Reply to Incredibly dumb question—can you not pay of CCs in full every month & still have a high credit score?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If they pay at least the min regularly and have a lot of credit in general (like $50k+)  but only 4k of debt. The ratios are still in their favor.
I have 3 credit cards with $30k limit on each. I never spend that much tho. [/quote]

The whole system is silly and wrong.  The fact someone can NOT pay in full each month and have a better credit score than someone who charges 50% of their limit and pays in full is a bit wrong.

Thankfully I don't need credit (beyond using cards to pay for stuff so I get perks and protections not offered with a debit card).  But I often go over the 10-20% range.  I have good limits, but some months $40K goes across the cards with plenty of cash on hand to pay it off.  If I forget to go pay it immediately and wait for the "end of the month" my credit will take a ding.

But fact I (with 40x+ the amount of my credit limits in cash in accounts) have a lower credit score simply because I do this oh and I don't have any loans on record.  No loans because we pay cash for everything in the last 10+ years[/quote]

Credit Score isn't a measure of personal character. It's a measure of lending profitability.

Someone who overspends *but pays*, carries debt and pays absurdly  20%/yr interest is a much better (more profitable) lending target than someone who takes 0% loans every month.

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