Low Debt = Poor Credit Rating?!

 
cabinover
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Post by cabinover » Mon. Dec. 16, 2019 4:05 pm

Sunny Boy wrote:
Mon. Dec. 16, 2019 10:01 am
Most people view credit scoring wrong.

It's not a rating of how good you are at not being in debt, it's a rating of how much the CC companies think they can make money off your spending habits.

Paul
Explain just how that works? We carry no debt besides our mortgage. Our cards are paid off the Saturday after they arrive in full every time. They give me 2% cash back. So I guess they are making 1% from my spending?

How would that translate to a higher credit score if they really don't make much off of us?

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Post by KLook » Mon. Dec. 16, 2019 7:54 pm

Just tried to borrow $5000, cash needed in my business. Rating over 820, 59 years old, own multiple properties, New truck, wife new car, She makes more then I do.....nothing doing....0 credit card debt.

Kevin

 
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Post by cabinover » Mon. Dec. 16, 2019 8:09 pm

And they wouldn't do it Kevin? How friggin stupid is that? You have no CC debt so therefore you are a bad risk...priceless.

It reminds me of someone going bankrupt. Before the ink has dried they go from no mail to 20 CC offers the next day. Even from the same CC companies that were filed on.

 
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Post by grumpy » Mon. Dec. 16, 2019 8:18 pm

I put everything on my Amex Business card, when I was working I put 50K or more a year through it, no credit limit, no interest, no firm due date.

I still use it for everything, yet it does not show up on my credit report, wondering if I should find out why and get it on there.. I have a so so credit rating, I have no debt, no loans no nothing..

I just started putting my utility bills on my Visa, I had that for backup for those who do not take amex, never really use it.

So now I'll pay it every month and take the points, maybe it will improve my rating, not that I really care but ya never know..

 
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Post by CorrosionMan » Mon. Dec. 16, 2019 11:35 pm

KLook wrote:
Mon. Dec. 16, 2019 7:54 pm
Just tried to borrow $5000, cash needed in my business. Rating over 820, 59 years old, own multiple properties, New truck, wife new car, She makes more then I do.....nothing doing....0 credit card debt.

Kevin
Not knowing any details and not having any intention of telling you how to run your business, but I'd do business with a much better business partner.... Id even go as far as telling the fu(ks ... "You're fired!"

 
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KLook
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Post by KLook » Tue. Dec. 17, 2019 8:20 am

I just pulled it out of a joint money market account with my wife and moved on. I am almost to the point of buying a $40,000 CNC and will finance it anyways I can except with the banks. Just purchased a $3300 line and hinge boring machine and the company let us pay for it in installments.

Kevin

 
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Post by joethemechanic » Wed. Jan. 22, 2020 9:07 am

I haven't used my credit for anything in over a decade, I even bought this building/property cash after selling another that was paid off. I'm scared to even look at my credit score now

 
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Post by freetown fred » Wed. Jan. 22, 2020 9:15 am

Yep, they don't want ya doin cash deals--no interest involved!!! :(

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Post by joethemechanic » Wed. Jan. 22, 2020 10:26 am

freetown fred wrote:
Wed. Jan. 22, 2020 9:15 am
Yep, they don't want ya doin cash deals--no interest involved!!! :(
Yeah I'm a later Boomer (almost 60) and I can remember a time when nobody had credit cards. People had mortgages, and maybe a car loan, but that was about it. And I grew up in a nice suburb with big homes, not to mention most our parents had vacation homes at the Jersey Shore or Upstate Pa. Everybody's dad had a good union job or owned a small business, most of the mothers stayed home, and I never saw anyone use a credit card until I was in my late teens and started working at my uncle's garage/gas station. My first impression of credit cards was they seemed rather sketchy

 
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Post by freetown fred » Wed. Jan. 22, 2020 10:44 am

Hopefully Long Beach Island at the Jersey shore!!! LOL

 
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Post by joethemechanic » Wed. Jan. 22, 2020 11:10 am

Some even had summer homes on the water with docks or slips. My uncle had one in Stone harbor with a dock, My buddy's dad had one in Shipbottom on the beach. When I see the prices of those places now it's unbelievable

 
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Post by lincolnmania » Wed. Jan. 22, 2020 1:43 pm

i ended up in the hospital in 2013 and had some medical bills i could not pay that went to collections. i had two self paid surgeries before i got disability. i owed the hospital 53 thousand dollars from being in the icu for a few weeks.
late 2014 i wanted a newer more reliable car. i went to a dealer that assured me anyone could get a loan, i had 2000 dollars cash down payment, i still got denied the loan. i had my mother cosign the loan and i still got denied. ended up putting the car in her name. i had no credit score at all.

about a yr and a half ago i went to my bank to get a secured credit card. i gave them a 1000 dollar deposit.
about a week after that i got a letter from the bank denying the secured card. they put my 1000 dollars in a savings account. still credit score of 0.

there were 2 medical collections on my credit report totalling about 4000 dollars in 2018 both written off the last loan i had was paid off in 1999 (no idea what happened to the 53 grand bill....maybe social security took care of that?

i took 200 dollars and sent it to capital one for a secured charge card.
i got approved right away with a 400 dollar limit. i used the card every month for gas or fast food and pay it off when the bill comes. that brought my credit score to 508

they raised my limit to 1000 dollars six months later. then i got approved for a second capital one card, this one unsecured. it was a 300 dollar limit. they raised it to 500 dollars after six months. got a home depot card a few months ago to save 50 dollars on a pair of doors, that dropped my score 80 points but it went even higher in 2 months
just checked my credit score this morning, it's at 717
i'm 48, i don't work full time, no mortgage. the two collections will be off my credit report by the end of the year.

 
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Post by NoSmoke » Sat. Feb. 15, 2020 5:56 am

Katie and I have probably the poorest credit there is, and yet when we get notifications that it went down, we cheer! We have some, but are slowly paying that down, right now being at 7% debt in terms of debt to asset ratios, and that is real estate debt, and not consumer debt.

Credit is based on debt. There are various ways the devise that score, but it is all based on debt.

The whole system is messed up. Like I could not go to a bank and buy a Kubota tractor on credit to save my katukus,...but I could buy five of them with cash! That is just how messed up the system is. Think about it: that is really, really messed up!

Katie and I feel so blessed since we realized really what a credit score really is (debt). It has been so liberating to rid ourselves of that because it is just nothingness.

Why live a life trying get a favorable number from an entity that has no clue about you and who constantly change the rules of the game anyway? The sad part is, there is a way out of all of that, but people do not chose to take it. All I can say is, it is extremely liberating.

 
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Post by NoSmoke » Sat. Feb. 15, 2020 6:09 am

How is it liberating?

Last year the guy I was mowing for did some paving and had cars driving around his automatic red-lights. He asked me if I would flag for him. I said sure. People later asked me how I could do that?

It was easy. I am getting paid $25 and hour, knowing people in those cars think I am a third class citizen for doing so. But I know the truth, and that 85% of people do not even have $1000 in the bank, and live paycheck to paycheck.

I might be stopping a Brain Surgeon in a BMW with stop paddle board for an excavator in the road, but there is a 85% chance that I have more money than that doctor in the BMW. In fact, I probably have more money than 85 out of the 100 cars that pass by me.

I can be there flagging traffic, or I do not have to be, but when you realize how little money people have in this country because they are so debt-laden, that is when you realize how liberating it is not having debt.

 
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Post by freetown fred » Sat. Feb. 15, 2020 7:44 am

More money huh?????????? I guess we all set our own goals in life. If it was me as brain surgeon & someone's life was hanging in limbo--all you or that excavator woulda seen is my tail-lights & you'd best of gotten out of the way!! Just sayin

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