[olePigeon]

I don't know anything about how credit works, just what I was told by my issuer and real estate agent. I'll believe you guys as much as I believe them. I figured the bank would know how credit cards work, apparently they're as clueless as me.

All I know is that my credit score keeps going down because I'm financially responsible.

Art is correct, I don't have an auto loan, my pickup is completely paid off.

I am looking to buy a new pickup, so maybe having a loan again will get my score higher. It's important for me at the moment because it makes a huge difference for my home loan.

I hate the idea of having to be in debt to raise my score, and paying off that debt lowers it. What the hell?

[Uncle Skeleton]

The scoring algorithm for home loans is different than for credit cards and other loans (which makes sense, they would care about different things). Don't listen to a realtor about this, ask a mortgage underwriter or mortgage broker.

As for raising your score, you don't need the-higher-the-better, you just need to be in a certain range. Usually it's 720 or higher, and above that does you no additional good. Again you can ask your mortgage broker for this number (it may change with the times). But if your score is continually dropping, there might be something on your report that you don't know about. You didn't say you actually checked your credit report personally, do ensure it's accurate. Did you? Go to annualcreditreport.com (NOT freecreditreport.com, that one is a scam). And just to get the jump on another widely believed falsehood: checking your own report does NOT lower your score.

[olePigeon]

I checked my credit report before I even decided to apply for a home loan. There's nothing on there.

[Uncle Skeleton]

How are you getting your score?

Showing zero balance shouldn't lower your score, but even if it does, there's no way it would lower it by 90 points, that's just insane. When you checked your report, did it actually show zero balances? 9 times out of 10 what it shows is your statement balance, the amount you have to pay, not the amount you have to pay interest on, and the rest of the time it shows either the peak balance or the balance at some random time from the month. It never distinguishes how much interest you're paying (cite from the horse's mouth). But regardless of that, I've applied for 3 mortgages in my life, and none of them had me showing any significant balances. Last month I was showing all of $30, and my score from the mortgage broker was 785. During my first mortgage, my entire file was only one card, that I had gotten in college and completely forgotten about, assumed was closed, and had never once had a single penny charged to it ever, and my score was still 786 (again, from the mortgage agent). I just can't believe that showing a balance is necessary or even helpful. Definitely showing a large balance (50% or more of your limit) is harmful to your score, I've seen that first hand.

Now, if you really show all zero balances, that might get you denied for a credit card, because credit cards need you to charge things in order to make money. But it's not because your score is lowered by it, it's because lenders look at more than just the score. But this wouldn't hurt you on a mortgage app, it would help if anything, because mortgage lenders don't make money off credit card transactions. The score itself isn't everything, but still the score itself shouldn't be falling that much without a negative item, new accounts or high balances. Something is fishy here.

[olePigeon]

Originally Posted by Uncle Skeleton 

How are you getting your score?

A few years ago I used the free credit reporting. They used to give you your credit score (not any more), that's how I knew it was at 820. I got my most recent score through my lender.

Originally Posted by Uncle Skeleton 

Showing zero balance shouldn't lower your score, but even if it does, there's no way it would lower it by 90 points, that's just insane. When you checked your report, did it actually show zero balances? 9 times out of 10 what it shows is your statement balance, the amount you have to pay, not the amount you have to pay interest on, and the rest of the time it shows either the peak balance or the balance at some random time from the month.

Of the reports that I have from 2 of the 3 major creditors, it showed whatever my balance was when I asked for the report. I don't think it's ever $0.

Originally Posted by Uncle Skeleton 

But this wouldn't hurt you on a mortgage app, it would help if anything, because mortgage lenders don't make money off credit card transactions. The score itself isn't everything, but still the score itself shouldn't be falling that much without a negative item, new accounts or high balances. Something is fishy here.

My application went through fine, I got approved and everything, but it's my first loan and my first house. I'm probably just paranoid. It really has dropped 90 points over the past few years, and I haven't a clue why. Nothing on my credit report.

I did have a problem about 10 years ago with a split credit report. They had two distinct credit reports for me, one of them with a common misspelling of my name with a collection on it that had nothing to do with me, but a different person, on the correct spelling of the name (with the correct address.) I got that disputed and removed, and called all three credit agencies to clarify my name and have the other report removed.

They claim it's fixed and there's no record of the other person. I always suspected that there's always something wrong. Till this day I still do not have a credit report with TransUnion, only Equifax and Experian. It's like I don't exist in their database.

[Uncle Skeleton]

Originally Posted by olePigeon 

A few years ago I used the free credit reporting. They used to give you your credit score (not any more), that's how I knew it was at 820. I got my most recent score through my lender.

In that case you are comparing two different scoring algorithms. It doesn't mean that your score is dropping, it might just be a coincidence that the first one you checked was the high one.

Also in my experience the lender tells you the median score. Since you only have 2 scores and everyone else has 3, this might skew the outcome. But since this will be your "real" score (the one from the lender), and it's still above 720, I think you have nothing to worry about.

Of the reports that I have from 2 of the 3 major creditors, it showed whatever my balance was when I asked for the report. I don't think it's ever $0.

In that case it's possible your reported balances are too high. If you have a low limit and you charge up near that limit, which might happen because you never think about it because you pay it all off when billed, especially if you were given information that having a low balance hurts your score. Just a guess, that happens frequently. If you care enough to experiment, try paying down the balance before the statement cuts, then verify that it reports $0 and see if your score goes back up. I've done this and it worked for me.

I did have a problem about 10 years ago with a split credit report. They had two distinct credit reports for me, one of them with a common misspelling of my name with a collection on it that had nothing to do with me, but a different person, on the correct spelling of the name (with the correct address.) I got that disputed and removed, and called all three credit agencies to clarify my name and have the other report removed.

They claim it's fixed and there's no record of the other person. I always suspected that there's always something wrong. Till this day I still do not have a credit report with TransUnion, only Equifax and Experian. It's like I don't exist in their database.

Yikes. Well I guess that could be the reason too. I wouldn't be surprised if they failed to fix this (or it came back) and either don't know the difference or don't want to tell you about it. I certainly don't envy you that situation.

[Art Vandelay]

Also remember that the various credit scoring agencies have different point scales. Experian is 330-830. Equifax is 280-850. Transunion is 501-990. It's possible you're comparing scores from different scales.

[olePigeon]

Would make more sense if there's a 90 point difference between two different credit companies rather than a single score going down by the amount.

Maybe one penalizes for high balance (even if paid off) but the other doesn't, which would account for the discrepancies.

In any event, the whole system is whacked.

[turtle777]

Originally Posted by olePigeon 

Maybe one penalizes for high balance (even if paid off) but the other doesn't, which would account for the discrepancies.

In any event, the whole system is whacked.

Also, the 3 agencies get different data. Not all of your information is reported to all agencies.

-t

[imitchellg5]

Wow. I almost forgot this thread was about the App Store.

Originally Posted by torsoboy 

Let me tell you about a situation that happened to us recently, and then you can decide just how arbitrary credit card conflict resolutions are:

Sound non-arbitrary? Hardly.

I feel for you, and they definitely screwed up, as happens with all businesses, but did you talk to them in person? Did you get a reason for being denied? It wasn't a case being arbitrary - it was a case of your chargeback being handled by a moron - it's not standard practice, and definitely far better than Paypal. Since twice they told you it would be handled, why wouldn't you get on the phone with them and get it fixed? I would have pushed harder.

Regardless, I never said it was perfect, but what happened to you is not common, and it's still much better than Paypal.

[Uncle Skeleton]

Originally Posted by olePigeon 

Would make more sense if there's a 90 point difference between two different credit companies rather than a single score going down by the amount.

The way you described it, it was NOT "a single score" going down over time. There are 3 different scores, then and now, and each one is tailored differently for "general," "credit card" or "mortgage," depending on who asks for it (aka buys it). Just because you only see 1 of them doesn't mean there is only 1 of them.

[Jack-o-Bower]

Paypal is major suxor!! >=(

[Laminar]

Originally Posted by Jack-o-Bower 

Paypal is major suxor!! >=(

[0157988944]

I have my iTunes account hooked up to PayPal so they did allow it at some point, they must have stopped.

Edit: I'm still seeing it as a payment option, so I don't know what the difference is between you and me.

[torsoboy]

Originally Posted by adamfishercox 

I have my iTunes account hooked up to PayPal so they did allow it at some point, they must have stopped.

Edit: I'm still seeing it as a payment option, so I don't know what the difference is between you and me.

It is an option for everyone (in the US at least).