23 People Helped
Member Since: July 2010
No, the whole scoring system was not created just for banks to make more money. It was created to provide a predictive analysis based upon a given snapshot of a prospective borrower's past and current credit use to enable lenders to make informed credit granting decisions.
Like anything - you want to be chosen? Do what the choosers find desirable and don't do what's not. Want to borrow only from lenders that aren't profitable or lend according to the borrower's standards? There's a reason lenders like those tend not to exist very long. Sick of needing to comply with the rules of others whose money and services you desire? Learn to live on what you can obtain on a cash basis or save up enough to become a lender and set your own rules.
But don't be surprised if the first thing you do as a lender is contract with someone who can provide a standardized metric for weighing risk.
Madlock's reply was:
That's not true. As an authorized user, the available credit, amount owed, and debt to income all reflect on the user's credit report and score regardless of the account's standing.
There was a lot of drama a year or so ago when agencies were seeking to close a loophole created by people "buying" authorized user space on other people's accounts, but due to the large number of husbands and wives who share cards without ever considering the difference, bureaus reversed themselves and report accordingly.
Madlock's response was:
Unless you can eliminate negative information from your credit history or pay-down accounts with excessive debt-to-credit ratios, you can do very little that will have any kind of dramatic positive impact upon your score over a two month period. Strong credit scores reflect creditworthiness built over time.
On the other hand, you can do a great many things to send your credit score spiraling downward in the blink of an eye. It can take no more than a single late payment or delinquency to have a negative effect that can take months or years to overcome.
While building top credit requires both the judicious use of credit and avoiding its irresponsible use, maintaining a high credit score is generally MUCH more about avoiding negatives than chasing positives.
Inquiring before travel abroad to ensure foreign use doesn't trigger fraud prevention isn't uncommon. It's smart. The representatives may have been overridden or their requests ignored. Not that either matters when one's card no longer works, but alleging overt deceit and "lying" is spurious at best.
One NEVER should travel domestically or abroad with just one card. Too many circumstances beyond the travelers control will exist. Any resulting pickle for anyone who had an option to carry a second card is on the cardholder. However, the most suspect data point is the use of "undue"...
Obtain current copies of your credit history from all major reporting bureaus and ensure their accuracy, removing any erroneous items not in your favor.
While you can pay-down balances to improve your credit utilization ratios and debt to income ratios, negotiate to pay-off any delinquencies with creditors who may be willing to revise the status of your account or delete it from your credit history altogether, the rest is simply going to be a process obtaining using whatever credit you can wisely until any delinquencies reach their 7-year statutory reporting limit and disappear from your report.
Death is about the only student loan "forgiveness" that exists - and then ONLY after it claims whatever it can from your estate. You borrowed it. You owe it.
Of COURSE he could have - others could have made him an authorized user of long-established accounts which would immediately give him positive tradelines AND a high AAoA.
I never cease to be amazed by people who simply state conclusions they've decided upon with absolutely NO basis for deciding upon them.
Not that I don't appreciate the value of CK in principle or the general advice or discussion forum it provides to exchange information, but I've found its credit score modeling - and particularly its summary analysis to vary wildly from the real world.
For example, CK describes my credit rating and detailed data to be "fair" and places me at about the 52nd percentile, despite each of the other bureau-provided 3-in-1 scores each depicting each of my credit histories and scores to be in the "Excellent" range and having no delinquencies within the past 7 years.
It may not be a "negative" in terms of credit score, but it can most certainly affect one's debt to income ratio and ability to borrow further.
Your score doesn't ALWAYS go up when you pay off a car loan. It depends on how much was owed proir to the pay-off, your AAoA (average age of accounts) and how long the loan was in effect.
Thinking I was doing myself a favor, I actually bombed my score by 20 points by paying-off a car loan that otherwise would've been just fine had I kept making payments provided the monthly amount doesn't consume an undue amount of your income.
It's ESPECIALLY frustrating when you financed ONLY to build credit rather than needing to borrow.
First of all, know what score your target audience is going to be using and gear your actions toward influencing THAT particular model.
The CreditKarma/TransUnion Vantage score has been notoriously irrelevant for my own credit, jumping all over the place arbitrarily, even when no relevant credit activity has occurred. Mine just lept from 688 to 721 when, knowing my credit is MUCH stronger, I applied for a mortgage and was told by BOTH lenders my score across the 3 bureaus ranged from a LOW of 808 to a HIGH of 825.
Credit Karma and TransUnion's propreitary consumer scoring MAY be helpful to alerting you when something generally positive or negative may have happened, but I'd put ascribe almost NO significance to the "score" they depict relative to ones actual lenders use.