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Bridget521

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Comment!! Please READ if you are watching CREDIT!!
I have been using Credit Karma for years. HOWEVER...I also have been following Dave Ramsey's program to get OUT of debt! I am pretty frustrated with this site!! I check my credit on here EVERY month or so...and although I have nearly PAID OFF EVERY CREDIT CARD I HAVE....I am seeing my credit score go DOWN!! That makes NO sense to me! THen when I looked at the report card...it gives me a BAD grade for CC utilization!! That is one thing bringing my score DOWN?? Ridiculous!! The idea is to GET OUT OF DEBT and STOP using CC's!! If having little to no debt besides my mortgage & vehicles makes my credit decrease then there is a HUGE problem with the system in this country! Those large items are the ONLY debt I have and I pay EVERYTHING 100% on time...actually a little early!! And I also pay a little extra on them!! THIS SHOULD INCREASE MY CREDIT SCORE!! But unfortunately, it shows it is working the opposite! Well, I REFUSE to rack up credit cards just so that I can have a bunch of payments to increase my credit! I LOVE the fact that I can pay CASH for super nice vacations and recently a boat for my family!! CASH is a MUCH better way to go then to finance things with credit cards! All that does is take MORE MONEY out of YOUR POCKET in interest and fees!! I'm considering getting away from this website because I hate to see all my hard work reflected in a DECREASING score on here!!

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Well, kinda...

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We are doing the Dave Ramsey thing, too, to a degree. We didn't take all of his advice, but we did adhere to most of it.

Unfortunately, it's not just this site. Believe it or not, paying off debt and using primarily cash negatively impacts your credit score. How do I know? I found out this past week the hard way.

Hubby and I love being able to pay cash for stuff, too. He has a credit card that he uses to pay some expenses (cell phone and electric, but nothing else. Not even gas.) and he pays the balance in full every month. I have no credit cards in my name, even though I'm a joint holder on his account. My only debt was a student loan paid off 5 years ago (early). When our car was totaled in a wreck (caused by someone else, I might add) this past week, we had a problem. We didn't have enough saved for a new car, and since this was our ONLY vehicle, we didn't have time to search for a good used car. So we applied for financing for a car loan and got a car where we could afford the monthly payment and even make extra payments to pay it off early. We simply had no choice.

But when the dealer reviewed our credit, the only loan they would approve was my husband's. I, apparently, didn't have enough credit history for them to approve me for a car loan, even one as small as the one we got. Ultimately, we wound up having to lease the car (the one thing we didn't want to do) in order to keep our payment manageable.

The good news is, they now have programs where you can lease the car, and then buy the car at the end of your lease. God willing, and nothing else goes wrong, we'll have enough saved by that time to buy the car outright and not have a monthly payment anymore.

So, I'm sorry to say, but it isn't just this website. Credit bureaus WANT you to have SOME debt and will negatively impact you if you don't.

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faerieprincess87 is pretty much correct. It has nothing to do with this website. Variety of types of credit, along with age of the credit, are a not insignificant part of your credit score. If you don't show you are handling credit properly, there is no way to rate how you will handle it in the future. Lack of history is almost as bad as bad history.

If one is going to be making a large purchase in the future and use credit, especially a mortgage, they should get a credit card immediately and use is responsibly. Pay the CC off monthly on-time, but after they have reported a balance to the credit bureaus. Likewise, if you don't have a history of fixed loan payments, ie car or student loans, getting a small loan even at a high rate will bring up your score for great savings on the large purchase. If your history is limited causing a low score, a higher score can also help lower your insurance payments.

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Wow. That is crazy! And yes, our system in this country has been broken!! I am one of the folks on the OTHER side of the fence.  I am in debt to 4 companies around 6 thousand dollars all together. It is a HORRIBLE feeling!!! The interest is RIDICULOUS!!!! 

However, I have brought my credit score up 120 points over the past couple of years! You are correct. It is NOT fair that I have IOU's out all over town and you pay all your things off and get a decrease!!!! Im so sorry but nit sounds like you and your family are doing better than ok! God bless you and yours.

 And while i do pay all my payments on time and more than I have to, I still can not get a bank to help me consolidate my payments into one!! I have a 680 credit score yet they say I have VERY POOR CREDIT!! So ya see, were all SCREWED by this system no matter what we do!! 

Good luck & pay cash! Screw um!! :)

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You need to understand that a credit score is not a measure of how well financially you are doing. It is only a measure of how wel you use debt.

You can be well fianncially and have a good or a bad score. You cna be doing middle of the road financially and have good ro bad score. You can be on the street, but if you ever had a credit card and was not tempted to maxi it out as you became destitute, you will still have a good score.

A credit score measures how you handle debt. FI you have no debt possibility i.e. credit cards, how would anyone know you can handle debt? One cannot, you will be an unknown and an unknown is a high risk. So moving to an all cash payments is goign to make you pay in the long run when you need to buy things on isntallments like a car or a morgage.

Having credit cards does not mean you cannot use them responsibly. Simply use them to buy what you can afford. If you understand that you are not really paying with a credit card, but postponing the payment for a price (the huge interest rate) with a credit card for the convenience of not carrying largish amoutns of cash every day you will be ok. simply use no mroe than 30% of your credit limit, pay credit card on time every time, and periodically ask for lower interest rate/higher credit card limit and your credit score will be high and your financial health would be fine.

Remember credit score is not a measure of financial health.

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