I used to be a big believer in credit scores and credit rating. I taught my kids how to get their credit scores up as it not only affects your loans, and your cost of insurance, but now they use it for hiring as well ( I believe this should be illegal).
Anyway, it seems to me the credit bureaus have become a scam whereas they no longer reward you for paying off your bills, but instead for having debt (which is totally counter intuitive to what good credit should be).
I hadn't checked my score in a while because when the interest rates dropped so low that it wasn't worth having money in the bank, I took my money and paid for everything in cash. I paid cash for a house and paid off all my old car loans. I've never had any credit card debt...ever.
Anyway, I noticed the other day when I checked my scores, that they have been dropping monthly....because I have no debt??
Apparently, they have decided that since I have no debt, I must not have any money?
It shouldn't matter to me, but it really does. It's quite apparent they want to motivate me to carry debt and penalize me for paying them off. The way I built such a high score in the first place was by flipping cars every six months. Every time I paid off a loan my score went higher. Not any more.
There really needs to be a sub-committee looking into this, what should be a fraudulent tactic.
Done with my rant.
Just my opinion, of course.
AI
