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(International Business Times)   Your credit score is impacting your life   (ibtimes.com) divider line
    More: PSA, Credit score, credit score, Credit, Credit history, Good credit, Debt, credit cards, Credit card  
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1138 clicks; posted to Business » on 08 Dec 2021 at 4:10 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2021-12-08 5:14:21 AM  
Pfft. I'm a Farker, I pay everything in cash after I have saved for it.

// Soon to be this thread
 
2021-12-08 5:51:04 AM  
It's all a scam.
And I say this having an 830 credit score.
 
2021-12-08 6:14:39 AM  

Cajnik: Pfft. I'm a Farker, I pay everything in cash after I have saved for it.

// Soon to be this thread


How about: I wait until I have the money for it, charge it, and pay off the card immediately, thereby paying zero interest while warning 1-5% back.
 
2021-12-08 6:29:47 AM  
Pfft. My credit score is infinity divided by zero, and I have a mansion unt a yacht

Actually my fico dipped below 800 for the first time in years, because I have only two credit cards, they both have low balances, and I'm buying expensive gifts this year. I pay off the statement balance in full, but my float is inordinately high compared to the limit. So that dings me.

Also, since I have literally no debt at all and haven't for a while, that dings me too, paradoxically.

JK8Fan: It's all a scam.


The credit score is really a measure of how attractive you are to financiers as a prospect for making money for them. People like me who go out of their way to avoid paying a cent of interest are not attractive to them.
 
2021-12-08 6:51:18 AM  
You'd think havig little det and lots of income would be the key to good credit.
 
2021-12-08 6:53:01 AM  
No, credit scores were not "invented" in 1989.
 
2021-12-08 7:35:55 AM  
Step 1:  Invent something called a credit score.
Step 2:  Convince financiers that it is an accurate measure of creditworthiness.
Step 3:  Create an industry designed to charge people to monitor and improve their credit score.
Step 4:  PROFIT
 
2021-12-08 7:37:00 AM  
I'm a white male. I just walk into a bank and they give me bags of money.
 
2021-12-08 7:40:16 AM  

NewportBarGuy: I'm a white male. I just walk into a bank and they give me bags of money.


Fark user imageView Full Size
 
2021-12-08 7:50:22 AM  
I just ignored mine, and it went away.  You have to stop picking at it.  It lives for attention.
 
2021-12-08 7:51:40 AM  
BUT CHINA!!!!! HERP DERP DERP
 
2021-12-08 7:51:41 AM  
It's funny how such a massive industry worth trillions is based on such awful useless junk data.
 
2021-12-08 8:00:41 AM  

Rapmaster2000: No, credit scores were not "invented" in 1989.


I would say credit scores started with the medicis when they refused to relend money to people who didn't incur fees.
 
2021-12-08 8:06:52 AM  

H31N0US: The credit score is really a measure of how attractive you are to financiers as a prospect for making money for them. People like me who go out of their way to avoid paying a cent of interest are not attractive to them.


This is true. I have a high credit score and pay off CC balances every month and really only use the cards to get the miles. I applied for a credit card for a gas station, just their card not the Visa/MC version. I was denied. I called to ask why and they told me that it would cost them more to service the card than they would make money on interest because I pay everything off each month.
 
2021-12-08 8:09:29 AM  
I don't know and I don't care. Life is good.
 
2021-12-08 8:10:09 AM  

runwiz: Step 1:  Invent something called a credit score.
Step 2:  Convince financiers that it is an accurate measure of creditworthiness.
Step 3:  Create an industry designed to charge people to monitor and improve their credit score.
Step 4:  PROFIT


Actually, the history goes back to people wanting to buy things on credit from local retailers, and the retailers needing a way to know and track if people were likely to pay or not.
 
2021-12-08 8:10:43 AM  

Raider_dad: I don't know and I don't care. Life is good.


If life's been good, how fast does your Maserati go?
 
2021-12-08 8:15:43 AM  

hoodiowithtudio: Rapmaster2000: No, credit scores were not "invented" in 1989.

I would say credit scores started with the medicis when they refused to relend money to people who didn't incur fees.


Absolutely.  In the US, credit scoring that resembles what we see today goes back to at least 1870.  Lenders have always needed a way to evaluate borrowers.  n 1870, the lender asks you for references and the lender finds out from your references if you have a job, if you can pay, and if you've been paying.  The amount of information that went into creditworthiness became massive.  Your address, your race, your marital status, and so on were all used to evaluate credit by the late 1960s when Congress intervened and said you couldn't do that.  So credit scoring was introduced and it was tweaked.  The most common iteration is FICO from 1989, but Vantage is becoming more popular.  Prepare to read a meme in 20 years that credit scoring was invented in 2006 so this is all the fault of the Millennials.

Note in the above, the main critique of credit scoring is that it finds subtler ways to include race, martial status, etc. into credit scores.  This is true, but it's an improvement.
 
2021-12-08 8:18:42 AM  

desertfool: H31N0US: The credit score is really a measure of how attractive you are to financiers as a prospect for making money for them. People like me who go out of their way to avoid paying a cent of interest are not attractive to them.

This is true. I have a high credit score and pay off CC balances every month and really only use the cards to get the miles. I applied for a credit card for a gas station, just their card not the Visa/MC version. I was denied. I called to ask why and they told me that it would cost them more to service the card than they would make money on interest because I pay everything off each month.


It's a bit more complicated than that, and depends on the cards.

Credit card companies make money off of every transaction. They want high net-worth individuals not because they're going to run up big balances, but because of how much they'll make off of the transactions.

In fact, credit card companies don't like people who run up huge balances and take forever to pay because they're a liability on their financial statements - if they file bankruptcy, the credit card company is left holding the bag. Credit Card companies will shut down accounts of people who they believe are financial unstable.
 
2021-12-08 8:36:10 AM  
I don't have a mortgage or car payment so my mix of debt isn't "good enough" . Keeps me in the low 700's.

/It's a big sham the more I dig into it
 
2021-12-08 8:47:29 AM  
I cancelled a credit card that I haven't used in 20 years. My credit went down 70 points.
 
2021-12-08 8:52:13 AM  

hoodiowithtudio: Raider_dad: I don't know and I don't care. Life is good.

If life's been good, how fast does your Maserati go?


185 , OBVIOUSLY
 
2021-12-08 9:04:45 AM  
Not to brag, but my credit score is so amazingly high that it added inches to my penis length. In fact, it's such an awesome credit score that it did the same for my girlfriend!
 
2021-12-08 9:24:09 AM  
Score went up 20 points immediately following a hard inquiry. I can't explain it. Used to be there was a sort of "conventional wisdom" regarding the maintenance of a credit score. Now? I'm pretty sure they're just winging it. It feels totally arbitrary.
 
2021-12-08 9:40:23 AM  

H31N0US: The credit score is really a measure of how attractive you are to financiers as a prospect for making money for them. People like me who go out of their way to avoid paying a cent of interest are not attractive to them.


You would think people like you and me would be easy for lenders to spot and avoid. Maybe they do see us, but have data that a few percent of us stumble every year, and when we do, the interest and fees are spectacular? More likely, big lenders like including very low-risk accounts, as the active ones will still generate a decent stream of merchant fee income.

Whatever the case is, my wife & I have fantastic credit scores and never pay any credit card interest. Even our mortgages and car loans over the years have all had very low rates at the time. We get tons of offers for new accounts, and I think the only time we were ever declined was when we learned about the Chase 5/24 rule. Which does seem like it is meant to filter the people who game the system with signup bonuses.
 
2021-12-08 9:42:27 AM  

cefm: It's funny how such a massive industry worth trillions is based on such awful useless junk data.


Before the credit card companies went national, the only reason you ever needed a credit score was to buy a house.  They want to load you up with debt, because it's highly profitable.  Congress legalized national loan sharking operations, and it's been downhill ever since.
 
hej
2021-12-08 10:17:30 AM  
Good thing my credit score is awesome.
 
2021-12-08 10:50:07 AM  

thornhill: desertfool: H31N0US: The credit score is really a measure of how attractive you are to financiers as a prospect for making money for them. People like me who go out of their way to avoid paying a cent of interest are not attractive to them.

This is true. I have a high credit score and pay off CC balances every month and really only use the cards to get the miles. I applied for a credit card for a gas station, just their card not the Visa/MC version. I was denied. I called to ask why and they told me that it would cost them more to service the card than they would make money on interest because I pay everything off each month.

It's a bit more complicated than that, and depends on the cards.

Credit card companies make money off of every transaction. They want high net-worth individuals not because they're going to run up big balances, but because of how much they'll make off of the transactions.

In fact, credit card companies don't like people who run up huge balances and take forever to pay because they're a liability on their financial statements - if they file bankruptcy, the credit card company is left holding the bag. Credit Card companies will shut down accounts of people who they believe are financial unstable.


There's 3 kinds of people (and I guess a 4th kind of people who just don't use CCs at all or have credit scores so bad they can't get them, but that doesn't matter for this discussion)
A) Rich or middle-class people who throw money onto cards just for the points and pay them off every month.  This is me.
B) People who don't pay off their cards every month but meet at least the minimum
C) People who don't reliably even meet the minimum.

A they make money from the transaction fees.
B they make money from the ludicrous amount of interest they pay
C they make money from all the interest PLUS late fees

Unless you're straight up not paying and they have to take you to court, they're making money on you.

I'm sure they prefer B though.  Those people also tend to have the highest credit scores.  People with a mortgage, 2 or 3 car loans, a multitude of credit cards... as long as they reliably pay it?  Credit Score is off the charts AND credit card companies love them.
 
2021-12-08 10:52:06 AM  

JK8Fan: It's all a scam.
And I say this having an 830 credit score.



The system is rigged
--Bernie Sanders


Bankers would have everyone in debt if they had their way.  that way they can live off debtor interest payments and not have to get a real job.
 
2021-12-08 10:55:04 AM  

Marcus Aurelius: cefm: It's funny how such a massive industry worth trillions is based on such awful useless junk data.

Before the credit card companies went national, the only reason you ever needed a credit score was to buy a house.  They want to load you up with debt, because it's highly profitable.  Congress legalized national loan sharking operations, and it's been downhill ever since.



in 10 to 20 years, public, decentralized, open source, peer to peer Blockchains will remove banker middle men from the middle, for the most part.

nothing is going to stop that.
 
2021-12-08 10:56:39 AM  

eKonk: Not to brag, but my credit score is so amazingly high that it added inches to my penis length. In fact, it's such an awesome credit score that it did the same for my girlfriend!



your penis has credit?   wow

the PenisCard

accepted everywhere you want to be.
 
2021-12-08 10:57:25 AM  

Jumpthruhoops: I cancelled a credit card that I haven't used in 20 years. My credit went down 70 points.



that's called bankster payback.
 
2021-12-08 10:59:03 AM  

cefm: It's funny how such a massive industry worth trillions is based on such awful useless junk data.


worth trillions??

just because it brings in trillions doesn't mean its actually worth trillions.
 
2021-12-08 11:01:31 AM  

NewportBarGuy: I'm a white male. I just walk into a bank and they give me bags of money.



for that, you have to be a white male in the top 0.5% of the nation in assets.

in fact they don't care what your color is once your asset base gets large enough.

a space alien could walk in and probably wouldn't get noticed in a large bank.
 
2021-12-08 11:20:48 AM  
Smackledorfer, are you here?  I just wanted to tell you that I STILL don't know  my credit score. I don't even play!  I don't even care!  Sucks to be you, Smackledorfer, and care!  Same goes for the rest of you!

Veloram: Score went up 20 points immediately following a hard inquiry. I can't explain it. Used to be there was a sort of "conventional wisdom" regarding the maintenance of a credit score. Now? I'm pretty sure they're just winging it. It feels totally arbitrary.


That's another reason I don't care.  All these numbers only exist to manipulate us into spending more money.  You get an obsession with it.  "Well, what if I could make it BETTER?  Well, what if I got some more debt, and then paid it off quickly, would that be better?  What if I put my money somewhere else?"
Someone noticed that you made a serious inquiry, so they upped your score a little.  You must be interested in spending money if you checked it.  so here--surprise!  You can buy a little more now!

I don't care.  I had to quit all my addictions.  I know farking traps when i see them now.  And most of them have to do with money.
 
2021-12-08 11:23:18 AM  

Jumpthruhoops: I cancelled a credit card that I haven't used in 20 years. My credit went down 70 points.


Yeah.  Think about that.
I  have no debt at all right now.  One credit card.  I don't pay rent.  I bet my credit score is about 400.
 
2021-12-08 11:32:53 AM  

cefm: It's funny how such a massive industry worth trillions is based on such awful useless junk data.


Go ahead, buy a rental, take applications, forego the credit checks and profit.
 
2021-12-08 11:34:13 AM  

cryinoutloud: I don't care.  I had to quit all my addictions.  I know farking traps when i see them now.  And most of them have to do with money.


I got a question. If you guys know so much about money, how come you're here at like the fark Business tab on a Wednesday afternoon completely broke drinking beers with no money anywhere?
 
2021-12-08 11:38:59 AM  

OccamsWhiskers: I got a question. If you guys know so much about money, how come you're here at like the fark Business tab on a Wednesday afternoon completely broke drinking beers with no money anywhere?


I'm here because I'm bored and I like to help my fellow man, but that's after the hour or two I spend checking my investments. Besides, Aspen, Vail, Sun Valley only have a few runs open so there's no point taking the jet to my chalet until they're fully open.
 
2021-12-08 11:51:24 AM  
Fark user imageView Full Size


Burn credit scores down. Seriously. They should not exist.

/817 credit score or something
//about to pay off a loan so it's gonna drop
 
2021-12-08 11:54:25 AM  
Once it became illegal to discriminate on race, insurers switched to zip codes. Once that became illegal, they moved to credit scores. Racism is a hell of a drug.
 
2021-12-08 11:54:41 AM  
Snark and economic systems aside, TFA has good information if you're looking for to help your score/creditworthiness over the long run.

/Tip of the day:  On-time payment is not necessarily by the due date.  If you're forget to pay your card because reasons, it's not like it's immediately reported to the bureau.  Just pay it asap, then call a few days later and ask if they will do a one-time forgiveness of any penalties.  I've had multiple one-time reversals before I put everything on autopayl

//Tip-of-the day:  Use autopay, you can't trust yourself to remember a stupid farking minimum payment when vacation or funerals or worse intrude on your life.

///Tip-of-the day:  Let it go man, this is the system you're playing under now.  Rebel when you become independently wealthy.  In the meantime, taking good care of your rating will help when you have to borrow (cars, homes) and ease your journey to the aforementioned independent wealth

three, biatches!
 
2021-12-08 12:13:08 PM  

wild9: I don't have a mortgage or car payment so my mix of debt isn't "good enough" . Keeps me in the low 700's.

/It's a big sham the more I dig into it


Credit capacity and utilization matter more than a mortgage or car payment.
 
2021-12-08 12:16:09 PM  
After the fourth data breach that leaked my info, I froze all my credit reporting agency accounts years ago and it's made no difference in my life since I don't borrow money for anything or sign up for new credit. Nobody cares what my FICO is, especially me.
 
2021-12-08 1:18:10 PM  

thornhill: wild9: I don't have a mortgage or car payment so my mix of debt isn't "good enough" . Keeps me in the low 700's.

/It's a big sham the more I dig into it

Credit capacity and utilization matter more than a mortgage or car payment.


That's annoying as hell part. "Keep the utilization in the 20 percent range"

Okay, I paid it down some and the score goes down, I let it hit 30 percent and the score goes down. I get a credit increase and the score goes down. It does eventually go back up to what it was but all the apps and monitoring tools are suggesting I need a more diverse mix beyond just a credit card/s
 
2021-12-08 1:33:41 PM  

jjorsett: After the fourth data breach that leaked my info, I froze all my credit reporting agency accounts years ago and it's made no difference in my life since I don't borrow money for anything or sign up for new credit. Nobody cares what my FICO is, especially me.


Uhm, I have some bad news for you.

More people and entities know your score than you suspect. Freezing your credit only stops applications for new credit or loans. The FICO score is just a distilled approximation of your ability to willingly borrow and reliability in repayment. People with a mortgage and another collateralized loan as well as utilities who never miss or delay a payment will have great credit scores. They have proven that they can do the one thing that the bank wants - make your payments. It has nothing to do with your wealth or even your solvency. It is all about scale of borrowing and reliability of repayment. Everyone that does business with you - from employers to vendors has an interest in knowing your reliability in that metric.
 
2021-12-08 1:34:38 PM  

DanInKansas: Once it became illegal to discriminate on race, insurers switched to zip codes. Once that became illegal, they moved to credit scores. Racism is a hell of a drug.


What?  Why on earth would ZIP codes be illegal?

If you're parking your car every night in a ZIP that has laundromats, bail bondsmen, cash advance, and Boost Mobile storefronts, it absolutely is at higher risk than parking it in a ZIP that has an Apple Store, a Trader Joes, a country club, and more asset management consulting firms than mailboxes.
 
2021-12-08 1:36:43 PM  

wild9: That's annoying as hell part. "Keep the utilization in the 20 percent range"

Okay, I paid it down some and the score goes down, I let it hit 30 percent and the score goes down. I get a credit increase and the score goes down. It does eventually go back up to what it was but all the apps and monitoring tools are suggesting I need a more diverse mix beyond just a credit card/s


Your score is a slightly trailing indicator. You need at least a quarters worth of 'changed behavior' for the score's calculations to begin to change. Also don't forget about any bad history in the prior 7 years. As those bad things sunset your score is also impacted positively. As long as there are negative things in your current history your score will be dragged down.
 
2021-12-08 1:38:29 PM  

Izunbacol: DanInKansas: Once it became illegal to discriminate on race, insurers switched to zip codes. Once that became illegal, they moved to credit scores. Racism is a hell of a drug.


What?  Why on earth would ZIP codes be illegal?

If you're parking your car every night in a ZIP that has laundromats, bail bondsmen, cash advance, and Boost Mobile storefronts, it absolutely is at higher risk than parking it in a ZIP that has an Apple Store, a Trader Joes, a country club, and more asset management consulting firms than mailboxes.


ZIP codes aren't illegal, but they are tracked in various government regulations like HMDA. Lenders don't want too big of a sway in declined loans between wealthy and poor ZIP codes.
 
2021-12-08 1:43:56 PM  

wild9: thornhill: wild9: I don't have a mortgage or car payment so my mix of debt isn't "good enough" . Keeps me in the low 700's.

/It's a big sham the more I dig into it

Credit capacity and utilization matter more than a mortgage or car payment.

That's annoying as hell part. "Keep the utilization in the 20 percent range"

Okay, I paid it down some and the score goes down, I let it hit 30 percent and the score goes down. I get a credit increase and the score goes down. It does eventually go back up to what it was but all the apps and monitoring tools are suggesting I need a more diverse mix beyond just a credit card/s


Nope.  Regularly used is better, but beyond that, keep it as low as possible.  Really, you should be paying it off monthly or you'll end up with finance charges. 

https://www.cnbc.com/select/what-is-a-good-credit-utilization-ratio/
https://www.experian.com/blogs/ask-experian/what-is-the-best-percentile-for-credit-utilization/

If you're keeping it at 20%, unless you have a tiny line of credit, you're carrying a balance.  Assuming you have a total of $50,000 in your credit line across all cards, if you're keeping it 20%, you're paying perpetual interest on $10,000.  Even if its a decent card with a low interest rate (lets say, 8.0%), that's still $2000/year down the drain just to maintain that $10,000 balance.  Even worse, it's spent in the spirit of improving your credit rating when a lower utilization would actually be better.

I suspect that canard keeps going around because it makes people feel better about carrying a balance.  "It's for my credit score!"  It's a bit like people pointing to "average credit card debt" numbers to feel better about their obscene consumer debt.
 
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