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  1. #1

    Well it evidently does happen- creditscore "ding" from going debt free

    So quick back story-

    Got completely out of debt in April of 2008. Bought a new car for cash in April of 2009. Even though we paid cash I asked the dealership to pull my credit. When an auto dealer pulls your credit the "beacon" score shows wherein with the "free" credit report you can get yearly, it does not show a beacon score.

    So in April of 2009, 1 year out of debt, cutting up every card except 1 Visa, no auto loans, no home loans, etc. my FICO beacon score was around 760

    August or so 2014, 6 years out of debt, still just one credit card it's paid off every month no balance carried, no car or home loans. We buy a new truck for cash no financing. We do the same thing and get the dealership to pull my credit. FICO beacon score was over 800, 814 if I remember right.

    January 2019, almost 11 years out of debt, still just one credit card that is paid off every month, no car or home loans, no outstanding bills, etc. etc. We buy a new vehicle for cash. We get the dealer to pull my credit- BAAAAMMM! Down like a mother!!

    WTF OVER? Is my thought, I go over everything, nothing weird. I ask the F and I guy about it- "you got nothing going on here. It's good that you pay cash for everything but eventually it does start affecting your credit score."

    Down how much you ask? Almost a hundred points..... OK 10-30 points I wouldn't have given a rat's butt. But back in the lower 700's because we manage our money well? That's a slap in the face!!

    Yes I know and I believe all the Dave Ramsey debt free stuff, hell I've lived it for over a decade now. But I do believe in making sure your credit shows as good- even if you don't ever use it.

    I dropped over $20K last year on a very well needed surgery. Saved up, use some savings, but paid cash for it. If it was more, or more urgent it would have been different.

    It's ironic when you consider- when I was 25 years old I sat down one time with all my credit cards and figured I had access to over $150K in credit cards. I never kept more than maybe K 8K on all of them, but the point was how the hell trusts a 25 year old with that much credit? I wasn't stupid so it didn't affect me THAT much. But needless to say at 25 I was fairly good in debt, not making as much and had a lot more expenses but a better "fico" score.

    Now I'm 45, have no payments, keep one card that has a low limit, pay it off every month mainly just use a debit card, own everything we have and my "score" is about the same maybe slightly lower.

    Kind of kicks you in the nutz a bit when you think about it.

    I may do one of these 0% for 4 years finance deals on a vehicle next time we have to replace one and pay it off sooner.

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  2. #2
    Super Moderator Patriotic Sheepdog's Avatar
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    and now they are changing the way they calculate credit scores https://www.wsj.com/articles/want-a-...elp-1540123200 It looks like this will help those with less than good credit. "The UltraFICO score will function as an appeal of sorts, likely boosting many applicants with less-than-ideal records."

    Let's face it, the banks want you and I to use credit cards and get loans, preferably in a not so reasonable manner, because that is how they make a lot of money. Those of us with little debt are not their market as we have learned their scheme. I have to wonder if being responsible with ones money is a ding to our credit.

    And this quote kinda proves my point I guess "Banks have spent much of the past 10 years chasing ultra-creditworthy borrowers. Yet that slice of the market, which has grown as the economy has improved, is largely tapped out.

    As a result, lenders have been asking credit-reporting firms and FICO to figure out a way to help them boost lending without taking on significantly more risk. And regulators have expressed interest in exploring ways to increase access to affordable lending for consumers who have no or low credit scores."
    Last edited by Patriotic Sheepdog; 01-10-2019 at 10:13 AM.
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  3. #3
    So basically it's like when you and two others in class made an A, most everyone else did a C or D and the prof gives a curve to help the ones that didn't work hard enough...

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  4. #4
    Administrator protus's Avatar
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    Yup. Mine was over 800 last car i got.
    But we added 1-2 speciality credit cards . Drop 50..pay iff in 60...drop 100 pay off in 60. Kinda game. Big cards we try and pay off each year.
    They want you to run on credit tge aprs is how they make thier money.
    Hey Petunia...you dropped your man pad!

  5. #5
    Super Moderator Patriotic Sheepdog's Avatar
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    Quote Originally Posted by Lowdown3 View Post
    So basically it's like when you and two others in class made an A, most everyone else did a C or D and the prof gives a curve to help the ones that didn't work hard enough...
    Pretty much...Like P said they want people to live off of credit as that is the banks income. The credit score just makes "the people" feel good because their score was 580 and they need a 620 to buy that new Caddy. They get paid and actually put their paycheck into the bank, (sorry momma, the kids will get to eat soon) and then go and get their new credit score and what do you know...they have $400 in the bank so their credit score bounces up to 620. Wahoo, I getz to buy me that Caddy. They get the Caddy (and the lender still knows they are a high risk) at a 15% interest rate. The thing is, they get a Caddy! They still cannot pay for it, but the bank can say, "well, your credit score was 620....what happened?". It is all a game to keep people in debt, and can you blame them...they are watching their Uncle Sam have $22 trillion in debt.....why not them for just $60,000?
    Protecting the sheep from the wolves that want them, their family, their money and full control of our Country!

    Guns and gear are cool, but bandages stop the bleeding!

    ATTENTION: No trees or animals were harmed in any way in the sending of this message, but a large number of electrons were really ticked off!

    NO 10-289!

  6. #6
    Easy solution,
    I take out a 90 day note every 2 or 3 years, Plop it into some interest bearing account and then pay it off in 60 days.
    It's kept my score above 800.
    the rest of what I do is cash like you do

    I figure the 90 day note is sorta like dipping my toes in the pond every couple of years so the pond knows I'm still there

  7. #7
    Well I forgot how much a PITA buying a car when you finance some of it was... The irony of doing this crap to keep a credit score from dropping is pretty stupid.

    Same dealership I've bought two trucks for cash at- who were super pleasant and easy to deal with on both, without a hitch. Yet it came to financing some of this one and everything seemed to go to helena handbaskets house. Quoted one thing, tried to get us on another. Moved some young white kid who looked to be about 12 in to finish us up- never asked us term we wanted, all the numbers were askew- "Wait, WTF over?" He's got us at about 6% yeah frickin right, negative. Then the amounts that were quoted were off. An "out the door" price for an in stock car wherein we wanted them to order a different color for LESS money was dropped to the price we wanted to be in for other color. I said "then you can do $XK on the trade in" Yes.

    "Oh no, "out the door" price meant WITH your trade in."

    Told my wife- go find our frickin keys, screw this crap. She comes back a minute later with keys. Sales guy comes in, they get rid of "skippy" and I go and get the older guy that had quoted a lower rate just the other day. Back pedaling... I'm getting po'ed, this place isn't exactly close to the house. Fix one of these or we are done.

    They dropped more on total price (where it should have been) and a point on the rate.

    I don't mind negotiating, but when you have had good trade relations with some place, then they go to crap, that part peeves me off.

    All because the Amerikan financial system is set up to reward people for being in debt.... I should have just opened a couple new credit cards, moved some money here and there and tried that.

    Next time I'll do like PRC stated.

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