Perfect credit gives you 'okay' rates and the worse it gets the worse it goes for the rates.
It's in inverse, zero-sum game controlled by the banks/financial institutions.
I have mostly bought everything cash other than houses. I know that not everyone has the ability to do that, but in my 20s I lived like a poor man while making decent money.
Have a low debt/income ratio, keep cards under 20% if possible, have a few reported monthly payments that are revolving and never miss a payment, and it will start to climb.
All three of the banks I use try to give me revolving credit lines and personal loans all the time, however, I rarely ever act on the offer because I don't need it.
Change your habits and it will change a lot more than just your credit. BTW, over a decade ago when I stopped operations of my first company (it was pretty large) my credit was in the low 500s (down from high 700s), it's back up hovering close to 800. It's all possible with time and structured habits.
I have known people in my position that don't have self-control and they usually 'TANK' their companies or personal fortunes in 'no time' once they feel they have 'made it'.
It's so weird to see someone work so hard and build something viable, then get a little extra $$$ and throw their principles and concepts that got them there to the side and shit it all away. Then again, money is not the root of all evil and most people quote that bible verse incorrectly. It is, "For the love of money is the root of all evil". Once someone is consumed with the love (or lust) of money, they do things they would have never done before.
That's why my wife and I teach our kids to 'use things and love people' since far too many people in this world now 'use people and love things'.
But on a more serious note, debt is evil. It's a chain around your neck. I work as a loan originator and I see first hand the destruction that poor financial management and access to debt cause. People ruin their lives with credit cards.
I have zero doubts about that. Many cannot handle financial responsibility. Or have the means to. And when they do, they very often don't. I can buy a small house on my Amex, but never have. FICO >800 for us.
I'm no CPA but I would like to add my experience in keeping a low debt/income ratio. This magical 20% ratio has helped me a lot when playing in this credit score system of the beast.
One thing I have found out is when I would pay off a card and then stop using that card for 1-2+yrs my score would drop. Credit history is tied to the score, so when they deactivate cards from being idle you lose credit history.
I don't know how transfers work. But when I paid off a student loan my score took a huge nose dive. And I think that was because of no longer having that credit line and/or it was no longer reporting so the history was gone. Whereas if you keep a credit card active that history stays reporting. So I imagine if you lose/close a credit card that you have had for a decade or more I imagine the score would also go down.
Debt is bad but in their beast system not having debt is bad. If you want participate in their beast system then you need to at least play along.
Look at it the other way around, lenders are more inclined to lend their money to borrowers who have a history of paying off their debts in a timely manner. They are willing to lend to others who don’t have a history ’ but demand to be paid more for taking the risk. . It’s called a ‘risk premium’ and it’s totally moral and justified.
It's all a trap and a ruse and a game. I paid off all my credit card bill, saved a chunk of money, then went to buy a car. I was going to finance it. They came back and told me I had bad credit therefore the payments would be YUGE. But, how could I have bad credit if I paid off all my debt? And while I HAD debt, never missed a payment at all. In other words, sterling credit record. The answer was BECAUSE I had no credit card, I had "bad" credit. So, I paid for the car (used Jeep) in cash. So in order to have GOOD credit, one must borrow someone else's money. See how this system works? I sincerely hope that Trump breaks the Fed and the Central Banks. Then we can go back to saving our money.
The rich rules over the poor, and the borrower is the slave of the lender. - Proverbs 22:7
The best thing you can do is to live below your means and pay of all of your debt as fast as possible so you can unplug from the credit system. Work extra hours or side jobs and don’t visit another restaurant until all of your debt is paid off. On average, people who go all-in on paying off all of their debts will get it done in one to two years.
I’ve never owed on a credit card! My score isn’t horrible but I strive for the highest bracket! I’ve had a few medical bills get me and my student loans affect it negatively when they transfer. My last transfer was November. My company pays it every month I had no missed or late payments. Just the act of transferring dropped my score 54 points. That’s a lot don’t you think? It shouldn’t drop 1 point for that anyway?!?!
What it all basically means .... this higher the score, the higher chance you will pay off the interest of the loan over the length of time securing a positive cash flow from you.
Meaning how much money the financial institutions can make off of you In the long term Investment vs short term risk involved.
Perfect credit gives you 'okay' rates and the worse it gets the worse it goes for the rates.
It's in inverse, zero-sum game controlled by the banks/financial institutions.
I have mostly bought everything cash other than houses. I know that not everyone has the ability to do that, but in my 20s I lived like a poor man while making decent money.
Have a low debt/income ratio, keep cards under 20% if possible, have a few reported monthly payments that are revolving and never miss a payment, and it will start to climb.
All three of the banks I use try to give me revolving credit lines and personal loans all the time, however, I rarely ever act on the offer because I don't need it.
Change your habits and it will change a lot more than just your credit. BTW, over a decade ago when I stopped operations of my first company (it was pretty large) my credit was in the low 500s (down from high 700s), it's back up hovering close to 800. It's all possible with time and structured habits.
I have known people in my position that don't have self-control and they usually 'TANK' their companies or personal fortunes in 'no time' once they feel they have 'made it'.
It's so weird to see someone work so hard and build something viable, then get a little extra $$$ and throw their principles and concepts that got them there to the side and shit it all away. Then again, money is not the root of all evil and most people quote that bible verse incorrectly. It is, "For the love of money is the root of all evil". Once someone is consumed with the love (or lust) of money, they do things they would have never done before.
That's why my wife and I teach our kids to 'use things and love people' since far too many people in this world now 'use people and love things'.
Screw the fiat currency and commerce system. Barter with chicken eggs and labor
I'll remember that next time I want to go buy another home.
But on a more serious note, debt is evil. It's a chain around your neck. I work as a loan originator and I see first hand the destruction that poor financial management and access to debt cause. People ruin their lives with credit cards.
I have zero doubts about that. Many cannot handle financial responsibility. Or have the means to. And when they do, they very often don't. I can buy a small house on my Amex, but never have. FICO >800 for us.
I'm no CPA but I would like to add my experience in keeping a low debt/income ratio. This magical 20% ratio has helped me a lot when playing in this credit score system of the beast.
One thing I have found out is when I would pay off a card and then stop using that card for 1-2+yrs my score would drop. Credit history is tied to the score, so when they deactivate cards from being idle you lose credit history.
I don't know how transfers work. But when I paid off a student loan my score took a huge nose dive. And I think that was because of no longer having that credit line and/or it was no longer reporting so the history was gone. Whereas if you keep a credit card active that history stays reporting. So I imagine if you lose/close a credit card that you have had for a decade or more I imagine the score would also go down.
Debt is bad but in their beast system not having debt is bad. If you want participate in their beast system then you need to at least play along.
Look at it the other way around, lenders are more inclined to lend their money to borrowers who have a history of paying off their debts in a timely manner. They are willing to lend to others who don’t have a history ’ but demand to be paid more for taking the risk. . It’s called a ‘risk premium’ and it’s totally moral and justified.
It's all a trap and a ruse and a game. I paid off all my credit card bill, saved a chunk of money, then went to buy a car. I was going to finance it. They came back and told me I had bad credit therefore the payments would be YUGE. But, how could I have bad credit if I paid off all my debt? And while I HAD debt, never missed a payment at all. In other words, sterling credit record. The answer was BECAUSE I had no credit card, I had "bad" credit. So, I paid for the car (used Jeep) in cash. So in order to have GOOD credit, one must borrow someone else's money. See how this system works? I sincerely hope that Trump breaks the Fed and the Central Banks. Then we can go back to saving our money.
The rich rules over the poor, and the borrower is the slave of the lender. - Proverbs 22:7
The best thing you can do is to live below your means and pay of all of your debt as fast as possible so you can unplug from the credit system. Work extra hours or side jobs and don’t visit another restaurant until all of your debt is paid off. On average, people who go all-in on paying off all of their debts will get it done in one to two years.
You need to keep credit cards with less then 30% debt on them, pay shit on time and let it go up.
I’ve never owed on a credit card! My score isn’t horrible but I strive for the highest bracket! I’ve had a few medical bills get me and my student loans affect it negatively when they transfer. My last transfer was November. My company pays it every month I had no missed or late payments. Just the act of transferring dropped my score 54 points. That’s a lot don’t you think? It shouldn’t drop 1 point for that anyway?!?!
It is, I’d dispute it
And student loans hurt you the most. You need to get rid of that as fast as you can
What it all basically means .... this higher the score, the higher chance you will pay off the interest of the loan over the length of time securing a positive cash flow from you. Meaning how much money the financial institutions can make off of you In the long term Investment vs short term risk involved.