Uncle Joe

[twocoach]

we’re just a couple days from zero debt, and i’m not sure how i feel about it

Congrats. It's pretty liberating. I haven't had a mortgage for nearly 10 years. Hard to resist the urge to rack up a little credit card debt here and there but my wife is a pretty strict manager of our finances so we're in a good place.

i still think it’s absurd that i pay off debt and my credit score goes down

the last bit is an auto loan, so at this point it’s interest vs credit score

Good point. Guess you need to do some travelling and get a few bucks on a credit card.

[DeletedUser]

Or, if you don't have or utilize debt, then it doesn't really matter what your credit score is.

[KUTradition]

Or, if you don't have or utilize debt, then it doesn't really matter what your credit score is.

i see your point, but we’ve busted ass to get both our scores over 800. i just think it’s silly that our scores drop when we do what we’re supposed to, which is pay off our debt. maybe it won’t matter when the time comes, but i feel like we’re gonna get dinged with higher interest rates BECAUSE we’ve paid off our debts (resulting in lower credit scores)

[jfish26]

I'm not saying this is wrong or bad or needs to change, but great credit is one of the more unfair things out there. If you don't start^ with it, then by the time you have it, you don't really need it.

* And of course the "starting with it" isn't really fair either - you can start with it if your parents have it and can tack you onto it before you ever really use it.

[DeletedUser]

Or, if you don't have or utilize debt, then it doesn't really matter what your credit score is.

i see your point, but we’ve busted ass to get both our scores over 800. i just think it’s silly that our scores drop when we do what we’re supposed to, which is pay off our debt. maybe it won’t matter when the time comes, but i feel like we’re gonna get dinged with higher interest rates BECAUSE we’ve paid off our debts (resulting in lower credit scores)

Banks don't want you to pay of your debts. They want to collect interest. That's why higher scores for people who have consistent and revolving debt.

Totally get your point. I think it's stupid too. But in application I don't think you'd experience higher rates. Your score is probably still considered "good" even with no debt.

[DeletedUser]

I've seen credit scores go up simply by increasing the limit on a credit card because your unused credit portion of the score goes up.

[Overlander]

A banker told me several years ago that available unused credit can actually hurt credit scores.

The context was in the securing of business credit. He said that people with high amounts of unused revolving debt are actually judged negatively. The reason was that the individual COULD access that money, thereby making themselves in a weakened position from a cash flow perspective.

[KUTradition]

yeah, i’m not sure what, if any, the implication on interest rates would be for a 725 vs a 775 credit score

[randylahey]

we’re just a couple days from zero debt, and i’m not sure how i feel about it

Congrats. It's pretty liberating. I haven't had a mortgage for nearly 10 years. Hard to resist the urge to rack up a little credit card debt here and there but my wife is a pretty strict manager of our finances so we're in a good place.

i still think it’s absurd that i pay off debt and my credit score goes down

the last bit is an auto loan, so at this point it’s interest vs credit score

Guess what? We agree on something. The credit score system in this country is insane.

Someone takes out a loan/mortgage etc and responsibly pays it on it for years, then once it's paid off, their score goes down. What kind of shit is that

[DeletedUser]

I think you're misinterpreting the point of credit scores when it comes to why they are used in lending.

It's not a "pays your bills" score.

[twocoach]

I think you're misinterpreting the point of credit scores when it comes to why they are used in lending.

It's not a "pays your bills" score.

Agreed. People think it's a score that ranks how good you are at paying your bills on time. It's a ranking of how good of a potential client you are to companies who make their living off of squeezing interest payments out of you. People who pay their bills in full each month don't pay interest and are thus "less attractive" to such companies.

[KUTradition]

did someone say millionaires?

https://www.washingtonpost.com/business ... ires-club/#

[RainbowsandUnicorns]

did someone say millionaires?

https://www.washingtonpost.com/business ... ires-club/#

"The number of people in Fidelity’s millionaires club remains relatively small — 1.8 percent of 401(k) participants and 2.61 percent of IRA holders".

Since this is the Biden thread and we are currently discussing wealth.....
Hey low swinging balls Joey -
Since the day you became President the percentage of the cost that most goods and services have increased has far outweighed my salary increase.
You MAY get my vote in November but what I mentioned might be the difference maker between you getting elected - or not.

[KUTradition]

maybe you shoulda worked harder?

[RainbowsandUnicorns]

maybe you shoulda worked harder?

Maybe but I have worked as hard if not harder since Biden has been President as I did when Reagan, H.W., Clinton, W., Obama, and Trump, were President.

You know what else has sucked for me $ wise under a Biden Presidency? I have paid more money in taxes than I did when The Donald was President. Wouldn't suck as much I felt my tax dollars were going to good use.

In regards to my 401K....
Yes, I am happy my rate of return was 9.93% for the month. I'm not happy I'm not a 401K millionaire.

[Shirley]

Thanks, Joe:

[zsn]

You know what else has sucked for me $ wise under a Biden Presidency? I have paid more money in taxes than I did when The Donald was President. Wouldn't suck as much I felt my tax dollars were going to good use.

But the tax code didn’t change when Uncle took over. The field was set to catch fire as the vandals were leaving. The Trumpistas (aided by Paul Ryan) screwed over Blue State taxpayers.

[Shirley]

You know what else has sucked for me $ wise under a Biden Presidency? I have paid more money in taxes than I did when The Donald was President. Wouldn't suck as much I felt my tax dollars were going to good use.

But the tax code didn’t change when Uncle took over. The field was set to catch fire as the vandals were leaving. The Trumpistas (aided by Paul Ryan) screwed over Blue State taxpayers.

^^^

[Shirley]

Today In! "So much winning!"

Thanks, Joe:

4:36 PM · Feb 29, 2024

[RainbowsandUnicorns]

Talk to me in October and early November.
Looking at the chart, is it supposed to be telling me I would be foolish not to buy some long term (Sept/Jan/March2025) puts?