011
69888 posts
Wed Jun-09-21 01:04 PM

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35. "its foul how paying off a car is seem as a negative"
In response to Reply # 34


          

you should automatically jump 20 points when you pay off a major item like a car.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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tariqhu
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Wed Jun-09-21 01:22 PM

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36. "sadly, there are no credit scores that say cash is king."
In response to Reply # 35


          

Y'all buy those labels, I was born supreme

  

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calij81
Member since Jan 17th 2007
12430 posts
Wed Jun-09-21 02:17 PM

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39. "Yep, I agree"
In response to Reply # 35


          

I would think that anytime you pay off a loan and your DTI ratio decreases would be a good thing and your score would go up.

  

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soulfunk
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Wed Jun-09-21 02:20 PM

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40. "For the lenders, the credit score is a risk calculation. Someone who"
In response to Reply # 35


  

          

is able to have multiple accounts, of different types, all with monthly payments, and always pay them on time is seen as a lower risk than someone who pays something all the way off and isn't managing that account on a monthly basis. The credit score isn't a reward for being responsible, it's a predictive way to see how well you can manage debt, and that prediction of risk is important if a company is considering loaning you money and giving you more debt.

Yes there are shades of gray - if you have 15 accounts and pay off 1, there shouldn't be more risk in loaning to someone with 14 accounts vs. 15. But it's all just math and averages to them.


>you should automatically jump 20 points when you pay off a
>major item like a car.

  

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calij81
Member since Jan 17th 2007
12430 posts
Wed Jun-09-21 02:25 PM

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42. "Yes but if I can pay my car debt off on time"
In response to Reply # 40


          

Then that should be an indicator that I can manage and pay off future car debt on time. This shows I’m a responsible lender.

Because obviously if I didn’t pay off my car debt on time or didn’t pay it off at all then my score would go down because the lenders would use that as an indicator I’m not responsible with debt.

  

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legsdiamond
Member since May 05th 2011
69888 posts
Wed Jun-09-21 02:33 PM

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43. "paying a debt off early should never be viewed as a risk to lenders"
In response to Reply # 40


          

the only risk is less money for them.. lol.

but if I pay my car off early how does that make me riskier than someone who has 5 more accounts paying the minimum wage each month?

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

  

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soulfunk
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Wed Jun-09-21 03:59 PM

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45. "It's one piece of the puzzle. "
In response to Reply # 43
Wed Jun-09-21 04:02 PM by soulfunk

  

          

From the credit reporting agency's perspective, they aren't looking at you as one holistic person that has a story involving all of your finances. They look at all of the separate aspects of your finances separately.

So from a matter of risk - your example of someone with more than 5 accounts paying the minimum each month is looked at in separate pieces. Only paying the minimum each month is an element of risk weighed much more heavily than the number of accounts they have.

Look at it from an apples to apples perspective. Person A has 10 accounts, with on time payments on all of them for 7 straight years, and a credit utilization of 5%. Person B has 9 accounts, with on on time payments on all of them for 7 straight years, and a credit utilization of 5%. Same amount of income, same average age of accounts, etc. All their computer cares about is that 1 extra account shows less risk in their ability to manage one additional payment every month.

Another way to look at it is that it's not that paying off the car makes you more risky, but that having an active account that is always paid on time (especially installment debt vs. revolving debt like a credit card) makes you less risky, so you get a boost while having that active installment loan that goes away once paid off.

  

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blkprinceMD05
Member since Nov 29th 2004
41277 posts
Wed Jun-09-21 04:07 PM

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48. "^^^^dat knowledge "
In response to Reply # 40


  

          

prototype

stand ur ground, believe in urself,
believe in love, prepare urself for love, remove the negativity from ur life, and accept the love u kno u deserve

  

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infin8
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Wed Jun-09-21 04:07 PM

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47. "LONG AS YOU OWE ME"
In response to Reply # 0


  

          

I'll never be broke.

yeah it's a dumb system...your worth is based on DEBT.

IG: amadu_me

"...Whateva, man..." (c) Redman

  

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Numba_33
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Wed Jun-09-21 04:12 PM

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49. "A minor correction"
In response to Reply # 47


  

          

>yeah it's a dumb system...your worth is based on how well the monied interests can profit on your DEBT.


"Sean sparks like John Starks, nah, Sean ball like John Wall" - Rest In Power Forever Sean Price.

  

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viagramakesmeimpotent
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Fri Jun-11-21 03:37 AM

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50. "Tay Day"
In response to Reply # 0


  

          

https://youtu.be/tS7duHEX2l8

Founder of M.W.S
(Insert comment here) We insert all the time!

  

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