Wednesday, August 4, 2021

How can "one" be "too many"?

 Credit scores confuse me.  I have great credit.  Close to the max (of 850 here in the US, don't know if that varies around the world) and been that way for a long time.  I work hard, I keep my debt minimal.  I use my credit card for everyday expenses and I pay it off pretty quickly.  Not always in full each month, but quickly.

So imagine my surprise when I checked my credit score using the Free option at my credit union website and saw this:

I have exactly one account.  Period.  Not just with a balance but total.  My credit union credit card.  That's it.  How could having one be "too many"?  I am told that having a credit card helps your credit score.  If I get rid of the credit card (which I won't) would my credit score go up or down?

There you go.  I'm not going to change anything (although the CC balance may go up soon in order to do some house projects) but thought it was odd wording.  Maybe you know, maybe it is just some quirk of the people who do credit scoring, whatever.

I was going to ramble a bit about home improvement since that is why I started looking into this, but maybe I'll make it a separate post.


Anonymous said...

Credit scoring - notice is usually just for information. Friend with credit score of 820 was denied a home loan as she had 27 open credit cards. Some with balance but most were $0.
My home was built in 1914 and we have done extensive remodeling. Really wish I had checked with an architect and then planned accordingly. Talked to one at a party and he said his rule of thumb was to start at the top as the pipes breaking at the wrong time can undo all the work down downstairs. Can't disagree as I now have cardboard on the ceiling under the bath from a shower leak and the pipes had completely rusted. The one before that had ruined wallpaper and wainscoting we had installed.

heresolong said...

Good advice. My plan is 1) Upstairs bathroom 2) kitchen and downstairs addition. Hoping I can afford all three.