Broker to Lean on | TheaterFire

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ZachF8119@reddit

The range is 850-300. That should already tell you it’s crazy.

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This post is cope for people who are stupid and/or bad with money. Almost every country has a credit system. Some better, some worse than USA but USA is actually pretty good overall. If you aren't an idiot the credit system will pay you to use their system.

using a credit card doesn't lower your score. Not paying your debts on time does.

Paying back your loan early doesn't lower your score. I pay mine weekly.

Checking your score doesn't lower your score. Doing a hard inquiry does (and that part is a scam) but you'd only do this if youre about to make a huge purchase or think you are a victim of ID theft. Something the average person only does a couple of times in their life.

Not taking out loans "decreases" your score only if you go a long time without using your card and essentially have no credit history for a long period of time. Would you loan a grand to an acquaintance you haven't heard from in 5 years?

The score only really matters if you're buying a house or car or some other large loan. Yes, even apartments look at credit scores but they look at a bunch of other factors. Even when I was poor and had bad credit as long as I could prove that I made enough money to cover the rent I was never denied housing.

You call us brainwashed but you don't even know what you're talking about.

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avagrantthought@reddit

using your credit card doesn't lower your score. Paying it Kaye does

No shit but don't pretend that there's an entire business in this of praying on people's misfortune and uncontrolled sudden situations in order to further exploit them

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Crunkario@reddit

Sure its not impossible to work around, but its very over complicated and I have no clue how the system exactly calculates so I find it dumb and unfair.

vote_you_shits@reddit

The same way banks loaned money for centuries before credit scores were invented: by looking a person in the eye and making an emotional intelligence judgement call.

I know that's scary because you can't automate it

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Dinorami@reddit

Credit scores simply tell a lender how likely someone will pay back their debt. That simple. If you have a shitty job but are responsible with money, then you can still build up a solid credit score. There is nothing evil about it. If you were to loan me your personal money so that, for example, I could buy a house, wouldn't you like it if you were given some reasonable estimate that I'd pay it back? If, on the other hand, my credit score is garbage (meaning I am not financially responsible and don't pay lenders back), would you still loan me your money? Looking people in the eye is not a good estimate for this. Credit scores are built on my experience paying back lenders.

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vote_you_shits@reddit

If that formula was easily available, I would agree with you, but we both know that neither FICO nor Equifax reveal their proprietary calculation method, and they both reserve the right to change it without telling us. Which means we don't actually know what the scores are telling us, we just know what the marketing says.

I would argue that it's not a true choice without at least seven major competitors in that space.

My credit score is fine, in fact. This is despite going through a credit consolidation process. Because there are ways to game the system.

Which brings us to the larger point: monopolies are bad because they become stagnant and discourage innovation. The lack of innovation over a long enough period will create and establish exploitable loopholes which only the people with resources will be able to take advantage of.

Educate yourself on the historical impact of some monopolies in our past.

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The_Demolition_Man@reddit

You dont know what a monopoly is

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vote_you_shits@reddit

Classic monopolies are illegal. For a reason. Obviously nobody is going to be that.

You can still call a snake a snake though.

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The_Demolition_Man@reddit

You dont know what a monopoly is

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A FICO score is a number. Not a company. Pretty telling indeed.

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vote_you_shits@reddit

Just a touch of education. Hope it pierces through the layer of disinfo you seem to have coated yourself in.

FICO literally stands for Fair Isaac Corporation.

Starting to think you might work for them

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The_Demolition_Man@reddit

It was invented by that company. Its not the actual company. Because a number cant be a company. Lol.

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Yes. I want usurers out. It's also usurers fucking over the housing market so that bs could fuck off as well.

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Dinorami@reddit

Then don't borrow at collosal interest rates. Right now, rates are high because the market overexpanded after the stimulus checks given out due COVID, i.e. rates are high to curb inflation.

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Crazy that in Brazil we have the same thing and it works the same way

Matter of fact, even if other people look up your score, it low your score

There's literally no consistent way to keep your score high, it's basically a casino

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Dripht_wood@reddit

And yet rich people maintain stellar credit scores. It’s not a coincidence.

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lipehd1@reddit

They're the owners of the casinos

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It literally does. It's not every payment, as the score does not get updated every day, but within certain amount of time, and the credit score consider that the simple fact that you have a loan is enough to decrease the score, so whatever you pay it in time or not, it decrease the score

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Triple96@reddit

This is just not true. You might be thinking of a correction where your score will randomly drop after a few periods of growth. It's not some mystical, rich people formula that randomly assigns you a score

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lipehd1@reddit

Remember how you lot was saying "NO IT DOESN'T GO DOWN FOR NO REASON" well, it literally just did, and the reason this time was: I paid my invoices in full (?)

Again, it simply goes down no matter what

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lipehd1@reddit

Again, it literally just drops no matter what you do, and sometimes they'll leave explanations like "you had a loan for too long"

My score is roughly 850, I can get whatever credit I want, and doesn't change the fact that it will randomly decrease when it gets too high, and idk why you lot are so eager to defend this BS lol

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Triple96@reddit

I don't think others in this thread are talking about losing a few points here and there but maintaining roughly 850. Others are acting like it just goes straight downhill no matter what you do. You can't be at 850 if it doesn't also "randomly" go up lol

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lipehd1@reddit

That's the thing. If it had any logic behind it, my credit shouldn't go down, as in, ever, it should've been 100, because I always pay my shit on the exact due date, I use my credit card a lot (it's easier to track my expenses on the cars graphic), i pay a shitload of taxes, banks beg for me to take their fat loans, because they know I'll pay it back, and yet, for some undisclosed or barely explained reason, my score will go down to 820 or some next time they update

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Dripht_wood@reddit

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NCD_Lardum_AS@reddit

They also consider

Other loans you have
are you paying those

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DynamicMangos@reddit

I wish it was this simple.
In germany we have something called "Schufa" which is pretty much credit score, except it's run by a private corporation that collects a bunch of credit-related infos about everyone, which technically isn't even legal due to data privacy laws.

But politicans also don't wanna do anything against it, so you're fucked.
You're entitled to 1 free score-check per year, any more costs you money.

And it's not even just for taking out loans or something, if you have a bad score you legit can't get any contracts, so you can't get a home-internet contract, a cellphone contract, even electricity or water because companies will just check your score and deny you.

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Prestigious-Solid342@reddit

That sounds oddly American

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HuntingRunner@reddit

To be fair though, it's a lot easier to keep a high schufa score than it is to keep a high credit score in the US. For a high schufa score, you basically just need to not have any debt. Easy enough. For a high credit score in the US, you need debt, but not too much. And you need to pay it. But not too much. And so on.

The situation in Germany is much, much better than in the US.

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MrPopanz@reddit

No its not. You say it yourself, germanies Version is much more restrictive and goes beyond loans.

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HuntingRunner@reddit

No its not. You say it yourself, germanies Version is much more restrictive and goes beyond loans.

Do I say that myself? How is the german version more restrictive?

Murica makes loans more expensive, Germany makes you not able to rent apartments, get mobile services or bank accounts.

Neither do all german landlords want to see your SCHUFA score, nor do no american landlords care about your credit score. Both things happen in both countries. The same thing is true for phone plans and bank accounts - restrictions apply in both cases in both countries.

Do you actually believe that your credit score only affects your ability to get a loan in the US?

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MrPopanz@reddit

I mean isn't it part of the stereotype that already endebted muricans collect more and more debt via credit cards and so on? A German with similar issues would be unable to do that from the get go, and it would suffice to not pay GEZ to get your Schufa score in the shitter.

And good luck finding those landlords, sure they might exist, but you'd have more luck going back living with m&p. Hell, try finding a pre-paid mobile service that doesn't require a Schufa score check.

I could settle with both systems being more similar than not, but I certainly disagree that the German one is so much more lenient.

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OREOSTUFFER@reddit

That's almost identical to the American system, except we have three companies here and the score is an aggregate. And we don't have data protection here like in Germany.

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Claim_Alternative@reddit

denied utility contracts

Yes and no

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Aleskander-@reddit

I dont mean a free water im saying if they Banned you while you have the ability to pay the bills for it

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HuntingRunner@reddit

Generally, water and electricity providers can't deny you if there is a line to your house already. For water providers, it's jurisprudence, for electricity providers, it's a law.

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ThatWasCool@reddit

So how do all the illegals who come to your country get by?

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Secure-Dress2912@reddit

we have a similar thing here in Italy, CRIF (Financial Risks Center), it's not that strict put if you even get ONE strike (late payment, multiple failed payments, ...), you can't ask any loans, even a 100€ loan, automatically denied. you need to wait almost 3 years since the strike to be regular again

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echief@reddit

Nope.

Canada, the UK, Australia, Germany, and a large number of European countries have credit scores. Even if it is not the same as the US, The vast majority of people that will read this comment live in a country with a formal credit score system.

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Lol, wrong.

It's like the chinese social credit score meme but it's for money and its real.

If you are a good little consumer and frequently take out loans to buy things you cant afford and rack up credit card debt you can't pay off right away then the score goes up. If you pay in cash and don't consume properly it goes down.

afford loans for things like houses or medical bills

Also an insanely American sentence to utter.

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NevermoreKnight420@reddit

Idk, I'm early 30's and sit around 770 and I never carry a balance.

I don't doubt that carrying a credit balance month to month increases your score fast, but you certainly don't have to.

EternityLeave@reddit

It’s similar to the credit score in Canada

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Aleskander-@reddit

it's like the chinese social credit thing but instead of government it's corporate

If you carry any balance on a credit card you're a moron. If you're doing it intentionally to increase your credit score even though you could pay it off I think that makes you even more regarded than the people who are just broke

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TeflPabo@reddit

If you carry any balance on a credit card you're a moron

Bad score: greener than my dick after fucking newly cut lawn

Excellent score: more red than the irritations the newly cut lawn fucking does to my dick

If you just pay off the whole loan your probably don't need credit that badly anyway.

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ryanpn@reddit

Not really, if you're trying to get a home loan and then you make you last car payment without releasing it, it can really screw you over

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elprentis@reddit

How does it screw you over? Serious question. I bought a house with a home loan and at about the same time paid off my car. I dropped maybe 20 points from 750ish to 730ish, but I wouldn’t say it screwed me over.

But I don’t really know how any of it actually works. I just buy everything on credit card and pay it all off at the end of the month.

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-StalkedByDeath-@reddit

It really depends on how it impacts your credit age.

Example: You have an account from 8 years ago, one two from 2 years ago. Your average credit age is 6 years. You pay off that account you'd had for 8 years, it falls off your report, and now your average credit age is 2 years.

VonBargenJL@reddit

A lot of score is just "how old is your account?" To prove you're likely not going to bail

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Milk me daddy 🥵🥵🥵

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HiveMindKing@reddit

Mommy?

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Let me rephrase your comment.

I have never taken a loan in my life. Now, suddenly something has changed and I need the bank to give me free money. Can I expect the bank to treat me as being just as trustworthy as someone who has been consistently paying off loans for the past 5 years?

Obviously, you cannot. That's not because credit scores are evil, it's because no matter what system banks used to determine who they should loan money to, they'd never look at someone like you as being particularly trustworthy.

If you want a million bucks to start a business despite having done nothing to prove you're a good businessman, you need a rich family member, not a bank.

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_lvlsd@reddit

Do rent payments build your credit?

I’m pretty sure you don’t have to prove you’re a good businessman to get a small business loan, isnt it a business plan and financial projections (as well as good credit)? Even then, good credit score doesn’t necessarily mean one is good in business.

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UpboatOrNoBoat@reddit

You’d have to make your pitch to a small local bank to get a loan like that anyways and hope they believe you.

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Yes, potentially. Why would you feel that you’re entitled to a loan without any way to prove that you’re going to pay it back?

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shamblam117@reddit

I no longer have any debt other than paying off my credit card monthly. It has gone up exactly 1 point in 2 years. I am not wealthy nor have family who is. Banks are going to rake me over the coals on any loan I try to take out despite proven history of paying off my debt. Tf am I supposed to do in this limbo? Just accept an 8% interest rate on a 350k home?

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Kitahara_Kazusa1@reddit

What is your credit score? At a certain point it stops going up because it's already high and it won't go higher unless you have something like a mortgage you've been paying for 15 years. But at that point you already qualify for the lowest interest rates you'll get.

If your credit score is 500 then there's a few details you're leaving out of your story

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shamblam117@reddit

I know the only real way to increase it is to take on more debt, but the limbo is I am unable to get a better rate than 7% interest with that score, however I won't be able to afford to take on additional debt if I want to be able to afford said home.

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Kitahara_Kazusa1@reddit

In that case you're already looking at about the minimum possible interest rate, the only way it goes down is if the Fed cuts rates. Which might happen as a way to recover the economy from what Trump is doing, but they might also keep them high to protect against inflation caused by what Trump is doing.

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UpboatOrNoBoat@reddit

If you’ve paid off your debt then you have credit history. Of course it isn’t going to go up continuously if you’re not taking on any new debt. That’s how it works.

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DJIsSuperCool@reddit

Actually, using it daily makes it go down. At least that's what I saw.

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DrProfSrRyan@reddit

Everything that goes into credit score makes exact sense if you put yourself in the shoes of the banks, and it was rather you doing to the loaning.

You wouldn't want to give to a stranger, or someone you barely know.
You'd like to know that they have paid back loans in the past, and has stable income and ability to pay back.
You wouldn't want someone who has never taken a loan, or hasn't taken one in a long time.
Etc..

Also, people against credit scores seem to be under the assumption that the alternative is banks just handing out money to anyone whenever they asked, rather than some human with this same credit history in front of them denying you for looking like a beatnik, or some other prejudice.

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C_Werner@reddit

...if you make good money. I have excellent credit now, but I also make 6 figures with a wife who also makes 6 figures. It's so easy to have good credit if you're making good money, really easy to have bad credit if you're poor.

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Kitahara_Kazusa1@reddit

Spending money you don't have is always possible, because no matter how rich you are you don't have infinite money.

That doesn't mean the bank doesn't try to fuck you for paying things off faster

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Donger922@reddit

I'm sitting just under 800. All I've done is use my card for most purchases for the cash back, and pay it all off when it's due. Anon's definitely a little slow.

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bytheninedivines@reddit

I paid off my student loan and it brought the average age of my debt down to 1 year. My score dropped 30 points

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Kitahara_Kazusa1@reddit

Yes, there's some quirks to how it is calculated, if you're currently paying off a loan that is a point in your favor of being very reliable, since you've already got a loan and you're managing it well.

If you had a loan 6 months ago, but don't have one now, then maybe something changed in the last 6 months, and maybe you're not going to be as reliable this time.

Ultimately 30 points isn't a lot and it'll come back up over time if you just do nothing.

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Andre_Type_0-@reddit

Step one, take out the biggest cash loan possible, step two. Never pay it back.

Seriously what are they going to do about it?

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Unpredictab@reddit

Just open a few credit cards/take a few loans, and pay them back on time. Do this for a few years without missing any payments. For credit cards, set your autopay to pay off the full balance every month so you pay nothing on interest.

Not rocket science lol

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adrian_shade@reddit

How about not using credit? Why is it so necessary?

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Unpredictab@reddit

If you wanna buy a house and you don't have 500k cash on hand, you have to use credit. Also car loans. Though outside of these 2 situations, yeah you're right no need for it

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RevalMaxwell@reddit

Buy stuff on credit it Pay it off before ME Score goes up

It’s honestly not hard

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Old_Ad_71@reddit

I'm in the 800's and I don't even do anything with my cards. I just pay them off on time. I also only use a small amount of my credit line, so maybe that's why? I dunno

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Kitahara_Kazusa1@reddit

The reason is because you always pay it off in time.

Yes, which is why taking out a loan for something that is reasonable doesn't affect your credit score as badly as taking one out for any old reason. Banks know people can't afford houses, so they see it as reasonable when you take out a mortgage for a house. If you've continuously taken out loans for uncommon reasons, you're seen as a greater risk and your credit score is affected. Which is what your credit score is in actuality: how risky you are expressed as a single number.

Lol just don't be poor.

Because this post is cope for people who are stupid and/or bad with money.

using a credit card doesn't lower your score. Not paying your debts on time does.

Paying back your loan early doesn't lower your score. I pay mine weekly.

Checking your score doesn't lower your score. Doing a hard inquary does (and that part is a scam) but you'd only do this if youre about to make a huge purchase. Something the average person only does a couple of times in their life.

Not taking out loans "decreases" your score only if you go a long time without using your card and essentially have no credit history for a long period of time.

If you aren't highly regarded like OP then you can game the system even while poor. My score is in the high 700s, sometimes bounces into the low 800s. I've never paid any interest (outside of actual loans) on a credit card and have made $400 on my most used card last year.

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Kitahara_Kazusa1@reddit

Two options.

He's had a credit card for 6 months so his score is low because of the short time span.

Or he's horrible at paying off his card and has a low score because of that, and is just trying to cope.

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It's about having less accounts, not how fast you pay it off. Your score will still drop if you do the recommended payment amount. There's no correlation with how fast you pay it off

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Qverlord37@reddit

use your credit card as an extension of your debit card and pay it off every month, like how hard is that?!

keep track of your spending and don't spend more than you can pay.

as someone who sits to the right of the dial,

It’s a fucking scam.

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aj_thenoob2@reddit

ITT people who don't know about basic statistic things like monotonicity.

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oneeeeno@reddit

If you manage your finances well, your score will be low. Credit score is capitalistic system built to make low and middle class slaves to it. If you’re like me and only buy things when you have the full amount and extra, your credit score won’t be as good as if most of your salary would go towards payments (and interest of course).

This is even true for credit card companies. People who pay off their balance every month are more likely to spend more, and the credit card company makes money on the transaction fee when you buy things.

Agreed.

"Credit score dropped now its 330"

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rividz@reddit

I just ignore it. I have a "very good" rating because I just pay my bills on time and don't worry about it. Though I do keep a credit card I never use because having an old account on file helps; which is dumb.

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SigaVa@reddit

Its not about how financially secure you are, its a measure of "risk" for lenders.

What is "risk"? Dont think of it as "risky" or "not risky", think of it as expected dollars back if they lend you money.

So obviously, things correlated with defaulting are really bad. But guaranteeing you will pay everything back very quickly is also bad, because that minimizes the interest that is collected.

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DumbNTough@reddit

Set bills to Auto Pay.

Pay bills in full every month.

Do not finance consumption on credit. Use your credit cards as though they were debit cards.

Profit.

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aTOMic_fusion@reddit

The whole post is inaacurate

1) Using credit lowers your score: using credit only lowers your score if you carry a balance on revolving accounts. Getting a new account also lowers your credit, but this is only because now the average age of your accounts is lower

2) Not using credit does not lower your score, not HAVING credit is what keeps a score low. The more credit you have available to you, the higher your score, but also, the more of a balance you carry on a revolving account, the lower your score

3) Of course paying back late lowers your score

4) Paying back early only hurts your score when you are paying back an installment account in full. This is because the installment account is then closed, and your total number of accounts is decreased, and often times your average account age goes down.

5) You can check your score for free at any time without harming it. "Checking" your score doesn't lower your score, initiating a credit check does. A credit check is only initiated when you apply for loans and credit cards

6) A joke

7) Taking out a loan only hurts your score in the short term because the average age of your accounts is lowered. Over time after receiving the loan, your credit will be better off than before you took the loan

8) As I said before, paying back loans only hurts your score because the account drops off your record, but over the course of having the loan, your credit will have improved more than the drop you get when an account is closed, so you'll have a better score than if you didn't have one in the first place.

9) This bit is unfortunately kinda true,lenders would like to see a mix of account types, but it's not that big of an impact, and you can have a great credit score without loans, you just may never breach 820 or so

The big misunderstanding I want to clear up is how both taking a new loan and paying off an old loan hurt your score. It is true, opening a new loan decreases your average account age and increases your number of recent inquiries; on the other hand, closing an installment account can often also decrease your average age of credit if you've opened new accounts between opening and closing the loan account. What's important to note, though, is that over the course of having that loan, your credit score was increased more than both of those dops combined, so on net getting and then paying off a loan slightly improves your credit score

You don't need to take out loans or debt (installment accounts) to have good credit, you can easily get to a 750+ score by 24 or so with just credit cards that you pay back in full each month before any interest hits.

Credit score is basically turning you into a stock ticker and asking "how reliable are the returns on this investment". If you are overdebted, you're likely to bankrupt, not very reliable. If you pay off loans early, you rob them of interest money, not a very reliable investment if the returns disappear in a fraction of the projected time. If you have a low credit limit, you seem like a penny stock, not worth much even if you pay back on time bc the magnitude is too low. If you have no credit history, you're an unknown variable, no proof of consistent cash flow which means no proof of consistent returns.

It's a pretty dehumanizing process, but at least it's not as bad as the insurance credit score that can basically practice racism by increasing rates based on the neighborhood you live in or the car you drive. "Oh what's that, you drive a charger and live in the inner city? Boy, you better pay up".

Also nice title, OP.

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CorbinNZ@reddit

Because of this post, Anon’s credit score dropped 500 points.

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Scariously@reddit

it doesn't that's the thing. you have "good credit" by being perpetually in a small to medium amount of debt so that banks can leech off of you every month. the only way to win is to not play. clear off ur debt and stay away from credit besides the essentials such as cars, school, housing, etc.

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gabesgotskills@reddit

It’s honestly shocking how many of you seem to have a decent understanding of this system lol

Let’s say I knew some, hypothetical, friend of mine’s cousin’s girlfriend’s ex-roommate that was sitting high 500s. What would be the best fast-course plan to boosting their credit by say, 100 points? Whats even the timeline for something like that?

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Isneezepepsi@reddit

I came here to brag about my score but its gone down by 23 points in the last 2 months and I have no clue why

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Lecrapchap_alt@reddit

It actually measures your haplogroup

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Ozymandias_1303@reddit

AFAIK, these things make your credit score go up:

having accounts open for a long time
making all your payments on time
owing a low amount of money relative to your total credit available

It's also overrated by some people. For instance, you should never carry a balance on a credit card if you can possibly help it, but it's a fairly common myth that doing so helps your credit score.

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Too-many-Bees@reddit

"Excellent"

Bright red

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davidcj64@reddit

I think if you pay it off on time, every time, it will slowly go up.

I also think that, at the end of the day, the credit score is just a way for banks to measure how much money they will make back from loans.

If they estimate that you will barely pay it off, almost every time, and possibly have to pay interest, you're a hard working American, and will eventually pay it off ... the score may go even higher.

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Lunagoodie@reddit

Virgin Credit Card

Always worried about interest rates and hidden fees.

Gets declined at the worst possible moment.

Stresses over monthly statements and credit scores.

“Cash back” perks that barely cover a latte.

Needs to “build credit” but ends up building debt.

Chad Debit Card

Money leaves your account instantly—no bullshit debt cycle.

Zero interest charges; your bank account is your limit.

Effortless budgeting: if you’re broke, you’re broke.

Doesn’t promise fake perks—just does its job.

869 credit score checking in

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WhateverWhateverson@reddit

I'm pretty sure you only need to take out regular loans/credit and pay them back on time. Doesn't seem that complex to me.

It's just a measure of how reliable you are as a client. If you take no loans, they have no reference, if you pay back late then you're unreliable, if you pay back too early then they earn less on interest.

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Deathgripsugar@reddit

Dont use all available credit (20% or less) pay short term debts (CC) completely before the statement is due, and long term debts (mortgage, student loans, car notes) on time.

Its easier if you replace "credit" with "debtor"

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scoots-mcgoot@reddit

This isn’t true

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Landio_Chadicus@reddit

Next time you need to go to the bank for a loan, bring a big ole tub of Vaseline and sphincter relaxer cream