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I accidentally stumbled on the secret. Last time we bought a car the young lady said ours was 840-something. 850 is the highest possible.
I can't tell you the secret because I don't know exactly what we did right. I didn't think I made enough money to get in that range. My wife pays all the bills and I reckon she's been doing a good job of it!
 

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Add one it drops - cancel one it could drop -

Max one out it drops - pay one off and cancel it - it could drop -

Like I said - this stuff can and does cut both ways - you really can't say this is always the thing to do to raise your score.

But I do know how lenders view this stuff - take my opinion or leave it I don't care.
I never said nor implied that adding credit cards would raise your score in the short term. I never said canceling a credit card would not potentially drop your score. I never said maxing out a credit card would not drop your score.

I know how things work because I know my credit scores and I know how they are impacted from month to month based on what I do.

I know that a low % credit utilization is good for your score whether your available credit is $20,000 or $200,000. I know that 0% credit utilization is better than 10%.

I know that every time you apply for a new credit card or for a loan your score will drop for a while.

I know that canceling your oldest credit cards will probably negatively impact your score.

I know that having a mix of credit cards and revolving credit is generally better for your score than having no active revolving credit.

I know that using credit cards responsibly (paying them off in full every month) and using cards that have cash back of 2-5% on your purchases saves you money versus paying for everything in cash.

I know that a lot of people don’t understand these things and I know a lot of people who borrow money they can’t pay back and wonder why their cars and houses are repossessed.
 

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Every time you apply for a new credit card your score drops a bit. After a while it will come back up. I seriously thought everyone knew that.
Same thing if you apply for a car loan or other loan, known as. “hard hit” and slightly impacts your score for usually two years then drops off. Auto finance guys at the dealerships are famous for shopping for rates and checking with several lenders, maybe 5-6 minor hits to your score can add up.
 

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I accidentally stumbled on the secret. Last time we bought a car the young lady said ours was 840-something. 850 is the highest possible.
I can't tell you the secret because I don't know exactly what we did right. I didn't think I made enough money to get in that range. My wife pays all the bills and I reckon she's been doing a good job of it!
Income does not affect credit score. It will affect how much you can borrow.
 

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Same thing if you apply for a car loan or other loan, known as. “hard hit” and slightly impacts your score for usually two years then drops off. Auto finance guys at the dealerships are famous for shopping for rates and checking with several lenders, maybe 5-6 minor hits to your score can add up.
Several inquiries of different lenders for one loan should only result in one “hard” hit. If it results in several, it should be disputed with the credit reporting agency.
 

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I don't think you understand. FICO is not a score of intelligent and responsible use of money, or good financial decision making.

It is a score of how you manage and deal with credit to help people who lend money make better decisions themselves.

The less credit you have the lower your score.
Not many understand this. I explain to people that it shows how a person manages debt.
 

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It is a wonky calculation though. My score fluctuates between 815 and 835, depending how much I charged that month, even though I pay it all off at the end of every month.

Score.JPG



But, because I'm always shopping for the best deal on cards and financing, they ding me on account age.

Score Details.JPG


I could see being sketchy about it for someone who doesn't have more than a couple years of credit history. But if you have decades, why does this even matter?

Whatevs. If people will give you a loan at a decent rate, don't worry about it.
 

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It is a wonky calculation though. My score fluctuates between 815 and 835, depending how much I charged that month, even though I pay it all off at the end of every month.

View attachment 851270


But, because I'm always shopping for the best deal on cards and financing, they ding me on account age.

View attachment 851272

I could see being sketchy about it for someone who doesn't have more than a couple years of credit history. But if you have decades, why does this even matter?

Whatevs. If people will give you a loan at a decent rate, don't worry about it.
Most credit card companies report your balance monthly on their closing date. If you have a balance on closing but then pay it off in total before the due date, your credit report will only reflect the balance at closing. For the best credit utilization you have to have a zero balance on all credit cards on their closing dates, not on the payment due date. But really it isn’t going to make a lot of difference- it isn’t like missing a payment and generally would not impact credit utilization much. Of course there are always exceptions like if you have a low credit limit and make a big purchase that shows up on your closing balance even though you pay it all off prior to the payment due date.
 

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Everything I own is paid for. I went to the bank to get a line of credit. We were doing an addition and wanted a little flexibility. Despite having paid off everything, being totally caught up on all debts, and with a 6-figure income, I was refused because I didn’t have loans or credit cards active.

I told them to get bent...
Whomever made that credit decision against you is a fool.
 

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I got credit ratings as a come on for a program I used...........I liked how that every time a vehicle got paid off, my score dropped and of course they "suggested" keeping a line of credit going. I buy cars that last, not ones that are lucky to only last until the final payment. That eliminates the Not-so-Big Three.
 

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To get the best possible score:

Payments: 100% on time
Revolving Credit Utilization: Around 2 or 3% (actually better than 0%)
Age: The more age, the better

Beyond that, it's just a few points here and there.

I went from CRAP ~550 to GREAT ~730 in about a year. It's not hard if you know how to game the system.
 

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they want everybody in debt so they make more money. i always make straight payments making my credit score like a statue (not moving up or down).
 

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Several inquiries of different lenders for one loan should only result in one “hard” hit. If it results in several, it should be disputed with the credit reporting agency.
In theory you are absolutely right, but it happens and it can be hard to almost impossible to dispute.
 

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Why bother. There are always the haters that have nothing positive to say about his program.
When I was thinking of getting rid of my credit cards and sticking to debit only, I worried about being able to rent a car, but Dollar takes debit and has all the same cars the others do.
 

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Credit Karma does not matter.

When the dealer shops for lowest rate, regardless of how many places he asks, these should only end up being one hit for the credit inquiries. If that exercise resulted in multiple hits I would suggest you dispute with the three reporting agencies.
Well what should happen and what happens are not always the same thing. For all I know the insurance company is lying to charge a higher rate? The bottom line is people that actually try to have good credit and pay their bills get screwed. I just got my property tax bill and as I was driving around potholes in the crap neighborhood where the early voting poll is located, I wondered why I was paying thru the nose. In TX, we have no state income tax so property taxes are really high. A lot of school buildings aren't being used now. You think the comptroller is gonna refund that money back to taxpayers? They are no better than the folks at the 3 credit bureaus.
 

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My parents died not having any credit. They financed their house in 1946 and paid it off in 1960. They wouldn’t buy a car till they saved up the money and paid cash. They had a couple credit cards, but paid ‘em every month.
Depression kids.
 
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Why bother. There are always the haters that have nothing positive to say about his program.
Ramsey helps a lot of people but he is not the end all be all in handling your finances. The reality is some debt is a good to have to build your credit. The problem is most people aren't happy with that and want what the neighbors have. I invested in 4 multi family properties. We sold one and are investing in 2 more. I ended up doing a refi on mortgage to invest in 1 property. Now Ramsey would definitely be against that. If I get a 20% return on investment (that was off the 1st property) than the 3% on the mortgage is not that big of a deal. The refi provided liquidity I did not have to make another investment. We might end up making more on the actual property we used the refi for but we are at least a year out on selling it. The quarterly distribution is nice though. Once we sell, we'll find another and do it all over again.
 
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