@CanisPundit @Avidspark
Well. My bank increased my credit limit on my credit card and they dropped mine 25 points just after the New Year. That’s the only thing that changed.
It’s all such a scam.
@InvaderGzim @CanisPundit @Avidspark I monitor my credit report to catch shit like that. If mine dropped 25 points I would either know why or I'd be finding out in a hurry.
An increased credit limit makes no sense.
@SECRET_ASIAN_MAN @InvaderGzim @CanisPundit @Avidspark Mine has changed that much. Trust me you might not ever "find out in a hurry". Clearly their stated metrics are not their only criteria and since they don't count real-estate assets it's merely a popularity contest.
@MidnightRider @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit I've been using a Karma(?) based credit checker (lol) and they're pretty good about proferring a reasonable explanation for score changes
@Avidspark @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit Explain this: Complain to Citibank, make my position known. Score rebounds after Citibank says they have no dog in the fight. That's happened twice now. Since the number is sufficiently high, I abandoned the war, I need less stress not more.
@MidnightRider @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit That I cannot do, explanations of the algorithm used for credit scoring is much more complex than the calculus I took in college 🤣
@Avidspark @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit I had a major epiphany on holiday. I'm not going to war over small stuff. By the numbers I'm near my exit day from the funhouse ride anyhow.
@MidnightRider @Avidspark @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit The biggest revelation I ever had was to never, ever close an account. That reduces your available lines of credit which in turn lowers your score. So if you are trying to pay down debt and your plan is to close the account once it's done and empty, don't. And don't let them close your accounts due to "lack of activity". The whole system is rotten and set up to keep us all in debt.
@danielbsmith @MidnightRider @Avidspark @InvaderGzim @CanisPundit I was with you until your last statement. I don't see the system as rotten. It all makes sense to me.
@SECRET_ASIAN_MAN @MidnightRider @Avidspark @InvaderGzim @CanisPundit We are penalized when an account in good standing is closed. For example: a credit card that has been paid down.
Closing an account shouldn't be a penalty but it is. Once closed that account's line-of-credit is no longer included in the credit score calculation. The now lower line-of-credit results in a higher debt-to-income ratio so the credit score drops as a result.
E.g. the system encourages debt not saving.
@danielbsmith @MidnightRider @Avidspark @InvaderGzim @CanisPundit
I disagree.
The system rewards taking on debt and paying it off.
Example only.
$10K is bad debt on a credit line of $10K. But on a credit line of $100K, it's a good thing. AND, there's only one way to get a credit line that high. Rack up debt and pay it off.
Too many fall into the trap of not being able to pay it off though.
@SECRET_ASIAN_MAN @danielbsmith @Avidspark @InvaderGzim @CanisPundit At one point or another in life you stop "racking up debt" in retirement. Being retired with a mortgage would be incredibly stressful IMO.
@MidnightRider @danielbsmith @Avidspark @InvaderGzim @CanisPundit Agreed, we plan on paying cash for our next/last house and being done with it.
Still thinking about a place in Tuscany though.
@SECRET_ASIAN_MAN @danielbsmith @Avidspark @InvaderGzim @CanisPundit It's hard to know what to do in a finite life with an unknown expiration date we merely glance at through spread fingers. I'm fortunate to have options to consider but a shorter time to think about them.
@SECRET_ASIAN_MAN @danielbsmith @Avidspark @InvaderGzim @CanisPundit Tuscany would be sweet. I would like a travel club of honest time shares or hotel opportunities, but I have not seen one that made sense over just choosing my own travel.
@SECRET_ASIAN_MAN @MidnightRider @Avidspark @InvaderGzim @CanisPundit The first example is 100% debt but the second (90k of credit - 10k of debt) adds 80% credit.
I understand what you're saying. This is the system we have so we should use it and there are certainly benefits. I'm just trying to point out that the overall system seems to encourage staying in debt.
Or maybe I just like keeping my finances tidy and I can't without incurring a penalty.
@danielbsmith @Avidspark @SECRET_ASIAN_MAN @InvaderGzim @CanisPundit Kept it open, spend on it at Costco and pay both cards to zero monthly. They can say what they want, they hate good stewards of finance.