How does one get credit?

[R8RFAN]

Yall know the story about me... I am going to be a bit vague here..

#1 100% Debt Free
#2 Low 6 figure savings
#3 Mid 6 Figure retirement (401k)
#4 No Credit Card debt
#5 DTI (Debt to income ratio =0)
#Paid 30 yr mortgage off in 5.5 years
#Bought car on 4 year financing in 2005 paid off in 2 years
#Bought Car with 4 year financing in 2002 also paid off in 2 years
# Have 1 bank credit card (Visa) Pay off in full every month
Income per year is High 5 figures to low 6 figures per year

No bankruptcies or late payments ever on any thing I ever bought since the early 90's.

I am not interested in buying anything or looking to buy anything but why is my credit score in the mid 600's and how do I get it to go up?

I am fully prepared for a bunch of stupid comments that I am just going to filter through to get to the legitimate ones so fire away... I know there are a bunch of people on this forum that make good money and are pretty smart except for their choice in a football team so give me some pointers.

Being Debt free is wonderful but if I ever choose to go buy someting like a stupid cell phone on a contract (which I haven't) I am going to be super pissed having that kind of coin and getting turned down...

Fire away

[LoneWolf]

Originally Posted by R8RFAN

For those interested after 4 years, I have a score of 824 now only using credit cards and paying them off in full e a couple times a month.

When I started this mission I think my score was 669

If you don't ever plan to buy anything using credit, why do you give a shit what your credit score is. Do you just like to come to CP and brag to a bunch of people who couldn't give less of a shit what your credit score is?

[Mr. Flopnuts]

Originally Posted by R8RFAN

For those interested after 4 years, I have a score of 824 now only using credit cards and paying them off in full e a couple times a month.

When I started this mission I think my score was 669

Elite credit. You've gotten there! Now what? It DOES serve a purpose. Do you know what that is, or is this just where they told you that you needed to get too? People use their credit to amass wealth. Do you know how? Find out, or, umm, congrats on the nifty credit score and all! It'll get you GREAT interest rates that you'll never use!

[bdj23]

Originally Posted by R8RFAN

For those interested after 4 years, I have a score of 824 now only using credit cards and paying them off in full e a couple times a month.

When I started this mission I think my score was 669

That's awesome dude, have time to tell us again?

[cooper barrett]

I buy a $5K or larger CD and then borrow against it. I then take the funds from that and put it in my account and set up automatic payments for the term of the loan (1Year). You can do this multiple times as I did starting out.

HAVING A BANK LOAN (or 3-4) HELPS A LOT BUT HAVING A BANK LOAN THAT WAS FULFILLED EVERY YEAR DOES WONDERS!!!!

[R8RFAN]

Originally Posted by LoneWolf

If you don't ever plan to buy anything using credit, why do you give a shit what your credit score is. Do you just like to come to CP and brag to a bunch of people who couldn't give less of a shit what your credit score is?

Yes I do

[ChiefGator]

That is interesting.. I would have thought paying them off in full each month would have hurt your credit score.

Did you cards raise your limits, by the way?

[R8RFAN]

Originally Posted by ChiefGator

That is interesting.. I would have thought paying them off in full each month would have hurt your credit score.

Did you cards raise your limits, by the way?

Yeah I have three cards with a total of about $35,000 credit limit

[scho63]

Originally Posted by R8RFAN

For those interested after 4 years, I have a score of 824 now only using credit cards and paying them off in full e a couple times a month.

When I started this mission I think my score was 669

Originally Posted by R8RFAN

Yeah I have three cards with a total of about $35,000 credit limit

CONGRATS ON HAVING A PLAN AND EXECUTING IT TO PERFECTION!

I HOPE THAT YOUR CREDIT CARDS HAVE AIRLINE MILEAGE AND HOTEL REWARDS ATTACHED TO THEM AS OPPOSED TO SIMPLE CARDS. IF NOT YOU SHOULD LOOK INTO A SWAP FOR AT LEAST ONE.

There may be a point in your life where you want to open a business before or after retirement, may decide to buy a second home, or want an extravagant purchase that your great credit will come in handy.

You should have a great financial planner who has estate knowledge as well.

[scho63]

Originally Posted by ChiefGator

That is interesting.. I would have thought paying them off in full each month would have hurt your credit score.

Did you cards raise your limits, by the way?

Absolutely not!

What hurts a credit score is utilizing more than 70-80% of your available credit each month. People think charging to the limit and paying off is best and it is NOT. Charge about 60% on various cards and pay off each month and your credit score will skyrocket.

Maxing out your credit limit on cards or home equity is NOT good.

[DaFace]

You're still a choad for arguing with me years ago that exactly what you're currently doing was a bad idea.

[JohnnyHammersticks]

I'm not going to read through all the responses to see if anyone has mentioned this, so sorry if this is duplicate info. I used to be a commercial and residential mortgage underwriter, so I dealt with credit extensively.

Credit cards report to the 3 credit bureaus (Trans Union, Equifax, & Experian) once a month minimum. It doesn't matter to them if you pay your card off every month, it only matters what your revolving credit-to-credit-limit ratio is on the day your info is reported. ****ed up, but that's how it is. In other words even if you pay your revolving balance(s) in full each month, if your cc balance on the day your cc company reports to the bureaus is $3K, and your cc limit is $4K, to the credit bureaus you're utilizing 75% of your available credit. That will smash your score, you need to always keep your revolving credit utilization ratio under 30% if you want a score over 750. It will definitely knock someone like you (who should be somewhere between 775-800+ if the info you laid out is accurate) down to the mid-600s. Even if you pay it off in full at the end of the month, to the credit bureaus, it only matters what your balance/credit limit is on the day your card reports to them.

You need to increase the credit limit on the card you have or open an additional card(s), whether you plan to use the additional credit or not. I always keep my credit limits as high as possible for precisely this reason, even though I never use the credit. To verify this is what is hurting your score, pay your cc balance in full, then don't use the card again for at least a month-and-a-half. Then check your score, it should improve dramatically.

[scho63]

Originally Posted by JohnnyHammersticks

That will smash your score, you need to always keep your revolving credit utilization ratio under 30% if you want a score over 750.

I never heard that it was that low. I know someone at Experian and they say anything under 60-70% is fine.

[R8RFAN]

Another year has passed, 5 years since I started this quest and not much has changed... Don't think I will ever be able to achieve the perfect 850 score have about 50k of available credit on the cards, use less than 1% of my available credit and still have no debt... Think I have peaked and doubt it will go any higher....

so let me have it you 500 credit score trolls

[lewdog]

I sit with same score as you.

But I froze our credit last year (thanks data breach!) and won't be taking a loan out for anything in the near future hopefully.

[R8RFAN]

Originally Posted by lewdog

I sit with same score as you.

But I froze our credit last year (thanks data breach!) and won't be taking a loan out for anything in the near future hopefully.

you were in the same boat as I was a few years back weren't you?