[dewilson58]

Originally Posted by Notsocrates

Making sense has nothing to do with it. Insurance is actuarial. If claims from those with low scores are more, rates for them go up. That's all therecjs to it.

Use Google & educate yourself.

[fixit6404]

We bought the cart with the card and of course there were monthly payments on the card. They issue the card hoping you will use it for service, parts or another cart after you pay the balance down and pay interest. The only item on the list provided by experian explaining a drop in credit score that applied to us was credit card charged to limit

[Lil GTO]

Your score would’ve come up in 3 months of timely payments and been back to normal in 6 months and you could’ve let your money work for you.

You probably have a score of 800 or more anyway so really 10 points makes no difference at all in the way creditors look at you.

In automotive finance 10 years believe me I could get people with low to mid 500 scores financed and with a little cash down I could get 450 and up done.

Originally Posted by fixit6404

We bought a new 2020 Yamaha last year at The Villages Golf car Store. We were offered 3 year 0% financing if we wanted. I figured what the hey no interest to pay so leave our money in the bank. What happened was they issued us a Yamaha credit card with just enough credit to buy the cart. Low and behold my credit score went down 10 points because I now have a credit card charged to the limit. Even though we have no other debt and money in the bank. I paid it off immediately and closed the card. Live and learn!

[SacDQ]

Cash 💵 is king

[BeverlyP]

I was offered the same deal almost 3 years ago; I have 4 payments left and it will be paid in full. It was tied to a credit card which I never used.
Each time you generate a new credit check your score may change but usually will recover. Credit score remains excellent and I have benefited from the 0 interest offer.

[Indydealmaker]

Originally Posted by CoachKandSportsguy

Unless you are actively shopping for a mortgage, once retired with or without a mortgage, your credit score is meaningless. . . and if you own your forever home, your credit score still meaningless.

finance guy

Bad credit can increase the cost of insurance.

[Cheese]

I disagree! They sure checked our credit score when purchasing a new car and furniture.

[Oneiric]

I thought a really good credit score is 650-700. I don't understand what difference 640-690 would make?

[Dana1963]

Originally Posted by fixit6404

We bought a new 2020 Yamaha last year at The Villages Golf car Store. We were offered 3 year 0% financing if we wanted. I figured what the hey no interest to pay so leave our money in the bank. What happened was they issued us a Yamaha credit card with just enough credit to buy the cart. Low and behold my credit score went down 10 points because I now have a credit card charged to the limit. Even though we have no other debt and money in the bank. I paid it off immediately and closed the card. Live and learn!

Trivial complaint. I’m more worried about not getting junk mail from the post office and Amazon packages arriving on time

[ProfessorDave]

Personally - I would never do anything differently for a 10 point drop in credit score. The standard deviation (variance) on credit scores is significantly more than 10 points - so it cost you absolutely nothing for variances generally within 35 points unless you are below 720. However, the % percent interest is like making an extra 5% free money. So - right decision for you - but - hope others considering this will NOT turn down no interest rate credit in this same situation.

[aallbrand]

if your score is high 10 points is nothing other then a blow to your ego.

[CoachKandSportsguy]

Originally Posted by noslices1

I have great credit. It was 833 and I bought a new car with 6 year financing. After I paid it off in 18 months my score dropped 10 points. I paid it off too fast according the the credit bureau. What’s up with that?

A credit score handles how well you handle debt. The basis of measurement is paying bills and debt balances. So if you have debt and you pay on time and don't exceed certain thresholds of debt to income ratio, you get a certain score. however, if you don't have debt, its much harder to measure your ability to handle debt. However, a 10 point drop from 833 is a meaningless number. . .

I will go back and maintain, if you dont' have debt, as many don't have debt in the villages, a 10 point drop is meaningless, and yes, there is a correlation to insurance, but the correlation is stronger when you are the lower end of the credit range, than at the top portion of the range, if they use debt as an insurance score.

And I would also maintain that the age of your house, the roof and the construction materials have a MUCH LARGER impact on your insurance than most credit ratings here in the villages, even with a 10 point drop.

Of course if you have a bad credit score, you will get charged more but the example and the discussion is not around people not paying bills and defaulting on loans, as the OP, original poster had stated and had a mahvelous score, and I am generalizing about most villagers who are retired and don't participate in the local crime section of the villages dash news

finance guy

[dewilson58]

Originally Posted by aallbrand

if your score is high 10 points is nothing other then a blow to your ego.

With a fragile ego 10 points scare me.

[noslices1]

Originally Posted by retiredguy123

Did you actually hear that from a credit bureau? If not, it would just be speculation. I didn't think they ever shared information about how they calculate the scores.

No mortgage for the last 11 years, or car payments until I bought in 2018, pay everything with credit cards which are paid off every month and had been 832-833 for over 3 years, occasionally up or down one or two points. Didn’t change when I bought the car and had a $16,000.00 loan, but as soon as I made the last payment, the score dropped to 823. So you can speculate why that happened all you want.

[stebooo]

I just did the same for some big dental work. Ended up with cc and score dropped about 15.. the only comment is there is a cut off for best interest rates etc. That move dropped me below