Fraud Alert when Applying for Credit

[scdeerslayer]

I put a roof on my home and charged it to the credit card to get a rebate as there was no difference.

My FICO plummeted and I paid the card in full when the statement came and never have used it again... the next month the FICO was back to where I started.

It did tick me off that simply using the card would have such a negative effect.

Most likely that was because of a very significant change to your used vs available credit ratio, especially if it was close to the card's limit and you don't have other revolving credit accounts.

 

[ishiboo]

Most likely that was because of a very significant change to your used vs available credit ratio, especially if it was close to the card's limit and you don't have other revolving credit accounts.

Absolutely.

And while people may not think it's "fair" or "right", realize that actuaries analyze real-world payment history to come to these conclusions. That data is real world actions of people. If someone doesn't normally have a big credit card balance, and suddenly they have a huge one, they're simply much more likely to default than if someone is consistently using and paying their cards in that manner.

 

[ultrarunner]

Most likely that was because of a very significant change to your used vs available credit ratio, especially if it was close to the card's limit and you don't have other revolving credit accounts.

I called the credit card company and said I would like to put my entire new roof on the card which would max it out... credit card company said not a problem.

My other accounts are always paid in full and most are not even used... but yes... it was a significant charge of over 20k which was paid when the statement arrived... never did I expect a 50+ point drop.

 

[ishiboo]

I called the credit card company and said I would like to put my entire new roof on the card which would max it out... credit card company said not a problem.

My other accounts are always paid in full and most are not even used... but yes... it was a significant charge of over 20k which was paid when the statement arrived... never did I expect a 50+ point drop.

All the credit bureau sees is your balance is typically low, one month it's $0 and the next month it's $20,000 and maxed out... definitely appropriate! Unfortunately the way the reporting works, it doesn't take into account if you pay it every month... a balance at that time is still a balance at that time.

Unless the owner of the roofing company was an idiot, you should have been able to get a cash discount better than any credit card rebate. In addition to them paying the 2-2.5%, issuing a $20,000 chargeback if you were unhappy with the roof would have been a killer!

 

[murphy1244]

Experian always gives me a hard time over my free report. They don't like doing it online like the other 2.

 

[ishiboo]

Experian always gives me a hard time over my free report. They don't like doing it online like the other 2.

And that's on Annual Credit Report.com - Home Page How do they give you a hard time?

 

[KennyG]

I've had Experian problems also - sometimes they say they need more verification of identity and require you to send in documentation like a birth certificate to get the report.

 

[murphy1244]

I've had Experian problems also - sometimes they say they need more verification of identity and require you to send in documentation like a birth certificate to get the report.

I got the same crap from them.

 

[CCWKen]

I got the same crap from them.

Ditto here too. I got my reports in PDF format online about two months ago short the Experian report. They asked for something. I don't remember exactly but I think it was for additional identity verification or the like. At the time, I thought they were fishing for data. I just didn't get their report. They can go pound salt.

 

[ultrarunner]

All the credit bureau sees is your balance is typically low, one month it's $0 and the next month it's $20,000 and maxed out... definitely appropriate! Unfortunately the way the reporting works, it doesn't take into account if you pay it every month... a balance at that time is still a balance at that time.

Unless the owner of the roofing company was an idiot, you should have been able to get a cash discount better than any credit card rebate. In addition to them paying the 2-2.5%, issuing a $20,000 chargeback if you were unhappy with the roof would have been a killer!

It seems like everything around here is paid for with plastic... seldom a break for a check and many simply do not want to accept checks or large bills when it is cash.

The Christmas Tree sales are running about 92% plastic with about 4% each cash or check.

One of the single family rentals I manage is rented to students... really no issues but all of them pay in cash each month their portions... everytime I get a new teller they comment on the cash deposit and I say look at the account history and you will see the same about going in...

It's almost like cash is shunned...