credit scores make no sense....

[TAB]

in December i put 172k on my personal CC( bought a steel building), my credit score went up 4 points.  When i got the statement in January i paid it in full, my score dropped 33 points.

make it make sense.

[Rastus]

The want someone who can pay notes and generate income by paying the minimum amount plus a little cushion.

Not someone who uses the card for convenience with the ability to pay off the balance.

Macy's in NYC had people who pestered the heck out of me to get a Macy's card.  And...you got something like 40% off on that day's purchases no limit on how much you purchased or how you paid. 

Yeah...they turned me down. 

[Big Frank]

I've been digging myself a big hole and slowly trying to fill it back up, and my credit scores are really good. The things that boost your score are having lots of credit accounts, having a really old account, having none less than 2 years old, the average age of all your accounts being old, making at least your minimum payment on time for 3 years, borrowing less than 30% of your available credit, and I'm sure I'm forgetting something. Credit Karma can help you sort it out if you really want to know.

https://www.creditkarma.com/

[alfsauve]

If you read Dave Ramsey then you know he believes in cash for everything.  Save up on the front end to buy expensive items. I think he bends a little on things like a house.  It’s no surprise that he believes the best credit score is zero.  Im more of a follower of our local guy Clark Howard.  He believes in having credit cards, not debit cards, and in paying them off right away. Besides convenience they’re for unexpected things like when your car breaks down.  If cards make you a compulsive shopper then freeze them in a bag of ice so you have to thaw them before using. 

[Jim Kennedy-ar154me]

in December i put 172k on my personal CC( bought a steel building), my credit score went up 4 points.  When i got the statement in January i paid it in full, my score dropped 33 points.

make it make sense.

It NEVER will make sense. My wife and I keep a close watch on our score, and it has NEVER made sense. I am guessing they have a chimpanzee behind the scenes throwing dung at a dart board to see where it sticks, and when it does, THAT is your score.

[Sponsor]

[Big Frank]

Up until a couple of years ago I never carried a balance on my credit cards. I used them for almost everything I could and paid them in full before the bill was due. Then I sat back and reaped the rewards, like up to 5% cash back. Or points on my GM Card that I use to buy car accessories, or to get my car serviced. Companies like Capitol One have paid me thousands of dollars to use their credit cards, and I got them all for free.

[PegLeg45]

Something many don't know about credit cards is your score is boosted by being an authorized user on another account. When our younger son started high school, we added him as a user on a card we used for gas only, that way he could buy gas when he needed it.
Fast forward a couple years post graduation and he and his HS girlfriend decided to wed and wanted to build a house. Bank man said a 20 yr old wouldn't have enough credit for a home building loan. Son said run it anyway so they'd know where they stood going forward. A few minutes later bank man said he was approved for up to X amount.... said it was due to being an authorized account user on that credit card for over three years.

[Big Frank]

I never thought about it before, but it makes sense that everyone on the account gets their score bumped up, or down, depending on what you're doing.

[MikeBjerum]

in December i put 172k on my personal CC( bought a steel building), my credit score went up 4 points.  When i got the statement in January i paid it in full, my score dropped 33 points.

make it make sense.

It is an algorithm that looks for consistency. If you do this type of thing on a regular basis it will continue to raise your score over time. However, on a one off it raises red flags within the system. What you did will raise suspicion of either money laundering, or inability to gain loans (old check kiting schemes).

This is a common issue when someone obtains a reward card specifically to get all the benefits possible (GM, Ford, airlines, hotel chain, etc.). Many of these people will use the card as much as possible and pay it off daily, weekly, or like you, as soon as the statement comes. Once the algorithm recognizes your patterns it will reward consistency.