They dropped my credit score by 15 points as a reward for paying off my car loan.

[Real Men Wear Green]

:roll: :confusedshrug: :cry:

[9erempiree]

Penalty for paying off early.

This is nothing new.

I believe Trump wants to change this.

[Real Men Wear Green]

Penalty for paying off early.

This is nothing new.

I believe Trump wants to change this.
I'm high enough off of irritation to reply to your trolling: When has Trump ever talked about changing he rules by which these ultramegabanks assign us credit scores? Especially this particular fun rule where they lower your score for paying off a debt? The extent of his fiscal policy is some loose ideas on lowering taxes. He has certainly never discussed increased regulation as a positive idea.

[UK2K]

Credit scores are the most obscure, random form of judging someones ability to pay off a loan.

You make 500k a year, but don't have a credit card? Your credit score sucks.

The only reason I own a credit card is because you have to these days.

[9erempiree]

I'm high enough off of irritation to reply to your trolling: When has Trump ever talked about changing he rules by which these ultramegabanks assign us credit scores? Especially this particular fun rule where they lower your score for paying off a debt? The extent of his fiscal policy is some loose ideas on lowering taxes. He has certainly never discussed increased regulation as a positive idea.

As mentioned before...its a penalty for paying off your loan too fast.

I negotiated with the salesman the last time I bought a car and I asked him whether I was going to penalize for paying it off early, as my intention was to always pay off a car as fast as you can.

Anyways, the credit system is setup against us. It's a system setup to detect bad creditors so it comes as no surprise that not only did you get penalize but your credit didn't improve.

If anything it should have improved drastically for paying off your loan.

[gigantes]

do we know for sure that it was because he paid off it early, or is it possibly another reason?

such as... the trade / banking principle of having healthy, open debt being a net positive for a nation. could that also be true for individuals in terms of credit score?

[Meticode]

No surprise. The credit system is designed to suck the most amount of money from people who are good for it as long as possible.

[Meticode]

I worked in collections for almost 2 years and another thing that amazed me about creditors reporting to debtors credits reports was the lack of information. All they needed was a name/address. No, SSN, no birthday, etc. So many times there would be a son/father with that were Jr. and Sr. and the son USED to live with the father, but because they had the same name the sons credit history would show up on the fathers even though the son was like in his mid 20s.

Another thing I saw a lot of was minors being reported. Kids would go to hospitals and because the parents wouldn't pay the bills off the kids name would end up in the credit reporting agencies for unpaid medical bills because they were the patient.

The system has MAJOR flaws in it.

[Real Men Wear Green]

do we know for sure that it was because he paid off it early, or is it possibly another reason?

such as... the trade / banking principle of having healthy, open debt being a net positive for a nation. could that also be true for individuals in terms of credit score?
The technical reason was that "an account was closed." Had nothing to do with the rate I paid it off as far as I know. I was told to pay $267 a month, I paid it, after almost three years it was paid off.

[gigantes]

The technical reason was that "an account was closed." Had nothing to do with the rate I paid it off as far as I know. I was told to pay $267 a month, I paid it, after almost three years it was paid off.
sounds like that's it, then.


@9er,
looks like it's even worse than you thought!

[UK2K]

The technical reason was that "an account was closed." Had nothing to do with the rate I paid it off as far as I know. I was told to pay $267 a month, I paid it, after almost three years it was paid off.
Yep...

I paid an $800 balance off on a credit card then closed the account, and I was penalized as well.

Now I've got three credit cards, two of which are somewhere in my office desk at home. I think. All because I don't want to close them.

[9erempiree]

sounds like that's it, then.


@9er,
looks like it's even worse than you thought!

They probably dropped his credit score for all the cursing and insults he says towards members and he's a moderator. :hammerhead:

[gigantes]

that elevated quickly.

[COnDEMnED]

This is one of the mistakes I know I've made in life. I'm of the mindset that if I can't pay cash for something, I don't need it this second. I save up the cash until I can buy. I turn 31 soon and I've never had a credit card because all my life growing up all I ever heard was how credit card debt ruined peoples lives and how they lost their houses etc. etc.. For that reason anything I've ever bought has always been cash or directly from my debit card. If anything hits the fan I know I'm on my own. No bank would approve me for a loan without putting up property as collateral. **** that noise.

I guess it's time to start baby stepping my credit up. I was thinking of getting a Costco membership. They offer a credit card with the merchant membership. Maybe I'll start small with that.

Sorry to hear they ****ed you Real Men Wear Green. That's complete bullshit.

[nathanjizzle]

its likely either one of 3 things or all of them. 1 being you have a closed line of credit, 2. you no longer have an open line of credit. 3, your average age of open lines of credit have decreased. having a certain amount of open lines of credit is good for your credit score. having a certain amount of closed accounts can be bad for your score. having a long average age of open lines of credit is good for your credit score.

[Nick Young]

:roll: :confusedshrug: :cry:
Hold this eternal L

[bdreason]

Closing long standing credit lines will lower your score. The older they are, the worse hit you will take. I have a credit card I haven't used for almost a decade... but I leave it open just so it doesn't hurt my credit. I couldn't get my score into 800's until I took out a 2nd car loan. I could have just paid for the car, but at 1.9% it won't cost me that much over the court of the loan, so fukc it. I have more extended credit than I would ever need, but all of their balances, except my monthly rewards Visa, are at zero. It doesn't really bother me except for the liability of having 4 high-limit cards (AMEX, Disc, MC, Visa). I just keep a close eye on my accounts.

[bdreason]

This is one of the mistakes I know I've made in life. I'm of the mindset that if I can't pay cash for something, I don't need it this second. I save up the cash until I can buy. I turn 31 soon and I've never had a credit card because all my life growing up all I ever heard was how credit card debt ruined peoples lives and how they lost their houses etc. etc.. For that reason anything I've ever bought has always been cash or directly from my debit card. If anything hits the fan I know I'm on my own. No bank would approve me for a loan without putting up property as collateral. **** that noise.

I guess it's time to start baby stepping my credit up. I was thinking of getting a Costco membership. They offer a credit card with the merchant membership. Maybe I'll start small with that.

Sorry to hear they ****ed you Real Men Wear Green. That's complete bullshit.


Just get a credit line from your bank. Use it like a debit card, and pay it off at the end of each billing cycle. If you have self control, there's no reason to fear credit.

[enayes]

Credit scores are the most obscure, random form of judging someones ability to pay off a loan.

You make 500k a year, but don't have a credit card? Your credit score sucks.

The only reason I own a credit card is because you have to these days.

What about rewards such as cash back, free hotel stays and flights?

Those aren't good reasons?

[ai9]

Same thing happened to me. It's a meaningless number though, so who the heck cares.

[SpecialQue]

What about rewards such as cash back, free hotel stays and flights?

Those aren't good reasons?

This is the main reason why I still use credit cards, even though I have zero debt aside from a dirt-cheap mortgage and a small car loan. Just from rewards I have two free round trip flights from making purchases that I needed to make anyway, plus a few free hotel stays. If you need to get a card, get one with some decent rewards.

[ai9]

credit cards also have better fraud protection than debit cards

[coin24]

That whole credit score thing is complete bullshit, fkn stupid Americans :oldlol:

[DCL]

in some ways, yes, credit scores are bullshit because a credit score of 770-ish and 850 are pretty much the same in terms of risk measurement. for some banks, the threshold may even be lower than that. you don't get any extra bonus points for having an extraordinary awesome credit score. they don't really care what it is as long as your shit don't stink.

in other words, credit scores are not meant to reward responsible people who are ontop of their shit. they are only meant to weed out and raise red flags for people who aren't.

if your score is 800, you'd be treated the same as the guy with 848 or 772. raising that score higher doesn't really do much other than maybe massaging your ego or giving yourself retarded credit score bragging rights.

however, it doesn't work like that on the other side. a credit score of 580 will be punished more severely than a score of, say, 630. so the lower you go, the more difficult terms they're going to dump onto you. pretty much, your credit score only matters when it's a shitty ass score and full of red flags.

[sd3035]

Americans seem like credit slaves :lol

[enayes]

Americans seem like credit slaves :lol

If you know what you're doing the credit companies become the slaves.

I've already had Chase ban me from getting any new cards. I guess they don't want me earning all their rewards and never paying any interest :oldlol:

I raped them for over $3K :oldlol:

[ArbitraryWater]

If you know what you're doing the credit companies become the slaves.

I've already had Chase ban me from getting any new cards. I guess they don't want me earning all their rewards and never paying any interest :oldlol:

I raped them for over $3K :oldlol:

:oldlol:

Its hilarious how determined you are with all this credit card stuff... sticking with it from beginning to end. Youre probably generally lazy, but for this credit card stuff you do everything and know ALL the loop holes.

[enayes]

:oldlol:

Its hilarious how determined you are with all this credit card stuff... sticking with it from beginning to end. Youre probably generally lazy, but for this credit card stuff you do everything and know ALL the loop holes.

I go through phases. At this point I'm a bit underwhelmed because I've taken advantage of all the offers currently out there.

I'm not lazy but I do try to make everything as easy as possible for myself.

I've been able to help a lot of my friends/family start using credit wisely, so I get some satisfaction from that too.