My FICO Score dropped 17 points

For a good score you have to owe money. How else can we know if you are paying your bills on time.
 
Sleepingsquirrel said:
Agreed, my wife and I would appear to be deadbeats.:D
Click to expand...

The hilarious part is that the card has been closed for eons, I paid the final $2.00 and it changed from "account closed at consumers request" to account closed, zero balance" and they dinged me 17 points for paying off the final $2.00. The last time it went down was because my wife added me to her $0 balance Home Depot card and they said "consumer credit" accounts are bad. The whole thing is a sham. I would have kept the card around but since companies now can't charge idiots for being idiots they instituted a yearly fee to keep it open and I had no need for a CC. I used to need one to hold a rental car, but I have a corporate AmEx for that now.

I've had some sort of account open for the last 20 years, very little credit. The credit I've gotten was to play the FICO game for a good mortgage rate.
 
Bart, why get rid of them all? Why not use the float and pay it off monthly?
 
eman1200 said:
your PoA score is still 9,350!

but agreed, that does suck.
Click to expand...

Nah, it doesn't suck. Borrowing money sucks. I have a mortgage...it should be gone in less than 9 years at our current income level. After that, I'll not borrow another cent. I don't care if they give me a 0.
 
EppyGA said:
Bart, why get rid of them all? Why not use the float and pay it off monthly?
Click to expand...

Not to get too political, but the current administration overhauled the laws. The result was that folks who were responsible and used credit wisely got new fees from the CC companies to make up for the loss of income since they can't fee the idiots who don't understand late fees and credit limits. They wanted to charge me a yearly fee for cards that I do little more than hold rental cars with...nope. Work gives me an Amex that I can use for personal and work expenses. I use it to hold the cars. Anything I don't expense, I pay. I have no need for a yearly fee.
 
bartmc said:
Nah, it doesn't suck. Borrowing money sucks. I have a mortgage...it should be gone in less than 9 years at our current income level. After that, I'll not borrow another cent. I don't care if they give me a 0.
Click to expand...

Kinda nice being one of the weird, ain't it?
 
bartmc said:
Not to get too political, but the current administration overhauled the laws. The result was that folks who were responsible and used credit wisely got new fees from the CC companies to make up for the loss of income since they can't fee the idiots who don't understand late fees and credit limits. They wanted to charge me a yearly fee for cards that I do little more than hold rental cars with...nope. Work gives me an Amex that I can use for personal and work expenses. I use it to hold the cars. Anything I don't expense, I pay. I have no need for a yearly fee.
Click to expand...

Capital One Visa Quick Silver. 1.5% cash back, no annual fees. What's in your wallet? :D


I make $125 a month. :yes:
 
Last edited:
bartmc said:
Nah, it doesn't suck. Borrowing money sucks. I have a mortgage...it should be gone in less than 9 years at our current income level. After that, I'll not borrow another cent. I don't care if they give me a 0.
Click to expand...

so then why post about dropping 17 points?
 
Credit cards for fuel purchases, hotels and rental cars. Pay off the balance in full every month. Actually I watch the close out end of billing month date and electronically pay the bill before the close out. No fee cards are out there. Even cash back no fee cards.

Bank changed their checking account minimum balance rules and I missed it. Went below the minimum for a day by less than $10 and they wanted to hit me with a $15 fee. I called and asked what happened, what type checkin do you have with no fees. Change the account and refund the charge. They did.

They knew full well I was ready to close the account and go elsewhere. The tone of voice coveys a lot of information. I deal with 3 different banks because of moves and it's real easy to just close the account.
 
bartmc said:
Not to get too political, but the current administration overhauled the laws. The result was that folks who were responsible and used credit wisely got new fees from the CC companies to make up for the loss of income since they can't fee the idiots who don't understand late fees and credit limits. They wanted to charge me a yearly fee for cards that I do little more than hold rental cars with...nope. Work gives me an Amex that I can use for personal and work expenses. I use it to hold the cars. Anything I don't expense, I pay. I have no need for a yearly fee.
Click to expand...

Don't blame it on politics. Loan availability and rates have been based on perceived credit risk since before you were born, and aside from the swinging pendulum on interest rates and easy vs. tight credit over the decades, very little has changed.

There are a gazillion cards out there. There are dozens of websites that will help you find and compare them. There are hundreds of no-fee cards, many of which come with kickbacks to the consumer.

Pick one, set up your water bill or phone bill or some other easy-to-predict, easy-to-monitor to automatically charge to the card, set up the card to automatically get paid off at the end of the month, and spend about 18 seconds every month to glance at the two bills to make sure they're still doing what they're supposed to be doing.

No skin off your nose, and the credit industry loves you. Everybody's happy.

I could have paid off every one of my debts years ago, but there are costs--some financial and some otherwise--that come with that choice, including potential difficulty in getting a loan if at some point in the future I decide I want one.

Since there's no particular benefit to living debt-free, I choose not to do so.
 
Last edited:
Jim_R said:
Don't blame it on politics. Loan availability and rates have been based on proven credit since before you were born, and aside from the swinging pendulum on interest rates and easy vs. tight credit over the decades, very little has changed.

There are a gazillion cards out there. There are dozens of websites that will help you find and compare them. There are hundreds of no-fee cards, many of which come with kickbacks to the consumer.

Pick one, set up your water bill or phone bill or some other easy-to-predict, easy-to-monitor to automatically charge to the card, set up the card to automatically get paid off at the end of the month, and spend about 18 seconds every month to glance at the two bills to make sure they're still doing what they're supposed to be doing.

No skin off your nose, and the credit industry loves you. Everybody's happy.

I could have paid off every one of my debts years ago, but there are costs--some financial and some otherwise--that come with that choice, including difficulty in getting a loan if at some point in the future you decide you want one.

Since there's no particular benefit to living debt-free, I choose not to do so.
Click to expand...

And this is one perk that will come back to bite 10's of millions of card holders....

As the guv gets deeper in debt, they are searching to find "new" revenue streams.....

Latest estimates I has seen show that 97% of taxpayers get perks from credit card companies and do NOT declare that as income....

Problem is there is a HUGE paper ( digital) trail leading to those payments...

Stay tuned for 1/3 of the US population to get billed for those undeclared proceeds.....

Oh yeah.. The IRS will come down hard on frequesnt flyer miles too...

Ps... There is a paper( digital) trail on those too..:eek:
 
Jim_R said:
Since there's no particular benefit to living debt-free, I choose not to do so.
Click to expand...

If you have the ability to pay everything off, you're living 'debt free' now.

For those truly in debt (those without the ability to "go flat" by using savings to pay off outstanding debt), it sucks.

"Since there's no particular benefit to being in debt, I choose not to do so." :D
 
N801BH said:
Latest estimates I has seen show that 97% of taxpayers get perks from credit card companies and do NOT declare that as income....
Click to expand...

But is it?

That "cash back" isn't new money. All they're doing is charging the merchant, say, 2.5% (paid by me!) and then giving me back 1% of my money. if that's income, then savings due to sales, coupons, discounts, etc are income.
 
Mistake Not... said:
But is it?

That "cash back" isn't new money. All they're doing is charging the merchant, say, 2.5% (paid by me!) and then giving me back 1% of my money. if that's income, then savings due to sales, coupons, discounts, etc are income.
Click to expand...

Interesting arguement... But....... Time will tell...:eek:
 
i've paid off every month except for two since I was 16 and never paid an additional fee as a result.
 
N801BH said:
And this is one perk that will come back to bite 10's of millions of card holders....

As the guv gets deeper in debt, they are searching to find "new" revenue streams.....

Latest estimates I has seen show that 97% of taxpayers get perks from credit card companies and do NOT declare that as income....

Problem is there is a HUGE paper ( digital) trail leading to those payments...

Stay tuned for 1/3 of the US population to get billed for those undeclared proceeds.....

Oh yeah.. The IRS will come down hard on frequesnt flyer miles too...

Ps... There is a paper( digital) trail on those too..:eek:
Click to expand...

You're right, but the reasons you mentioned are exactly why the IRS won't get involved. Having a digital record of almost every transaction in the U.S. is powerful. Banks are also powerful. Scare people with an IRS crack down and everyone will go back to paying cash. Can't have that, the pros of digital payments out weight what the IRS would collect.
 
N801BH said:
Interesting arguement... But....... Time will tell...:eek:
Click to expand...

If you want something to worry about, I think it'd be far more.. profitable.. for states to mine credit card records for out of state purchases (amazon, et al) and then automatically assess use taxes.
 
I carry the Costco AMEX. We get a rebate check each year for somewhere around $400-500.
 
EppyGA said:
I carry the Costco AMEX. We get a rebate check each year for somewhere around $400-500.
Click to expand...

Costco made money.
Amex made money.
Unless they stole it from someone else, you got back your own money.

Therefore, no income. :)

(I know, I know... logic and reason have no place here. I'll show myself out.)
 
Mistake Not... said:
Costco made money.
Amex made money.
Unless they stole it from someone else, you got back your own money.

Therefore, no income. :)

(I know, I know... logic and reason have no place here. I'll show myself out.)
Click to expand...

Better than not getting any of my money back. :dunno:
 
Agreed. I wasn't saying that... just using your example to support an earlier point.

I admire the discipline required to use a cash back card so effectively. I'm one of those "pay cash (actual green stuff) for everything" people. I only use cards online and at the pump.
 
Mistake Not... said:
Agreed. I wasn't saying that... just using your example to support an earlier point.

I admire the discipline required to use a cash back card so effectively. I'm one of those "pay cash (actual green stuff) for everything" people. I only use cards online and at the pump.
Click to expand...

Gotcha. I would love to see everyone work out from under their debt. It took me many years to realize I needed to do it and my wife and I worked very hard at it to get there. The only thing we didn't make happen was getting the mortgage paid off. I guess I could go back to work and make that happen in a fairly short time period, but not working is a lot more fun!
 
frfly172 said:
For a good score you have to owe money. How else can we know if you are paying your bills on time.
Click to expand...
No, you just have to pay back what you borrow. You don't have to carry balances on credit cards and you can pay off a car loan the month after you buy it.

It is dumb and it is a racket, but not having a good to great credit rating in these times is necessary, unless you plan on being off the grid forever.
 
bartmc said:
Not to get too political, but the current administration overhauled the laws. The result was that folks who were responsible and used credit wisely got new fees from the CC companies to make up for the loss of income since they can't fee the idiots who don't understand late fees and credit limits. They wanted to charge me a yearly fee for cards that I do little more than hold rental cars with...nope. Work gives me an Amex that I can use for personal and work expenses. I use it to hold the cars. Anything I don't expense, I pay. I have no need for a yearly fee.
Click to expand...
I have a drawer full of credit cards and don't pay a fee on any one of them.

I'd be careful about charging non-business expenses on your Amex. In some places that can get you canned pronto.
 
N801BH said:
And this is one perk that will come back to bite 10's of millions of card holders....

As the guv gets deeper in debt, they are searching to find "new" revenue streams.....

Latest estimates I has seen show that 97% of taxpayers get perks from credit card companies and do NOT declare that as income....

Problem is there is a HUGE paper ( digital) trail leading to those payments...

Stay tuned for 1/3 of the US population to get billed for those undeclared proceeds.....

Oh yeah.. The IRS will come down hard on frequesnt flyer miles too...

Ps... There is a paper( digital) trail on those too..:eek:
Click to expand...
Nonsense, it's not income, it's a rebate, and that's how IRS has always treated that.

And I've been hearing the FF thing for 25 years....
 
N801BH said:
And this is one perk that will come back to bite 10's of millions of card holders....

As the guv gets deeper in debt, they are searching to find "new" revenue streams.....

Latest estimates I has seen show that 97% of taxpayers get perks from credit card companies and do NOT declare that as income....

Problem is there is a HUGE paper ( digital) trail leading to those payments...

Stay tuned for 1/3 of the US population to get billed for those undeclared proceeds.....

Oh yeah.. The IRS will come down hard on frequesnt flyer miles too...

Ps... There is a paper( digital) trail on those too..:eek:
Click to expand...

This is tin-foil-hat, midnight-AM-talk-radio-level paranoia.
 
Geico266 said:
Capital One Visa Quick Silver. 1.5% cash back, no annual fees. What's in your wallet? :D


I make $125 a month. :yes:
Click to expand...

This was a Cap One card. Apparently they have the resources to email me several "offers" a month but can't seem to figure out how to email me a "hey we're about to charge you a fee" email. They're all sleazy and I have no desire to engage in business with any of them.
 
Jim_R said:
Don't blame it on politics. Loan availability and rates have been based on perceived credit risk since before you were born, and aside from the swinging pendulum on interest rates and easy vs. tight credit over the decades, very little has changed.

There are a gazillion cards out there. There are dozens of websites that will help you find and compare them. There are hundreds of no-fee cards, many of which come with kickbacks to the consumer.

Pick one, set up your water bill or phone bill or some other easy-to-predict, easy-to-monitor to automatically charge to the card, set up the card to automatically get paid off at the end of the month, and spend about 18 seconds every month to glance at the two bills to make sure they're still doing what they're supposed to be doing.

No skin off your nose, and the credit industry loves you. Everybody's happy.

I could have paid off every one of my debts years ago, but there are costs--some financial and some otherwise--that come with that choice, including potential difficulty in getting a loan if at some point in the future I decide I want one.

Since there's no particular benefit to living debt-free, I choose not to do so.
Click to expand...

I had this card for several years. I got it when my score was "average". They snuck a fee in there on me a few years ago when the consumer protection act went through. Never had any fees then poof fees.

CC companies are all slimy. I have no need or desire to engage in business with them. I'm certainly not going to spend any time shopping around.
 
I am pretty sure there is am excise tax (very small) on FF and rewards redemptions. Whether out not your see it on your bill or during redemption is another thing.
 
1) Karen and I use a Gander Mountain MasterCard for as many expenses as we can. Pay it off every month, and get coupons of $20 to $80 a month to use in their store. Sometimes we save them up for rather large purchases. Works for us!

2) I always made every effort to pay off mortgages quickly by paying additional principal each month. But in today's environment, I don't think it makes as much sense.

For example, if someone dropped $100k in my lap tomorrow, I could pay off my mortgage and declare myself debt free. But my current mortgage rate is fixed at 3.99% for 30 years. I could take that same $100k and invest it in utility stocks yielding in excess of 3.99%, and come out slightly ahead. And that's not counting the mortgage interest deduction. Of course, tax has to be paid on the dividends, but there's also the chance of long term appreciation. Also the risk of loss, but that's diminished somewhat by diversifying - people will always need utilities!

No right or wrong. I remember my mom and dad having a little ceremony when they paid off their mortgage, and burning that mortgage in the fireplace. But in inflationary times, it's the debtors that can win big - those sitting on cash or otherwise debt free, not so much. Anecdote to follow.
 
Last edited:
Geico266 said:
Capital One Visa Quick Silver. 1.5% cash back, no annual fees. What's in your wallet? :D


I make $125 a month. :yes:
Click to expand...

Bingo. I had over $13k in medical bills last year, and the hospital had the option to use credit cards, so I ran all that through my Delta Amex card. Flying to San Fran later in the summer gratis.

I, like others, also like to use the float for big ticket items. Let them finance it for a month.

Credit cards used wisely can be your friend. :yes:
 
FastEddieB said:
1) Karen and I use a Gander Mountain MasterCard for as many expenses as we can. Pay it off every month, and get coupons of $20 to $80 a month to use in their store. Sometimes we save them up for rather large purchases. Works for us!

2) I always made every effort to pay off mortgages quickly by paying additional principal each month. But in today's environment, I don't think it makes as much sense.

For example, if someone dropped $100k in my lap tomorrow, I could pay off my mortgage and declare myself debt free. But my current mortgage rate is fixed at 3.99% for 30 years. I could take that same $100k and invest it in utility stocks yielding in excess of 3.99%, and come out slightly ahead. And that's not counting the mortgage interest deduction. Of course, tax has to be paid on the dividends, but there's also the chance of long term appreciation. Also the risk of loss, but that's diminished somewhat by diversifying - people will always need utilities!

No right or wrong. I remember my mom and dad having a little ceremony when they paid off their mortgage, and burning that mortgage in the fireplace. But in inflationary times, it's the debtors that can win big - those sitting on cash or otherwise debt free, not so much. Anecdote to follow.
Click to expand...

I your house was paid off, would you mortgage it in order to invest?
 
bartmc said:
I your house was paid off, would you mortgage it in order to invest?
Click to expand...

Well, I sort of did this when I sold my Miami Lakes house and "owner-financed" about half of the purchase price.

Each month, the check from the new owners would go directly towards the mortgage on our new house. Worked perfectly for the 15 year term.

But it's a good question. Answer - I might, depending on the "spread" and tax implications.
 
You must log in or register to reply here.
Back
Top