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Credit Score Weirdness
Old 10-26-2019, 04:37 AM
  #1

So Iíve been following Dave Ramsey the last few years. Not full blown gazelle intense but making a conscious effort to get rid of my debt. Iíve knocked out a personal loan, credit card, furniture loan, and my car. Iím down to my student loan (that is taking forever : ). Oh and my mortgage is there, too. But Iím not worried about it because I plan on selling when DD goes to college. Anyway, my score was around 814 or so and when I started paying things off it went down to 710 or so. I expected that. Everything Ramsey says tells you that will happen.

But this week it went back up to 814. I keep looking to see if someone has opened up an account in my name or something. I know Ramsey says credit scores donít matter. And Iím not super worried about my score going down. It is just weird that it went back UP. Maybe it is debt ratios?

Thanks in advance!


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Old 10-26-2019, 05:59 AM
  #2

That is weird! Not sure of the answer but happy to meet another Dave follower! 😁
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Credit scores do weird things.
Old 10-26-2019, 06:47 AM
  #3

I paid off a large balance credit card and my credit score dropped 40 points. I keep seeing a commercial on TV for Experion Boost that sounds like you can pay to have your credit score raised. I havenít checked into it to see if that actually is what they do, but if so, whatís the point of the whole credit score system?
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It is strange...
Old 10-26-2019, 07:16 AM
  #4

When I paid off my credit card balances, Capital One cut the amount of my credit line. (It was ridiculously high to begin with, no way would I utilize that amount of credit anyway), but I was thinking that if a customer demonstrated that they could pay back what they owed within that credit line, why cut it? Now that I am retired, I find I use my bank's debit card for most purchases, or cash anyway, so it doesn't bother me, but I thought it was odd.
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Old 10-27-2019, 12:57 AM
  #5

OP....my scores are almost identical. I helped my son buy a car this past summer, but paid off things and chose to lower limits. It hurt my credit. Dropped about 100 points as well. This was in July. I hope my score goes back up too.


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Old 10-27-2019, 04:33 AM
  #6

Credit scores are strange. I have been in my house for 31 years and we had a 25 year mortgage. My cars are also paid off because we keep them a long time. I have no loans now at all except for monthly credit card bills that I pay off every month.

Why should I be dinged for being financially responsible and lucky enough to have income that allows me to not carry debt at this point in time?
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Old 10-27-2019, 07:11 PM
  #7

Weíve been paying accounts off slowly, but my credit score has dropped significantly since we started. I was over 700 and now Iím at 610. No late payments. Iíve only added a Kohlís credit card, but thatís so I would have something else thatís just in my name to help my score. My score keeps decreasing even though my balances are decreasing.
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Old 10-27-2019, 09:27 PM
  #8

I don't really understand how it all works. My score was in the high 700s/low 800s (depending on which of the 3 bureaus checked) and all I had was one credit card that I used and paid off every month. It dropped a bunch of points when I started shopping for a mortgage due to "inquiries" (luckily, not enough to impact the rate I got). I honestly don't know what it is now- I have no plans to use credit any time soon and I'm someone who will get worried about it if I'm constantly monitoring.

I've looked at some of Dave Ramsey's stuff and I don't buy that one doesn't need a credit score. I paid cash for my car and my credit was still checked as part of the transaction (I'm guessing so that they could reasonably assume the check would clear). It's also been checked for renting, utilities, internet, car/home insurance, etc. In some cases you can pay a deposit to get around it (like the utilities), but in other cases it seems like you'd be getting far worse rates (on things like mortgages, insurance).

Quote:
I keep seeing a commercial on TV for Experion Boost that sounds like you can pay to have your credit score raised.
I haven't researched this extensively, so I could be wrong, but my understanding is that it allows you to get "credit" for doing things like paying regular bills on time, such as utility bills. I don't think there is a charge. To me it doesn't seem like it would help that much in the long run because the other 2 bureaus aren't using it. Unless someone is only checking Experian it wouldn't make that big of a difference. And personally I don't understand why things like paying bills on time doesn't already factor into your credit score.
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Old 10-28-2019, 04:50 PM
  #9

Credit scores 100% DO matter unless you buy everything outright. My husband is a finance manager at a dealership. Credit scores are the number one indicator of what interest rate you will get and thus how much you pay in the longrun.

That said, above a 700 is still a good rate and the small fluctuations that occur when paying something off are not going to make a huge difference. Scores dinged for late or missing payments, that's another story.
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