I signed up for an American Express preferred Blue card and got approved for a limit of $25,000. I have a 830 credit score. I realized that the places I shop don’t accept that card and you have to pay for it yearly so I canceled it.
Then I decided I was going to get a Costco Visa. Once I signed up the credit limit was only $5,000. So I canceled that one. So I stupidly signed up for a Wells Fargo Visa and that was $4,000.
Don’t leave yet and please don’t make fun of me but I’m not done being stupid. I decided I wanted a different American Express card and when I signed up for it the credit limit was $2,000 so I canceled that one.
Again I know I’m fucking stupid but how bad did I just fuck up my credit?
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As somebody who lives in country where credit cards are mostly used when going abroad for a vacation, this whole comment section is wild.
Ok?
Ok.
cancel
Forget the credit card, tell me you’re on anxiety meds.
Well you don’t have an 830 credit score anymore but it’s probably not too bad, chill though lol
Plus it’ll go back up to where it was in a few months.
And you only need a credit score if you’re applying for credit. Are you financing a major purchase in the near future? If not, your credit score is literally meaningless.
No Financing. House is paid off I have like 200k in stocks and savings.
house
Lemmy assemble. let’s eat this rich guy
Let me tell you why I’m so lucky. In early 2013 I bought a 1946 Bungalow at 1400 sq with no basement for around $50k on a 15 year loan. I paid it off. Last year, my father-in-law died and left his house to his only daughter, my wife. It had an outstanding mortgage of $60,000 left on it. It’s a 2100 sq ft colonial with attached garage and basement. I sold my house for over $200k and moved into my wife’s childhood home. We paid off the remaining loan.
I am fortunate and got lucky on the housing market. I make [redacted] (slightly above national average )a year. My wife took the year off, but is a teacher. We are NOT rich, but very lucky. I live near Detroit, where the cost of living is lower and that helps too.
Don’t worry, I am pretty sure it was a joke. But if someone is buying up property for the sole reason of renting then we will be picking up the pitchforks.
Edit: On a unrelated note, I would be more careful about sharing my wealth and salary details to a digit on social media. You can never know when it might backfire in future.
I edited it. Thank for the tip.
Amazing! Good for you. People shouldn’t attack the few people that get lucky. ❤️
It’s at 822 now. RIP in peace credit
I’m not American, but surely going down 8 points isn’t that bad, right?
It’s down 27 points now and likely to go down a bit more. It’s not not BAD though.
That’s not a bad credit score at all.
I was worried it would tank though.
Why do you care?
Because it matters
No it doesn’t. I’ve been a legal adult for almost 20 years now and not once have I ever needed to use my credit for anything. I don’t even know what my credit score is because I don’t give a single fuck about my credit. If I can’t afford to buy something, I save up enough money until I can. It’s that simple.
You don’t need a credit card with a $25K limit. You don’t need a credit card at all.
Like I said earlier, quit whining and take your meds.
Why does it matter?
I don’t know what I’m reading.
Here people mostly use debit cards, and we don’t worry about things like credit scores or whatever. Also these cards tend to be free. At the end, they just give you a convenient way of paying with money you actually own.
Why would anyone buy normal stuff using credit? I get it for big purchases as a house or a car. But why go into debt for groceries or a new laptop?
In the US and Canada, a person’s credit score is used to figure out how safe it is to lend them money. Big ticket items such as cars and houses are often bought on credit with a payment plan that includes interest - so the entity lending the money makes money off the loan. Good credit score = Less risk to the lender = Lower interest rate for the borrower = Less money spent in the long run.
Credit cards are an easy way to build a good credit score. I use mine for almost every purchase I make: groceries, gas, bills, subscriptions, donations. The things is, I pay it off in full each month (so I don’t pay interest fees to the credit card company) AND my card gives me 2% money back on my purchases. So if I use it for $20,000 worth of purchases, I automatically get $400 back. Free money!
Also, my bank limits the amount of transactions I can make in a month to 12. They charge a small fee from the 13th transaction onward. If I had to pay for everything directly by debit, I’d probably end up paying tens of dollars just in fees, each month!
Edited to add: By using my credit card and paying it in full, I demonstrate I’m trustworthy when it comes to credit, because I pay it back. That’s what a lender wants! This makes my credit score go up, which in turn helps me when I want to buy a car or get a mortgage on a house. I got my first credit card when I was 18, following the advice of my parents, and that has served me extremely well 15 years later! Who would you rather lend $20,000 to: someone who makes $50,000 and reliably pays back their credit card in full each month for 10 years and has zero debt, or someone who makes $500,000 but carries a $100,000 debt on their credit card?
So people who are savvy about credit do not buy everything “on credit” just because they pay for it with a credit card. It is legitimately a good way to save (or even make) money, at least in the US and Canada.
How is this kind of discrimination even legal there?
Credit cards offer protection over debit cards. After all, it’s the banks money if something fraudulent happens on a transaction, not yours. I always use my credit card over my debit card mainly for this reason.
Some credit cards offer cash back or rewards which build up when you spend.
I have a direct debit set up to pay off the balance at the end of the month so it just automatically pays itself off.
Credit cards have good protections against fraudulent webshops and often provide free insurance against damage and theft. This makes it worthwhile for buying a new laptop.
My card is automatically fully paid off at the end of the month, so mhe debt is very temporary
But you still pay interest for basically nothing.
Interest is only charged on the outstanding amount going into the next month’s cycle. Paying it off every month means all purchases are interest free.
Fair enough then, never used this kind of service.
If you’re fortunate enough to live in a country without credit scores, I’m jealous!
Ppl downvoting you is wild. Let’s not bring in toxic reddit traits. Not everyone is from BurgerCredit land. Perfectly valid question. SO to Stelor for explaining in a reply.
Just cancel that Amex card and get another one, but before you get too comfy with it, consider cancelling it and getting another one.
Talk about a life lesson. Credit cards shouldn’t be a willy nilly oh this one sounds fun. They should take research, making sure it’s what you want.
When I lived in the US (before the subprime crash), my neighbors used their dog’s name to sign up for all kinds of free lotteries on the internet.
One day, they were sent a pre-approved credit card with their dog’s name on it.Also, finding out the card isn’t used anywhere and canceling it shouldn’t count against your credit score.
Credit scores at total bullshit in the first place.
It’s credit, a loan, and I’d say this is actually great example of why it’s useful. OP showed one after the other how likely they are to take out credit. Like it or not OPs behavior is a warning sign
Warning sign of what?
That you don’t know enough about credit. Or fraud.
I can agree to that.
Their main issue is all of the sudden hard pulls for new accounts. Each one hits your credit for something like 30 points. I expect doing that over and over rapidly increases that ding each time. They dont want to loan you money if you are desperate for money, so they hit your score if you ask for too much too fast.
Their second issue, credit utilization, i.e how much credit you have that’s not in use, is affected each time they cancel a card. That’s hitting their credit as well, as each canceled card closed reduces their total unused credit percentage.
Between the two, i wouldn’t be suprised if that 830 is 600 right now. The good news for OP is that the new credit dings wear off fast. If they just stop opening credit cards, their credit will be in the 800s again in a few weeks.
They dont want to loan you money if you are desperate for money, so they hit your score if you ask for too much too fast.
Credit score is ‘who can we fleece for the most money’ so that checks out.
100%. It’s a coordinated judgement about who they can get to reliably make them a profit. “Pays the bills on time” is the biggest factor in your credit score.
If you look at each of them (payment history, how much credit is open and not used, how long has the credit been open, how often have they asked for more credit recently, how many types of credit do they have i.e house/car/cc) they all have to do with figuring out if you will pay them.
If the answer is yes, they will give you a giant whirlpool to spend. Once you have it you will likely make them a profit, because almost everyone does. Credit scores are just a way to tell if it’s worth hooking you on “easy” money.
Credit scores at total bullshit in the first place.
Credit scores are mostly fine. They do only one thing. They provide a good measure of how likely you are to pay back a loan. Thats it.
What other companies decide a credit score means and how they use that is bullshit.
Costco only accepts Visa and I didn’t know until after. I’m an idiot.
My cycle is:
- Get new 2% back on everything card
- Card changes rewards so it is no longer a 2% back on everything card
- Repeat
You don’t know the limit until you sign up
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a credit card shouldn’t be about the limit at all. Even with a big project you could have just done it in parts or only done on part on the card. You should never take out cards for a higher limit.
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you could have just called and asked for a limit raise.
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Why are you canceling them instead of just asking for an increased credit limit?
They said that could take years
Calling them today and asking? I mean now yeah of course they’re not going to want to increase it now.
The fact that Amex only gave you a 2k limit after getting a 25k limit means nobody wants you at the moment.
It could be much worse. I was ready for you to tell us about the massive debt you racked up. At least this is something that will go away over time with no cost or effort on your part.
Lol ikr. I read the beginning of the post and the minute I saw them mention the rather large credit limit I thought the story was going in the opposite direction that it ended up going.
Ok that’s good. Thank you
I have a chase sapphire reserve (visa) that has a credit limit of $24,000. I don’t understand why you keep picking cards with low credit limits. Do your research first then apply. Plus credit limits are based on your history with the bank and your annual income. If you have a low income, then they won’t approve a large credit limit.
Also do you not read the sign on the stores you shop at? Pretty sure they advertise which card network they accept.
You can also literally call customer service and ask for the stipulations for an increase.
Credit cards are not your clothes.
I know. That’s why I said I’m stupid. I’m beating myself up enough. I know I’m fucking stupid and don’t deserve what I have. I don’t need some internet jerk to tell me how fucking stupid I am so they can feel good about themselves. Thanks, though.
Damn, now you made a stupid comment too. Time to retract and reflect.
You’re being a jerk.
Exactly what you wanted
No. I specifically said what I did was stupid and asked you NOT to be a jerk.
Brother, you need this
I’m a piece of shit. I get it.
I never got what it is with Americans and their credit cards. Why does one need several and what’s up with those credit limits? If you’re buying on credit it by defintion means you can’t afford it and thus shouldn’t buy it. I do have a credit card as well but the only thing I use the credit side for is online purchases for security reasons. Everything else is charged directly from my bank account.
If you’re buying on credit it by defintion means you can’t afford it and thus shouldn’t buy it.
Buying it on credit doesn’t mean that that’s the only way you could buy it. I buy everything on credit, and I’ve paid about $50 total in interest in 10 years of doing so, a number far outweighed by the hundreds of dollars of rewards I’ve redeemed.
Now, obviously the bank wouldn’t let me do this if not for the fact that people as a whole pay more in interest than they redeem in rewards, but that doesn’t mean that any given individual does.
Not only interest, but the transaction fees. The financial institutions make big money on the transaction fees, and generally the rewards are less than the transaction fees, so they can’t even possibly lose money on the deal.
This is pretty much what I do. I get cash back and have a very good credit score because of it. I usually pay it off completely every month. If for some reason I dont/cant I pay enough such that I do not have to pay interest. So yeah, free money! It doesn’t really make sense to use debit over credit (assuming you are financially responsible)
Credit cards = Free Money
1-5% cash back at most stores
So you can either pay in cash (or debit card) and get nothing. Or you can use a credit card and get 1-5% cash back
I need to spend $300 on groceries this month. If i had a credit card that did 5% on grocery purchases (one reason for multiple cards), then I’d have an extra 15 dollars this month. 180 dollars a year just because I used a credit card for a purchase I had to make.
I could have used my debit card, and the funds could be pulled directly from my checking account. Or the funds will be pulled directly from my checking account at the end of the month when I need to pay off my balance.
If I had an emergency $300 dollar expense in the middle of the month, I would have access to $300. If i purchased the groceries with the $300 in my checking account, I’d have no funds to hold over for 2 weeks. Longer if needed, a credit card can hold a balance for a price.
There really isn’t a reason why you shouldn’t use a credit card in America, other than poor spending habits
Credit cards can even give you perks like free cell phone accident protection when paying your wireless bill
Have multiple cards with multiple limits = higher available debt
The higher your available debt, the less percent you use out of it
Debt utilization is a big part of a credit score. And just getting that down having multiple high limit cards is a strategy.
Like if I spend 5k a month. One card with a 10k limit I am using 50% of my available credit. If i had 3 cards with 15k limits, I’d be using ~10%. Using 10%>50%
Opening up cards hurts your credit score in the short term but helps in the long run. You shouldn’t close a card unless you have to because having it is going to help your score for reasons mentioned above.
Debt utilization is a big part of a credit score. And just getting that down having multiple high limit cards is a strategy.
I have a really good credit utilization rate, in part because of this. I don’t spend money I don’t have, because I make enough money to cover my needs, set aside savings for emergencies, and treat myself sometimes. And I’m privileged to have people in my life who educated me about credit, what it actually means, and how it works.
Because of these privileges, using credit cards has saved me money by earning rewards and not paying interest. But many Americans don’t have these privileges, which is why I think it’s downright irresponsible and predatory that my combined credit limit is higher than my annual salary. Not home or car loans or whatever, just regular credit cards for regular consumer purchases. That’s a life-ruining amount of credit to have available if you haven’t been taught how to game the system.
I was thinking the same. The limit was only 5k? We live in very different worlds lol.
The only reason I want a limit that high is to be able to book a group holiday on it. (With people I trust to pay me back). So much less stressful (and lucrative if you have a rewards card)
There are a couple of benefits to credit cards (in the US at least).
- Protection: If some steals my credit card info, I can fight the charges with the credit card company (and am not out any money while sorting it out) . With debit cards the money is gone and you’re fighting to get it back.
- Rewards: most offer good cash back or point rewards. It means I save 2-3% on average compared to using a debit card
- Persk: Many cards will add coverage for car rentals or discounts just for using them for the purchase.
If you pay off the card each month you get all of those persk at zero cost. While technically credit card companies charge stores 2-3% for each swipe, in the US at least there is no price difference for the customer for cash/debit/credit.
Edit/TLDR: In the US it’s cheaper and safer to use a credit card (if you can pay the balance every month).
I’m extremely anti-credit. But, there are things that require you have some kind of credit score— like renting an apartment. When I was in Los Angeles, I was actually rejected from signing a lease because I had no credit. Not bad credit. None at all, which they said was actually worse, somehow.
Thanks for the help!
Is your name Chidi Anagonye?
I’m Chidi Anagonye, or maybe I’m not?
Does your stomach hurt?
You’re financially ruined.
Give up all hope and mail me your credit cards, OP. I’ll “dispose” of them “properly” for you.
find one that has no fees. pay it off every month. it doesn’t matter what your credit limit is
Opening and closing a new accounts has literally no effect on your credit score.
The credit agencies pulling your report has a pretty minimal and very short lived.
Your score was an 830. I’ll be surprised if it dips below 800. And that is still exceptional.Unless you have an immediate need to get a really good interest rate, you should not lose any sleep over this.
Experian says 795 now. I’ll be ok. I have no purchases coming up, so I’ll just wait it out.
I don’t think you understand how excellent your credit is. Most banks won’t extend different offers for an 830 and a 795. The amount of emotional energy you placed in this score isn’t commiserate with either your actions or your score. It sounds like you’re not using much of your credit and you’re a high earner. You’ll be fine. You’ll be better than fine honestly. You are well positioned to have access to money to get mostly every material need you want with little hassle. You are more well off than the last majority of people in this world. Appreciate that.
I certainly understand that and appreciate that. I might be an idiot, but I’m not stupid.
Your credit score is higher than 99% of Americans’. Quit your whining and please take your anxiety meds.
The fuck is wrong with you?
Yeah 4 credit cards in any short amount of time is going to send off the bureaus. To OP, what’s wrong with “only” $5,000 in credit? You know they’ll boost it after just a few months of timely payments, right?
You know they’ll boost it after just a few months of timely payments, right?
Just to dismiss this myth. How many times you put charges on a credit card or how many payments you make has ZERO bearing on your credit score. The only thing you have to do is, when you have charges, pay on time. There isn’t even a measure for “you paid on time” there are negative measures of “you didn’t pay on time” though.
FICO score is only 5 things and they aren’t a secret. Its published right on their website for all to see.
I’m pretty sure they’re talking about credit limit, not score.
Gotcha, on a re-read, I agree with you.
Some card companies don’t boost it automatically. I had the same credit card for like 8 years. Always paid it off in full each month and used the card very often as it is my primary card. I had an incredibly low credit limit of like $1k and was hoping when in the world they would ever increase it since it had been literal years and years of frequent usage and on time payments.
Yeah turns out I just had to ask and they increased it. Then only a few months later I asked for another increase and they increased it again to a much better number. So I mean it’s not automatic at all companies, but they seem pretty open to raising it if you pay on time like you said.
5k is not a lot of money to me.
Ok buddy. And yet you’re signing up for poor people cards
I’ve never really needed credit or credit cards? I just pay cash.
Well fuck you then.
I just smoked a j and I’m reading through this thread and all the regular advice comments, then I hit this and started laughing so hard I almost had an aneurysm.
Thank you.
Hope you’re having a fun time lol
Why is this upvoted so much? This isn’t useful advice, it’s just an insult in response to an honest question.
Plus, he’s not that stupid. He didn’t rack up tens of thousands in credit card debt he couldn’t repay.
First Internet forum?
However, I am SOMEWHAT stupid. I’ve been rather frugal and financing things and credit cards haven’t really been at the top of my priorities over the years, so I’m rather ignorant of it. I try not to spend money I don’t have.
I’m neurotic
You just tanked your credit score by a lot. There are two aspects about this that matter:
Each one of those approvals required the credit card companies to pull your credit score from the major credit reporting agencies, and a lot of credit inquiries very close together will cause your score to go down. This is not so bad, as those will only weigh on you temporarily.
The worse one, however, is account age. Opening so many lines of credit has lowered your average account age by a ton, as you now have many accounts on your credit history with 0 years, so you are going to see a big drop because a lot of what makes up for a good credit score is how long you’ve maintained good credit (which means using it and paying it off on time to prove you can actually handle being lent money) and how much credit diversity you have (mortgage, auto loan, credit cards, etc.) .
The good thing is that both of these blunders will go away with time. How long it will take to get you back up to 830, well, I can’t quite say.
Like, this isn’t as bad as a bankruptcy is for your credit score, don’t get me wrong, but you’re going to need to start reading the fine print on these very carefully moving forward, because you can’t afford to keep signing deals for credit cards and not knowing exactly what the terms are. If you didn’t know what the credit limit was up front, you probably weren’t paying attention to things like APR either and that makes a big difference. Why did you feel the need to get a new credit card anyway? It sounds like you had no issues building credit before.
^^^ Furbag understands how the credit score works and if you care you should listen to them. I have a part time hobby building credit and this is it.
It’s at 822 now.
