Low Debt = Poor Credit Rating?!

Low debt = poor credit rating?!

PostBy: anthony7812 On: Sat Mar 18, 2017 10:44 pm

Im used to seeing my credit rating 800+. The mrs was doing pre vacation planning for next winter and needed to run our credit. I have only 2 or 3 cards and 0 balance on them. My score was mid 700's. I was kinda confused. Come to find out these wack nuts want to see more credit and healthy balance transactions ( use it and pay it). I was always under the impression debt free is the way to be, but this seems to be not the case. Any suggestions folks???
Stoker Coal Boiler: VanWert VA 400
Coal Size/Type: Buck/Anthracite

Re: Low debt = poor credit rating?!

PostBy: Richard S. On: Sat Mar 18, 2017 11:26 pm

Don't feel bad, at the age of 30 when I took over the coal business I decided to get my first CC card that would of been tied to my business bank account. I always paid cash and no loans..... Denied. LOL This was before they were handing them out like candy.

I took the letter to the guy at the bank and he found it humorous himself because he knew how much was going through the account. I actually ended up having to get my Father to cosign for it.
Richard S.
Stoker Coal Boiler: Van Wert VA1200
Coal Size/Type: Buckwheat/Anthracite

Re: Low debt = poor credit rating?!

PostBy: cabinover On: Sun Mar 19, 2017 7:15 am

The whole CC/financial score thing doesn't make much sense. We have a bunch of CC that are not used however cancelling them drops your credit score. Common sense would have one think that if a person has, say $100K, available credit that could be utilized in 5 minutes of buying they'd be a higher risk than someone that has one CC and a $15K limit.

There are several other reasons for the 3 major reporting companies to raise/lower your score. Average age of credit, total amount of credit available, revolving (store cards) history...and the list goes on. And most times the 3 companies aren't in total agreement either.

We use a CC to pay for almost everything, earning 2% back on everything we buy. If it doesn't bother merchants, I'll take it back for me. ;)
Stoker Coal Boiler: Hybrid Axeman Anderson 130
Baseburners & Antiques: Sparkle #12
Coal Size/Type: Pea, Buckwheat, Nut
Other Heating: LP Hot air. WA TX for coal use.

Re: Low debt = poor credit rating?!

PostBy: coaledsweat On: Sun Mar 19, 2017 7:46 am

Even if you use it and pay the balance evey month it is a big zero because it lacks a history to make a judgement from. They are lost without a paper trail.
Stoker Coal Boiler: Axeman Anderson 260M
Coal Size/Type: Pea