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The system wants debt slaves so they punish those who resist.

At some point I expect the punishment to be more harsh as more drop out of the system.


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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.
I've booked trips to Hawaii with Hawaiian A/L, rented cars, condos, everything we wanted to do with my BofA debit.
 

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Utilizing your credit will help raise your credit scores, e.g., making your monthly mortgage payment on time and consistantly earns you trust with the lending institutions and your credit scores will increase as you're showing the banking institutions that you can be trusted with the money.

Using your credit card(s) on ocassion and paying them off in their entirety before their due date(s) will also raise your credit rating with all of the credit bureaus.

But once you no longer have a mortgage, or car payment, stop using your credit cards or they're cancelled by your banking institution - your credit rating will drop. I had one credit card quite unexpectedly cancelled due to inactivitiy even though there was a $1,500 balance on it, and my credit score tanked a full 45-50 points - just for having one less card. I about had a ****fit and immediately contacted my Credit Union, and they informed me of the small print of the contract...poor me :(

It took me a bit over a full year to raise my credit rating up to where it was prior, and now it's even higher since I've been exercising just one credit card; I make a charge then pay it off like clockwork before it's due. Use a credit card for when you don't have the cash on hand or you're making on-line purchases, and not for giving yourself loans. If you don't have the money for something and it's not an emergency then do without until such a time as you've saved up the money...then spend it! Be responsible.

Despite being retired early, on full Disability, and having no job, when I applied just this past year for a new credit card (to replace the one that'd been cancelled) through one of my local banks I was approved in less then 5 minutes, with a $9,900 credit limit. The eyes popped out of the girl who was doing my application when my approval quickly came up on her computer screen...apparently many of the indigenous/locals she deals with are credit risks.

So yeah the system sucks sometimes but it does work with you when you utilize it. So be smart and utilize it, even if you don't have to because life has a way of throwing that unexpected minkey (points for knowing the movie reference, LOL) wrench into our fine oiled machines, and having good credit can mean the difference between a low or higher interest rate on a loan, with the latter costing you more $$.
 

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Utilizing your credit will help raise your credit scores, e.g., making your monthly mortgage payment on time and consistantly earns you trust with the lending institutions and your credit scores will increase as you're showing the banking institutions that you can be trusted with the money.

Using your credit card(s) on ocassion and paying them off in their entirety before their due date(s) will also raise your credit rating with all of the credit bureaus.

But once you no longer have a mortgage, or car payment, stop using your credit cards or they're cancelled by your banking institution - your credit rating will drop. I had one credit card quite unexpectedly cancelled due to inactivitiy even though there was a $1,500 balance on it, and my credit score tanked a full 45-50 points - just for having one less card. I about had a ****fit and immediately contacted my Credit Union, and they informed me of the small print of the contract...poor me :(

It took me a bit over a full year to raise my credit rating up to where it was prior, and now it's even higher since I've been exercising just one credit card; I make a charge then pay it off like clockwork before it's due. Use a credit card for when you don't have the cash on hand or you're making on-line purchases, and not for giving yourself loans. If you don't have the money for something and it's not an emergency then do without until such a time as you've saved up the money...then spend it! Be responsible.

Despite being retired early, on full Disability, and having no job, when I applied just this past year for a new credit card (to replace the one that'd been cancelled) through one of my local banks I was approved in less then 5 minutes, with a $9,900 credit limit. The eyes popped out of the girl who was doing my application when my approval quickly came up on her computer screen...apparently many of the indigenous/locals she deals with are credit risks.

So yeah the system sucks sometimes but it does work with you when you utilize it. So be smart and utilize it, even if you don't have to because life has a way of throwing that unexpected minkey (points for knowing the movie reference, LOL) wrench into our fine oiled machines, and having good credit can mean the difference between a low or higher interest rate on a loan, with the latter costing you more $$.
No mortgage....no car loans...no loans of any kind. Alaska card for day to day expenses, paid every 2 weeks. How is it I have a FICO of 822??
 

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Not really, cell phone carriers look at it as well as prospective employers. There are probably others as well.
Believe insurance companies also look at it.
 

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There was an article in one of the sidebars to the internet news tonight, that had a headline of "How a zero balance on your credit card can hurt you" (Sorry I can't find it now for reference).
Then they go on to talk about having inactive accounts. There is a big difference in keeping a credit card balance at or near zero and not using an account. Whoever wrote the article did not understand the difference, as some here don't.
 

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My wife and I refinanced our mortgage and my credit score dropped 30 points and hers didn't go up or down. The whole system is something.
 

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There was an article in one of the sidebars to the internet news tonight, that had a headline of "How a zero balance on your credit card can hurt you" (Sorry I can't find it now for reference).
Then they go on to talk about having inactive accounts. There is a big difference in keeping a credit card balance at or near zero and not using an account. Whoever wrote the article did not understand the difference, as some here don't.

This is the article that said it
https://www.google.com/amp/s/www.foxbusiness.com/money/does-zero-balance-hurt-credit-score.amp

On the other hand
https://wallethub.com/edu/cs/credit-cards-without-balance/25555

:)
 

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No mortgage....no car loans...no loans of any kind. Alaska card for day to day expenses, paid every 2 weeks. How is it I have a FICO of 822??
Simple; you have an established credit history, you have and use a credit card regularly, and you pay the balance of that card in full ahead of time.

DrewBone seemed to imply that those that don't have a mortgage and other debt will suffer a lower score...maybe I'm an anomaly.
You're no anomaly and I implied nothing of the sort; I implied that if a person doesn't utilize/use their means of credit in some fashion the result for them will be ---> lower credit scores.
 

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The whole credit bureau system is a scam. I do not understand how they got it in place. They get all of your personal information without your permission and then use it to make decisions that affect your finances and you have minimal input to change.

I really don't understand why everyone did not go crazy and demand those Equifax weasels go to jail. I have to quit thinking about it before my blood pressure goes up.
Yeah, and YOU have to pay THEM so they won't sell it for profit that you don't see.

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The more the need, the less they're willing to give you and at a higher price.

The less you need, the more they're willing to give you, at a discount.

Need is the currency.

How much does it cost?

Well, how bad do you need it?
 
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Well, your score is lower than 850, so there’s your reason :)
;)

Less then 2% of the entire US population earns the perfect 850 FICO score, and they don't have to be millionaires to do it. They do it by carrying, using, and paying off each month 6 or more credit cards regularly, while actually spending less money (maintaining a low credit utilization of each card) then those with half the number of cards who utilize/use a higher % of their available credit.
 

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[QUOTE="Jack Ryan, postvehiclesney.
Don't borrow money.
Problem solved.
You know I completely forgot that Glock Talkers pay all cash for their houses and vehicles. I'll try to remember that in the future.[/QUOTE]
Apparently they don't ALL.

Thus explaining the debt complaints, student loan whiners, FICO worry warts. Funny how those are the same people purporting to be financial experts.
 

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They absolutely reward you with a better score by paying stuff off. The first place I bought i had a car loan with about 16 months left. The loan company told me to pay it down to 10 months left and the credit reporting agencies would consider it paid off. My score jumped overnight. Then once the loan funded it dropped again but within a year it rebounded enough to refinance at a better rate.

They arent going to reward you for carrying balances.too much risk you will walk away leaving them holding the bag.
 

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Paying off a loan early typically doesn't do much to your credit score but there are various factors. There are quite a few different FICO scoring systems used by different lending industries. You may get a different score applying for an auto loan than you do applying for a mortgage. Many of the free credit score sites use the Vantage score which barely any lenders use. Also once you hit 750-760 it really doesn't matter how much over that you are.

As was already said the credit score is for the lender to gauge the likelihood of you paying back the loan combined with how much money they can make off you. It's not just how responsible you are.
 
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