Good Credit Score Not Good Enough Anymore

And there is a process called "bumpage" where if you check it every day, eventually hard and soft credit inquiries fall off your account before they time out. Every little bit helps...


:fly:
 
We really need to stop calling it good credit. They should label people with high credit scores as: marginally profitable.
 
fly said:
Look here for example.

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

Do you see anywhere that closing a credit card can affect you, other than if its an old card?
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Yes. from your links. you read them before you posted them right?

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because credit is my fulltime job, let me explain how this works.

Older Accounts.

Closing older accounts can negatively effect your score because it can significantly reduce the 'average age' of all of your accounts combined. When your 'average age' of accounts goes down, so does your score.


Closing any accounts is detrimental to your score as well because another significant part of your score is the proportion of credit you have available to you.

if you have one account with a $1000 limit with a $1000 balance you have 0% available. this is bad for your score.

if you have the above account, and another newer account open with a $4000 limit and $750 balance, your combined limit is $5000, and your combined availability is 65%. This is good because you have a significant percentage of your credit lines still available for use. Closing the $4000 account because they were going to raise your interest will crush your score as much as 100 points because you go from having credit available to you, to having none available.
 
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I don't agree that there is no reason for closing an account. I opened accounts in the past with higher interest or annual fees because of poor credit. I will not pay for the right to pay them another 22% in interest.
 
As far as not closing your account because of raised interest rates, I understand what you are saying. However, to me its worth the 100 pt lose to stand up to the company and say fuck you I will not pay 30% on a card.
 
well, just because they are going to charge you a high interest rate doesn't mean you need to close it. It's only a high interest rate if you are borrowing against it.

Here's my point. So, you have 1 or 2 cards that are charging you some abhorrent rate, yet, between the two, you have like a 5-10k limit. (just as an example). With no debt on the cards, that makes your available, unused credit higher, and bumps your score. Of course, if you don't use the cards, they will cancel on you. But they won't if you use the card, like, once every couple months, for something as inane as gas, and just pay it off within the grace period. This keeps the cards open, your available credit high, and you not paying any fees or interest that suck. Shitty cards can work for you, if you use them correctly.
 
Duke said:
well, just because they are going to charge you a high interest rate doesn't mean you need to close it. It's only a high interest rate if you are borrowing against it.

Here's my point. So, you have 1 or 2 cards that are charging you some abhorrent rate, yet, between the two, you have like a 5-10k limit. (just as an example). With no debt on the cards, that makes your available, unused credit higher, and bumps your score. Of course, if you don't use the cards, they will cancel on you. But they won't if you use the card, like, once every couple months, for something as inane as gas, and just pay it off within the grace period. This keeps the cards open, your available credit high, and you not paying any fees or interest that suck. Shitty cards can work for you, if you use them correctly.
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Yeah I don't think I understand how the grace period thing works. Does that start like x amount of time prior to the due date?
 
Dharma1521 said:
Yeah I don't think I understand how the grace period thing works. Does that start like x amount of time prior to the due date?
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pay it off within 30 days of the date of purchase = no interest.

Granted, this 'can' vary from card to card, but that is pretty standard.
 
Dharma1521 said:
Yeah I don't think I understand how the grace period thing works. Does that start like x amount of time prior to the due date?
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when you get the bill, you have until the due date to pay off the balance or make the minimum pmnt. if you pay off the balance, you only pay what you put on it that month plus anything you carried over from the month prior.

there are credit card companies that don't like this as well because they're only making 3-4% from the people you used them with and not that PLUS the interest they want to charge you in addition.
 
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