credit carma [ex noodle]

[big-all]

now they are free now but they in my opinion are a bit off a con ??
yes i hear you laughing as off course they need to make money
for about 20 years had no credit cards as "no money no buy" lol
but 8 years ago decided the once a month bill was more productive time wise and always pay off in full and that worked cost free and still is
but initially had perhaps a £800 limit and used no more than 500 a month but with the free time to pay off six or seven weeks meant a payment after say 4 weeks ment a small payment to free up some room

now then it was about a 640 [out off 710]excellent score using an average 80 odd% off credit available then over the years they reduce the score a bit and say about 70% then about 66% then 50% then 25% now each time i have without fuss just increased my credit limit and used normally to keep in the "excellent range " but now its below at 614 good score now saying increase credit level and only use 25% -----
well in my opinion manipulation in a very very bad direction to try and enslave other for profit regardless off ability to pay as a finacial source -----
your thoughts please
no politics iff possible just moral and ethical would be nice
sorry about the long post

 

[motorbiking]

Had to read it twice, to understand. But basically you are saying the more you spend on your credit card, proportionally to the limit, the lower your credit score? Why not have a second card and spread the load? I assume you are paying balance in full each time?

 

[Notch7]

I thought you get a higher credit rating by maxing your credit card and at least paying the minimum each month.

Generally if you don’t borrow any money, you get a poor credit rating.

 

[Brigade77]

People who need to borrow to fund everyday purchases are generally considered to be very poor credit risks.

 

[JohnD]

I like to have two cards, and use them alternately, so that one always has a zero balance, but is available if a major expense should crop up, or to use if on holiday. If partner packs one card, it will (probably) still be available even if my wallet or case is lost or stolen.

Both are on direct debit to pay the minimum amount each month, and I pay off the rest by bank transfer the day before it is due so no interest charges.

But if for some reason I didn't, the minimum payment would prevent any penalties

 

[Harry Bloomfield]

I thought you get a higher credit rating by maxing your credit card and at least paying the minimum each month.

Generally if you don’t borrow any money, you get a poor credit rating.

I have never borrowed, apart from during the month on my credit card, always paid off automatically and my rating is as good as it gets - so I'm not convinced that not borrowing helps your rating. The credit card company did reduce my limit, but based on how little I normally use it.

 

[noseall]

My credit rating must be off the scale bad.

 

[big-all]

ok sorry havent been too clear nothing unusual there then

any way further information
occasionally my score would drop by say 10 points the first time it said something along the lines off companies prefer you to only use a maximum 80% off available credit so raised my limit from perhaps £500 to £700 got my 10 points back
with similar use and spending after a year or so my points dropped again for no obvious reason it then said something along the line off companies prefer you to only use a maximum 75% off available credit so raised my limit from perhaps £700 to £950 and got my points back
any way now after several upping the limit to keep my score above the 625 excellent level its been at £1500 for perhaps 2 years now with average spending perhaps £600 a month its now dropped me below the excellent level and now says companies prefer you to only spend 25% off available credit

it seems they only want me to be in hock to the credit card as a very expensive loan facility in emergency ??
they must get commission or something in return as they have never had a penny out off me infact the other reason i got a [amex]card was the 5% cash back for a year

 

[Notch7]

I like to have two cards, and use them alternately, so that one always has a zero balance, but is available if a major expense should crop up, or to use if on holiday. If partner packs one card, it will (probably) still be available even if my wallet or case is lost or stolen.

Both are on direct debit to pay the minimum amount each month, and I pay off the rest by bank transfer the day before it is due so no interest charges.

But if for some reason I didn't, the minimum payment would prevent any penalties

that’s a very good idea

 

[charliegolf]

We pay for almost everything with 2 cards on the one account, and clear the bill automatically each month. If I want an 80p choc bar- card. Pint of milk- card, £5k holiday, card. Much much easier. Never check credit score, never have a problem. Wifey is the card guru- if we want a stiff purchase/project, she'll get a 0% card (never a problem) and space the payments accordingly. We never pay interest. Works well, and has done for 30 years.

 

[Harry Bloomfield]

I like to have two cards, and use them alternately, so that one always has a zero balance, but is available if a major expense should crop up, or to use if on holiday. If partner packs one card, it will (probably) still be available even if my wallet or case is lost or stolen.

Both are on direct debit to pay the minimum amount each month, and I pay off the rest by bank transfer the day before it is due so no interest charges.

But if for some reason I didn't, the minimum payment would prevent any penalties

An automatic paying off each month works for me, no manual intervention needed. For some reason, an Halifax credit card, could not be automatically paid off in full each month, though it may have changed, it was a good few years ago.

 

[JohnD]

the reason I don't automatically pay off the full balance is that if I needed to make an unusually large purchase, it might not necessarily be convenient to pay it all off straight away. But I have the option.

I am now in the fortunate positon of not needing to worry if I need a new gearbox, or a new roof, or new school uniforms, or a Christmas turkey, but I am familiar with such times.

 

[Harry Bloomfield]

I am now in the fortunate positon of not needing to worry if I need a new gearbox, or a new roof, or new school uniforms, or a Christmas turkey, but I am familiar with such times.

Oh, so am I, but I didn't possess any cards at all back then.

 

[securespark]

Generally if you don’t borrow any money, you get a poor credit rating.

I have never had a credit card and the only mortgage I had, the property was repossessed (not my fault).
But I have bought sofas on credit agreements and never had issues.

 

[Ihavenojob]

I have never borrowed,

No mortgage ? Got one CC, never checked my credit score .
When my daughter went for her mortgage, she was advised not to take the covid payment for self employed as it would damage her chance of getting the mortgage. Did taking these payments/loans affect anyones credit standing ?