On Wednesday, May 5, 2021 at 2:54:27 PM UTC-5, wrote:
> On 5/5/2021 10:32 AM, Gary wrote:
> > Graham wrote:
> >> What I can't understand is that my credit rating, obtainable when I do
> >> any online banking, has just dropped to just below 800. It usually sits
> >> at 870 but should be 900 as I have no debts, apart from modest credit
> >> card balances that I pay off promptly every month.
> >
> > From what I understand, they look at your "potential" debt. Even with
> > one credit card that's used and paid off each month (like me), they look
> > at your credit limit because at any point, you could charge it up to
> > that limit.
> >
> > To have extra credit cards that you never use, can take down your score.
> > They seem to base your score on potential debt, not current debt or
> > timely payments.
> >
> It's been at least 15 years but I had a credit card from a major bank
> for about a year; I paid it off every month. One time I used it for a
> fairly large (IIRC it was about $1500) purchase. When the bill came I
> paid it in full. They cancelled my card. They *want* people to carry
> balances, otherwise they don't make any money.
>
Not true at all. They make plenty of money from merchant fees. We
haven't carried a card balance for many years, and we get solicited for
new cards frequently.
>
> Jill
>
--Bryan