Paid off credit card, score went DOWN

[Anonymous]

I have no debt except a $10,000 car loan. My income is in the 50K range. I have several credit cards and use them but pay off the balance in full every month. My credit scores are all over 800. Oh and BTW, I went through bankruptcy 12 years ago, scores were over 700 within a year or two after that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Let’s just say I now understand Dave Ramsey’s position on credit scores.

What’s his position?

Not the quoted pp, but I think it's that you want your credit score to be 0 because then you don't owe anything to anyone and live a cash based lifestyle.

+1. No debt here (mortgage or otherwise). I do use a credit card for everyday purchases but pay off each month. You can guess how much I care about my credit score.

[Anonymous]

Anonymous wrote:Are you part of the DCUM no debt club? You brag about being debt free? Not taking any debt? Paying cash for your cars?
Well, the price for this is a low credit score.
If you want a high credit score, you should be willing to have some debt.

OP here. Not sure what you’re talking about...I clearly stated that I’d had several thousand in credit card debt for a while. I’m obviously not on here bragging about not taking on debt. My score is in the 800s, so that’s not the issue.

Anyway, now I know not to pay the balance in full each month. Hopefully my score will rebound next month.

[Anonymous]

Anonymous wrote:Are you part of the DCUM no debt club? You brag about being debt free? Not taking any debt? Paying cash for your cars?
Well, the price for this is a low credit score.
If you want a high credit score, you should be willing to have some debt.

That’s not true. DH and I do all the things you mentioned and have great scores. It does help to use credit cards and pay off in full each month. You don’t have to carry debt. However, once you have a mortgage and are settled, credit scores aren’t that critical. It’s a better idea not to borrow money!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Are you part of the DCUM no debt club? You brag about being debt free? Not taking any debt? Paying cash for your cars?
Well, the price for this is a low credit score.
If you want a high credit score, you should be willing to have some debt.

OP here. Not sure what you’re talking about...I clearly stated that I’d had several thousand in credit card debt for a while. I’m obviously not on here bragging about not taking on debt. My score is in the 800s, so that’s not the issue.

Anyway, now I know not to pay the balance in full each month. Hopefully my score will rebound next month.

If your credit score is already in the 800s why does it need to be any higher? There really aren't any benefits to having a score of 840 versus 810.

[Anonymous]

Anonymous wrote:Let’s just say I now understand Dave Ramsey’s position on credit scores.

+1 and credit cards in general. Banking institutions are not your friend.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Are you part of the DCUM no debt club? You brag about being debt free? Not taking any debt? Paying cash for your cars?
Well, the price for this is a low credit score.
If you want a high credit score, you should be willing to have some debt.

OP here. Not sure what you’re talking about...I clearly stated that I’d had several thousand in credit card debt for a while. I’m obviously not on here bragging about not taking on debt. My score is in the 800s, so that’s not the issue.

Anyway, now I know not to pay the balance in full each month. Hopefully my score will rebound next month.

If your credit score is already in the 800s why does it need to be any higher? There really aren't any benefits to having a score of 840 versus 810.

Couldn’t agree more. I don’t understand some people’s focus on credit scores.
I’d go so far as to say a 750 score, perhaps even lower, gets you all the “street cred” that anyone needs.

[Anonymous]

Dave Ramsey is pretty spot on about this. You're obsessing over a score that reflects how much debt you have available to use. How is that something to be proud of?

[Anonymous]

He same thing happened to me when I paid off an installment loan I had. I was so excited to pay it off. It’s had been hanging over my head for awhile. I paid it off and my score went down over 40 points. It’s absurd.

[Anonymous]

It actually makes a lot of sense if you understand the purpose of a credit score