Credit rating.

[imanamerican63]

I have to laugh how your credit rating is determined. I work hard and pay my bills on time. I have one credit card that charges me an annual fee every year and by mistake, I missed the annual payment. Boy, did my rating took a hit! I still was in the 700s, but ouch. That was two years ago and just now I’m back in the high 700s. I have a car load and a couple of credit cards along with a few bills. I just looked up my credit rating for my score. It amazes me that one missed payment can hurt so much! Yet, Trump has missed several payments and can get a loan that the lenders know he won’t pay back ? That very same thing is what the GOBers are trying to do, not pay our bills to hurt the country’s economy and rating! And they say the Democrats are irresponsible!

[cloudbase]

1. As the old saying goes,

when you owe the bank $1,000, that's your problem. When you owe the bank $10,000,000, that's the bank's problem.

[3Hotdogs]

2. ---and boy, do a couple'a banks got problems.

[modrepub]

5. Add A 0 or Two

My Credit Union has set assets of $4.4B so $10M is like 2%. The largest banks are holding assets in the $Ts so a loan of that size is probably something they can write off (or seize the collateral since any reputable bank asks for some tangible asset or known cash flow i.e. job salary before they loan you any money). And that's why TFG takes loans out with somewhat sketchy "banks".

TFG routinely estimates his assets in the $100Ms range so what's a few $M between old rich white guys?

[3Hotdogs]

3. But why would you keep a card with a fee?

[imanamerican63]

4. I don't have to pay it anymore.

They stop charging me the fee after I called them.

[allegorical oracle]

13. Had a credit card that suddenly, after 20 years, starting charging me a $30/yr fee. Nothing had

changed, my credit rating was low-800s, but they refused to deal. So I paid it off and closed it. My credit rating crashed to the 770s. But the deal is that they don't like people who pay off their full balances every month.

Around that time, PBS had a documentary, "House of Cards," that pointed out the credit card industry calls people like me "deadbeats." Just a lowering of your credit card cash limit can prompt everything from insurance companies to banks to charge higher fees and interest rates. It's a racket that the gov't. ought to be exploring.

[Johnny2X2X]

6. It doesn't matter as much as people think it does

The most important thing is not carrying a lot of revolving debt, but that's more important because you're throwing money away in interest than it is because of your rating.

And on car loans, shop around for a lender before you go car shopping, you'll find terms vary greatly. Then when you secure financing, head to a reputable dealer, tell them you'll be financing with them, then negotiate a price. They'll go lower on the price of the car because they think they're going to make it up in financing. Then when a price is agreed to, go through their credit application and at the end tell them you have your own financing, they'll 100% honor the price they agreed to.

[Scrivener7]

7. I find it fascinating that when you close down a credit card, i.e. have access

to less debt, your credit rating goes down. When I was poor and needed to use credit a lot, my credit rating was high. I started doing better and being able to pay for things without credit and my rating went down!

What a racket!

[XanaDUer2]

11. I paid off a huge loan

And my rating dipped

[sinkingfeeling]

8. I like the way your score goes down when you pay off

a loan. I had a $30,000 loan for 7 years and my score dropped when I paid it without a single late payment. Go figure.

[allegorical oracle]

14. In a column by Susie Orman, that occurs because you have a lower cash limit because you paid off

the debt. Doesn't make sense, but the credit card industry thrives on people being in debt. If you pay off loans, you're useless to them. I know, bass-ackward logic.

[Trailrider1951]

9. Credit scores are just bullsh!t

Last April I paid off my car loan and my score dropped 30 points. What bullsh!t. Why is that? You would think that would raise my score, as I've been paying on that loan for the last 5 years, and now have $350 more per month to spend.

[Celerity]

12. They are a giant wealth extraction scheme, just like the American for-profit healthcare system, etc.

Scientifically (to degrees almost unfathomable in their broadness, detail, complexity, depth, and effective penetrative reach) designed to funnel wealth upwards from the broad base up to the top of pyramidion.

[Midnight Writer]

10. My credit rating bounces all over the place for no apparent reason.

I pay all my bills on time, never come close to the credit limit on my credit cards, my financial status never changes from month to month, but my credit rating will drop 70 points one month, jump 50 points the next.

I have come to the conclusion that it is all bullshit.