Community Chat

[I am still oxox]

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

[NYCLatinaMe]

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.

[Stray]

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.

[Biftu]

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.

[NYCLatinaMe]

@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.

[NYCLatinaMe]

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@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.

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@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.

[haddon9]

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.

[katie1859]

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.

[Lisa now in AZ]

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

[patbz]

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