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fujigm82

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Why does your credit score go down when you go on vacation? So you can't buy sovieniers!
And because I own my home, I don't get credit for that.

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It is all about Debt to Credit Ratios

Vacations are not cheap, and when you put vacations on credit they become even more expensive. Your credit score is derrived by Debt to Credit ratio (how much of your credit is used), and Payment History and a few other factors.

If you run up 70% of your credit on vacation (any more than 20% is bad, shoot for under 10%) your credit will take a hit, but only temporarily. Now if you are on an Extended Vacation and miss a payment then this will take 7 years to go away...

As for owning a home (in comparison to having a mortgage), sure you don't get the credit bump for being in debt but think about the alternative. Over the next 30 years would you like to pay double what your house is worth today? I didn't think so.

Credit Scores have absolutely nothing to do with your ability to pay your debts, and everything to do with how willing you are to go into debt. That is not to say that there are not methods to "game" the system and not pay any interest but lets be honest, if you own your home, pay cash for cars, and never spend more than you make, why do you need credit at all? you don't. And for those people who are looking to buy a home, you don't need a credit score to buy a home, all you need is a Lender that does Manual Underwriting, If you have a credit score they will use it, but if you don't have a score (undeterminable or 0) then they use manual underwriting processes to evaluate you as a person, not you as a number.

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