The White Whales - Perfect Credit Scores?

[jazz4cash]

It’s not about cc being “evil”.

.

No, not evil. I think of myself as having no debt (except mortgage) because I pay the balance in full on the due date. Of course the credit report sees the balance every month so I am always in debt. I always enjoyed the free ride paying zero interest but now my funds earn >4% until the due date plus 2% cashback paying with cash feels like the smart way to go. Add in the convenience and using cash is less attractive to me.

 

[swabby01]

Been around (*/- 3) 832 for the past five years. Was advised I wont see above that unless I get a mortgage payment. --- NO THANKS, rather be off by 18 points and have no mortgage

 

[tenant13]

I don’t care about the number as long as I’m benefiting from the way credit functions in US. I never had a mortgage and only took one car loan for 0.9% that lasted 6 months until I got rid of it. But I’m a “churner” so I always have at least 15 different cards and thousands of points/miles that I actively use for travel. I’d rather have banks put money in my pocket than give them even $1.

 

[1242Vintage]

Feel like the poor guy in this conversation at 803.

I’ve co-signed a couple times in the last 24 months as a guarantor for my single daughter on apartments which pulled my score down.

 

[RobbieB]

Nope, never an 850 for me.

And not gonna even try. About twice a year I'll forget to pay one by the due date. Yeah, my fault. Buried under the stack, fell off the back of the desk...

Yeah, I'm imperfect -

 

[audreyh1]

You are what some banks call a “freeloader”, because you don’t pay interest and/or generate fee income. FWIW, I am one also.

But we generate lots of fees for the credit card issuer. They like that part.

 

[Car-Guy]

Nope, never an 850 for me.

And not gonna even try. About twice a year I'll forget to pay one by the due date. Yeah, my fault. Buried under the stack, fell off the back of the desk...

Yeah, I'm imperfect -

+1

 

[KarenF]

Mine is 827. I am ok with that. I do put almost everything on credit and pay off the statement balance monthly. No mortgage.

 

[Car-Guy]

Just for fun, I paid off all my CC's and utility bills (in advance) today. No loans/bills of any type hanging on me now. Matter of fact, I actually have "account credits" on a few accounts. Now I'll give it a week or so and see what happens to my credit score.

 

[TheWizard]

Just for fun, I paid off all my CC's and utility bills (in advance) today. No loans/bills of any type hanging on me now. Now I'll give it a week or so and see what happens to my credit score. Matter of fact, I actually have "account credits" on a few accounts.

That's what I do every month: pay off my CC BALANCE before moving the excess into my taxable account settlement fund.
I'm not concerned about whatever my credit score might be...

 

[Car-Guy]

^^^^^
I always pay my CC's balance off each month too. But I always seem to have new charges pending for the next billing cycle... At this time I owe zero.


I don't really care about my credit score either. Just curious to see if this will move it off the lower 800's. .

 

[cj1717]

I don't even know what my score is. I've never known.

Thanks for the info!

 

[Jenna]

I've been making payments multiple times a month on my credit cards, with the resultant ending balances being less than a few hundred $ for each active card, and I pay them off monthly. I have a house mortgage, but no car payment, and no other installment plans. I have a perfect payment record, going back more than 30 years.

Based on my lifelong experience, I thought that achieving a 'perfect' credit score was an unachievable white whale. But last month and this month, I managed to obtain 850/850 for my FICO score! My FICO Score 8 from a different credit card is simultaneously 879/900, so close, but not perfect!

Have you achieved a perfect score? I have no real reason to do this, other than striving for the unobtainable goal!

It's my understanding....Without a mortgage, you can't get a perfect score.

 

[Old Microbiologist]

Having left the US and its bizarre and somewhat deeply intertwined system of debt encumbrances I see things very differently now. In Europe, there is no such thing as credit scores as credit simply doesn't exist in the sense it does in the US. Thi sis an entirely US concept and I believe it was introduced deliberately and very slowly into the US socio-economic system to encourage indebtedness. In a sense, this is a form of debt slavery as it ties you completely to your debts. Not having debt causes your credit scores to drop like a stone. Complete freedom is not having any debt whatsoever and this is not something encouraged in the US. I get these emails all the time stating my credit score is dropping. This is because we have 2 American credit cards which we use all the time and pay them off completely each month. This makes us "bad" customers as they can't earn off of us twice, once at the transaction phase where they get 3% (they even rake in roughly 1% off currency exchanges despite Chase declaring there would be no such a thing but it happens at VISA and not the Chase level) and again off servicing the debt. For us, we are not as profitable so are "punished" with lower credit ratings which are meaningless here. I laugh at the inability for us Americans to see where the banks have taken us. The same for mortgages or car loans.

 

[RobbieB]

Oh yeah. Debt is encouraged no doubt, not to mention very profitable. Even declaring bankruptcy will only delay your new credit cards by a few years.

Even so, we do need it eh? The less the better. Like when you want to buy a house. But even that is possible with a job and a good credit history.

Until Discover Card started sending me my credit score I didn't even know what it was. I've never looked with the various credit score companies, but I did freeze them all after the big hack.

In short, I don't care. For decades I never knew my credit score but I knew it was good or I wouldn't have all these CC offers filling up the mailbox.

 

[tenant13]

Having left the US and its bizarre and somewhat deeply intertwined system of debt encumbrances I see things very differently now. In Europe, there is no such thing as credit scores as credit simply doesn't exist in the sense it does in the US. Thi sis an entirely US concept and I believe it was introduced deliberately and very slowly into the US socio-economic system to encourage indebtedness. In a sense, this is a form of debt slavery as it ties you completely to your debts. Not having debt causes your credit scores to drop like a stone. Complete freedom is not having any debt whatsoever and this is not something encouraged in the US. I get these emails all the time stating my credit score is dropping. This is because we have 2 American credit cards which we use all the time and pay them off completely each month. This makes us "bad" customers as they can't earn off of us twice, once at the transaction phase where they get 3% (they even rake in roughly 1% off currency exchanges despite Chase declaring there would be no such a thing but it happens at VISA and not the Chase level) and again off servicing the debt. For us, we are not as profitable so are "punished" with lower credit ratings which are meaningless here. I laugh at the inability for us Americans to see where the banks have taken us. The same for mortgages or car loans.

Couldn’t agree more. And that’s why I started playing their game and collecting massive amounts of points and miles, primarily through bonuses awarded for spending - also very US centric incentive to get into debt. Except that I don’t get into debt. I use my cards like cash and pay all the balances before the due date. And in exchange I gallivant all over the world in first and business class and staying in Hyatts wherever I can find one.

Interestingly, the more cards I have, the higher my credit score.

 

[old medic]

20 years ago we struggled through some hard times, and we were both in the low 400s. We managed to get things back in line and built back... For the last several years we have been 755-798... just can't get over the magic 800 regardless of what we do.

 

[athena53]

In Europe, there is no such thing as credit scores as credit simply doesn't exist in the sense it does in the US. This is an entirely US concept and I believe it was introduced deliberately and very slowly into the US socio-economic system to encourage indebtedness. In a sense, this is a form of debt slavery as it ties you completely to your debts.

I can certainly see that based on all the credit card mailings my then-husband the Financial Train Wreck used to get, the proliferation of balance transfer offers, ridiculously low minimum payments ($84 on an $8,300 balance in my last statement), aggressive marketing of HELOCs, etc. My favorite was a mailing I got offering to pay off my current mortgage balance ($60K) and give me another $100K cash out. The payment wasn't much more than my current mortgage- because instead of the 8 years left on my current mortgage it re-started the clock on a 30-year mortgage.

But don't Europeans borrow to buy cars or houses? Property sure isn't cheap in the major cities there, although I do see far more compact cars and fewer F-150s and Suburban Assault Vehicles.

 

[audreyh1]

Mine seems to hover around 820. Doesn’t really matter to me. I did get an advantage once when a new energy provider insisted upon obtaining it to determine an initial deposit amount. I had to temporarily unfreeze at one of the credit agencies. My reward was no deposit required which was a nice break.

 

[audreyh1]

But don't Europeans borrow to buy cars or houses? Property sure isn't cheap in the major cities there, although I do see far more compact cars and fewer F-150s and Suburban Assault Vehicles.

Certainly mortgages. The compact cars are due to generally smaller streets and tighter parking, plus higher fuel prices.

 

[ERD50]

.... we have 2 American credit cards which we use all the time and pay them off completely each month. This makes us "bad" customers as they can't earn off of us twice, once at the transaction phase where they get 3% (they even rake in roughly 1% off currency exchanges despite Chase declaring there would be no such a thing but it happens at VISA and not the Chase level) and again off servicing the debt. For us, we are not as profitable so are "punished" with lower credit ratings which are meaningless here. I laugh at the inability for us Americans to see where the banks have taken us. The same for mortgages or car loans.

That's a pretty broad brush, isn't it ("us Americans")?

Like many others here, by paying off the card in full each month, I'm earning rewards, and have an easier and more profitable time managing withdraws to cover my bills (I have the grace period to plan). It's win-win for me. Maybe outside of the fact that merchants must be increasing their prices to cover the transaction cost, but my rewards appear to be slightly greater than that (as the CC companies are making most of their money elsewhere, with interest and late fees that others pay).

Looks like we see exactly "where the banks have taken us", and have beat them at that game. So I'll play.

Same with historically low mortgage rates, I'll play that game too. So far, I'm losing with the market downturn, but the long term odds are way on my side. It's a risk I was willing to take, no one is 'tricking me'.

edit/add: I just recalled, my DD has learned about the power of saving, and was able to pay cash for her new car a few years back. They offered a $500 incentive to take out a loan - I told her, do it, and pay it in full on the first payment. You are $500 ahead (minus maybe 1 month's interest), because having the cash puts you in control. Take advantage of it when you can.

Sure, those other people who pay CC interest and fees should wake up. And people should save for a rainy day, and a thousand other things. But there's not much I can do about that. So I play the cards that were dealt.

-ERD50

 

[Car-Guy]

It's my understanding....Without a mortgage, you can't get a perfect score.

If that's true I'll never see 850 since I haven't had a mortgage in over 25 years. Millions in the bank, no debt, never late on any utility or CC payments, just don't count for much I guess.

 

[foxcreek9]

Anything over 750/760 is irrelevant and 850 is a sign you are passing up free money. 11 new cards in the last 2 years and my score is 830 with 250k of available credit, usually 1-2% utilization. Latest card is the Amex Platinum - 150k points + $200 + another $500 of benefits for the next year, cost will be $695.

 

[athena53]

Anything over 750/760 is irrelevant and 850 is a sign you are passing up free money. 11 new cards in the last 2 years and my score is 830 with 250k of available credit, usually 1-2% utilization. Latest card is the Amex Platinum - 150k points + $200 + another $500 of benefits for the next year, cost will be $695.

That makes me feel better- looks like I have a very good chance of getting the American Airlines card I want!

 

[Toast]

Anything over 750/760 is irrelevant and 850 is a sign you are passing up free money.

Would you please explain how an 850 is a sign of passing up free money? We use our credit cards for almost everything including paying utility bills each month. Paid in full each month. Our cards are cash back card so we do earn rewards. I’m just not understanding exactly what you mean.

Thanks!