This whole credit scoring system is so incredibly flawed it's embarassing

[taxi818]

True. But they did reform some what 2009. Well said. That's why I say. Adapt. Thrive and succeed. All will be well when you understand. I went from 551 fico to 729 fico. 18 months. Just did not understand system. Knew about paying bills. But not impact of credit cards on score.

[takeshi74]

While I agree with the OP's sentiment it is what it is and we're all stuck with the same playing field.  You can rant here or you can read up and do what you can to improve your credit.  It takes time and it isn't easy but one can certainly build one's credit armed with the appropriate knowledge.

[Anonymous]

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@takeshi74 wrote:

You can rant here or you can read up and do what you can to improve your credit.  

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Or do both! 

[taxi818]

+1 it is what it is.

[CreditCardDiva]

It's definitely a scam, but I'm in, so I can't say much. But yeah, you get penalized for having too many cards, too few cards, low limits, high limits, paying in full, running a balance, applying for too much credit in a short time span, opening too many new accounts, not having the right "mix" of revolving/installment, not having a mortgage  - it's a mess It's not just about paying your bills on time.. I've seen folks with all manner of past financial mayhem get my "dream" cards, but I can't get any love for having a 90-day late (paid off), 6 years ago, because I lost my job.I have NEVER gotten any love, by paying my balance in full - the only way I will get a line increase is to let some interest accrue, pay it off...and then don't buy anything for a minute. It's a game...as soon as that happens, CLI...everytime.

I have had a credit analyst deny an increase...and then two weeks later, with no change, grant a CLI. FICO is a joke...and when folks say, "Don't count FAKO", I laugh. Credit Karma is pretty spot on, for me anyway, and it's not a true FICO score. I still don't understand FICO - There's different FICO scoring systems, so you don't know which one a creditor is using. The credit bureaus mix up your info with someone else who shares your name (happened to me), and take their time reporting the correct info....and you gotta do all the work to prove they don't have the right person. If you're not constantly monitoring your reports, there's no telling how it could end up.

I was just "co-ranting", OP....sometimes you need someone to say, "Yep, you're right!" LOL!

[dabo1502]

OP...

Please remember this famous quote:

".....grant me the Serenity to aceept the things I cannot change;

Courage to change the things I can; and

Wisdom to know the difference"!

--The Serenity Prayer

[gen-specific]

This whole credit scoring system is so incredibly flawed it's embarassingly easy to take advantage of

fixed that for you

[jamie123]

You need to accept that it is a game, and once you do that, you can game the system.

It really isn't that hard to do and it all depends on how involved you want to get but here's where you should start:

1. Get a Walmart credit card. Use it gently every month. ALWAYS pay on time and in full every month. Ask for a credit line increase every six months.

2. Once the Walmart card is 1 year old, get 2 bank rewards cards like a Bank of America 1-2-3, Discover IT or a Chase Freedom card.

3. Use all your cards gently and always pay in full. You should think about asking for a credit line increase at least once a year.

That's it! You can quit there if all you want are decent scores in the low to upper 700s in a few years. Just remember to always keep these cards open and active and you will have good credit scores for the rest of your life.

[oscar_actuary]

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RobertEG wrote:

Try living in a country that does not have a credit reporting and scoring system.

I currrently have that misfortune, and see the impact.  As a result, I simply dont use credit.

Without a standard risk based evaluation systtem based on wide credit reporting, decisions on grants of credit are much riskier, and default rates much hgher.

As a resutl, interest rates are extremely high in order to cover the losses.

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To me, the OP doesn't understand Risk, or Utility of money.  Regarding insurance, you are not expected to recover the amount you put in, even over a lifetime.  Sometimes, you'll have cancer and get far more paid than you ever paid in.  Sometimes, you'll pay home insurance forever and never have a claim.  But, in each case, you traded a relatively small regular payment to avoid a catastrophic payout.

On another point, you can have the bad stuff removed if it's not true.  People make mistakes, you just need to be diligent to get it corrected.

People with a proven track record of paying off long term debt should get better rates, all else being equal.  It's good business sense.  Corporations primary goals is to make money - they should - otherwise, how will you ever get a job.

Paying utilities, although an example of responsiblity, differs quite a bit from paying off a debt like a mortgage or CC.  If you stop paying your water, they can shut it off.  If you go on a shopping spree and run up $3500 in CC debt, it's a lot more difficult to bring you to justice, so to speak.  In other words, the utilities have leverage outside of credit score damage.

Your rant sounds like an anti-capitalist.  Good on you for paying $5000 cash for cars.  As recommended above, you can get one CC, never be late and see your score go up.  Save 20% for down payment and you'll be fine. 

[Anonymous]

The idea with everything listed is that your deserve to be rewarded for what is expected of you in society in terms of spending. The credit issuers obviously are expecting default or struggle, but that isn't what they portray. There are always ways to correct mistakes on your credit score, even though it can sometimes take multiple years to do so. I agree completely.