Congress considers credit-reporting overhaul, including putting government in charge of scores

[Camille]

I still don't get exactly how this works. If I pay off a debt early, my score takes a hit. Six months ago, I was at 794, I don't do anything for about 3 months, and it drops to 788. WTF?!

Was it a loan or a credit card? If it was a credit card, did you close the account?

Closing the account reduces the amount of credit available to you, increases the percentage of credit you are using when you have other debt, and decreases the average age of your accounts/history and can cause your score to drop. Tho I think it's supposed to remain on your report 7-10 years so the age thing might be less of an issue.

So if you have 3 credit cards with a 1000.00 limit, 2 have a 500.00 balance and one has a zero balance, if you close one account with a zero balance, you go from using 33% of your available credit to 50%, and if the account you closed was 20 yrs old and the two you kept were 10 years old, you've reduced the average length/age of your history. At least that was the gist I got from reading about this a while back.

 

[knightmelodic]

Better keep trying to get some version of HR-1 through. I approve of this although the companies and fatcats are already devising ways around it.

 

[playahaitian]

Yeah, I’ve been stacking this unemployment dough since last year and paying down credit while I’m transitioning careers. I’m likely going to come out with less debt, more money in the savings, and a new gig. Fingers crossed. 3rd interview next week.

Blessing and prayers my brother

You got this.

 

[playahaitian]

They need to use rent payments as a criteria. Millions of people pay their rent and are never late and can't use that as a positive.

^^^^

Post of the month

 

[killagram]

Was it a loan or a credit card? If it was a credit card, did you close the account?

Closing the account reduces the amount of credit available to you, increases the percentage of credit you are using when you have other debt, and decreases the average age of your accounts/history and can cause your score to drop. Tho I think it's supposed to remain on your report 7-10 years so the age thing might be less of an issue.

So if you have 3 credit cards with a 1000.00 limit, 2 have a 500.00 balance and one has a zero balance, if you close one account with a zero balance, you go from using 33% of your available credit to 50%, and if the account you closed was 20 yrs old and the two you kept were 10 years old, you've reduced the average length/age of your history. At least that was the gist I got from reading about this a while back.

This is true...bae

 

[playahaitian]

I still don't get exactly how this works. If I pay off a debt early, my score takes a hit. Six months ago, I was at 794, I don't do anything for about 3 months, and it drops to 788. WTF?!

Was it a loan or a credit card? If it was a credit card, did you close the account?

Closing the account reduces the amount of credit available to you, increases the percentage of credit you are using when you have other debt, and decreases the average age of your accounts/history and can cause your score to drop. Tho I think it's supposed to remain on your report 7-10 years so the age thing might be less of an issue.

So if you have 3 credit cards with a 1000.00 limit, 2 have a 500.00 balance and one has a zero balance, if you close one account with a zero balance, you go from using 33% of your available credit to 50%, and if the account you closed was 20 yrs old and the two you kept were 10 years old, you've reduced the average length/age of your history. At least that was the gist I got from reading about this a while back.

^^^^^

Okay!!!!

Wtf is up with that???

I have heard that a whole lot lately

People actually focusing on paying DOWN their debt

Not closing accounts

Just paying on time and paying more

And their scores keep going DOWN.

 

[killagram]

^^^^^

Okay!!!!

Wtf is up with that???

I have heard that a whole lot lately

People actually focusing on paying DOWN their debt

Not closing accounts

Just paying on time and paying more

And their scores keep going DOWN.

I ain't seen this.. brah

 

[jagu]

Right now...you shouldn't want to even bother with borrowing money... everything is inflated.. materials, groceries, labor, houses, cars....I ain't buying shit til next summer...it's fucked up...I'm seeing 200 percent increase on a lot of shit...brah...they got me noid as fuck ret nigh...just keep paying off old debt.. Right now... Kinsfolk

Very true. I’m not buying anything until late next year. I dodged the bullet on my project early blast year.

 

[Camille]

^^^^^

Okay!!!!

Wtf is up with that???

I have heard that a whole lot lately

People actually focusing on paying DOWN their debt

Not closing accounts

Just paying on time and paying more

And their scores keep going DOWN.

I think it only applies if you close it and reduce the amt of available credit. I don't know how it works with loan accounts. I just opened an acct with a lower interest rate than an existing card and I was going to transfer the balance and close the other acct. It has a lower credit line and a higher annual fee than my other cards BUT I've had it since 2004 or 2005, so when I was looking into doing the balance transfer I came across that info. So I'm trying to decide if I'm going to keep it or not. It has a 60.00 annual fee that will be due in Dec, and I would need to put a charge on it once or twice a year to stop it from being closed I think. So I'm trying to figure out how much of a hit I'd take if I close it.

 

[jagu]

^^^^^

Okay!!!!

Wtf is up with that???

I have heard that a whole lot lately

People actually focusing on paying DOWN their debt

Not closing accounts

Just paying on time and paying more

And their scores keep going DOWN.

I pay all my shit before time. Even on the same day that I buy stuff and it has not affected my score. It’s some other shit going on.

 

[playahaitian]

I ain't seen this.. brah

I don't know fam.

But I actually know some good folk actually using any extra cash to pay off debt consistent primarily credit debt and using they debit card more

And more than one told me they aren't seeing any significant help on their score

 

[4 Dimensional]

Blessing and prayers my brother

You got this.

Thanks, fam. I’m trying to restore order in the force, but these damn Siths keeps popping up.

lol

 

[ShortyCumStain]

Interesting.

 

[killagram]

Very true. I’m not buying anything until late next year. I dodged the bullet on my project early blast year.

I'm talking bout...dodged a missile on that big pretty muffucka you built... brah

 

[playahaitian]

Thanks, fam. I’m trying to restore order in the force, but these damn Siths keeps popping up.

lol

Your midichlorian count to high for these basics bro.

They trying to fight destiny

They will fail.

 

[sinsay]

I don't know fam.

But I actually know some good folk actually using any extra cash to pay off debt consistent primarily credit debt and using they debit card more

And more than one told me they aren't seeing any significant help on their score

Paying it down period will help, but there are 2 thresholds where you’ll see the biggest impact…30% and 10%.
Someone paying down 90% to 70% is great but your score isn’t going to significantly improve until you hit those thresholds of 30 and/or 10.

 

[TENT]

Something else happened that they are leaving out or didn't realize.

^^^^^

Okay!!!!

Wtf is up with that???

I have heard that a whole lot lately

People actually focusing on paying DOWN their debt

Not closing accounts

Just paying on time and paying more

And their scores keep going DOWN.

 

[LordSinister]

^^^^

Post of the month

And millions pay late or inconsistent. Do you really want land lords putting out credit shit on you that you need to chase them down to fix? I have a few ex tenants that trashed my places and left more damage than their security deposit covered that I would love to shit on.

 

[footloose]

Oooohhh now they wanna overhaul it. After I done figure it out

 

[playahaitian]

And millions pay late or inconsistent. Do you really want land lords putting out credit shit on you that you need to chase them down to fix? I have a few ex tenants that trashed my places and left more damage than their security deposit covered that I would love to shit on.

DAMN

But millions pay credit cards, mortgages, tuition, child support, alimony, child care, storage fees, medical bills etc etc late too

But then the millions who pay on time don't get to benefit?

There are no easy solutions but I completely understand good renters wanting to be recognized

 

[dHustla]

I pay all my shit before time. Even on the same day that I buy stuff and it has not affected my score. It’s some other shit going on.

Your score going down too?

 

[D24OHA]

The same congress with terrible credit, multiple members with bankruptcies.....wants to overhaul the credit reporting process.....surprise surprise.

 

[Efkie]

Perhaps in preparation of CBDC's (FED coin, UBI)

One thing that I'm trying to understand is, why do people like to buy stuff on credit ?
Why not save and then buy ?

 

[Shaka54]

 

[Helico-pterFunk]

I hear you fam.
In this crazy environment, it's best not to lend or borrow. Play the sides and wait for the opportunities as things crash.
A broken down shack around my way just got sold for a damn near million. I'm good.

Agreed. Real estate is seriously overpriced on the westcoast. Really pissed me off buying my home in 2009. Realtors jokingly saying - "don't worry - money is cheap". Never taking into consideration the blood, sweat, and tears potential buyers go through getting into the right position to even buy something, or be comfortable with their downpayment.

Thankfully the place has doubled in assessed value over the past decade plus. Down slightly in recent years, but still at nearly double.

But just jumping into the market as a young person or couple ... there are so many self doubts as you weigh pros & cons, your financial situation, etc. Real estate being the biggest purchases we make in our lifetime and all. As you said - when broken down shacks are selling for nearly a million ... it's alarming.

 

[4 Dimensional]

Yeah, I’ve been stacking this unemployment dough since last year and paying down credit while I’m transitioning careers. I’m likely going to come out with less debt, more money in the savings, and a new gig. Fingers crossed. 3rd interview next week.

Goal met! Nice

Less debt, more money in saving, and a new gig.

 

[Shaka54]

Goal met! Nice

Less debt, more money in saving, and a new gig.

Congrats!

 

[woodchuck]

Was it a loan or a credit card? If it was a credit card, did you close the account?

It was my Barclays card. I paid it off, and about 4 months later, I just closed it, because I really didn't need it. About 7 or 8 years ago, I had one cc company cut my shit off because wasn't using it enough! They love to keep people in debt.

 

[4 Dimensional]

It was my Barclays card. I paid it off, and about 4 months later, I just closed it, because I really didn't need it. About 7 or 8 years ago, I had one cc company cut my shit off because wasn't using it enough! They love to keep people in debt.

Which CC cut you off?

 

[woodchuck]

Which CC cut you off?

My old Capital One card. Funny thing is, I had 3 at the time, and still have 2 now. MUCH better interest rate than that one, so I stopped using it. About a year or so later, they cut it off. I rarely use the 2 that I have now, because our AMEX platinum is our do it all card, and our Costco Visa is our gas card.

 

[4 Dimensional]

My old Capital One card. Funny thing is, I had 3 at the time, and still have 2 now. MUCH better interest rate than that one, so I stopped using it. About a year or so later, they cut it off. I rarely use the 2 that I have now, because our AMEX platinum is our do it all card, and our Costco Visa is our gas card.

Dammit! I was afraid you was going to say Capital One. I have the Savior Card, but the interest rate is too high, so I only use $12 a month with a $8500 credit limit. I have a feeling them are going to do me the same.

 

[woodchuck]

Dammit! I was afraid you was going to say Capital One. I have the Savior Card, but the interest rate is too high, so I only use $12 a month with a $8500 credit limit. I have a feeling them are going to do me the same.

They may not, at least you're using it. I like it when they notice you're not using it enough, they'll boost your credit limit!

 

[Gods_Debris]

Goal met! Nice

Less debt, more money in saving, and a new gig.

Still in Nof Cackalaky?

 

[tebriel69]

My old Capital One card. Funny thing is, I had 3 at the time, and still have 2 now. MUCH better interest rate than that one, so I stopped using it. About a year or so later, they cut it off. I rarely use the 2 that I have now, because our AMEX platinum is our do it all card, and our Costco Visa is our gas card.

Them Amex cards are legit. Just stopped using the platinum and switched to the gold for the everyday use since the intro points window closed. I still think most folks should realize that’s it’s still better to ensure u have cash to cover any purchase. Credit is a gimmick designed to trick us into buying things we can’t afford. And that affects all races. It ain’t just us black folk

 

[4 Dimensional]

Still in Nof Cackalaky?

Yessir. Didn’t have to move and got an 85% salary increase. That’s perfect in G-Boro.