Calling all credit card and credit score buffs..

[Danman]

Originally posted by: Vic

Originally posted by: conjur
Below 15% is where you want to be. MyFICO.com even says so.

Also, check out this graph of scores vs. utilization:
http://www.creditboards.com/images/ficogrph1.JPG

I lost respect for creditboards a long time ago, and for good reason. The blind lead the blind in questionable legality.
And though that graph says "myfico.com" on it, it's not on the website. Is it something that comes with a premium package?

I'm not disputing what you're saying, that going above 15% utilization could have a small impact on one's score, but according to the graph, the impact was neglible across the board, an average of less than 20 points. The OP's score dropped 11.6%, or 86 points, consistent with nearly 100% utilization according to that graph.

Interesting. Damn credit card companies. I'm gonna see how it changes in the next month to see what happens. This is just scaring me....

 

[Epoman]

Originally posted by: RossMAN

Originally posted by: conjur

Originally posted by: RossMAN
Ouch I'd be sh!tting bricks if that happened to me.

Fortunately my credit score is already a crappy 634 or around there

Geez, Ross...that's not much higher than mine and I'm less than two years out of my BK.

Ok now I feel like SHIYATE and I've never declared BK!

Yeah but you got 50,000+ posts. So you is teh winnar!!!!1

 

[Argo]

What I don't understand is how come assets play no role in your credit score. Somebody with 50k debt and 60k in assets is a lot less likely to default that a person with 50k in debt and only 10k assets.

 

[welst10]

Credit bureaus suck. I have never checked my credit reports until this month when I was denied a credit card application. Then I requested a copy from each of the 3 agencies. Turned out Experian screwed me big time. Get this - Experian put credit history of another person of my name under my account together with my own history. So instead of 1 mortgage, I have 2 mortgates (mine + the other person's) and many more credit cards. Equifax is pretty accurate tho.

 

[spacejamz]

Originally posted by: welst10
Credit bureaus suck. I have never checked my credit reports until this month when I was denied a credit card application. Then I requested a copy from each of the 3 agencies. Turned out Experian screwed me big time. Get this - Experian put credit history of another person of my name under my account together with my own history. So instead of 1 mortgage, I have 2 mortgates (mine + the other person's) and many more credit cards. Equifax is pretty accurate tho.

how is that the credit bureau's (Experian's) fault? They only report what is provided to them which now is usually on some file they receive from the creditors (i.e, the people at Experian don't manually key in the data to their system)...They are not responsible for ensuring what they receive is accurate.

Unless you are living under a rock, it has been been pretty well publicized to check your credit score regularly to make sure there are no mistakes on it as well as to make sure you are not the victim of identify theft.

 

[Budmantom]

Originally posted by: welst10
Credit bureaus suck. I have never checked my credit reports until this month when I was denied a credit card application. Then I requested a copy from each of the 3 agencies. Turned out Experian screwed me big time. Get this - Experian put credit history of another person of my name under my account together with my own history. So instead of 1 mortgage, I have 2 mortgates (mine + the other person's) and many more credit cards. Equifax is pretty accurate tho.

That's bad when they won't give you an application



Tom

 

[Budmantom]

Originally posted by: kranky
I think too many people freak about their credit scores. It has little to do with your day-to-day life.

If you're going to apply for a mortgage or loan, then take appropriate steps to make sure everything looks good. Other than that, quit worrying about it. Live your life. What's the point of having credit that you can't use in the way you want to because your actions might cause a temporary blip in your score?

There's enough stuff to worry about as it is.

Agreed!



Tom

 

[spacejamz]

I think too many people freak about their credit scores. It has little to do with your day-to-day life.

IMO, people think their score is a static number that doesn't change much...

ALL of your creditors report your balances, limits and whether you are on time or not each month. As each one is processed by the credit bureau throughout the month, your score may change.

one other misconception I see alot are utilites, cable, cell phones ,etc affecting credit scores. Unless they are turned into a collection agency for severe delinquencies, paying it late (even as much as a month) won't drop your score (not sure about you guys, but I have never seen my cable, phone or gas company payment/credit information on any of my credit scores)... (I always forgot to my pay my landline bill - I usually end up paying two months worth every other month and my score is around 750)...

 

[Vic]

Originally posted by: Argo
What I don't understand is how come assets play no role in your credit score. Somebody with 50k debt and 60k in assets is a lot less likely to default that a person with 50k in debt and only 10k assets.

Assets are not reported to credit bureaus, nor would I want them to as that would be a serious invasion of privacy IMO. As the APR on debts is generally higher than the APY on assets, it is generally assumed that a person with excellent assets would keep their debts to a minimal level. And when you apply for a mortgage, almost all lenders require some assets be documented for approval, and the better the assets the better the approval (generally).
IMO the documentation of assets is better on a lender level than on a credit bureau level. Do you really want your funds and accounts tracked by the bureaus?

 

[Ranger X]

Your score should rise once you pay off the amount. My roommate had about 10k in debt from a one time business purchase and he happened to pull up his credit score when he had that amount on his credit card. His score was lower but it should be back to normal now that everything was paid off.

 

[virtueixi]

Logic dictates that if you pay off a large balance, your credit score should go up. But credit bureaus lack logic.

 

[Syringer]

So is there any reason to use a credit card other than just paying with a check card?

 

[welst10]

Originally posted by: spacejamz

Originally posted by: welst10
Credit bureaus suck. I have never checked my credit reports until this month when I was denied a credit card application. Then I requested a copy from each of the 3 agencies. Turned out Experian screwed me big time. Get this - Experian put credit history of another person of my name under my account together with my own history. So instead of 1 mortgage, I have 2 mortgates (mine + the other person's) and many more credit cards. Equifax is pretty accurate tho.

how is that the credit bureau's (Experian's) fault? They only report what is provided to them which now is usually on some file they receive from the creditors (i.e, the people at Experian don't manually key in the data to their system)...They are not responsible for ensuring what they receive is accurate.

Unless you are living under a rock, it has been been pretty well publicized to check your credit score regularly to make sure there are no mistakes on it as well as to make sure you are not the victim of identify theft.

I don't think you understand. That other person has the same name but different ssn. It's not reporting error. There was no error in reporting each person's ssn. I called experian and they said their system incorrectly linked his account with mine.

 

[conjur]

Originally posted by: Syringer
So is there any reason to use a credit card other than just paying with a check card?

For buying expensive spiders.





Sorry...couldn't resist.

 

[Vic]

Originally posted by: virtueixi
Logic dictates that if you pay off a large balance, your credit score should go up. But credit bureaus lack logic.

For the record, the 3 credit bureaus do not calculate your credit score, nor did they create the mathematical model that your score is based on. Fair Isaac & Co (FICO) does/did that.

And the scoring system is extremely logical. Most people just don't know how it works or what its purpose is.

 

[iamwiz82]

Originally posted by: Syringer
So is there any reason to use a credit card other than just paying with a check card?

Cash back from rewards

 

[Danman]

Originally posted by: Syringer
So is there any reason to use a credit card other than just paying with a check card?

Umm...why would I use my own money for business purchases? That doesn't make sense.

 

[Dulanic]

Originally posted by: iamwiz82

Originally posted by: Syringer
So is there any reason to use a credit card other than just paying with a check card?

Cash back from rewards

Exactly, rewards are wonderful. I end up with a few hundred a year in rewards.