two_bit_score
Super Star Member
- Joined
- Dec 22, 2008
- Messages
- 11,656
- Tractor
- John Deere 110 TLB, Diamond C 19LPX GN trailer
And here all along I thought I was just a frugal country boy and now you tell me I’m one of those “deadbeats”.There are many ways they bring your score up or down.
My wife's score just took a hit because she had a card she hadn't used except once when she got it. And only then because getting the card gave a 20% discount on her initial purchase. She paid the card off and never thought about it again.
Since the card was not in use they informed her by mail that they were dropping her spending limit from $1000.00 to $500.00. So what, who cares?
Well... Transunion, Equifax, and Experion (The Greedae: Three Sisters Of Financial Fate) see that and your credit score goes down a few points because you are no longer able to go as deep into debt as you used to be able to.
So just having credit isn't enough, you have to be actively using it. This gives them data to work with and sell.
Oddly enough the term deadbeat is now used by financial people to refer to folks who payoff their credit cards monthly because they don't make any money off them.