credit advice

[soccerballtux]

been taking time off used some 8% cash advances not ready to work yet make almost 6 figures amex cut my limit from $20k to $13k when score dropped to 699. Was 810+ before I started this finding-myself journey, this limit cut potentially is interfering with my plans especially if other mastercard providers do the same didn't know this could happen always make payments never late can pay back easily when decide to get a job and the last job I turned down was contracting for over $50/hour because, IMO, I cannot represent that, but I can represent $40/hour and will likely get something around there.

will this happen to my other cards? I think Amex cutting my limit killed my score by 50 points immediately. I intend to call them and discuss with an underwriter. I can deal with this but it's an inconvenience and they're going to lose money from me. I am a statistically divergent card holder but annoying me like this will cause me to pay down theirs first and not use them for the next 5 years. That's potentially $24k/year's worth of purchases they're going to miss and, before this, I had been intending to pay them all down at equally at the same time, since creditors seem to prefer to see that instead of "ok last month this was at $13k, this month it's paid off" which is what I usually do because of a 'sense of accomplishment'.

I was planning on continuing what I've been working on for the next 3-5 months before this happened.

and I really don't care about 'from their perspective': they had an opportunity to make more money on me from the interest from the payments (on, up to $20k), now they're going to make less ($13k max and paid down immediately out of spite/annoyance).

 

[highland145]

debt free is the way to be.


punctuation is the way of the nation.


Good Lord, 24K.....


http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 

[OverVolt]

Use a personal line of credit instead of credit cards?

 

[LegendKiller]

been taking time off used some 8% cash advances not ready to work yet make almost 6 figures amex cut my limit from $20k to $13k when score dropped to 699. Was 810+ before I started this finding-myself journey, this limit cut potentially is interfering with my plans especially if other mastercard providers do the same didn't know this could happen always make payments never late can pay back easily when decide to get a job and the last job I turned down was contracting for over $50/hour because, IMO, I cannot represent that, but I can represent $40/hour and will likely get something around there.

will this happen to my other cards? I think Amex cutting my limit killed my score by 50 points immediately. I intend to call them and discuss with an underwriter. I can deal with this but it's an inconvenience and they're going to lose money from me. I am a statistically divergent card holder but annoying me like this will cause me to pay down theirs first and not use them for the next 5 years. That's potentially $24k/year's worth of purchases they're going to miss and, before this, I had been intending to pay them all down at equally at the same time, since creditors seem to prefer to see that instead of "ok last month this was at $13k, this month it's paid off" which is what I usually do because of a 'sense of accomplishment'.

I was planning on continuing what I've been working on for the next 3-5 months before this happened.

and I really don't care about 'from their perspective': they had an opportunity to make more money on me from the interest from the payments (on, up to $20k), now they're going to make less ($13k max and paid down immediately out of spite/annoyance).

Yes, it's their fault that you became a riskier borrower by borrowing uncontrollably, engaging in risky credit behavior, and taking out cash advances.

If you change your credit behavior they have every right to restrict credit and should exercise that right to protect themselves and their investors.

Stop being a little bitch. They don't give a shit about you "finding yourself".

 

[highland145]

Yes, it's their fault that you became a riskier borrower by borrowing uncontrollably, engaging in risky credit behavior, and taking out cash advances.

If you change your credit behavior they have every right to restrict credit and should exercise that right to protect themselves and their investors.

Stop being a little bitch. They don't give a shit about you "finding yourself".

Punctuation?



:biggrin:

 

[Exterous]

will this happen to my other cards?

Depends on the type of card and the credit company's stance on credit for that card but given on your current direction it wouldn't surprise me. Its not always about making money from you - its about the risk that you present to the company as a statistic. I would view this as an important sign post: You are so risky and on a course where Amex would rather cut your limit down and get less money from you than generate more money

they're going to lose money from me.

I don't think they will notice

 

[Ophir]

Are you high? Was that part of your vision quest?

Which do you think the CC companies fear more about your vision quest journey:

A) They will miss out on $24k/yr purchases
B) You decide you don't want to pay back your debts and declare bankruptcy, costing them $24k

Good luck with the underwriter, I'm sure he'll take your word that you're totally good for it.

 

[LegendKiller]

Are you high? Was that part of your vision quest?

Which do you think the CC companies fear more about your vision quest journey:

A) They will miss out on $24k/yr purchases
B) You decide you don't want to pay back your debts and declare bankruptcy, costing them $24k

Good luck with the underwriter, I'm sure he'll take your word that you're totally good for it.

He won't even get to talk to an "underwriter". He'll talk to a customer service rep who will tell them they can't do anything to help him because his risk has gone up.

Do you think they actually "underwrite" these manually? ROFL. It's all credit scorecard based, it has a million variables, all incorporating past behavior of individuals who have done everything this guy has done. It probably includes what purchases he has made, or at least where he has made them, so they even know his purchase behavior. People who use cards for cash advances are chucked into a riskier category, automatically. Plug his FICO score into that too. Thus, the computer model sees him as a probable deadbeat and calculates a shitty internal scorecard which tells them to drop his credit line.

An "underwriter" can't fix that, because they have no power. The model makes the decisions, they just read the output. They can't fix stupid.

 

[Svnla]

How your credit score is being calculated (5 components) = http://www.myfico.com/crediteducation/whatsinyourscore.aspx

OP, you look like to be a higher credit risk to AE because of your cash advance usage and your higher utility rate of credit. And anything below 700 FICO is not good.

 

[LegendKiller]

How your credit score is being calculated (5 components) = http://www.myfico.com/crediteducation/whatsinyourscore.aspx

OP, you look like to be a higher credit risk to AE because of your cash advance usage and your higher utility rate of credit. And anything below 700 FICO is not good.

FICO score has limited input into the credit models of most banks. The vast majority of it are inputs such as borrowing/spending behaviors, time in residence, time on job, car type. They pull data from data aggregators, anything that is publicly available, some of it they pay for.

Lenders have become much more sophisticated in how they lend and whom they lend to. Capital One led the charge into Big Data and they have become much more careful since the crisis. After the CARD Act they can't risk based price, or proactively and broadly reprice the portfolio/borrowers much anymore so they just cut off risk. This is why most of the credit card companies have achieved ultra-low default rates while having all-time high finance charges.

The remaining borrowers now have to go to lower-end (higher rate, lower limit) cards or get personal loans from the likes of Springleaf (or OneMain, which is being acquired by Springleaf) or Discover Personal Loans. That or paydays.

699 is still a prime borrower, it's not horrible.

 

[Ophir]

He won't even get to talk to an "underwriter". He'll talk to a customer service rep who will tell them they can't do anything to help him because his risk has gone up.

Do you think they actually "underwrite" these manually? ROFL.

Ha! It had never occurred to me how they underwrite CC debt. After you point it out, it's laughable to think there'd be any personal oversight over each of the millions of credit lines they service.

So I revise my final statement: Good luck with the underwriter computer model you have no chance of interacting with, I'm sure he'll it'll take your word that you're totally good for it.

 

[pete6032]

How many months of emergency fund did you have saved up before you quit your old job?

 

[LegendKiller]

Ha! It had never occurred to me how they underwrite CC debt. After you point it out, it's laughable to think there'd be any personal oversight over each of the millions of credit lines they service.

So I revise my final statement: Good luck with the underwriter computer model you have no chance of interacting with, I'm sure he'll it'll take your word that you're totally good for it.

Yeah, the # of financial institutions that actually manually underwrite debt is interesting. Anything that has been commoditized has been reduced to statistical analysis of hundreds of variables. One of the biggest reasons why they have unmodeled defaults still is just change in life (death, divorce, disability).

 

[Svnla]

699 is still a prime borrower, it's not horrible.

He is at 699 for "now" but I bet it will go down even more if he continues to do the same thing(s) with his credit card(s). He is at the lower scale of "good credit". Anything below 700 deserves a closer look IMO.

Every lender sets its own standards for what constitutes a “good” FICO score. But, in general, FICO scores fall along the following lines:

300-629: Bad credit
630-689: Average/fair credit
690-719: Good credit
720 and up: Excellent credit

I like to keep all of my scores in the mid to upper 700s range or higher and stay that way.

 

[soccerballtux]

Use a personal line of credit instead of credit cards?

can't you not get those without a job?

 

[soccerballtux]

Yes, it's their fault that you became a riskier borrower by borrowing uncontrollably, engaging in risky credit behavior, and taking out cash advances.

If you change your credit behavior they have every right to restrict credit and should exercise that right to protect themselves and their investors.

Stop being a little bitch. They don't give a shit about you "finding yourself".

borrowing uncontrollably?

and I didn't take out the advances with them.

Like I said, the point is they don't get to make money off me now. Out of spite, I have considered paying it off and closing it within the same phone call if they wish to be uncooperative.

 

[soccerballtux]

Are you high? Was that part of your vision quest?

Which do you think the CC companies fear more about your vision quest journey:

A) They will miss out on $24k/yr purchases
B) You decide you don't want to pay back your debts and declare bankruptcy, costing them $24k

Good luck with the underwriter, I'm sure he'll take your word that you're totally good for it.

why the hell would I do that? way too inconvenient

 

[soccerballtux]

He won't even get to talk to an "underwriter". He'll talk to a customer service rep who will tell them they can't do anything to help him because his risk has gone up.

Do you think they actually "underwrite" these manually? ROFL. It's all credit scorecard based, it has a million variables, all incorporating past behavior of individuals who have done everything this guy has done. It probably includes what purchases he has made, or at least where he has made them, so they even know his purchase behavior. People who use cards for cash advances are chucked into a riskier category, automatically. Plug his FICO score into that too. Thus, the computer model sees him as a probable deadbeat and calculates a shitty internal scorecard which tells them to drop his credit line.

An "underwriter" can't fix that, because they have no power. The model makes the decisions, they just read the output. They can't fix stupid.

I've done it before for my last car purchase without a job when 'their model' said not to so that throws the rest of your comment out the window.

 

[soccerballtux]

How your credit score is being calculated (5 components) = http://www.myfico.com/crediteducation/whatsinyourscore.aspx

OP, you look like to be a higher credit risk to AE because of your cash advance usage and your higher utility rate of credit. And anything below 700 FICO is not good.

does the CA show up to them if it was on another MC/non Amex that they don't see?

I can pay all of this down in a year. From there, how long does it take my credit to return to >800?

also: your sig rule #2 is something I recently learned

 

[soccerballtux]

FICO score has limited input into the credit models of most banks. The vast majority of it are inputs such as borrowing/spending behaviors, time in residence, time on job, car type. They pull data from data aggregators, anything that is publicly available, some of it they pay for.

Lenders have become much more sophisticated in how they lend and whom they lend to. Capital One led the charge into Big Data and they have become much more careful since the crisis. After the CARD Act they can't risk based price, or proactively and broadly reprice the portfolio/borrowers much anymore so they just cut off risk. This is why most of the credit card companies have achieved ultra-low default rates while having all-time high finance charges.

The remaining borrowers now have to go to lower-end (higher rate, lower limit) cards or get personal loans from the likes of Springleaf (or OneMain, which is being acquired by Springleaf) or Discover Personal Loans. That or paydays.

699 is still a prime borrower, it's not horrible.

it's 650 now AFAICT, I believe it tanked immediately due to the limit cut from $20k to $13.1k

 

[soccerballtux]

How many months of emergency fund did you have saved up before you quit your old job?

$30k. I major burned out due to serious abuse from previous company. I didn't expect it to take this long, it's coming up on 2 years. I've almost gotten to the bottom of it, and wanted to, because once you get to the bottom of it all, you can carry it all

and I don't actually prefer to spend $2k/month, I was being persuasive. It's more around $1300, but recently since I started cooking for myself, it's down a lot maybe to $6-800. At $500 rent/utilities, I can put a lot away every month

 

[MongGrel]

He is at 699 for "now" but I bet it will go down even more if he continues to do the same thing(s) with his credit card(s). He is at the lower scale of "good credit". Anything below 700 deserves a closer look IMO.



I like to keep all of my scores in the mid to upper 700s range or higher and stay that way.

+1

Sometimes things take a bit of time to adjust also, if you're actively changing things of course.

 

[soccerballtux]

Yeah, the # of financial institutions that actually manually underwrite debt is interesting. Anything that has been commoditized has been reduced to statistical analysis of hundreds of variables. One of the biggest reasons why they have unmodeled defaults still is just change in life (death, divorce, disability).

their statistical models lead to 2008.
I am statistically divergent and make it difficult for them to operate.
Their behavior is statistically divergent from what I have come to expect from them and it's making it difficult for me to operate.
See the parallel?
The spread between the two exists because 'they have power'
the 'burden of the unpredictable' shit flows down the power hill.

 

[soccerballtux]

+1

Sometimes things take a bit of time to adjust also, if you're actively changing things of course.

why wouldn't you be at 800+? there's nothing hard about that. I didn't even have an auto loan or rent on my credit when I hit that. Just take a new credit offer every year and keep your cards paid off.

 

[MongGrel]

News to me.

So tell me how to get to 800.