Low Debt = Poor Credit Rating?!

Post by **anthony7812** » Sat. Mar. 18, 2017 10:44 pm

Im used to seeing my credit rating 800+. The mrs was doing pre vacation planning for next winter and needed to run our credit. I have only 2 or 3 cards and 0 balance on them. My score was mid 700's. I was kinda confused. Come to find out these wack nuts want to see more credit and healthy balance transactions ( use it and pay it). I was always under the impression debt free is the way to be, but this seems to be not the case. Any suggestions folks???

Post by **Richard S.** » Sat. Mar. 18, 2017 11:26 pm

Don't feel bad, at the age of 30 when I took over the coal business I decided to get my first CC card that would of been tied to my business bank account. I always paid cash and no loans..... Denied. LOL This was before they were handing them out like candy.

I took the letter to the guy at the bank and he found it humorous himself because he knew how much was going through the account. I actually ended up having to get my Father to cosign for it.

Post by **cabinover** » Sun. Mar. 19, 2017 7:15 am

The whole CC/financial score thing doesn't make much sense. We have a bunch of CC that are not used however cancelling them drops your credit score. Common sense would have one think that if a person has, say $100K, available credit that could be utilized in 5 minutes of buying they'd be a higher risk than someone that has one CC and a $15K limit.

There are several other reasons for the 3 major reporting companies to raise/lower your score. Average age of credit, total amount of credit available, revolving (store cards) history...and the list goes on. And most times the 3 companies aren't in total agreement either.

We use a CC to pay for almost everything, earning 2% back on everything we buy. If it doesn't bother merchants, I'll take it back for me.

Post by **coaledsweat** » Sun. Mar. 19, 2017 7:46 am

Even if you use it and pay the balance evey month it is a big zero because it lacks a history to make a judgement from. They are lost without a paper trail.

Post by **CorrosionMan** » Sun. Dec. 15, 2019 11:07 pm

I'd suggest keeping a balance on a zero percent card. I do and my score never goes below 780, usually around 800.

Post by **fig** » Mon. Dec. 16, 2019 1:01 am

Zero percent? Didn’t know there was such a creature.

Post by **CorrosionMan** » Mon. Dec. 16, 2019 1:25 am

There are a number of them. But only upto 21 months. Then payoff or xfer over to a new one.

The ding on the credit for a new account, so far to me, is less than the benefit of carrying a balance that is kept current.

Post by **Hambden Bob** » Mon. Dec. 16, 2019 7:10 am

'Tis a Strange and Nonsensical Concept to those of Us that felt avoiding the "Golden Handcuffs" of Unsecured and/or Secured Debt was a Wise Way to operate! In this case,We definitely need to have a working grasp of how Modern Credit Operating Practices affect Us. Thanx for this Thread,Mates!

Post by **CorrosionMan** » Mon. Dec. 16, 2019 8:23 am

But then, I don't ever remember a situation where a score above 760 did me any good.

Post by **Sunny Boy** » 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

Post by **KingCoal** » Mon. Dec. 16, 2019 10:16 am

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

this x2. regardless of the scoring criteria it has always seemed to me we are better off with no more than monthly use on cards.

we use one for my wifes business expenses while out of town and one for vehicle gas and expenses and both are paid off the day after the invoice arrives in the mail.

.02 worth

Post by **hotblast1357** » Mon. Dec. 16, 2019 11:54 am

We use a credit card for all expenses, food groceries gas everything, and pay it off every due date, no interest, we are young, 29 and 27, and consider ourselves to not have much debt, Only payments are house, two vehicles, and a tractor, and “they” rank both our credit at above 830.

Post by **CoalJockey** » Mon. Dec. 16, 2019 12:35 pm

We now cash flow the entire program here. I usually carry $60 in cash on me and figure if it can’t be purchased with that it is not needed.

We each have a bank card but they are only used as a means to pay electronically. We have used Credit cards in the past but 2 years ago we went on a quest to get out of debt and not to get back in. There are currently none.

I’m 34 and she is 31, the only thing owed on is this house and the previous mansion is paid off. I’m on track to have this one paid for in less than 10 years. So far the credit ratings are still over 800 but I expect that they would fall off after a period of time, right?

Post by **Qtown1835** » Mon. Dec. 16, 2019 2:00 pm

CoalJockey wrote: ↑Mon. Dec. 16, 2019 12:35 pm

We each have a bank card but they are only used as a means to pay electronically. We have used Credit cards in the past but 2 years ago we went on a quest to get out of debt and not to get back in. There are currently none.

Heading the same direction here.

Post by **cabinover** » Mon. Dec. 16, 2019 4:01 pm

coaledsweat wrote: ↑Sun. Mar. 19, 2017 7:46 am Even if you use it and pay the balance evey month it is a big zero because it lacks a history to make a judgement from. They are lost without a paper trail.

Not true. We pay off every month and the only thing seems to change my score of around 815 is what percentage of credit I've used the month previously. From a normal 3% to a high 6% for business or extras will drop my score by 5 points or so. Takes a couple months to bring it back up but it does. Don't really care though, doesn't matter to me at this point. I don't see myself buying a new house or anything in the future.