What does credit score say about you?

Re: What does credit score say about you?

Postby Winchester » Fri Aug 05, 2016 1:03 am

Saz wrote:
Winchester wrote:Use credit when you need it, use it responsibly and make your payments timely and you'll have a good enough credit rating given enough time. To me a really high credit score is only important if one wants to take advantage of zero % interest on car loans other than that IMO it's pretty worthless. As long as you a decent score (doesn't have to be perfect) and your debt ratio is in the acceptable range one will qualify for the bigger loans such as a home mortgage. Not having a credit history at all is bad though when one wants a mortgage. It's not insurmountable but holy shit what a PITA.


It's important if you want to churn cards. Thousands of dollars on the table if you do it properly, and tens of thousands of you can do it to the point where you get a certain status at airlines or hotels. Getting harder and harder to do now though as CC compnies have been getting wise to it.

You will need 800+ for the best offers though, particularly us bank which is a huge bitch.


Meh, too much juggling for too little benefit. Status at airlines or hotels does nothing for me as I use both very, very infrequently.
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 1:10 am

Winchester wrote:
Saz wrote:Don't listen to him man, he is full of shit. Think about it. If all they cared about was using credit responsibly, why would having 0% utilisation (or having a card that you always have paid off on time but simply haven't used recently) decrease your score? There is nothing irrisponsible about that...and yet credit agencies want you to use the card at least some of the time...or use credit you may not actually want or need to use.

You saw it right the first time, trust your instincts on this. Don't listen to spider, the guy quote Bank of America as if they haven't f**k over million of responsible Americans like you.


I wonder what my score would be if I hadn't always paid off my credit card in full for ever? Seriously, I've probably only had a balance carry over half a dozen times over the last 25 years. Other than home mortgages I've only had 3 loans from banks in my entire life, one signature loan for $5,000 to pay for my then 5yo daughter's broken arm and 2 car loans (though I did co-sign on my younger son's car last year so he could get some credit). That's it.


Hard to say because the whole thing isn't transparent at all. That's why I laugh at spider talking about what goes into these algorithms. The truth is no one knows and despite lawsuit after lawsuit its apparent that reporting bureaus do not use a consistent method and lenders do not report your credit information consistently or accurately.

Like I said I recently ran a balance and took it off and from what I can tell it was about a 20 point bump for going from 0% to 5% utilisation. Sweet spot is probably around 10% so I'd guess it's 25-30 points at the max. Almost never worth it though because of the cost in interest, unless you are close to a certain threshold that a lender cares about and doing so will push you over.

Yea I have nothing but revolving credit and student debt and I've broken 800 a few times but it never stays up there. I have no clue how other debt is factored in but it's clear student debt is treated differently from bank loans. Generally not worth it to chase a credit score once you are past 800 as that should qualify you for just about anything. If you really want the lowest rates it's best to open a checking and savings account with a credit union and make some direct deposit in and payment out on a consistent basis. They usually give you a great rate if you have an account with them for years that you have been using. I put part of my pay check into accounts at three seep rate credit unions and pay my student loans out of that in the hope that if I need a mortgage I can go to them and say look, 800+ credit score banking account here for 10 years and then play the three off each other to get something super low. But again this could all be small peanuts compared to market conditions at the time.

Idk man I love playing with this shit though. I remember reading about virus berezofsky in like 7th grade and was fascinated he built an empire basically on credit spreads and inflation. More of a hobby for me still though unfortunately this isn't Russia in the 90s so gaming the market can only take you so far unless you have a fat stack to begin with.
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 1:13 am

Still trying to figure out what to do with this extra 50k I took out in student loans. Really need Hillary to drop the rates before the end of 2017 otherwise I could be wandering into losing territory lol
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 1:19 am

Winchester wrote:
Saz wrote:
Winchester wrote:Use credit when you need it, use it responsibly and make your payments timely and you'll have a good enough credit rating given enough time. To me a really high credit score is only important if one wants to take advantage of zero % interest on car loans other than that IMO it's pretty worthless. As long as you a decent score (doesn't have to be perfect) and your debt ratio is in the acceptable range one will qualify for the bigger loans such as a home mortgage. Not having a credit history at all is bad though when one wants a mortgage. It's not insurmountable but holy shit what a PITA.


It's important if you want to churn cards. Thousands of dollars on the table if you do it properly, and tens of thousands of you can do it to the point where you get a certain status at airlines or hotels. Getting harder and harder to do now though as CC compnies have been getting wise to it.

You will need 800+ for the best offers though, particularly us bank which is a huge bitch.


Meh, too much juggling for too little benefit. Status at airlines or hotels does nothing for me as I use both very, very infrequently.


Yea that's true, and it's rarely economical to do much else with the points. Still worth collecting I think as you can sell them. I would use my southwest miles and companion pass to fly friends around the country and then charge them a discounted fare lol

It's a good thing I'm not Jewish because I truly am every Jewish stereotype :))
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 1:47 am

Saz, lets recap how you went off the rails:

(Direct quotes)

Spider: "You don't have to carry a balance. As in, pay interest monthly on an outstanding amount. If you use revolving credit, but pay it off before the interest accrues, you are still "demonstrating active revolving credit management".

Saz: "No, you will not. Are you illiterate? The only possible way to do this without interest would be to have 0% APR cards continuously, but that would obviously bring down your age of credit since those sort of offers are only for new cardholders. You cannot use the card and then pay it off each month before the interest hits and still be seen to be demonstrating active revolving management over a significant period.

That is the problem here. We're talking about revolving credit.
You believe that it doesn't register as usage unless you've paid interest on it.
That is simply not correct.

Honestly, the rest of your rant was insecure trolling and ad homs to be sure, so I didn't bother. This above is what I'm interested in because it actually falls into the scope of what I'm saying, as opposed to your efforts at obfuscation and goal post movement.

To be perfectly clear, my position is that you will develop payment history and utilization rate on your cards whether you carry a balance to the extreme of actually paying interest on it or not.
That's it. That simple. That and nothing else.

I know this because my usage and payment histories are all perfectly consistent despite the fact that I haven't paid a cent of interest since I was a teenager.

Is it possible that there is still something you do not understand in all of this?
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 1:52 am

Winchester wrote:
I wonder what my score would be if I hadn't always paid off my credit card in full for ever? Seriously, I've probably only had a balance carry over half a dozen times over the last 25 years. Other than home mortgages I've only had 3 loans from banks in my entire life, one signature loan for $5,000 to pay for my then 5yo daughter's broken arm and 2 car loans (though I did co-sign on my younger son's car last year so he could get some credit). That's it.


Your situation sounds similar to mine, and I'm betting we've got very similar credit situations. Yours of course will be better by virtue of age if nothing else, however. :)
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 2:03 am

And Saz, maybe this will help. Maybe this guy explains it better:

For example... let's say you have two credit cards, each with $10,000 lines of credit, and let's say that you regularly charge $5K - $7K per month in total on these credit cards, but you always pay the statements in full. (Many people charge ALL their monthly expenses for rewards points - and I don't blame them.)

You then receive your statements between the 6th and 12th the following month, and you proudly pay your entire balance. By paying your statement in full, obviously you pay no interest. However, what you may not realize, is the both of these credit card issuers already reported to the credit bureaus the same day they generated the statement. Thus... when a potential lender pulls your credit report, you will have a 25-35% debt to credit limit ratio, AKA, "credit card utilization rate."


See how that works? Even though you are paying in full, even though you are avoiding interest, the credit bureaus are still registering that activity, it is still being factored into your utilization rate, etc etc.

So. Just as I said...no interest, yet still pasted all over your credit reports. I repeat. You DO NOT have to pay interest to gain the benefit of using that credit. That so many people seem to think you do is f**k sad, and a waste of god knows how much money.
Last edited by Spider on Fri Aug 05, 2016 2:13 am, edited 1 time in total.
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 2:13 am

You believe that it doesn't register as usage unless you've paid interest on it.
That is simply not correct.

No I do not you dipshit. Have you not read? It always registers as usage, my point is that over a SIGNIFICANT PERIOD your lender will report your utilisation on the same day it is paid off, sending the credit bureau the message that your utilisation is zero. Various lenders, chase in particular, will vary their reporting dates to ensure that you have 0 utilisation if you are paying off every month.

Jesus Christ you are so dumb you can't even understand the point here, which is about two levels past the basic utilisation shit you are talking about. Go back to credit cards.com you moron, this is exactly why you didn't respond to the rest of my post because you are 100% out of your depth.

Of course you didn't bother, you are wrong and so you just keep repeating the same shit about utilisation as if you are the only one that can read credit karma.

My position has been perfectly clear, you will never have an 800+ credit score without paying interest. No one gives a shit about your internet tips on how to get to 750, the point is regardless of what you do you will never have excellent 800+ credit unless you have paid interest somewhere to someone. Get out of this thread you are an amateur and giving bad advice.
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Re: What does credit score say about you?

Postby Saz » Fri Aug 05, 2016 2:16 am

Spider wrote:And Saz, maybe this will help. Maybe this guy explains it better:

For example... let's say you have two credit cards, each with $10,000 lines of credit, and let's say that you regularly charge $5K - $7K per month in total on these credit cards, but you always pay the statements in full. (Many people charge ALL their monthly expenses for rewards points - and I don't blame them.)

You then receive your statements between the 6th and 12th the following month, and you proudly pay your entire balance. By paying your statement in full, obviously you pay no interest. However, what you may not realize, is the both of these credit card issuers already reported to the credit bureaus the same day they generated the statement. Thus... when a potential lender pulls your credit report, you will have a 25-35% debt to credit limit ratio, AKA, "credit card utilization rate."


See how that works? Even though you are paying in full, even though you are avoiding interest, the credit bureaus are still registering that activity, it is still being factored into your utilization rate, etc etc.

So. Just as I said...no interest, yet still pasted all over your credit reports. I repeat. You DO NOT have to pay interest to gain the benefit of using that credit. That so many people seem to think you do is f**k sad, and a waste of god knows how much money.


Yes, like this example. But what happens if the lender does not report to the credit bureau on the date of the statement, and instead reports on the day after you make your payment in full. Come on little guy, give it a shot. What would your utilisation be if the lender reported on the day you paid and not the final statement date?

You are like a virgin trying to teach Hefner how to f**k. Out would be amusing if the advice wasn't so awful and ruinous to third parties.
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Re: What does credit score say about you?

Postby Spider » Fri Aug 05, 2016 2:28 am

Saz wrote:
No I do not you dipshit. Have you not read? It always registers as usage, my point is that over a SIGNIFICANT PERIOD your lender will report your utilisation on the same day it is paid off, sending the credit bureau the message that your utilisation is zero.


So when does that start exactly? I've got reporting clear back to the f**k 90's and it hasn't happened to me yet. You know jack shit, kid. My utilization as reported by the CB's varies exactly with my actual usage, regardless of when I pay so long as I'm paying on time.

So where exactly do you get the idea that you have to pay interest. Because I sure as shit didn't. And if you got conned into it somehow, that sucks for you, but all of us adults living here in reality know waaay better.

You said you have to pay interest to benefit from revolving credit. You've been quoted saying it. We all know from common knowledge and long personal experience that its not true. Now stop pussing out and own it.


Various lenders, chase in particular, will vary their reporting dates to ensure that you have 0 utilisation if you are paying off every month.


I've had 2 accounts open with chase for a very long time. When is this going to start happening, Saz? When will the magical CB conspiracy finally strike me?

Jesus Christ you are so dumb you can't even understand the point here, which is about two levels past the basic utilisation shit you are talking about. Go back to credit cards.com you moron, this is exactly why you didn't respond to the rest of my post because you are 100% out of your depth.

Of course you didn't bother, you are wrong and so you just keep repeating the same shit about utilisation as if you are the only one that can read credit karma.

My position has been perfectly clear, you will never have an 800+ credit score without paying interest. No one gives a shit about your internet tips on how to get to 750, the point is regardless of what you do you will never have excellent 800+ credit unless you have paid interest somewhere to someone. Get out of this thread you are an amateur and giving bad advice.


Blah blah ignorant childish child bitching and crying, feeling so damned insecure at this latest internet thrashing...blah blah....inadequacy complex, cry moar, etc etc....or insert whatever internet trash talk is suitable these days. :popcorn:
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