FICO score headed to zero -

[Queen_Etherea]

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@Anonymous wrote:
Thanks the quick response! I appreciate everyone’s input to my question posed. Very helpful and great explanations. I guess I need to decide if I need to jack with it or not. I can’t think of anything I would need to purchase to be worried about it so I guess it comes down to keeping a high score just have a high score ? Thank you everyone! Great forum.

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If you're absolutely sure you're not going to need to use your credit any time soon, then you don't need to worry about your scores. In my personal opinion, It's just nice to have that security in case you need it. I'm still young and am trying to buy a house, so I absolutely have to have that good credit and play this "game". But if your house is paid off, your cars are paid off, and you don't need a loan for anything else for the rest of your life, then you'll be just fine. If I could pay cash for everything, I probably would too! 

[Anonymous]

Yeah, I have not had a credit card in 30 years, house is paid off, cars are paid off........... If I need to buy a vehical or do a room addition on the house or take a trip I just put it on a debit card, write a check or transfer money.  I guess im at that point in my life my savings and investing have paid off to do so. 

[Anonymous]

Still nice to have it there if you need it. Considering you could just have one card no annual fee and put one charge on it every six months there’s really not much maintenance to do it, but you have to decide what’s best for you.

[Anonymous]

OP - I’m failing to see how having a good credit score is “playing the game”. Furthermore, I’m failing to see why you feel that you should have a good score when you don’t currently have any credit extended to you.

Credit scores are used by lenders to determine the risk associated with lending decisions. If you don’t have a credit history, they can’t assess this risk. Thus, the low (or non existent) score. You net worth means squat to risk models. Your income only plays into your ability to repay. It’s certainly possible to find people with a lots of money that simply have a history of not paying their debts for one reason or another.

The choice is yours to have/have a good credit score or not. If you want one, you have to allow the model a means to assess your individual risk. If it’s not by credit history, what should it be based on?

[Nayola]

I think it's ALWAYS better to have something and not need it than to need it and not have it.  Sometimes it's nice to have your money in the bank earning interest while you use the bank's credit to pay for things.

If I can finance a car for 6 years at 0 percent interest, why wouldn't I?  My money could be in a CD for those 6 years earning me a little something.

[Anonymous]

I understand, i figuare if im going to buy something i'll just pay for it anyway. Why wait.  When I paid off all my debit I just figuared your FICO would remain frozen unitl you missed it up via a missed payment or bankruptcy....etc.  I would have never thought it would start to evaporate do to inactivity.  I feel like i'm being penalized for not carrying any debt. You would think I would be the safer risk for the lender. 

[Anonymous]

@nodebtdude Let me explain to you why it’s like that. Who knows how your financial position has changed over a long period of time. Fico algorithms are designed to assess your risk of default in the next 24 months.

Consequently they need to see recent debt management activity in order to predict your risk of default in the next 24 months. What you did 30 years ago has nothing to do with today. You may of had plenty of money then and you may have went bankrupt since then who knows.

For an accurate prediction they need to see recent activity. That can consist of one stick of bubblegum on a card every six months.

[Anonymous]

Now they may be able to predict your repayment risk 30 years ago by using 30 year old data, but that has nothing to do with today.

[CreditInspired]

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@Anonymous wrote:

Well thats what I thought.  I figuared if my score was 825 serval years ago it would remain there. It's acting like i have pasted away or something, it's slowly falling since i have had no reportable information................

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Welcome to myFICO

I agree with everyone else here--absolutely makes no sense whatsoever.

In first post, you said 825 score in 2018. In this post, you're saying 825 several years ago, which is more than 2 years. Something has happened, even if someone committed fraud using your credit and trashing it. So I suggest going to www.annualcreditreport.com like yesterday and get all 3 of your CRs and go through them with a super fine-tooth comb to find out what the heck is going on. Because something is definitely going on! 

GL2U

[CreditInspired]

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@Anonymous wrote:
Thank for asking. My score has fallen off another 16 points. I’m headed in to the 500’s do to “inactivity”.
I made serval attempts to call experian and was on hold forever, never got a call back. So, this week I’ll make an attempt for all 3 and see if I can get an explanation. The main reason I have Hearn so far is inactivity- if that’s the case I’m screwed.

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My head is spinning with the conflicting info provided. Again, in your first post you said you're headed to 325. Now you're saying headed into the 500.