Anyone gone from excellent credit, to abysmal credit?

[MikeRuth]

I'm with Milk Hauler, been cash and carry for years now and I suppose that if and when the time comes it will be a problem. But I still don't want to even have a CC. Way to easy to spend money you don't have.

Funny I just remembered I do have a Shell gas CC Limit is like $100.00.

 

[Queen]

I'm with Milk Hauler, been cash and carry for years now and I suppose that if and when the time comes it will be a problem. But I still don't want to even have a CC. Way to easy to spend money you don't have.

Funny I just remembered I do have a Shell gas CC Limit is like $100.00.

This is a really good point, thanks so much for pointing it out so clearly.  I've haven't had a problem with spending money I don't have since I was in my 20's - 30's, but I also had enough money to meet my minimal desires.  Soon money will be an issue, as in we have enough to meet our bills and tiny bit leftover for fun... but I could see frustration setting in when I can't get that nice bottle of wine or go out to dinner with friends, and that is dangerous.  Maybe I'll take the cc's and put them in the lock box at the bank, that way I'd have to make a concentrated effort to go get them if we wanted to do something stupid.

 

[IGBT]

We retired 2 years ago and our income went from $250,000 down to $20,000

Credit score has gone from 819 to now 824

Go figure.

I think it is because we use the credit cards for everything and pay them off totally each month, not just the minimum.  This keeps our percentage of credit used very low.   Income seems to have no part in the equation.

 

[Queen]

We retired 2 years ago and our income went from $250,000 down to $20,000

Credit score has gone from 819 to now 824

Go figure.

I think it is because we use the credit cards for everything and pay them off totally each month, not just the minimum.  This keeps our percentage of credit used very low.   Income seems to have no part in the equation.

Really good to hear.  We don't have any plans to incur debt, but life laughs at plans so we like to have the available credit for backup.

 

[Theadyn]

I am down with credit, tbh. I worked for years getting my score up, even getting my late hubby's up over 800 when it wasn't 500 when we met. Years and years of paying on time, not buying much on credit, just ever so often, and mainly doing cash only to be told by the bank that my credit score dropped 100 points the day he died. That really irked me!! Built it up again to over 800, had a few cards, paid on time or paid them off, had no issues. That is until last October. Won't lie, being unemployed they still threw cards my way. When I got this place I used them assuming I'd find work. That was almost futile, but I was about to start work when I had my meltdown. The following 2 months were paying minimums on cc's to keep them current, but charging for lot rent and utilities until I got out of rehab. Oh, include in there almost $60k in medical expenses over night, no insurance. I pretty much have given up and will have to use the option left to me. Not popular decision, no. But I will do what I have to do. I did the cash thing for years, have no problem with it at all. Have a paid for house with cheap lot rent to sit it on and a paid for vehicle. The only other thing I might benefit from having a decent credit score for now is cheaper car insurance, but the older van is $158 for 6 months liability even with a crap score, still pretty cheap.

I don't get it... it takes YEARS!!!! to build up a decent score. And I was current on everything until just a few months ago... it dang sure falls faster than chit!! Think it should fall as fast as it climbs, just my opinion. Yet another way they keep you a good little sheeple.

 

[Queen]

Exactly, Theadyn. Keep us in line, keep us fearful, and now it's tied to everything so they can scare us about finding a job or apartment. Screw em.

 

[DrJean]

I see no reason why your credit score should drop much.  I'm on fixed income and maintain high 800 scores.   The score is based mainly upon not having late payments etc., and on your credit to debt ratio.  

Having credit from very old accounts helps.... so don't close them out ever!  It helps show stability plus good credit history.
Having checking and  savings accounts also help.  

You need to charge things and pay them off at the end of the month. Use each card/account every other month or so if you are paying cash otherwise.   Paying cash is not "reportable" and doesn't help credit scores.

Put a stop / filter on your credit bureau accounts that allow only those you've done business with to check your score.  Companies "fish" for newbies and they ruin your score, plus the bureaus don't know if you're going to take all those extra card offers... and you're a risk.

Check your credit bureau accounts a few times a year. You can do that freely once a year through freecreditreport.com (I think that's the right addy)....  I'm with AAA ProtectMyID and get it all the time, plus Chase banking/cards will let you check it daily or more.  Check and dispute any item that you disagree with... even wrong name or address....  you'd be surprised what some people will try to get your credit.

If you have no credit or cards/accounts... open a small savings account and put something into it each week. Once you have enough you can get a bank credit card with a credit line for the amount you have in that savings account. Charge small amounts and pay off each month. After 3 or 4 months of doing this, you will have better credit and might be able to open a regular charge card... and do the same with that charge small amounts and pay off each month; maybe rotate the two cards so they see they are paid off each month.... steady build for credit when there is none.

BEFORE you divorce, open new accounts in your name only, remove your name from spouse's accounts.... this is probably good when aging too... as one of you go first...



There are more tips that help...  maybe at SuzeOrman.com ?