topic Re: Credit Score in Community Chat

Credit Score

Jordan2 — Sat, 29 Jun 2024 13:54:01 GMT

I have a very good credit score, but I have noticed it has gone down by about five or six points in recent months. I haven't done anything differently, I pay my bills in full on time. I haven't applied for any new credit cards, so I haven't been turned down by a credit card company. One of my cards did lower my spending limit so that could be the reason for my change of my score. Should I be concerned about this?

Re: Credit Score

katie1859 — Sat, 29 Jun 2024 14:06:38 GMT

Credit scores are nothing more than a reflection of DEBT. Perhaps your score reflects the lack of debt you have, which is a VERY GOOD THING.

Our society relies on credit, they rely on credit score as a safety net.

What you should be concerned about is that you are worried about your score and not the debt reflection.

I made a point to wipe out all my debt, end the credit score cycle and load up on savings instead. When you do that, you can purchase whatever it is you need and pay for whatever it is that you should. Debt will become a cycle of draining money esp in a economic free fall the country is in.

You were reduced in credit because you're not buying on it and making money for the company that holds your card. Banks are failing, companies are loaded with debt.

Capitol One just ended their relationship with the Walmart card because of 8 billion dollars of unpaid consumer debt

Re: Credit Score

Meowingkitty — Sat, 29 Jun 2024 14:36:25 GMT

My credit score is 826 and we have zero debt. No car payment, no mortgage and we only use one credit card that we pay of monthly. It goes up and down a few points here and there but I don't worry about it.

Re: Credit Score

Carolina925 — Sat, 29 Jun 2024 14:50:59 GMT

Mine goes up and down without any reason that I can see. I have a mortgage and one credit card. I've kept the new charges paid off, keeping a small balance on the card account, so really don't know why these ratings fluctuate. I've considered paying off the credit card but have a friend who had paid off her mortgage, car, and credit card debt. When she wanted to purchase a new car, the bank wouldn't approve because they said she didn't have any credit! I wouldn't be concerned about 5 or 6 points.

Re: Credit Score

Bri369 — Sat, 29 Jun 2024 15:01:12 GMT

It fluctuates a little from time to time. I think unless you're planning a large purchase like a house, it should be fine. I would be concerned if it was a large drop.

Re: Credit Score

songbird — Sat, 29 Jun 2024 15:09:17 GMT

Mine stays the same in the 800's. Sometimes it goes up, and sometimes down a little. Most of the time it stays the same. No mortgage either. And we lease cars.

Re: Credit Score

Carmie — Sat, 29 Jun 2024 15:12:10 GMT

I wouldn't worry about it. My credit score goes up and down a few points every few months.

We/I have zero debt and pay all CC off in full each month. One credit card I share with my DH has a balance of $1000 to $3000+ each month. It is always paid off in full, but it never looks like the balance goes down because we put reaccuring charges on it.

My credit score is higher by about 10 points than my husband's, but we are both in the same boat financially, with no debt. I can't figure that one out.

Re: Credit Score

Tori3569 — Sat, 29 Jun 2024 15:14:26 GMT

If a card lowered your credit limit that is probably why your score went down. Amount of open credit does affect one's credit score.

Re: Credit Score

katie1859 — Sat, 29 Jun 2024 19:49:46 GMT

Your credit score reflects what you were paying on.

Mortgage

Car payment

Medical bills

Utilities

Credit cards

So IF your house is paid for

If your cars are paid for, if you have no medical debt

If you pay your utilities

Chances are ....you use credit cards and in every cycle of payment you are paying in FULL..... THEREFORE , You are in a holding status

Re: Credit Score

ECBG — Sat, 29 Jun 2024 16:04:32 GMT

When we went to buy me a car last summer, we almost had trouble because DH had paid cash for his and we paid off our mortgage.

Re: Credit Score

I am still oxox — Sat, 29 Jun 2024 16:53:48 GMT

Mine changes like the seasons, we carry no debt, have no mortgage or car payments, I am not sure I understand why is changes by a few points

Re: Credit Score

NYCLatinaMe — Sat, 29 Jun 2024 18:26:46 GMT

I wouldn't worry about small changes in credit score unless you are shopping for a mortgage or something like that.

With regards to the change in the spending limit, I remember at some point after I paid off a bank credit card balance, my spending limit in that card went down significantly. I didn't notice it right away because I had not been using the card. I mentioned this to a friend who is a high level bank official, and she told me that bank had cut spending limits for ALL cards. The bank told me if I wanted to, I could ask them to increase the limit, but since I didn't need the credit, I just left it alone. I use the card within my limit, because as ECBG mentions, if one doesn't use one's credit, that is also a basis to reduce credit scores. Consumers never win with banks.

During the 2008 banking crisis, I had a reduction in my spending limit in a different credit card that I was carrying a balance, and again, I think that was something that they did to everybody because of the banking crisis. There had been no changes in my finances. At that time, I had to make an unplanned larger payment because my balance was above the newly reduced spending limit. As soon as I could, I paid off my entire balance and stopped maintaining a balance, because it had never occurred to me they would change my limit because the banking industry was in trouble. (They raised my spending limit again later, without my asking.)

So my guess is with interest rates so high now, they are reducing spending limits just to make sure people don't let their balances grow, and then become unable to pay them due to higher interest rates.

I think it's probably a good time to avoid carrying a balance unless absolutely necessary, with interest rates so high.

Re: Credit Score

Stray — Sat, 29 Jun 2024 18:42:17 GMT

Mine goes up and down. I have no debt & only use 3% of my available credit. I notice that when I travel & charge my flights & vacation arrangements, my score drops five or six points. When I pay it off the next billing cycle, it goes up 5 or six points. Chase closed my CC account for lack of use. But my credit score good & is up there in the 800s somewhere; I don’t worry about the score as I don’t plan on any big debt or purchases or than vacay.

Re: Credit Score

Biftu — Sat, 29 Jun 2024 18:52:00 GMT

You all seem to know and follow your credit score. How? Do you request it, which I know you can do. Last time I saw mine was over 25 years ago with a home purchase. I'm curious what mine is.

Re: Credit Score

NYCLatinaMe — Sat, 29 Jun 2024 19:14:51 GMT

@katie1859

The United States economy is very strong and the envy of the world, and it is growing. Economies are measured based on gross domestic product (GDP), which is an estimate of the total value of goods and services produced within the country’s borders at a period in time. Per capita is per person.

The United States GDP per capita is currently around $85,000. The GDP for the European countries is currently around $50,000 per capita. The GDP for China, which people here refer to often, is around $13,000 per capita.

The strength of the US economy compared to the rest of the world is one of the reasons why international tourism to the US has not completely bounced back to pre-pandemic levels, the US dollar is very strong compared to the rest of the world, the other countries have not had a recovery as strong as the US. Therefore, travel to the US is relatively costlier than it used to be.

The US unemployment rate is currently about 4%, the lowest rate since the year 2000.

When the economy is growing, it increases demand for goods and services, which unfortunately causes the Fed to increase interest rates. So for people on fixed incomes, increased costs are hard.

Re: Credit Score

NYCLatinaMe — Sat, 29 Jun 2024 19:12:57 GMT

@Biftu wrote:
You all seem to know and follow your credit score. How? Do you request it, which I know you can do. Last time I saw mine was over 25 years ago with a home purchase. I'm curious what mine is.

@Biftu You can Google "how to get credit report" and there are answers there. The United States website tells you how to get a report for free. Experian is also source of information. Some people have credit monitoring services. I know banks and identity protection companies offer them, so you can sign up for a service like that.

Re: Credit Score

haddon9 — Sat, 29 Jun 2024 19:28:41 GMT

I have also noticed that mine has gone up & down by a few points every other month or so. I have not done anything different.

I pay my bills on time in full. I haven't taken out any new credit or closed up an account.

It's a mystery to me.

Re: Credit Score

katie1859 — Sat, 29 Jun 2024 19:45:19 GMT

The US is not strong other than gold and my inclination is to believe you live in the soft bubble of the media.

Banks are failing and the CPI suggests American households have resorted to credit to carry beyond what their incomes can pay for

The latest ratings suggest mortgages and car loans are both delinquent by as much as 4 MNS., and the FED just approved a plan for FHA Sallie and Freddie Mac equity loans in mortgages to help the average homeowner.

The unemployment rate is status and elevated.

So wherever you are getting you lame news, is incorrect.

BRICS has decided not to take the American dollar so unless you have bars of gold in your retirement package your sense of security is way off.

Re: Credit Score

Lisa now in AZ — Sat, 29 Jun 2024 20:20:51 GMT

@Biftu, my bank tells me my FICO score every month. Maybe check to see if yours offer that.

Re: Credit Score

patbz — Sat, 29 Jun 2024 21:38:13 GMT

@Biftu: I enrolled in Credit Karma ( its free) and I check mine daily ( I'm in 800s).