My opps living debt free with one credit card.

[IndyColtsFan]

Pretty sure that's a myth. I always pay it to zero and my Credit Karma score is 873. Slightly down from 879 in 2020 but probably because I increased my overall credit usage due to buying land. Makes no sense to hang on to high interest credit. Even if I don't have the money in the bank I pay it off with credit line.

I do have a 34k balance on my credit line now but that's because of my truck and land that I bought. I paid a chunk of it with my ESP account but I want to wait to see how hard of a tax hit I take for taking out that much money at once before I pay off the rest. I technically have enough to pay it off fully.

Once that's paid off I'll probably raise my mortgage payment a bit too. I lowered it a while back knowing I was buying land. I want to work towards being debt free before I put too much money into my new land.

Hint: Credit Karma score != FICO score.

 

[Red Squirrel]

Hint: Credit Karma score != FICO score.

Not sure how to find that one out, but pretty sure Credit Karma just amalgamates all main scores like Equifax etc together so it's still a pretty good indicator.

Either way once you are past a certain number anything higher does not matter much. If paying CC to 0 affected it mine would be super low because I always pay it to 0.

 

[IndyColtsFan]

Not sure how to find that one out, but pretty sure Credit Karma just amalgamates all main scores like Equifax etc together so it's still a pretty good indicator.

Either way once you are past a certain number anything higher does not matter much. If paying CC to 0 affected it mine would be super low because I always pay it to 0.

FICO max is 850.

 

[ultimatebob]

Not sure how to find that one out, but pretty sure Credit Karma just amalgamates all main scores like Equifax etc together so it's still a pretty good indicator.

Either way once you are past a certain number anything higher does not matter much. If paying CC to 0 affected it mine would be super low because I always pay it to 0.

CreditKarma uses a different scoring model called VantageScore. Like I mentioned on one of my last posts, I actually like it better than FICO because it doesn't seem to penalize things like a short sale as harshly as FICO does. If you're buying a house or getting a car loan, FICO is probably what they're going to use to check credit worthiness.

I believe that CreditKarma scores used to go up to 900, but now they cap out at 850:

FICO® scores vs. credit scores: What’s the difference?

FICO scores are commonly used, but they’re not the only credit score out there. Here’s what to know about your FICO scores vs. other credit scores.

www.creditkarma.com

 

[Thump553]

My credit score has been at or above 800 for at least the last thirty years, and I ALWAYS been every one of my cards off in full every month (unless it was one of those no interest for a year deals). OP is making a number of mistakes, first and foremost is only having one credit card. Everyone one should have at least two cards, one of which should be used one, then paid in full never to be used again (except once in a great while to keep the lender from canceling it). That card is strictly for REAL financial emergencies.

OP is in dire need of some basic education in personal finances. This could be as easy as watching a few youtube videos.

 

[ultimatebob]

My credit score has been at or above 800 for at least the last thirty years, and I ALWAYS been every one of my cards off in full every month (unless it was one of those no interest for a year deals). OP is making a number of mistakes, first and foremost is only having one credit card. Everyone one should have at least two cards, one of which should be used one, then paid in full never to be used again (except once in a great while to keep the lender from canceling it). That card is strictly for REAL financial emergencies.

OP is in dire need of some basic education in personal finances. This could be as easy as watching a few youtube videos.

I always liked Suze Orman's stuff. She has a unique way of telling people that they're moronic with their finances without offending them

 

[Lost_in_the_HTTP]

CK used to have their own pretend model that was said to approximate the other two. At some point, there was a change and they now use one of the real ones.

I have access to Experian through one of my banks, so I get to see theirs. Another bank shows me a different one and two of my CCs show what I think is Vantage.

 

[manly]

I didn't read all the responses, but I'm surprised nobody has said that besides being incorrect about why his FICO is what it is, carrying a revolving balance on a credit card is one of the dumbest things a consumer can do. I don't mean having a (large) balance each month that you pay off in full. If you read between the lines, OP has purposely chosen to pay interest on a $9k balance.

If this is a rare thing, then no big deal. If revolving a balance in the thousands is a normal thing, you can bet the interest charges over time are very juicy for the card issuer.

FICO max is 850.

There are different FICO scores. Citi Cards shows me a FICO score for free, and it maxes out at 900. I've stopped checking it because it's not the traditional one that lenders look at.

 

[SKORPI0]

Here's how my scores shows up..

FICO
Experian = Equifax
Vantage = TransUnion

 

[Lost_in_the_HTTP]

"Getting a higher credit limit can help a credit score. The higher the credit limit on the credit card, the lower the utilization ratio average for all of a borrower's credit card accounts. The utilization ratio is the amount owed divided by the amount extended by the creditor and the lower it is the better a FICO rating, in general. So if a person has one credit card with a used balance of $500 and a limit of $1,000 as well as another with a used balance of $700 and $2,000 limit, the average ratio is 40 percent ($1,200 total used divided by $3,000 total limits). If the first credit card company raises the limit to $2,000, the ratio lowers to 30 percent, which could boost the FICO rating."

Credit score in the United States - Wikipedia

en.wikipedia.org

When you use less of what's available, you're seen as a better risk because you choose not to overextend yourself.

 

[waffleironhead]

Your lender didnt lower your credit score...the credit agency did.

 

[Lost_in_the_HTTP]

Synchrony sort of helped me out there without my asking. I opened a Lowes card to make a major purchase. Initial limit was something like $5,800 as I recall. Made a couple of smaller purchase first and paid the card off. The the big purchase, a little over $3,500

Within a few weeks, I got a notice thay had upped my limit to around $9,000 which lowered that use ratio.

 

[sdifox]

Op is not qualified to run a banana stand, let alone give financial advice.

 

[sdifox]

Gotta be in the game to play the game. My oldest card is Perk's age. 1942. Charge my vitamins every few months to keep it active.

So, don't close that 1993.

Wait what? You are from the 1920s? I guess loansharks live as long as the real sharks.

 

[olds]

I received a letter from my ONLY credit card that my rate is increasing due to one or more of 4 factors.
None of the categories were applicable.

So I called them, I got a " remote " agent working from a script.
I eventually asked for a manager, who was not available.

After all this I called my mother about Thanksgiving, and my call to my CCC.
She told me the same thing happened to her at Home Depot when she cancelled one of 3 cards.
( they were giving $20 dollars on each card - they didnt care how many apparently )
So, when she cancelled one, her credit rating dropped 100 points.

The only lender I had deliberately attacked my credit score, and raised my rate.
Hate is the only word I can deliver without profanity.

A hard lesson to learn.
Be warned.

I just bought a house and paid off (not closed) one CC and my score only went down 24 points.

 

[Hans Gruber]

I just bought a house and paid off (not closed) one CC and my score only went down 24 points.

Your home purchase is what knocked down your credit score 24 points. People think having a mortgage increases your credit. In many cases it lowers your score because of debt to income ratio.

 

[dasherHampton]

When I had big loans my credit score was perfect quite a few months over the past 5-7 years. Now that I've paid off

2 car loans
a furniture store card
my Best Buy card
and
let my Sears card with a $20000 balance lapse and get canceled
canceled my Barclaycard Elite World Traveler because they pissed me off (it had a $15000 limit)

my FICO score is stuck between approx 817-825. Every time it gets up to the mid 820's it drops down again.

 

[BarkingGhostar]

So, I just checked my FICO with Visa and MC. One uses a 900 point system and the other 850. The 850 dropped to 849 and the other dropped from 894 to 883. The one that changed the most was my Vantage score through Amex, on a 850 point system dropped from 850 to 822. The strange thing was the available credit went from $25K to $65K in the same one year. Mind you in the past 60-days I've refinanced my home and cashed out some equity and got a car loan processed. I thought it odd that the creditor with the biggest credit score change was also the one that greatly increased my line of credit. Beyond that, the Visa and MC credit-issuers both said what was effecting my scores were too many accounts open with balances, which they had said for the past five years. Odd considering the only thing I had not paid off was my mortgage and I've never held a balance on a plastic card.

 

[brianmanahan]

Op is not qualified to run a banana stand, let alone give financial advice.

but there's always money in the banana stand

 

[sdifox]

but there's always money in the banana stand

until you set fire to it

 

[Hail The Brain Slug]

OP doesn't seem to understand his credit union/card servicer didn't do squat to his credit, except report his now really high balance to the credit bureaus, which all credit servicers do.

The credit bureaus saw your now extremely high credit utilization rate and dinged your score because it's a red flag.

Victim complex much? "Attacked my credit". Consider educating yourself about how credit works in our society before posting again.

 

[Red Squirrel]

I did take a small hit adding 44k to my credit line myself (though I paid off around 30k shortly after), so yeah, credit utilization is a factor for sure.

I think it's hard to get to a point where the score goes low enough to affect you though. I only dropped a couple points myself.

Late payments are what really hurt you. As long as you pay your bills/debt it's hard to have bad credit.

 

[Noid]

I just bought a house and paid off (not closed) one CC and my score only went down 24 points.

Yep.
I'm laughing at all the derogatory aimed at me.

The rate they raised me to is still less than current offers I looked at so far.
It's just I was not aware of the invisible line.
( what dollar amount to go over on my ONLY card. )

I can't tell you how it feels to be debt free.
3 times in my life. All memorable.

Anyway, all those throwing insults can kiss my ass

 

[Hail The Brain Slug]

Yep.
I'm laughing at all the derogatory aimed at me.

The rate they raised me to is still less than current offers I looked at so far.
It's just I was not aware of the invisible line.
( what dollar amount to go over on my ONLY card. )

I can't tell you how it feels to be debt free.
3 times in my life. All memorable.

Anyway, all those throwing insults can kiss my ass

I see you didn't take my advice.

 

[Noid]

I see you didn't take my advice.

lol troll