Poll of the Day > My credit score went down by 12 points :(

(+) Yeah! (+)

Because I got approved for a Chase Freedom (Unlimited?) card ;)

Needs to hurry up and get here so I can start getting me rewards
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Hell yeah bruh, I got one of those last month. Worth the short-term credit drop
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mine went down heckin points because of that small loan i took out last month ;-;
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Yeah I've always found it to be weird how even just applying for a card lowers your score. Like just one time? Absolutely shouldn't. Twice? Probably not. But if you're someone who applies for a new card like every month? Then yeah okay I could see why it drops.

The whole concept of credit score is dumb

That said, if someone wants to pay me for just using my normal spending habits at the cost of a few measly points, then who am I to complain?
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Mine dropped from a combo of the hard inquiry (second one for me this year) and a drop in my average credit history (went from 3 years to 1yr, 8 mo)

I probably won't try to open another card until I finish school, so the hard checks and credit history can correct themselves. Still got that 100% payment history at least.
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I hope you were smart enough not to get your credit score tattooed, then.
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RCtheWSBC posted...

Mine dropped from a combo of the hard inquiry (second one for me this year) and a drop in my average credit history (went from 3 years to 1yr, 8 mo)

I probably won't try to open another card until I finish school, so the hard checks and credit history can correct themselves. Still got that 100% payment history at least.

Yeah payment history seems to be the easiest in my limited experience. I also have zero late/missed payments.

Golden Road posted...

I hope you were smart enough not to get your credit score tattooed, then.

lmao no I hate needles, I'm never getting a tattoo
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Muffinz0rz posted...

The whole concept of credit score is dumb

Not really, the point of credit rating is to stop credit bubbles from bursting.
If it wasnt around Banks, loan, and mortgage companies would disappear pretty quickly. Or even companies that bill you monthly.
It saves them from giving out money left and right to people who dont repay their debts.
Now lowering when you check it for loan, that is dumb if it is a one time check.
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There's a difference in the Freedom and Freedom Unlimited.

Freedom gets 5x Chase points on rotating quarterly categories, 1x points on everything else
Freedom Unlimited gets 1.5x Chase points on everything

You can use both cards and combine the points from both of them with a Chase Sapphire Preferred or Sapphire Reserve card to maximize your Chase Ultimate Rewards and use them on travel and stuff.

Though there are rumors that Chase won't let those initial two cards transfer points to the CSP or CSR sometime in the near future. However, it is just a rumor at this point. I hope that doesn't actually happen.

Ogurisama posted...

Now lowering when you check it for loan, that is dumb if it is a one time check.

I can understand the concept of credit score but it does baffles me why a hard check hurts it. All we're doing is taking a peek.
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fettster777 posted...

There's a difference in the Freedom and Freedom Unlimited.

Freedom gets 5x Chase points on rotating quarterly categories, 1x points on everything else
Freedom Unlimited gets 1.5x Chase points on everything

Yeah so what happened was, I applied for Freedom Unlimited. I then waited a short amount of time and called the line to get myself verified and to hurry the application process along.

After verification and talking to a lady she was like "Congrats, you've been approved for your Chase Freedom card that should arrive in a week or two" so I was like yay but hang on a sec, I thought I applied for Unlimited? She said she wasn't sure and that I'd need to check with customer service for card specifics.

So I'm just going to wait for the card to come and see which it is. It's possible she just misread or wasn't sure or anything. Even if I end up with the wrong one, it won't be a huge deal. I might only throw a hissy fit if the next quarterly cycles for 2018 end up being things that would drastically change my buying habits. Otherwise I might just stick with the Freedom one (if that's the one they end up sending).
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Muffinz0rz posted...

Yeah so what happened was, I applied for Freedom Unlimited. I then waited a short amount of time and called the line to get myself verified and to hurry the application process along.

Did you apply online? My process was approved immediately through their online application.
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RCtheWSBC posted...

Muffinz0rz posted...

Yeah so what happened was, I applied for Freedom Unlimited. I then waited a short amount of time and called the line to get myself verified and to hurry the application process along.

Did you apply online? My process was approved immediately through their online application.

Yeah I went through the prequalification page. I got some advice on CE. Apparently it's pretty common to get a "we'll let you know within 30 days" if you have pretty shallow history like me (I've only had two credit cards in my life, one I had for 6 years through my bank but never used it because my mom was like "there's no reason for a high schooler and early college student to use this credit card" and another one that I just opened ~6 months ago through my bank to start building credit again).

https://imgur.com/a/oXlPW

They gave me a limit of $7k which was baffling to me, I might spend 25% of that in a given month. But apparently not using as much of your limit is better or something like that.
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My limit is $4,500 and on average I put ~$600 on there a month. No need for me to go further than that given my expenses.

Muffinz0rz posted...

But apparently not using as much of your limit is better or something like that.

Yes, keeping our credit utilization low is a good thing.
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Is it weird that the thing I'm mostly stoked about is the sweet hue of blue they use? That shit is beautiful
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lol yeah, much prettier than my BoA red cards.
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ew shiny red just doesn't do it

it's too intense

blue is prettier and more calming
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The concept of a credit score makes sense. The execution, not so much.
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Golden Road posted...

The concept of a credit score makes sense. The execution, not so much.

What do you mean? People who generate a ton of debt and let interest accrue, but still actually pay back, are the most profitable customers. That's what the system tries to aim for, though it errs on the side of responsibility since the customer paying before interest builds is better than just not paying ever.

Seems pretty profitable for credit companies to me.
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Capitalism was a mistake

Hmm I might apply for one. But... I don't need another credit card.
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dont have my credit score yet
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Lightning Bolt posted...

What do you mean? People who generate a ton of debt and let interest accrue, but still actually pay back, are the most profitable customers. That's what the system tries to aim for, though it errs on the side of responsibility since the customer paying before interest builds is better than just not paying ever.

I forgot who mentioned it but a fellow PotD said those who regularly pay off their balance are more desirable than those who don't and incur interest. Like you said, banks make more money off those who incur interest but at least they know they'll get their money back from those who actually pay off the balance. Even among those who pay off their balance each month, banks still make money from the various transaction fees charged to the vendors. I think the terms are revolver for those who incur interest and nonrevolver for those who always pay off the balance each month.
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ugh they said 1-2 weeks for the card to arrive (said this I think on Tuesday)

My current credit card balance is back down to zero. Hopefully this new card comes soon so I can change over all the autopay stuff I have (gym membership, internet) that goes off towards the end of the month.
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Freedom Unlimited is a good card for everyday non bonus category spending.

Got it as my 2nd credit card about 15 months ago, right when I decided to get into the credit card game.

15 months later and 20 more cards now :p
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Lueshis_Story posted...

20 more cards now

Jesus fuck man how do you manage that
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Anyone under 800 is trash tier and needs to realize they fail at life.
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Decoy77 posted...

Anyone under 800 is trash tier and needs to realize they fail at life.

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Muffinz0rz posted...

Lueshis_Story posted...

20 more cards now

Jesus fuck man how do you manage that

If you wanna go down the rabbit hole /r/churning on Reddit could give some more info.

Most of my cards I put in a drawer after getting the signup bonus.

I only regularly use like 3-4 cards. The ones with annual fees will mostly get product changed or cancelled after year 1.

People worry so much about inquiries, but theyre a relatively minor factor in your score (10%).

Main thing is just always pay on time and never carry a balance. No point getting 1.5% back if youre gonna end up paying 24% interest
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Lueshis_Story posted...

People worry so much about inquiries, but theyre a relatively minor factor in your score (10%).

Friend of mine was suggesting the same, that the hit to your credit is minor and is worth some sign-up bonuses if you play your cards right.
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InfestedAdam posted...

Lueshis_Story posted...

People worry so much about inquiries, but theyre a relatively minor factor in your score (10%).

Friend of mine was suggesting the same, that the hit to your credit is minor and is worth some sign-up bonuses if you play your cards right.

Was that pun intended
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Muffinz0rz posted...

Was that pun intended

Actually no, it just worked in my favor.
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Thinking about it a bit, this might be worth getting for me. Even if I don't get the bonus 10% cashback for depositing the reward into a Chase checking account, it still trumps that of BoA rewards card for non-gas/grocery purchases.

As it stands, I get 3% gas, 2% grocery and 1% everything else via BoA rewards card. On top of this I get 10% extra cashback when depositing into my BoA checking account.

($100 x 1%) x 110% = $1.10

With Chase Unlimited it's

$100 x 1.5% = $1.50.

Assuming my math is correct, that extra 10% cashback amounts to nothing compared to that extra .5%.

However though, when I think about how much stuff I spend money on that isn't gas, grocery, or Amazon related (since I already have the Amazon Chase card) that extra 0.5% might not see much usage.....
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InfestedAdam posted...

On top of this I get 10% extra cashback when depositing into my BoA checking account.

Wait what? You get an additional 10% cash when you make a deposit?

Explain
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Muffinz0rz posted...

Wait what? You get an additional 10% cash when you make a deposit?

Explain

Sorry, maybe depositing isn't the right word. I get an extra 10% when I redeem my cash back into a BoA checking account.

https://www.bankofamerica.com/credit-cards/products/cash-back-credit-card/

Scroll down to "Get even more rewards"
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InfestedAdam posted...

Muffinz0rz posted...

Wait what? You get an additional 10% cash when you make a deposit?

Explain

Sorry, maybe depositing isn't the right word. I get an extra 10% when I redeem my cash back into a BoA checking account.

https://www.bankofamerica.com/credit-cards/products/cash-back-credit-card/

Scroll down to "Get even more rewards"

Ahhhh that makes more sense

I was picturing just going to an ATM, withdrawing $300 in cash, then going into the bank and depositing it for an easy $30.

Figured that was too good to be true lmao
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Muffinz0rz posted...

Ahhhh that makes more sense

I was picturing just going to an ATM, withdrawing $300 in cash, then going into the bank and depositing it for an easy $30.

Figured that was too good to be true lmao

Aye. Apology for the confusion and false hope. My fault for using the wrong terms.
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InfestedAdam posted...

Muffinz0rz posted...

Ahhhh that makes more sense

I was picturing just going to an ATM, withdrawing $300 in cash, then going into the bank and depositing it for an easy $30.

Figured that was too good to be true lmao

Aye. Apology for the confusion and false hope. My fault for using the wrong terms.

No false hope here, I always have a "it's too good to be true until I see proof" attitude
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