How new FICO changes may lower — or boost— your credit score

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    Craig
    The credit system is a scam. The credit bureaus are incentivized to keep a large portion of society in a range where lenders can charge high interest rates basically making money like the mob. Any negative reporting automatically reduces your score without investigation and regardless if erroneous. Then it falls on the consumer to basically disprove the negative report and beg the agency to reverse the deduction from your score. What law gave these agencies so much power over the populace? It would be one thing if it were just about borrowing money but it’s not. Many employers do credit checks as part of investigations when hiring new employees. Why should a business that isn’t lending me money or extending me credit get to look into my personal information like that? It’s none of their business and has little to do with a person’s ability or fitness to do a job.
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    Rich
    When I was in college (and a few years after) I racked up a lot of debt. Always paid the minimum, went on trips, and generally messed myself up financially. Finally (in my 30s) I saw that—unless I changed my careless habits—I would always be in debt, I would never retire, never have a safety net.
    I got a better paying job, paid off all my credit cards (highest interest first) and then paid off my student loans. Now every dime I charge gets paid off early and the credit card company pays me 2% cash back on everything.
    To any young person reading: please don’t run up debt. When you are in debt, you are always working for someone else’s benefit. Live within your means.
    It feels incredible to be debt free.
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    Rick
    My score seems to fluctuate between 810 and 835. I have no idea why it moves so much. I don't make new debt, pay bills on time (I never have credit card balances-paid in full every month) But do use my credit cards in a kind of rotation. It's funny that the higher your score the more hard sell the people wanting to loan you money come on to you. I recently went to Verizon to get new phone service. They would not even talk to me until I unlocked my credit score. When I did they came back to me wanting to sell me a $4000.00 phone....I know, there is no such thing; but they did want me to get their highest cost plan when all I needed was their lowest cost talk, text, and data plan with a cheaper Motorola phone. Bottom line is: if you don't need something to survive….don't buy it!!! life is much more fun that way.
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    Commentor
    My dad went into buy a new car with cash. They tried their hardest to get him to finance it and offered him a so called better price if he would. He was flabbergasted. He insisted they give him the same deal with his cash. They refused and their exact words were, we don't know where your cash came from and we don't do deals like that. If you use a credit card you can just pay it off after you purchase the car. They told him if he buys a car with just cash the credit companies still get info on his transactions through the financial networks and it could hurt his credit score. Now, I don't know how that should ever happen but it sounds like something illegal is going on and the credit card companies are trying to blackmail people into using their credit cards just to stay in business. If the government ever needed to step into anything, this is it! Threatening his credit score because he wants to pay cash for a car should be against the law. Needless to say he walked out and talked another dealer down on the car price before he told him he was paying in cash!
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    larry
    Before all these credit monitoring apps you had to request a copy of your report yearly . This is when you would discover any errors or when you were applying for a loan and then discover that your rate is .25 % higher due to there error . These companies work with one another to find ways to get more out of the consumer . It’s crazy that these basic financial rules aren’t taught to our children in school like any other subject.
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    David
    What about the unauthorized access? My credit score dropped several points last year because a lending company accessed all three of my credit scores then sent me one of those "pre-approved" offers. I wasn't looking for a loan at all and did not give this company permission to access my information. I think EVERYONE should be prohibited from accessing a person's credit file unless the person gives specific permission, NO EXCEPTIONS.
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    tb
    The government should ban credit card rates which are as high as 29%, while banks are paying 1% interest on savings accounts.
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    e
    I was told by a bank rep that if you close your credit card accounts, which i did big mistake, after you pay them off. Your score goes down because you show no debt or payment history
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    K
    I had a home mortgage I had been paying on for 12 years. My payments were auto-drafted so I was never late. I took advantage of lower interest rates and refinanced my home, making my payments lower and reducing the years on my mortgage. So now I should be a better credit risk because I have more disposable income but instead my credit score lowered because I have a "new" loan. This is a serious flawed system and I hope this corrects that type of issue.
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    sunsoap
    One thing should be aware to people, credit scores are easily checked on databases, and can impact your life seriously. Unpaid medical bills, credit too high, loans, etc. always affect you score. When you get hired, many times the credit score is checked to evaluate your “wise” use of the economic world.