Watch that credit score!
Don logged onto our credit card company’s website today to see what our upcoming bill will be this month. We have one credit card, and we use it to pay our regular monthly bills (internet, phone, electricity, car insurance, etc.). Until last month (when I got laid off and we entered our spending lockdown), we also used the credit card for ordering anything online. We pay it off completely every month.
While logged onto the company’s website, it also shows our FICO credit score. We’ve always had an excellent credit score (north of 800+), but this time our score had tanked into the 760s. It’s still rated as “very good,” but we wondered – why did it tank so much in one month? We’ve barely purchased anything (except hay, paid for in cash) since the job loss.
And that, dear readers, appears to be the issue. We’re not spending enough money.We’re continuing to live the all-cash (whenever possible) lifestyle we’ve lived for the past ten years and spending far less money overall, and credit card company is trying to convince us that’s somehow unfair and irresponsible.
The explanation given for this change in credit score is below:
Translation: We’re not servicing enough revolving debt. We have no outstanding bills, we’re spending a whole lot less money, and we pay off the credit card in full no matter what. And for being responsible adults, we’re “punished” by having our credit score tank 40 points. Go figure.
Personally, we’re delighted to be in this position. We don’t really care what our credit score is because we have no intention of ever owing anybody anything ever again. So there!
Source: http://www.rural-revolution.com/2025/03/watch-that-credit-score.html
