Amazingly I had a credit score of 847 last time I looked. I don't need a great credit score, I'm not trying to get in more debt. I use two credit cards and pay them off monthly. I sold a leased car back to the dealership, have a small mortgage, and another small property. It is a blessing to be able to pay the whole bill every month.
I was going to reply with this as well. When banks create loans, they predict that they will make X amount of interest over X amount of time. They want those monthly payments as this is solid income for them. Much like your cable bill.
In the past, I was told that initially when you pay off, a little hit to rating will occur as precaution, because now you have a larger line of credit and could possibly go out on a spending spree, max out cards, and be unable to meet the debt agreements. Not sure. Also, the reports may not be up to date with that payoff activity. I've seen 3 months pass before a change to increased score. If you're not planning any immediate major purchase, take the hit and get out of debt. That's money you can put towards survival of the times.
I have wondered that exact question... if a guy could time the implosion and debt jubilee perfectly (assuming it's a real thing and applies to us), then you'd rack up the debt to the limit, and beat the DS system.
Now, the reality is... no way to predict, and no way to be sure that a debt jubilee will happen and even if it does that it will be good for us. So, in order to participate in the system they have created, at the very least try not to accumulate more debt, while paying at least the minimum--but try to pay more and get it down to where you can pay the monthly and some extra while at the same time setting some aside for other assets (perhaps physical gold and silver, land, food, ammo, etc.). It's not financial advice... I'm just summarizing how I cope with the clusterfuck of reality.
I have this issue too! Have been trying to clear two credit cards before I move to either have no mortgage or a small one, and after clearing the first one my rating went from excellent to good!
Amazingly I had a credit score of 847 last time I looked. I don't need a great credit score, I'm not trying to get in more debt. I use two credit cards and pay them off monthly. I sold a leased car back to the dealership, have a small mortgage, and another small property. It is a blessing to be able to pay the whole bill every month.
Look into Dave Ramsey, break free from your debt chains...
It’s completely WRONG. Zero balance on my credit cards and all 3 credit scores over 800 which is considered EXCELLENT.
I was going to reply with this as well. When banks create loans, they predict that they will make X amount of interest over X amount of time. They want those monthly payments as this is solid income for them. Much like your cable bill.
LaaS - Loans-as-a-Service
In the past, I was told that initially when you pay off, a little hit to rating will occur as precaution, because now you have a larger line of credit and could possibly go out on a spending spree, max out cards, and be unable to meet the debt agreements. Not sure. Also, the reports may not be up to date with that payoff activity. I've seen 3 months pass before a change to increased score. If you're not planning any immediate major purchase, take the hit and get out of debt. That's money you can put towards survival of the times.
My brother paid off his Amex and his FICO score dropped significantly enough to piss him off.
Paid off my truck in January and my score dropped 38 points.
I have wondered that exact question... if a guy could time the implosion and debt jubilee perfectly (assuming it's a real thing and applies to us), then you'd rack up the debt to the limit, and beat the DS system.
Now, the reality is... no way to predict, and no way to be sure that a debt jubilee will happen and even if it does that it will be good for us. So, in order to participate in the system they have created, at the very least try not to accumulate more debt, while paying at least the minimum--but try to pay more and get it down to where you can pay the monthly and some extra while at the same time setting some aside for other assets (perhaps physical gold and silver, land, food, ammo, etc.). It's not financial advice... I'm just summarizing how I cope with the clusterfuck of reality.
Pay down about 70% that will give you a hefty boost
It's fine to use a credit card, but pay the balance every month and avoid feeding the beast their pound of flesh.
I have this issue too! Have been trying to clear two credit cards before I move to either have no mortgage or a small one, and after clearing the first one my rating went from excellent to good!
Did you cancel or close the card? If you pay off the debt but keep the card open- it shouldn't affect your credit score negatively.
However, closing a credit card that you've had for 10 years CAN affect you because you've just nixed a large portion of your Credit History.
My brother paid off his Amex and his FICO score dropped significantly enough to piss him off.
Excellent advice!
Your credit score shouldn't matter, because you do not spend money you do not have.
Will do! Thanks. I’m on it. I don’t have huge debt but I need to get rid of it