Why does buying something bring down your credit s... - Page 2

Allegheny · ‎03-19-2010

As long as I'm the the 800s and it only fluctuates a few points I don't try to figure it out or obsess about it. There are so many factors that can affect credit scores anymore it makes my head spin. I don't like the fact that credit scores influence so much, like car insurance rates, etc.

I'd love to see my Uncle's credit score. He has never had any credit cards or loans. So basically he has little to no credit history. At his age he doesn't understand it nor does he care, he has enough money to last him a few lifetimes.

151949 · ‎03-09-2010

My point is - if your credit score is in the 820's and you go and make a large purchase - and don't even take a loan for the entire value of the purchase - it should not bring down your score. If your crediut score is high and you have a history of paying your bills you should not get penalized for making a purchase. I don't think they calculate these credit scores as they should.They have taken something that is very simple and made it very complicated.

I had an Uncle who passed away a couple years ago, he was a rocket scientist - literally , he worked for NASA - and he would often say even a rocket scientist can't figure out how they do these numbers.

BlingQueen022 · ‎09-23-2012

I never had my credit score go down at all after making a major purchase. My score is over 800 and I get zero percent financing from Toyota every time I buy a car from them and that's usually every three years. I'm not retired so maybe that makes a difference not sure.

itiswhatitis · ‎05-27-2016

@151949 wrote:
My point is - if your credit score is in the 820's and you go and make a large purchase - and don't even take a loan for the entire value of the purchase - it should not bring down your score. If your crediut score is high and you have a history of paying your bills you should not get penalized for making a purchase. I don't think they calculate these credit scores as they should.They have taken something that is very simple and made it very complicated.

get over it. They're not considering the part that's not financed. They're considering the amount that you borrowed on top of whatever else you got going on! It shouldn't....it shouldn't? It does, it does! Lobby your congressional officers for a change to the methods of calculating FICO scores.

*Call Tyrone*

151949 · ‎03-09-2010

@BlingQueen022 Actually, they either give those 0% financing deals or they discount it off the sticker price. It is all just where they give the money back.

pdlinda · ‎10-23-2011

My credit score is 830 and I always keep a small balance on the 2 cards I use as that's what I was advised to do years ago.

Some sector of the economy must be financially benefitting from this "mumbo-jumbo" of the FICO scores. I wonder who that is???

I agree it shouldn't be so confusing and complicated.

151949 · ‎03-09-2010

@pdlinda wrote:
My credit score is 830 and I always keep a small balance on the 2 cards I use as that's what I was advised to do years ago.

Some sector of the economy must be financially benefitting from this "mumbo-jumbo" of the FICO scores. I wonder who that is???

I agree it shouldn't be so confusing and complicated.

The problem with "keeping a small balance" is they charge the interest on the entire total on the card every month so if you keep $100 balance they are charging you interest on that balance month after month after month. However, I have also been told by my neice who is a bank VP that it does raise your credit rate to keep a balance.

KathyPet · ‎03-09-2010

Your score may have dropped not because you actually borrowed money for the car but simply because your lender inquired on your credit history. INquiries from potential new credit grantors can affect your score a little bit.

itiswhatitis · ‎05-27-2016

@pdlinda wrote:
My credit score is 830 and I always keep a small balance on the 2 cards I use as that's what I was advised to do years ago.

Some sector of the economy must be financially benefitting from this "mumbo-jumbo" of the FICO scores. I wonder who that is???

I agree it shouldn't be so confusing and complicated.

@pdlinda Oh, rich people like Suze Orman and the banks that give you loans! Credit (no matter who is espousing the principles = extra income for the bank or finance agency). Believe that. Got a credit card with a 15% APR? Not too bad. How about those store cards with APRs of 23% and more? Grrrr. We sit confused while they make billions to extend to other rich people in the form of credit.

*Call Tyrone*

151949 · ‎03-09-2010

@KathyPet wrote:
Your score may have dropped not because you actually borrowed money for the car but simply because your lender inquired on your credit history. INquiries from potential new credit grantors can affect your score a little bit.

And we had several inquires I bet because DH looked at several different cars all summer long, and spoke to many salesman before deciding what he wanted to buy. It was kinda his summer hobby this year. He couldn't wait for the 2017's to come out and then it ended up we bought a 2016 and got a great discount for buying a left over from 2016.