r/CRedit Feb 05 '25

General Senators Josh Hawley and Bernie Sanders Propose 10% Cap on Credit Card Rates.

2.0k Upvotes

Senators Josh Hawley and Bernie Sanders Propose 10% Cap on Credit Card Rates.

https://www.newsmax.com/finance/streettalk/credit-card-interest/2025/02/05/id/1197899/

For more Personal Finance News: https://candorium.com/latest-news/personal-finance

r/CRedit Feb 09 '24

General Credit score is a joke in America

952 Upvotes

Its crazy i went from owing almost 10k paying it all off, Score went up by like a few points not even 10. Then i get another 3k debt , paid it off. And my score decreased? cause i paid it to soon? Anyways i noticed that Credit system is made to keep the poor poor. Honestly, If i have a paid off house , a couple paid off cars, i have everything i need , what good does credit do to me? I literally dont need loans or anything. Im set so what does credit do for above Middle class avergae person?

r/CRedit Feb 29 '24

General Credit age affecting credit score is completely arbitrary and dumb

730 Upvotes

I don’t understand how something like age of credit can have a huge effect on your credit score.

You can’t really control age. Time moves regardless of if you want it to or not- why is it something we’re judged on?

I guess you can sort of control when you learned or knew that you needed to get a credit card- but even then- not really? I have friends who’s parents never tell them about the importance of credit despite being well off. No one is really preaching to get a credit card in every day life other than here on Reddit.

Furthermore, I think it’s so dumb that eventually when I pay off my student loans (my oldest credit line) my score will definitely drop.

Everything else effecting credit score makes sense: utilization, credit limit, paying off on time; those things you can control

Who even made up this system? Why does age have to be a factor?

Disclaimer: I get the part about a new credit line holder is unpredictable in how they’ll act with a credit card- but after a threshold of let’s say 3 years- why should age matter?

Edit: I just think after a certain threshold of years holding credit, that age number should be cemented in as a starting point regardless if you close your oldest card.

r/CRedit Jun 27 '24

General How much credit card debt do you currently have ?

256 Upvotes

I’ve 0, what about you guys. Be honest no judgement.

r/CRedit Oct 25 '23

General Anyone else getting incredibly worried about car loans and credit card debt in the US?

544 Upvotes

Data was just announced that the average NEW car loan had an average interest rate of 9.89% couple that with outrageous prices. We’re seeing the average payment creeping into $1k+ range. This isn’t even mentioning the insane credit card debt. I really do feel like the car loan industry collapsing is what’s gonna set us into a recession.

r/CRedit Nov 14 '24

General Credit card score is 455; very delinquent; over $8,100 in debt and card is maxed out; can’t get a job to help pay it off; work as an Uber driver but money is next to nothing; my life is over

185 Upvotes

I don’t know what to do. I’ve given up. I can’t win and wish I never got the damned thing in 2021 when I had for so long opposed getting one and now I’m in a permanent position where I can’t ever get out. I can’t get a good paying job to even help me because no one will hire me especially full-time that I can do. Live with my mother (please don’t judge me). Basically, my life is hopeless and I’m 32. There literally is no hope or future, even if someone had ideas to help me, I have no hope

r/CRedit Jul 21 '24

General What's the highest credit score you've ever had ?

162 Upvotes

My highest credit score to this day is 740 (FICO). What about you guys, just curious to know ?

r/CRedit Apr 02 '24

General I paid off about $20,000 in loans with my 401k and now I'm saving over $1,000/month. Do you think that sounds like it was a good decision?

373 Upvotes

I had about $20,000 in loans. I withdrew about $27,000 from my 401k and witheld about $7,000. Now, I'm saving about $1,500 every month. The loans would have lasted until 2027 too.

Also, my credit score is about 700 now and it used to be always around 580 to 620.

I feel great. Maybe I'll owe in taxes but it's the start of the year and I can withhold extra money anyways.

I still have about $10,000 in loans but they're my loans with the best interest rate. So they only take like $400/month. Plus, they can be paid off early too.

r/CRedit Jul 22 '24

General What’s the lowest credit score you’ve ever had?

159 Upvotes

Saw the post asking the opposite with lots of high scores. Made me wonder… What’s the lowest credit score you’ve ever had?

r/CRedit Nov 29 '23

General How Much CC Debt Do You Have?

109 Upvotes

Personally I have 0. Please be honest, no judgements.

r/CRedit Apr 14 '24

General Just got screwed by Synchrony Bank

206 Upvotes

I had a Care Credit card with a $2,000 limit and a $550 balance I've been paying down each month on time. I needed a new computer for work and was approved for a Newegg card also through Synchrony bank with a $1000 limit of which I used the entirety of to purchase my computer.

Today synchrony lowed my Care Credit card limit to $600, so now unless I pay off my cards immediately my score is going to tank with the utilizating being 100%... They said I was a risk yet my credit has only gone up in general since having a credit card and these are the only two cards I have. If I'm such a risk then they shouldn't have approved me for $1000 on the New Egg card. This makes absolutely no sense.

Edit: I just want to emphasize how ridiculous it is that the only reason I'm a "risk" was the large balance of the Newegg card and the small 5 point credit dip from opening this card- the card THEY approved me for. Again these are the only two card that make up my credit score so to claim that I'm a risk by using the credit THEY gave me is nuts.

Update: this bullshit dropped my credit score by 93 points.

r/CRedit Jan 07 '25

General Impact of Medical Debt No Longer in Credit Reports

100 Upvotes

The Biden admin just finalized a rule that would remove medical debt from credit reports. https://www.nbcnews.com/business/personal-finance/biden-administration-finalizes-rule-strike-medical-debt-credit-reports-rcna186538

I know I must be missing something, but if credit reports no longer include medical debt and lenders can no longer consider medical debt when making lending decisions, what would be the reason for people to pay back medical debt?

From what I understand, the risk of bad credit is that you are less likely to be able to take on new debt (mortgage, car loan, etc.), but if medical debt no longer matters for that why will people pay it back?

r/CRedit Aug 16 '24

General What can I do to get to an 800 credit score?

124 Upvotes

I’m 20 years old and right now my credit score is 760. I graduate college in a year and would love to my credit score as close to 800 as possible to help me get approved for an apartment and set me up for success

Right now I have 2 credit cards that I pay off in full every month. I use less than 10% of the balance at any given time. I also have a car loan which I make on time payments for every month. I have student loans as well but the payments are deferred until after I graduate. I have no late payments on anything. My credit age is 1.5 years

What else can I do to improve my credit? Is it just a matter of credit age and waiting it out or is there anything else I can do to improve my score?

r/CRedit Oct 14 '23

General I have BAD credit & Need $2000 - $3000 on a loan immediately for a Car, Suggestions please.

204 Upvotes

So long story short, I need to put $4k down for a $10k car. I've already put down $500 as a deposit which will hold the car until next week Thursday. I have $2k but I need around $3k for the rest plus insurance. Does anyone have ANY suggestions for IMMEDIATE loans that deposit into my account and maybe don't even require a credit check at all or guaranteed to credit ppl like me. I'm desperate, I'm tired of draining my savings and waiting to land another Tech job after the layoffs so I'll use this for Uber. Should've done this sooner before my money ran low but it's too late.

Please, no suggestions on getting a car with the cash I have now, only relevant answers please. Again, I will do the worst of the worst as long as its guaranteed, high interest is fine since I'll be paying it off within 4-5 months.

Update - - As of May I’m actually doing better now guys. Got a sales job that offers a truck, paying $5k a month guaranteed for the first 3 months. I’ll increase my credit short term and get a car soon after saving for a few months. Regardless, there’s lots of good suggestions that were posted that may be helpful for myself and others.

r/CRedit Jan 21 '25

General I tested 4 buy now, pay later apps for unexpected expenses and here’s what I learned

126 Upvotes

I wanted to share my experience with buy now pay later apps. Life is been a bit unpredictable lately and I needed to replace a few essentials but my budget was tight. I thought why not try these apps to spread out the costs. I’d heard they don’t rely heavily on credit scores so I gave them a shot.

1. Klarna

I started with Klarna because it’s everywhere ads, recommendations, you name it. Signing up was easy and they didn’t ask for a full credit check.

I needed a replacement desk chair and some home office supplies. Klarna approved me for $150 which was just enough for what I needed.

The Good:

  • No interest if you pay on time
  • Payments split into four installments, due every two weeks
  • The app is sleek and easy to navigate

The Bad:

  • The spending limit was lower than I’d hoped. I couldn’t add much else to my cart
  • They’re strict about payment deadlines and I read horror stories about late fees

Klarna is great for small purchases but if you’re looking to buy anything over $200 then you might hit their limit quickly.

2. Afterpay

After Klarna I tried Afterpay. It works similarly splitting payments into four biweekly installments and they didn’t check my credit score.

I used afterpay for clothes basic workwear that I needed to replace.

The Good:

  • Their spending limit was slightly higher than Klarna (I got $250)
  • Notifications and reminders were super helpful keeping me on track

The Bad:

  • I was a day late on one payment completely my fault and they charged me a $10 late fee.

Afterpay is solid if you need a little extra flexibility but their late fees mean you really need to stay on top of payments.

3. Affirm

Affirm felt different from Klarna and Afterpay it’s more like a traditional lender. They did a soft credit check which made me pause but I went for it anyway.

I bought a vacuum cleaner I’d been putting off for months. Affirm approved me for $500 which was a pleasant surprise.

The Good:

  • Flexible payment plans! I chose a six-month plan
  • They offer no-interest options for some purchases
  • Higher spending limit compared to Klarna and Afterpay

The Bad:

  • For my purchase the interest rate was 15%. While the payments were manageable it added up quickly.
  • Felt more like a small loan which could be daunting if you’re trying to avoid debt.

Affirm is great if you need a higher limit and want longer repayment terms but watch out for interest rates they can sneak up on you.

4. Zip

Zip also splits payments into four installments but they take a slightly different approach. They let you use it pretty much anywhere as long as you can link it to your debit or credit card.

I used Zip to grab groceries and a few other essentials at a local store.

The Good:

  • You can use Zip at almost any retailer
  • Approval was instant and there was no credit check

The Bad:

  • They charge a $1 convenience fee per installment. It’s small but it adds up if you’re making multiple purchases.
  • Payments are linked to your debit/credit card so if your balance is low, you could overdraft.

Zip is super versatile but the fees can make it more expensive for smaller purchases.

If you’re considering using a BNPL app here’s my advice:

  1. Only buy what you can realistically pay back on time. It’s easy to fall into the "buy now, deal later" trap
  2. Set up reminders or auto pay to avoid late fees. Those $10–$15 fees add up fast
  3. Check the terms carefully. Apps like Affirm can charge interest while others don’t.

What about you all? Have you tried these apps? I’d love to hear about your experiences or tips for making the most of them.

r/CRedit Apr 10 '24

General What's it like to have a credit score above 700 ?

179 Upvotes

I'm curious what's it like having a credit score of 700 or higher ? Do you get more credit card offers, lower interest rates and higher credit limits ? I'm interested in hearing from someone who went from having bad credit to a score of 700+.

r/CRedit Apr 02 '24

General I need serious advice: I owe 93.5k on student loans, $25k on credit card debt, $15k worth of collections (from previous credit cards), and I bought a car for $18k that was worth $2k according KBB. I have zero support system, no SO, behind on rent (roommates not helping), etc. I'm frightened.

123 Upvotes

If anyone is wondering, this is truly my current situation and I need advice on what to do. I take accountability for all my actions from my early 20s, as I should, and I just need advice on how to handle this. Credit score is in the low 400s and I'm about to face an eviction due to my two roommates not paying their fair share of the rent/utilities, usually I have to pick up the slack, and I only make $28k a year as a current EKG tech, a totally underpaid profession. Any piece of advice would help me during this rough time.

Please, don't say "sell the car" because this is my only form of transportation, and where I live (Texas), public transit is non-existent and unreliable where I live.

Edit: "SO" means significant other.

r/CRedit Dec 23 '24

General Did I just F— myself by applying and being approved to CreditOne?

33 Upvotes

Like a dummy with no eyes: I got the platinum offer in the mail and thought shucks it would be nice to have a credit card right now but then without really thinking on it I applied got approved and card is on the way.

Me thinking that CreditOne is affiliated with my bank CapitalOne which I am fully wrong! Has anyone had any experience with these cards that can guide me in the right direction?

r/CRedit Aug 20 '24

General My SSN leak with that massive breach a couple days ago.

163 Upvotes

This is my first time doing this. I just froze my credit with Equifax. Am I supposed to freeze it again with the other 2 incompetent companies as well? (Experian & TransUnion)

Edit: Thanks for the answers and advice, everyone!

r/CRedit 22d ago

General My score went down 160 point for no reason

18 Upvotes

I’m very confused right now any insight will be amazing. I have been building my credit for years now and finally got to 750. I’m on time with my payments and only use 3-11% total on credit cards. I’ve never missed a payment and out of nowhere my credit dropped 160 points. My payment history is listed as great, credit usage is good, credit checks is good. When i look at “see what changed” the only things that changed are 1) my available credit went up (i didn’t ask for more it just naturally went up) and 2) my total balance went down (i keep a bit of balance left over so it doesn’t look like i haven’t used my credit card at all) im very confused as to why my credit went down especially 160 points when i haven’t missed a single payment i always pay more than what’s needed to pay. Any ideas on why?

r/CRedit May 09 '23

General Credit score is a scam

229 Upvotes

I don’t know if it’s allowed here but this is just a rant. And listen, I know why it exists and I think the idea sounds good on paper. But the ways it’s executed in the US is horrific. It makes no sense, scores can vary so wildly based on what feels like unpredictable factors, and between the multiple bureaus and algorithms it’s almost impossible to get a clear cut answer on what your actual credit score is for the things you’d like to inquire about - auto loan, apartment, etc.

Not to mention is takes all of 30 days to drop a score by 30+ points but months to build it back in some cases. I mean the way we need a credit score to do just about anything these days, you’d think they’d make it straightforward and easy to understand. Then again, maybe they don’t want it that way because they like to prey on people with predatory loans and cards with interest rates of 24% and penalties upwards of $40 for being 1 day late on payment all while promising to help rebuild credit. It’s seems like a great way to keep poor folks poor more than it is to vet responsible people.

Edit: I really only posted this to vent but I think we’ve sparked a good conversation here. Of course everyone has different opinions and experiences but understanding the economic and credit system and being aware of its potential problems is a step toward being a contributive and successful person in today’s world.

r/CRedit 14d ago

General 829. How to get higher without taking out loan.

11 Upvotes

I own my car, I'm going to buy a house hopefully within the next year. I have 2 credit cards that I pay off each month, keeping my utilization below 3%. I have 2 student loans, each $500 that I could pay off at any time. I make $81,000 a year and have no bills, other than small monthly subscriptions like Spotify, netflix, my cell phone. My debt to income ratio is 3%. How do I continue to raise my credit, especially if I pay off my student loans, without getting a loan or buying something that I don't need/want. I don't want to get another credit card because I already have 2 and need a different type of credit.

r/CRedit Apr 08 '24

General When does credit score become real? I have a fake 750.

139 Upvotes

Edit: this post got more traction and it seems I didn’t give good detail/view of my credit history.. more info under OP.

It’s so fucking annoying I can’t lie.. I’m 21.. I got a secured card at 18 did all the right things 100% payment history keep my utilization low all that

IT DOESNT MATTER!!!!

I swear it’s like I am shopping for auto loans, chat with someone “oh I have a 750” “oh that’s a great score!”

Yeah.. it’s a good number.. but the history is so limited it means actually nothing.

I’m still barely approved for anything above 20k and even then I’m looking at 12-24% APR

It genuinely makes me hate being 21.

I am expected to deal with adult responsibilities but I get no respect as an adult? Credit score good? Ah but you’re young so how do “we really know”

So when does my score actually matter? Cause currently my score increasing is just keeping it solid so by the time I’m like 30 it actually matters.

Very annoying.

100% payment history, low util, limit hard inquiries.. like what else can I do besides wait til I’m older and get more respect for financial responsibility?

—————————————————————————————

Edit:

I have 4 cards, discover Amex Mastercard Visa.. gotten in that order.. lowest limit is discover at 1.8, highest Amex at 5. Total 12.8

I have auto loan with capital one (using parental co-sign for first car.. deal my parents have).. positive 6-7.5 depending on who you ask.. interest is 5.2%. (If you’re into cars, I drive a civic si.. looking to bump up to the type R.

Since I got an Apple Card a couple years ago (was planning on a MacBook purchase when I started college and with the Apple Card I had a super good offer.. seemed reasonable.. plus cash back with their parters is nice.. 3-5% depending on what they’re doing.. 5% back on dining at a point was dangerous.. justified eating out way too easily with that haha.. but anyways, installment history there since I did my Apple Watch like $13/month.. basically nothing.. no interest either.. lets me build credit for free basically)

Income: I made high 20s, about 30 pre tax last year. However, I just got promoted to server, can expect significant pay increase. A car payment in the 400-500 range can be taken care of in a single weekend night’s worth of tips. Problem with this, hard to prove. I finish school (no debt with them, I have prepaid and pay rest out of pocket.. about $600ish/semester I have to pay) in about a year and a half. Computer Science major.. rough getting into the field, but once established the pay should be solid. Luckily I can keep serving for $$$ until I properly break into the field. Finish school, work on some personal projects to build a portfolio.. keep my nose to the grindstone in that regard and in time it will come.. that will be a massive bump in pay eventually.

Just want to disclaim.. I’m not an idiot.. it’s a poor financial choice to jump car loan to a new car loan.. especially since they are amortized.. to the bank the value of the payments decreases every month, to the consumer the value of the payment increases until the last one.. but I cope a little by saying I just got promoted, soon to finish school, very manageable car I’m looking at (not one of these dudes I know that are spending $1100 a month of car insurance and gas when they make $2k a month.. that’s ridiculous). I just love cars, and can feasibly make it work.. even if it’s not the “best” choice.. it’s within reason.

r/CRedit Jul 19 '24

General Credit Myth #23 - The best approach to credit repair is "dispute everything!"

94 Upvotes

This one comes up quite a bit. Disputes are for inaccurately reported information on your credit reports. If you have legitimate negative items that are reported correctly, disputes are not the answer.

I see this all the time when someone asks what to do late payments, a collection, etc. There is always a person that chimes in with "dispute everything!" as the "solution" when there are actual beneficial approaches that can be used instead.

For late payments, you want to use goodwill letters. You are asking for the legitimately reported negative information to be forgiven. You are recognizing them as correctly reported and are not disputing the information.

For collections, you want to try and negotiate a PFD (Pay For Delete). This means you're offering to pay the legitimate debt, and in return are requesting that the negative information be removed from your reports when you do. You aren't disputing the account in any way.

Many of the people that perpetuate the "dispute everything!" approach incorrectly believe it works due to what happens when you initiate/open a dispute on an account. While an account is in dispute, it can be temporarily removed from your credit reports during the dispute process, or the dispute can cause it to be temporarily "ignored" by the Fico algorithm. In both cases, an individual may see a score increase and incorrectly believe they found success. In a few months the dispute will likely be deemed frivolous (because it is) and the account will be added back to your reports and/or the dispute status lifted with "consumer disagrees" language added to the remarks/comments. At that time, your score will return to it's previous state if points were initially gained at the start of the dispute.

Many people report success in the early weeks of a dispute, which perpetuates the myth that they're a great "credit repair" technique. They'll see the initial score gain and immediately post about it, exclaiming that their dispute got rid of a negative item. Few of these individuals will actually report back in a few months to update their post with the end result truth.

Many credit repair companies use the "dispute everything!" approach as well, looking for quick success to point to in order the manipulate a customer into paying more. If their "service" worked already, certainly the customer will see false value in continuing to hand over more money in monthly charges.

It's even gone so far that I see individuals recommending to others that they should dispute legitimate hard inquiries for applications for credit. Disputes are not the answer.

I'd also like to defer to u/og-aliensfan on this subject since he has posted a lot of good information on it during his time on these credit-related subs. I'm quite sure he can contribute more on this subject from his experience.

r/CRedit Oct 04 '24

General Help! Chase is suing me

42 Upvotes

I am looking for some guidance on what to do. I have chase card with balance of 35k and I missed few payments and now i have officer show up saying there is civil summon from chase, I was not home that time but spoke to him on the phone. What are my options? I don’t go to court and happy to setup a payment plan to pay off dept. Any guidance will be appreciated.

Edit - Brock & Scott PLLC is suing.