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Anon tries to understand credit scores (thelemmy.club)
submitted 8 months ago by [M] to c/greentext@sh.itjust.works
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[–] 4 points 8 months ago (5 children)

One weird thing you missed is the "length of credit" though. Let's say you get your first credit card somewhere as a kid, and now you're 40 and haven't had anything else. Suddenly, that bank wants you to pay a monthly fee to keep your account open. If you get a new credit card somewhere else, and cancel your kid-card, your score is going to get hit quite a bit, no?

If you did it "correct", you'd have 10+ different cards lying in a drawer at home to tons of different credit agencies.

It's all an insane game that you have to play, despite the fact that it can usually be played "for free".

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  • [–] 2 points 8 months ago

    Only the Uber wealthy credit cards really have annual fees. For everything else they just expect a minium balance of like 20 bucks. My bank only wants 12.50 in a savings acct and there's no fee for checking or saving.

    If your checking acct or credit card has an annual fee and it's not an absurdly high end amex or some shit then it's likely a predatory acct and not a real bank or credit union.

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  • [–] 1 point 8 months ago* (2 children)

    because that's weird. that's not a situation most people would have.

    the card they got as a kid would be a shitty card with a very high APR. any smart person would dump it and replace it with a better card.

    long term credit card keeping also isn't that huge of an impact on your score. when i got to 10+ years on an account, it bumped it up by 10 points.

    it's not an insane game. you clearly have no experience with it. it's mundane and boring stuff that most of us never ever think about outside of weirdos who are trying to maximize their score or people who churn cards for the 0 apr rates.

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  • [–] 2 points 8 months ago (1 child)

    shitty card with a very high APR

    Which doesn't matter if you pay it off in full each month ;)

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  • [–] 1 point 8 months ago*

    yeah, that's how you build credit.

    but a lot of people don't use credit that way. they take out personal loads, load up cc, and make minimal payments. and wonder why they are broke and start complaining they were 'entrapped'

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