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07-26-2016, 01:56 PM | #31 |
Ith Fuhtbawl Time
Join Date: Apr 2010
Casino cash: $9999900
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Credit Karma scoring isn't even remotely accurate. So don't worry about that.
Your score does move though when you pay off an account. It's no longer an active credit line so it factors into scoring less. The people I see who have the highest credit scores typically have a couple of credit cards they've had forever (with no balance) and then lots of old accounts they've paid off. I'm a mortgage broker so I see credit reports every day. I would tell you it's a lot smarter to worry about your portfolio and assets and to spend less time thinking about how to get lower interest rates when you borrow hoping to please some ridiculous algorithm. |
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07-26-2016, 02:02 PM | #32 | |
What's up braj?
Join Date: Jun 2008
Location: Placencia, Belize
Casino cash: $603250
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Quote:
But it's simple. Pay your bills on time every single month. Keep your utilization below 50%. Don't close old accounts unless they are costing you money (charge an annual fee, paying interest on the loan like in the case of OP). Don't apply for too much credit all at once, although you recover from that quickly. |
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Posts: 16,167
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07-26-2016, 02:10 PM | #33 | |
Immanentize The Eschaton
Join Date: Oct 2002
Location: In Partibus Infidelium
Casino cash: $855880
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Posts: 56,228
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07-26-2016, 02:17 PM | #34 |
What's up braj?
Join Date: Jun 2008
Location: Placencia, Belize
Casino cash: $603250
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You'll get that back over time. My oldest two accounts are only 8 years old, and I'm constantly adding new ones. I'm still able to get approved for prime rate for anything I want, so it's nothing to stress about too much, IMO.
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Posts: 16,167
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07-26-2016, 02:26 PM | #35 |
Immanentize The Eschaton
Join Date: Oct 2002
Location: In Partibus Infidelium
Casino cash: $855880
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Yeah, that's what I was thinking too. I won't be buying anything major for about two years anyway and it's not like I have a terrible score or anything. I made the mistake of giving away too much info on one of those credit sites and got bombed with mortgage companies trying to contact me. I think this stuff is about, as you said, just being responsible and thinking long term.
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Posts: 56,228
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07-26-2016, 02:30 PM | #36 |
Court Jester
Join Date: Aug 2000
Location: Orlando
Casino cash: $1572400
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I paid off my house, car and credit cards and my score went down.
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Posts: 20,049
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07-26-2016, 02:33 PM | #37 |
Politically Incorrect
Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $1261110
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__________________
"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~ "The men who drafted Patrick Mahomes" |
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07-26-2016, 02:40 PM | #38 | |
Ith Fuhtbawl Time
Join Date: Apr 2010
Casino cash: $9999900
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07-26-2016, 02:45 PM | #39 |
Sometimes it's black and white
Join Date: Nov 2004
Location: California
Casino cash: $2684900
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I'm looking at this situation also. Say you go ten years (for instance) and the only thing you have is a single credit card that you pay off in full every month. Then at some point you want a loan that is small compared to the value of the house. Say a $30,000 loan when the house is $300,000+. Are you going to get screwed on the loan. Would it be better to take out a loan that is specifically against the house?
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07-26-2016, 02:54 PM | #40 | |
Ith Fuhtbawl Time
Join Date: Apr 2010
Casino cash: $9999900
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07-26-2016, 02:58 PM | #41 | |
Shit
Join Date: Jun 2008
Casino cash: $10039067
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ive never seen a bank give money on a new vehicle under an old loan account, but i havent financed a vehicle in years. |
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07-26-2016, 03:01 PM | #42 |
Immanentize The Eschaton
Join Date: Oct 2002
Location: In Partibus Infidelium
Casino cash: $855880
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I was thinking that the accounts would be similar. I mean, obviously, you probably aren't going to buy another car right when you pay one off. But I haven't financed a vehicle in forever either.
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Posts: 56,228
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07-26-2016, 03:10 PM | #43 |
Shit
Join Date: Jun 2008
Casino cash: $10039067
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the issue is you are still closing the original account, which dings your credit.
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Posts: 55,715
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07-26-2016, 04:03 PM | #44 |
Supporter
Join Date: Jul 2011
Casino cash: $3191956
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They dont want you to close it early, they want every cent of interest from you. Being responsible costs the lender money.
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07-26-2016, 04:06 PM | #45 |
Grand champ
Join Date: Sep 2007
Casino cash: $572369
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Posts: 45,373
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