All Things Economic

I bounce back and forth from 830’s to perfect depending on what cards we use. Same with our business credit which isn’t scored the same as individual credit. Our scores tend to sink a little if we don’t use a card. So we play card roulette to make sure we use each one a couple times a year. If we don’t, as stated things seem to sink a bit. We use rewards cards for EVERY purchase no matter what it is and pay it for the most part 100% each month

---------------------------

This is exactly my modus operandi. It's a game, and once you get the algo, it's a fun one. Speaking of that, just a reminder that all of us that have the AMEX platinum, don't forget to use your semi-annual $50 credit for Saks.

Both the wife & I bounce back and forth from 830’s to perfect depending on what cards we use. Same with our business credit which isn’t scored the same as individual credit. Our scores tend to sink a little if we don’t use a card. So we play card roulette to make sure we use each one a couple times a year. If we don’t, as stated things seem to sink a bit. We use rewards cards for EVERY purchase no matter what it is and pay it for the most part 100% each month. Two things happen.. one, we rack up rewards and two our scores are constantly high 830’s to perfect on FICO 8 and 880’s to perfect on Fico 9’s. We don’t purchase vehicles anymore as the depreciation is one of the greatest you will deal with. Leasing actually helps keep your credit up without the depreciation especially when you lease will full maintenance included. I’m looking for a new rewards card now to replace the Delta AMEX. They really screwed the pooch this year with how they have changed their rewards program.

"I have opened or closed credit card accounts which resulted in my score going both ways."

We decided we wanted to get away from our Bank of America credit card so we applied for a credit card with our local bank. Between poor fraud detection and inadequate online experience we quickly stopped using the new card. We then applied for a credit card with our credit union that has proved to be better. The BoA card is still active, just unused; the account at the local bank has been closed. Our spending hasn't changed and we still pay off the balance every month.

It's been entertaining to watch our credit score go up and down as activity shift from the old card to the new card.

Anyone with enough financial discipline to read a forum thread on economics very likely has an IRA. Company based 401 Roth is excellent we also have Roth Ira's on E-Trade where we can buy individual stocks but really have no preference for that platform over others.

I once took out a loan with one of those companies that is always advertising on the web. Nine percent and paid off my credit card balances.

I had exactly the same amount of debt, and my score went up over 100 points.

"Whether 770, 799 or 801, it's just a number."

720 is the magic imaginary line in the car business.

Really, we used to high-five when we saw anything approaching a 700 score.

The lowest score I ever saw was actually a friend of ours at 368. Don't loan her any money.

From what I've experienced, the actual loan itself didn't increase my score. But the consecutive monthly on-time payments without 30 or 60 day late payments or account to collections.

Back in the Fall, I was checking out 2nd mortgage rates with Rocket. Apparently one of the buttons that I clicked "applied for the loan" and generated a hard hit. Result: my score dipped 52 points the next day.

Since then, an older inquiry has aged/ timed out and removed from my report. If not for that middle of the night Internet surfing, I'd be at or nearing 800.

Whether 770, 799 or 801, it's just a number. I don't really plan on buying another house or rental property in this state. It's just a magical number for my auto insurance, background checks for jobs or security clearances, and if/when I do refinance or take out a home improvement loan.

Like I said, the score doesn't have a rhyme or reason. I have opened or closed credit card accounts which resulted in my score going both ways.

" Just by opening a car loan. Go figure?"

Nothing mysterious. Car debt increases your numbers unless you quit paying on time.

I just checked my Credit Karma, and TransUnion jumped 46 pts and Equifax 45 pts. Just by opening a car loan. Go figure?

Curr,

Yes! My neighbor in Georgia was a Muslim from Pakistan. I was selling my house, and his brother bought it with help from his mosque brothers. Their religion doesn't allow interest i believe.

@Yourluvrman

You made me look. WTF? Gamestop hit $46.88 last Thursday And it was $54.09 of May 14th?!? The Kitty has roared... Again LMAO.

I notice it's down a bit this morning. Currently off almost 49% at from D Day (D for Dumbshits?) at $24.09. Meow. SMDH

In the George Carlin vein of "that wasn't a near miss you fuckers, it was a near hit," it's not a credit score. It's a debt score and measures your past activity of paying off debts, not your actual credit worthiness.

@8-Inch

1) Credit ratings are a metric run by and for creditors so, no surprises there.

2) Socialism (actual socialism, not Europen style social democacy and it's American variants, which feed off capitalism) ) has historically not worked out too well as an economic system for any segment of society except government leaders and their cronies.

3) Is there a church I don't know about that will loan $600 K without interest? Maybe I'll join. How do they feel about coveting thy neighbor's wife?

4) I just paid my quarterly income tax estimates for the IRS and the State of California (where I have never lived). Trust me, taxes are not just for poor and middle class folks. My marginal total total tax on California source income is very near 50%. Fortunately I don't pay personal property tax or much sales tax in California.

Just got an Experian notification and checked it out.

After 2 hard inquiries last month when I was auto shopping and opening auto loan for just $13,000, my score dropped a couple points.

And Lowe's lowered my limit from $14,000 to $1,500. Not that I ever use the card. It's the principle.

Pay cash for the car. Or finance part of it for 1-2 yrs to get the credit payment history.... and pay a little interest over the time period. Do the same with a couple of credit card balances. All for the sake of improving your credit score. The credit game is rigged.

Oh, and Experian was advertising credit cards. Some ranged from 19.24%-29.99% and as high as 35.9%. That is called Loan Sharking, legally.

Roaring Kitty (Keith Gill) is at it again. Lol

Listen to me , it’s not how much you make ..It’s how much you spend . Pay yourself first.

"I have long been in a place with zero debt and likely way more available credit than I'd ever need."

______________________________________

I can't say I have zero debt due to my mortgages, but outside of that, I make sure to keep my debt percentage below 1%. I know how to play the credit game by rotating card balances, taking advantage of promotions, points, etc with my custom spreadsheets and quicken, etc. Having an 830+ score is pretty much useless unless you want to borrow.

I have long been in a place with zero debt and likely way more available credit than I'd ever need. Though we have an 800+ credit rating, it doesn't matter when you pay cash for everything. I realize not everyone can do that.

The Capitalism Game is really fucked up.

Long-story short, I just re-learned that A-1 Credit and being cash poor, is more advantageous than having a significant amount of cash (liquid) and good, avg or below avg credit scores.

And the games played by those with money and/or great credit scores. How they use their shell business(es) to burden the liability and credit hits and the leasing of buildings, homes, vacation homes, cars, bikes, boats, yachts, planes and helicopters. And tax umbrellas and lowered taxes or zero taxes.

And when you can't suck another thin dime out of the business, file for bankruptcy, rinse and repeat.

The difference between us getting a mortgage for $300k to $1M at 4-8% and the others getting it at 1-3% is amazing. Or 0-1.99% on a 150k car and 7.99% on a 40-50k car. And then, don't talk about the brotherhoods of religions that do not charge their brothers interest. Imagine how quickly you could pay off $600k with no interest. All the while, churches, synagogues and mosques cannot be taxed.

Taxes are for the middle-class, poor and god-less folks. Not the rich or corporations and religion.

Never been a big Cracker Barrel fan. Most of their menu is stuff we can do just as well or better at home. People say they have good breakfasts, but breakfast is such an easy meal to do at home as well. If I'm paying for a meal, I prefer something that I'm unlikely to make at home.

It's a bit involved, but without being too esoteric, Golden Gate Capital paid $2.1 billion to buy Red Lobster in May 2014. The valuable part of that purchase was the land that the restaurants were located on. They are in the process of Asset-stripping Red Lobster. It's a common practice with hedge funds.

Asset-stripping occurs when an owner or investor in a company sells off some of its assets, taking the benefits for itself and hobbling the company. This practice is favored among some private-equity firms that buy companies, load them with debt to finance the purchases and hope to sell them at a profit in a few years to someone else. A common form of asset-stripping is known as a sale/leaseback and involves selling a company’s real estate; this type of transaction hobbled Red Lobster.

Don't get what you mean. What did they do that was slick?

The move by that firm/hedge fund was slick. Bobby Axelrod would be proud. Lol

Red lobster got taken down by private equity loading it up with debt, and their supplier becoming their biggest shareholder. Clear conflict of interest there.

Speaking of bankruptcy...

The current US budget deficit expressed as a percentage of GDP is currently 6.3% (2023). This is projected to grow to over 7% for 2024. What is particularly alarming about this to me is that this is occuring in the absence of a recession or major disaster. A look ata recent historical deficit versus GDP published by the St. Louis Fed ( https: // fred.stlouisfed. org/series/FYFSGDA188S ) shows that even this level has only been exceeded in the following out of the last hundred years:

1942-1945 - World War II
2009-2011 - Financial Crisis
2020-2021 - Covid Pandemic

Considering that we weathered the Korean and Vietnam wars, the Arab Oil Embargo, the Reagan double dip recession, the dot com bust, 9/11 and the ensuing Iraq war madness, all without deficits relatively as large as the current one, and further considering that 2024 is expected to be larger still. and adding in the fact that we are in the third straight year of an economic expansion....well... this situation is not only extraordinary, but depressing.

To me anyway.