The 800 Club - WSJ

The 800 Club - WSJ
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#21

Ours have been in that range for years. But whenever we’d apply for credit, we’d hear we’d only need 740 or 760 to get the best rates so there’s some leeway to keep churning CC applications (mostly travel cards) and having scores that afford you the best lending rates. The applications just end up dinging you 5ish points each which is almost immaterial now due to their anti-churning limitations.

The recipe is simple. Keep your old credit cards and keep your largest lines of credit (or replace them with equivalent ones when churning). Don’t miss payments (I set auto payments on all accounts but still monitor transactions daily on all account using personal capital) and you should be fine.

Data Point: this is 2% utilization, 16 accounts, 21 year history, average length 7 yrs.

P.S.: the pay weekly is pretty absurd. Yes it’ll make sure your credit utilization is as low as possible but if you have over $200k of combined credit limit (ours), the difference between 0.5%, 1%, or 2% utilization is insignificant. I could see it if you’re on the bobble just under 740 or 760 and trying to get a loan but I’ve never done any of that. Our statement balances get auto-paid a few days before they are due and we only pay the last statement balance, not the current balance. No need to not keep your money in savings earning 2.5% a few extra days…


#22

Understood. Not quite as much as yourself, I don’t think. But I also have plenty of available credit. Thing is:

If I did not follow Argyll’s learned teachings, and pay off my cards before the statements closed, my utilization would skyrocket upward and remain right at 100%. This would shut me down completely. I max out every card every month in order to harvest the rewards. Only by paying off when and as Argyll teaches can I make things work out. And I make a LOT more on the rewards than I could make with money in the bank.


#23

I guess if you’re doing a lot of MS it makes sense but the WSJ article was probably not discussing that scenario. So for most people it’ll make little difference whether they pay the balance weekly or monthly unless somehow they are obsessed about being at 850 instead of 840 maybe.

Especially when you consider that you can simply ask your card issuers to align your billing cycles to the same date for all your cards.


#24

Well you can ask. But you do not always get. I speak regarding this matter from considerable experience. Sadly. :slightly_frowning_face:


#25

Thought about this thread when this blog post popped up. You guys may find it interesting.


#26

From the blog:

I’ve seen a couple of scores around 820 to 835, but often these scores were to the detriment of the borrower. The 820 borrower kept the same mortgage for ten plus years instead of refinancing. This borrower might have kept the same two credit cards for the past ten years. Maybe they had a five year old car loan that should have been paid off early.

The author is leading to the wrong conclusion here. He’s suggesting that such a borrower purposely did not refinance the mortgage or kept an old car loan simply to keep a high credit score. My observation from being in a similar range for many years is that “longest active loan” is not a requirement – I paid off an old student loan and obtained two new mortgages and two refis and stayed in the same range. I do have a bunch of 10+ y.o. credit cards, which keeps my AAoA high, so that’s definitely a factor.


#28

Hard to take him seriously when he doesn’t know the difference between rogue and rouge. lol