Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Changes coming to some credit scores
Old 04-20-2017, 05:35 AM   #1
Thinks s/he gets paid by the post
exnavynuke's Avatar
 
Join Date: Sep 2016
Location: Acworth
Posts: 1,172
Changes coming to some credit scores

Not FICO, but the Vantage Scores used for a lot of other stuff (such as many CC apps etc)

http://finance.yahoo.com/news/major-...151538177.html

I'm just wondering what "excessively large credit card limits" is supposed to mean right now. I wonder how this will impact my desire to "play the CC Points game" going forward..
__________________

exnavynuke is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-20-2017, 07:03 AM   #2
Full time employment: Posting here.
 
Join Date: Jun 2016
Posts: 865
paid off my mortgage late last year
and my FICO scores dropped 30 points
notation for reason stated "no installment loan activity" (paraphrased).

when it comes to credit cards, to each his/her own, but for me cash back will get used and "points" will sit and rot.
I've got cards I've had for 30 years. When I have the rare need to call about a problem (one of which was my fubar) they practically trip over themselves to correct it.
__________________

Spock is offline   Reply With Quote
Old 04-20-2017, 07:10 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,781
I read that last night. That will probably get us. We have a huge number of credit cards with high credit limits and very low utilization. OMG I could suddenly run up >$100K of debt overnight! Never mind that we pay off the cards every month.

Gosh, just like I could liquidate all our investments and flee the country so I didn't have to pay off some pesky loan that is << our net worth. This logic is sometimes applied by lenders who ignore net worth in favor of regular income streams like SS, pension or regular paycheck - 'cause no one is ever suddenly out of a job!

My FICO score report is always reminding me that it would be higher if I had some revolving debt, like a deprtment store card that I was paying off. No thanks! Low 800s is good enough for us. We're not likely to request a loan anyway unless there is a fantastic deal on a car loan, and then we'd probably only partially finance the car.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 04-20-2017, 07:18 AM   #4
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 1,252
My score used to always float between 770 and 800. Until I retired a little over a year ago. Then it started increasing and now hovers at 835. So, zero W2 income = 50 points increase in score? Huh?

I never understood this stuff...
euro is online now   Reply With Quote
Old 04-20-2017, 08:39 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,781
Ours used to be higher - 825-840, but the last few years due to various activities such as opening new credit union accounts for good CD rates, or taking advantage of a couple of new credit card offers each year, our scores have drifted down.

If we stop opening accounts, after 12 months, our credit scores should start creeping back up.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 04-20-2017, 10:40 AM   #6
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Location: Country Living
Posts: 3,374
Quote:
Originally Posted by exnavynuke View Post

I'm just wondering what "excessively large credit card limits" is supposed to mean right now. I wonder how this will impact my desire to "play the CC Points game" going forward..
I would most certainly have a *ding* in this department. I currently have 15 open CC accounts (but only using 2 cards right now) and have almost $200K of available credit. 1% utilization is "only" $2,000 which to me, would be HUGE detriment.

I personally don't really care about my credit score outside of what it does to my insurance rates. As long as my rates aren't raised for "credit issues", I really don't get a damn what my score is.

Quote:
Originally Posted by audreyh1 View Post
I read that last night. That will probably get us. We have a huge number of credit cards with high credit limits and very low utilization. OMG I could suddenly run up >$100K of debt overnight! Never mind that we pay off the cards every month.
I have heard this argument for several years and I think it's over-hyped. I have had credit card companies call me when my spending patterns were "off" from my normal patterns. I have had USAA stop a transaction when I was trying to buy something for $20 at a Target in a town I had lived in for 4 years. When I called to see what the deal was, they just said, "Our fraud department determined that the in-person purchase was out of the ordinary in that you were not close to your residence." Uh, what?!? Granted, that's the ONLY time that has happened, but the point is...if you started racking up a ton of purchases in a short period of time, I think the CC companies would (or could) shut you down pretty damn fast.
__________________
Retired in 2014 at the Ripe Age of 40
Founder and Head Lounger @ The Life of Leisure Institute
ExFlyBoy5 is offline   Reply With Quote
Old 04-20-2017, 01:15 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Florence, AL/Helen, GA
Posts: 3,680
I honestly don't care what they do. My credit union knows about my assets, and they're available for any of my financial needs.

I really doubt I'll ever need to borrow any money anyway.
Bamaman is offline   Reply With Quote
Old 04-20-2017, 01:29 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,012
[QUOTE=ExFlyBoy5;1870461]I would most certainly have a *ding* in this department. I currently have 15 open CC accounts (but only using 2 cards right now) and have almost $200K of available credit. 1% utilization is "only" $2,000 which to me, would be HUGE detriment.

I personally don't really care about my credit score outside of what it does to my insurance rates. As long as my rates aren't raised for "credit issues", I really don't get a damn what my score is

Exactly. The insurance rating and subsequent "discount" to my premiums are the only reason I have to track my score at all.
__________________
Just plodding along on Dividends/Interest, SS and a small pension.
foxfirev5 is offline   Reply With Quote
Old 04-20-2017, 01:49 PM   #9
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
Honestly, I don't care if it drops to 600. Doubtful. But I'm done borrowing except for the insurance thing. My credit score must be good because we just got an offer from American Express with 75,000 reward points. I need to figure out where to use this. All my points are booked for 2018.
Fedup is offline   Reply With Quote
Old 04-20-2017, 02:02 PM   #10
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,349
My current FICO score, according to Amex, is 840. The 2 reasons given for why it is not higher are -

1) Lack of recent installment loan information, and
2) Too few accounts currently paid as agreed

The only things on my credit history these days are 3 credit cards, 1 of which almost never gets used. The other 2 are used and paid off regularly. Note that although the wording in 2) might make it appear that I am not paying my bills on time, what it actually means is that I don't have enough accounts that are being paid in a timely fashion.

Weird that I have such little diversity and low activity on my credit history, yet still have a score of 840.
__________________

__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Credit Scores calmloki Other topics 22 01-04-2008 05:51 PM
Obscure Credit Scores jazz4cash FIRE and Money 4 11-26-2007 11:03 AM
Average credit scores by state calmloki FIRE and Money 33 11-18-2007 07:09 PM
Divorce and Credit scores clifp FIRE and Money 24 11-13-2007 09:13 PM
Question about credit scores David1961 FIRE and Money 28 10-06-2007 10:34 AM

» Quick Links

 
All times are GMT -6. The time now is 04:36 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
×