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Credit Scores

QuinSnydersHair

Well-Known Member
Let me start by saying I'm very much aware of what goes into determining a credit score. There's a number of factors. But I've mentioned to my wife for years about how credit agencies, our scores, and the secretive equation which they use to come up with them, and in essence, hold us hostage and really, really affect our lives, is long overdue for a class-action lawsuit. How is it even legal to say, This is your credit score. We can't tell you exactly how we came to that number, but that's what it is. This befuddles me.

Thoughts?
 
Her's a simple equation: pay your bills and you don't have to worry about it.
 
Let me start by saying I'm very much aware of what goes into determining a credit score. There's a number of factors. But I've mentioned to my wife for years about how credit agencies, our scores, and the secretive equation which they use to come up with them, and in essence, hold us hostage and really, really affect our lives, is long overdue for a class-action lawsuit. How is it even legal to say, This is your credit score. We can't tell you exactly how we came to that number, but that's what it is. This befuddles me.

Thoughts?

I think each bank or lender should acquire their own metrics, which would restrict credit to the point of no loans under 18% interest and you wouldn't be able to afford it anyway. This highly liquid market sucks *** eh?
 
I think each bank or lender should acquire their own metrics, which would restrict credit to the point of no loans under 18% interest and you wouldn't be able to afford it anyway. This highly liquid market sucks *** eh?

How else would they make money off banking fees though?
 
Her's a simple equation: pay your bills and you don't have to worry about it.

Anybody know how credit utilization rate works? Like if I use 80% of my credit limit one month, but pay it off immediately, will it affect my credit score, or do they only calculate in your credit utilization rate when you carry a balance?
 
Anybody know how credit utilization rate works? Like if I use 80% of my credit limit one month, but pay it off immediately, will it affect my credit score, or do they only calculate in your credit utilization rate when you carry a balance?

I know my dad doesn't spend a dime if it's not on a credit card. He puts everything on it (utilities, cell phone, food, gas). He even pays his business accounts with a credit card. He never carries a balance. I know he has a good credit score. He can get any loan he wants at any time. The last time he bought a car he even ended up getting a lower rate than he was quoted because his credit is so good.
 
If you want the highest rate possible revolve around 20% of your limit and never miss a payment, you can still have a great/almost perfect score if you just pay it off in full. Its stupid, not sure why its like this.
 
yeah, it can actually work against you if your balances are always too low, or if you have no recent history of having debt - - credit cards that are paid off each month aren't necessarily considered debt so you can have points deducted for lacking a debt history
 
yeah, it can actually work against you if your balances are always too low, or if you have no recent history of having debt - - credit cards that are paid off each month aren't necessarily considered debt so you can have points deducted for lacking a debt history

No.
 
yeah, it can actually work against you if your balances are always too low, or if you have no recent history of having debt - - credit cards that are paid off each month aren't necessarily considered debt so you can have points deducted for lacking a debt history

I don't think it's the low balances as much as having a huge credit cushion. It's a risk when you don't have room to manage cash flow issues/emergencies with. They don't care if you only use 5% (max) of your combined revolvers.
 
I don't think it's the low balances as much as having a huge credit cushion. It's a risk when you don't have room to manage cash flow issues/emergencies with. They don't care if you only use 5% (max) of your combined revolvers.

They care about payment history and that includes (to an extent) the volume of the payment.
They also care about the ratio of unpaid debt to total available credit.
 
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