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Credit score is a poorly implemented modern invention. (discuss.online)
submitted 3 months ago by to c/whitepeopletwitter@sh.itjust.works
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[–] 9 points 3 months ago* (last edited 3 months ago) (5 children)

It might depend on the particular credit score assessment. Mine is always low - 6% currently - and I have an 850 FICO score. Per FICO that's one of the reasons it's so high.

Whatever score the Chase app shows says I'm at 826, so also no apparent penalty for low usage.

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  • [–] 0 points 3 months ago* (4 children)

    Huh, I'll have to take a look at mine. I usually just do credit karma. My score has gone up considerably since the years where I was worrying about credit utilization percentages. I'm wondering if it has to do with how many other things you've got going on that also indicate good credit.

    In other words, when I was just out of school with shit credit and student loans to pay back, they had very little data on me to determine my "worthiness" or whatever, so my only real option was to open credit cards and to use them maybe?

    Maybe now that I've been consistently paying my shit back for decade(s), they don't put as much weight in credit card utilization %?

    I wish I had a screenshot from years ago, but it was like the exact opposite. Like some "Your score is low because your 'WELLS FARGO N.A. XX86' credit card utilization is only at 11%. Please increase utilization of this account" bullshit. And all of the links they'd give you were about how you want to keep it at like 30%.

    Maybe I'll go to credit karma today and see whats up. I hate credit cards, and I hate carrying a balance but it was drilled into my skull. My credit score is great right now so maybe I should just pay em all off.

    Sorry if im rambling, I took a nice strong edible today.

    Edit: Is it possible that the discrepency between the 850 and the 826 as reported by Chase (a bank) to be itself the "penalty" as you say?

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  • [–] 2 points 3 months ago

    Regarding my FICO score, the details on my utilization percentage says it makes up approx 30% of the score, and as you can see in the screenshot above, that highlighted as a positive, not a negative.

    The score I see in the Chase app is my VantageScore from Experion, a different credit agency. Not sure what their max is but 826 is an excellent score too.

    As far as carrying a balance goes on my credit card, we do not. We use it for most purchases and pay it off in full at the end of the month. So while it has a balance month-to-month, and makes up most of our utilization, nothing carries over and we pay no interest but instead get cash back. We have high limits on most cards so that keeps our % utilization low, which really is an advantage.

    On our recommendation most of our adult kids do the same re: using the credit card as a debit and paying it off monthly. I know at least 3 have their scores in 800s too. If you have the discipline, having the high limit with a low utilization seems to be advantageous.

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  • [–] 1 point 3 months ago (2 children)

    I meant to add I wouldn't trust Wells Fargo with anything given their corrupt & recent history. Doing the opposite of what they suggest is probably better with nothing else to go on.

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