How to trash your credit!

**Greebo** · 12-01-2009, 03:40 PM

Disclosed for the 1st time, 'damage points' taken off for late payments
Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.

Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.

http://finance.yahoo.com/banking-bud...-creditreports

**NikoSan999** · 12-01-2009, 03:59 PM

So, the higher the score the more you are penalized??!!

Odd this dosen't show closed cards. Last October between the 1st and last day, 5 cards, 2 Citibank and 3 chase, closed me for non use over a couple 2-3 years ( maybe more ) period. This started my almost 800 score on a downward spiral that never ends.

**Greebo** · 12-01-2009, 04:02 PM

It doesn't show a lot - it doesn't show impact of length of credit history, relative utilization ratios, number of cards, etc.

So no indication of how to get a good score, just how to trash a bad one - and yeah I noticed that too - the bigger your score, the faster your fall.

**NikoSan999** · 12-01-2009, 04:13 PM

Crash and burn

**Greebo** · 12-01-2009, 04:16 PM

One thing is for sure - it's a lot harder to crash and burn with cash than credit.

**NikoSan999** · 12-01-2009, 04:26 PM

You got that right and if we start over that is the way it will be.

**Surilda** · 12-01-2009, 07:13 PM

Guess it doesn't matter if your card is maxed out becauise
THEY slashed your credit limit to barely over what you owe!
So my 30% or so utilization suddenly went to about 98%.

AE did this to me twice in a two month period. Guess they
decided they didn't screw me over well enough the first
time. I think my new limit ending up being about $65.00
over what I owe. I'm sure they are waiting with baited
breath for me to go over my limit so they will be "justified"
in raising my interest rates and minimum payment.

It is NOT going to happen. I am paying $45.00 over what
I was sending them till I get the balance at least $500
under their new limit. Hey - maybe that was the plan
all along! lol

**dcompton** · 12-01-2009, 09:05 PM

I think it's beyond unethical that your score can be so impacted by things you did not initiate, like the tactics Surilda mentioned. If your credit score/history were only used for getting loans and you weren't planning any, it might not matter so much. But now potential landlords check it, potential employers, insurance companies -- the list goes on, so it can hurt you, even if you never borrow a dime again. It certainly doesn't indicate that you won't pay your rent or be a good employee or that you will wreck you car. It is all monstrously unjust. Just my two cents worth.

**Palooka** · 12-02-2009, 03:21 PM

Well that stinks that someone can have a good credit score and be late one time and then...BAM!

dcompton - I've never heard of a landlord that didn't check but the insurance thing was something I learned here. Crazy about insurance.

**Greebo** · 12-02-2009, 03:29 PM

Originally Posted by dcompton

I think it's beyond unethical that your score can be so impacted by things you did not initiate, like the tactics Surilda mentioned. If your credit score/history were only used for getting loans and you weren't planning any, it might not matter so much. But now potential landlords check it, potential employers, insurance companies -- the list goes on, so it can hurt you, even if you never borrow a dime again. It certainly doesn't indicate that you won't pay your rent or be a good employee or that you will wreck you car. It is all monstrously unjust. Just my two cents worth.

As a Landlord, what I look for is late payments and delinquencies. One late, I'm not gonna worry. LOTS of them, you're renting from someone else.

**NikoSan999** · 12-02-2009, 09:12 PM

Originally Posted by dcompton

I think it's beyond unethical that your score can be so impacted by things you did not initiate, like the tactics Surilda mentioned. If your credit score/history were only used for getting loans and you weren't planning any, it might not matter so much. But now potential landlords check it, potential employers, insurance companies -- the list goes on, so it can hurt you, even if you never borrow a dime again. It certainly doesn't indicate that you won't pay your rent or be a good employee or that you will wreck you car. It is all monstrously unjust. Just my two cents worth.

You can add my 2 cents worth in with yours. Whoops!!! We just raised our ratio there.

**Palooka** · 12-02-2009, 10:01 PM

I don't get the insurance thing. (rent yeah) but it's a law that we 'need' insurance pretty much so as long as you pay monthly or every six months...(whatever the policy is set up for)then why the heck would insurance cancel you for bad credit? When you are paying them?... Seems they need us more....

Does it mean you might have a hot tub and swimming pool without a privacy fence, more likely to speed and get caught(like red cars do) have a chance for dui's? Or just get caught up in the debt trap so I guess paying them, means they can take your check and say audious.

I swear if the day State Farm ever pulled this crap with me...too damn bad...for the moment...that's more money in my pocket then.

**frugalfranny** · 12-03-2009, 12:09 AM

Originally Posted by Surilda

Guess it doesn't matter if your card is maxed out becauise
THEY slashed your credit limit to barely over what you owe!

AE did this to me twice in a two month period. Guess they
decided they didn't screw me over well enough the first
time. I think my new limit ending up being about $65.00
over what I owe. I'm sure they are waiting with baited
breath for me to go over my limit

I also joined 'your club' surilda. Paypal did that to me when I wasn't using their card when I purchased on ebay (was using discover). Now my TOTAL CREDIT limit is $127 - yep....that low. God forbid if I forget to check the box when paying, to change it to Discover. They are trying REAL HARD for the 'over limit' fee. So what gives? I have other cards with much higher credit limit - and zero balance on those.

**sinopa27** · 12-03-2009, 05:45 AM

That just shows if your score is at least 680. well, there are some "unmentioned" factors to keep some from getting a FICO score of at least that much. I am sure race has a factor in it that they don't want to disclose.

**Greebo** · 12-03-2009, 06:17 AM

Originally Posted by sinopa27

That just shows if your score is at least 680. well, there are some "unmentioned" factors to keep some from getting a FICO score of at least that much. I am sure race has a factor in it that they don't want to disclose.

How would the credit bureaus know someone's race?