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My credit rating is falling!

rossowmnrossowmn Member Posts: 1,958 ✭✭✭

My credit card shows my monthly (FICO) credit rating. A few years ago I had a score of 820, which I thought was kinda cool. Then it went down to 807, which was still OK, I guess. Then it fell to 800 for a year or so, then to 796 for a few months, and now it has plunged to 774. At this rate I soon won't even be eligible to give myself a loan.

I was surprised until I figured out the reason for the drop is that, well, I just don't like to borrow and pay interest. I use one card that gives cash back, and I pay it off every month. It seems I would have to take out installment loans or carry credit-card balances or otherwise be in debt to get my score back up, but that feels nonsensical. I can't imagine any time I will need to borrow in the future, but it just feels sort of disheartening to see my once-excellent rating slip and slide simply because I try hard to be responsible with my finances.

OK, I get it. In a practical sense it should be a non-issue for me. Maybe I just like to whine about inconsequentials 🙄. But I wonder if any of you have experienced a similar situation.

Whine over. 😊


  • grdad45grdad45 Member Posts: 5,119 ✭✭✭✭

    Mine does the same thing. I don't worry about it, we NEVER pay any interest on our one credit card and have no loans to keep up with. I pay absolutely no attention to what that magic number falls or rises to. A few of years ago, we cancelled a couple of store credit cards. I got a notice that our CR dropped because of that. Big deal, NOT!

  • Ruger4meRuger4me Member, Moderator Posts: 2,708 ******

    Having a good score only matters if you intend to borrow money or sometimes insurance companies use credit scores to decide the rate you pay... Mine has dropped a little just like you say yours has although not that much. It has been between 830 and 820 for at least the last 15 years, when it drops below 825 I just buy something on my credit card instead of just paying cash and then pay it all off except maybe about 10 bucks and let that ride in to the next month then pay it off. If I ever get charged any interest it is less than a buck and it seems to show enough "activity" to get the score up again... I have no plans on any major purchases but I keep the score high just in case.

    It is fun to see the salesman's face sometimes when they assume and act like you can't afford something your asking about because of your jeans and T-shirt are old and then they run a quick check on your credit and say, Oh! you can get anything you want, at that point I usually just say no thanks...

  • KenK/84BravoKenK/84Bravo Member Posts: 9,910 ✭✭✭✭

    @grdad45, Nails it. I could care less about my "Credit Score." I do not borrow $$. Everything I own is paid for.

    About 10 years ago, when I bought my Jeep, I figured my Credit Score would be Awesome. I had paid back every loan I had ever had. Had purchased 3 houses in the past, all paid for. I paid cash for the house that I live in now, when I moved down. No Credit Cards, or debt of any kind. Imagine my surprise, when they came back to the table, to tell me my Credit was terrible, "because I did not have any loans or payments of any kind, for years." How Stupid is that. Live responsibly and within your means and watch your "Credit Score," plummet.

    Yeah, THAT makes Sense. 🤔

    Extreme NE TN/W NC ya'll. 😁

  • Mr. PerfectMr. Perfect Member, Moderator Posts: 64,670 ******

    Look at it this way. The credit score tells lenders how good (reliable) you are at borrowing and paying back. If you don't borrow and therefore don't pay back, they really don't have a way to gauge how good you are at it or how reliable you will be. Here's this guy who doesn't ever borrow money. Will he pay it back on time if he does? How can I know? They can make some guesses based on your income to debt ratio, so that is figured in as well, but on time repayment is very important to knowing if you're likely to repay what you owe. There are privacy laws (thankfully!) that prevent lenders from just searching you out and discovering how much you have in savings and other assets. They can only do that when you give them specific permission to, say on a loan application. But if you have lots of money in the bank and could pay off the entire balance, it begs the question: why do you need a loan? Other assets aren't as liquid and it's a big fight for them to get their money back from them. And if you don't have enough cash on hand to cover all of it, what measure do they have to determine whether you will pay them back? Credit score is that number.

    That's how it works.

    Some will die in hot pursuit
    And fiery auto crashes
    Some will die in hot pursuit
    While sifting through my ashes
    Some will fall in love with life
    And drink it from a fountain
    That is pouring like an avalanche
    Coming down the mountain
  • 4205raymond4205raymond Member Posts: 2,586 ✭✭✭✭

    Same thing here. I don't even bother to check it anymore.----------Ray

  • jimdeerejimdeere Member, Moderator Posts: 24,384 ******

    "sometimes insurance companies use credit scores to decide the rate you pay..."

    I haven't had an accident or ticket since 1977. That should matter way more than my unknown to me credit score.

  • Ruger4meRuger4me Member, Moderator Posts: 2,708 ******

    It should Jim. but in some states they get away with it...

  • mac10mac10 Member Posts: 2,258 ✭✭✭✭

    at my age dont need credit

  • danielgagedanielgage Member Posts: 10,312 ✭✭✭✭

    my went down too

  • cbxjeffcbxjeff Member Posts: 16,769 ✭✭✭✭
    edited January 27

    Interesting plan Ruger4me. I have no plans on ever taking out a loan but who knows. I check the first of every month and if I see it falling and if it does I'll start keeping a $25.00 or so running balance every month to see if that reverses the trend.

    It's too late for me, save yourself.
  • Floyd621Floyd621 Member Posts: 1,915 ✭✭✭✭

    No debt is bad debt.. ask me how I know...

  • buddybbuddyb Member Posts: 4,908 ✭✭✭✭

    I am in a billing dispute with with one of the national cable TV,internet,phone providers.They contend that I owe them money for something I didn't get. I agreed to pay for what I used but damned if I will give those bloodsuckers money for nothing.If it affects my credit score TS.

  • Floyd621Floyd621 Member Posts: 1,915 ✭✭✭✭

    Mine dropped into the 600's... when I asked why they said it was because I didn't owe for no debt is bad debt..

  • jimdeerejimdeere Member, Moderator Posts: 24,384 ******

    It all sounds like a scam, to me.

  • BrookwoodBrookwood Member, Moderator Posts: 12,024 ******

    IMO, Credit scores are a racket. I hate rackets!

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