5 ways to ruin a perfect credit score

[bernard]

1. You run up a large balance on your credit cards (even if you pay it off every month)

2. You assume your spouse’s credit actions have nothing to do with yours

3. You close or open several credit card accounts at once

4. You co-sign a loan for a friend or family member

5. You don’t check your credit reports on a regular basis


http://t.money.msn.com/credit-rating/5-ways-to-ruin-a-perfect-credit-score

 

[Bane]

1. You run up a large balance on your credit cards (even if you pay it off every month)

Now that is a lie!

 

[Tpop33]

1. You run up a large balance on your credit cards (even if you pay it off every month)

2. You assume your spouse’s credit actions have nothing to do with yours

3. You close or open several credit card accounts at once

4. You co-sign a loan for a friend or family member

5. You don’t check your credit reports on a regular basis


http://t.money.msn.com/credit-rating/5-ways-to-ruin-a-perfect-credit-score

Now that is a lie!

I wouldn't say this is a lie, I've heard it before. The reason is two fold, 1) if you pay it off before it hits your credit report (due date), it would appear that you are not using the credit like you constantly have a zero balance and 2) it doesn't show that you are using your credit wisely, yes you pay it off/in full monthly, but you might as well be using cash.

 

[nevaehinvesting]

I wouldn't say this is a lie, I've heard it before. The reason is two fold, 1) if you pay it off before it hits your credit report (due date), it would appear that you are not using the credit like you constantly have a zero balance and 2) it doesn't show that you are using your credit wisely, yes you pay it off/in full monthly, but you might as well be using cash.

I sort of see what they mean but....

#1 There may be some other factors involved. Several of my buyers do this and maintain perfect scores. I do it several months in a row my self from time to time.
#2 Normally spouse's credit does not affect yours.
#4 Cosigning is okay (and very good at times) as long as the payments are made on time.
#5 is good advice but doesn't "affect" your credit in and of itself.

 

[Olde Hornet]

I sort of see what they mean but....

#1 There may be some other factors involved. Several of my buyers do this and maintain perfect scores. I do it several months in a row my self from time to time.
#2 Normally spouse's credit does not affect yours.
#4 Cosigning is okay (and very good at times) as long as the payments are made on time.
#5 is good advice but doesn't "affect" your credit in and of itself.

I agree with most of what you said, but you should pay off your credit cards every month regardless. From a business point of view - there is really no difference between a "Perfect Score" and a high score. Running a balance is giving your money away.

 

[LS Syndicate]

Credit scores are a piece of crap. It's a trap to see how good you are at borrowing money so that, one day, you can borrow more money. This whole thing was developed by banks. Personally, I didn't borrow a dime from 2003 to 2011 and my credit score was very low. My student loan pmts were the only thing keeping it from being zero. I didn't open any new credit cards after settling my old ones. I paid cash for my cars (which is why I've always driven crappy cars lol). And I rented....I am more comfortable renting vs buying a home for the time being. All are things that are fiscally responsible, but many banks would not have approved me for a mortgage had I tried. My credit score was too low.

 

[SUJagFan]

If it's true that the borrower is slave to the lender, then credit scores are a slave ranking system. A good credit score simply says "this is a good slave that will work hard to make Massa rich and won't give Massa no trouble ... naw suh".

 

[Tony]

If it's true that the borrower is slave to the lender, then credit scores are a slave ranking system. A good credit score simply says "this is a good slave that will work hard to make Massa rich and won't give Massa no trouble ... naw suh".

Good Point!

 

[SUJagFan]

That's not to say I believe we should strive to have poor credit scores. I'd rather we have no credit score. Earn interest rather than pay interest. Be in that blessed position where we "shall lend and not borrow" as the scripture hath said.

We've been thoroughly sold a bill goods. Indoctrinated, if you will. Gotten to the point to where we firmly believe that we CANNOT live without debt and that we MUST have "good credit".

Somebody has done an outstanding sales job on not just Black people, not just Americans, but people worldwide. They have millions of people faithfully going to work everyday and faithfully making them rich ... because they told an outstanding lie. And kept reinforcing that lie.

Up until about 40 years ago, generations of humans had successfully lived and died ... without debt. Raised families. Ran businesses. Bought homes. Cars. Clothing. Went on vacations. Without debt.

But, we can't even imagine that it's possible. Then we wonder why those people over there are doing better than you. Wonder where your wealth has gone despite all of your hard work.

It has gone to the one you pay interest to. Learn to pay interest to yourselves rather than to other people. Or, better yet, get other people to pay interest to you.

This has been SUJagFan's Public Service Announcement of the day. Now back to your regularly scheduled programming ....

 

[a JSU Tiger]

Just got my Discover card statement, FICO is 792. If your credit card balances are 30% or less of your credit limits with no late payments, you should have a high credit score.

 

[Tony]

I 've read that

actually the closer you get to a zero balance your credit score will drop.

They way the game is designed you must have some debt to have a high credit score.

the economy is based off people always carrying debt, if there is no debt, there is no interest being made

the economy collapses.

 

[HORNETSWARM]

I wouldn't say this is a lie, I've heard it before. The reason is two fold, 1) if you pay it off before it hits your credit report (due date), it would appear that you are not using the credit like you constantly have a zero balance and 2) it doesn't show that you are using your credit wisely, yes you pay it off/in full monthly, but you might as well be using cash.

This is true, because it's clearly stated.

 

[HORNETSWARM]

I 've read that

actually the closer you get to a zero balance your credit score will drop.

They way the game is designed you must have some debt to have a high credit score.

the economy is based off people always carrying debt, if there is no debt, there is no interest being made

the economy collapses.

I agree.