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Zero Credit Score

September 24th, 2022 at 04:36 pm

My boss is applying for a new business credit card and is having issues.

Is through our bank, that we have a long relationship with.  They finally told him, "Yeah, we noticed a while ago you had a zero credit score but clearly you had good credit and it didn't affect things on our end."  Re: bank line of credit and personal guaranty (he also has a bajillion dollars).  "But it's going to be a little more work to get around the 'credit approval' robot."  

I was fascinated by this.  He told me they don't use credit cards (he's in his early 30s) and they paid off their house in 2019. (I knew this because I sent the payoff wire).  I thought good credit stayed on your report for 10 years (it does) *and* that it would take a lot longer for a paid off loan to impact your credit score.

Most especially because this is probably the #1 comment I get re: credit card rewards.  I don't keep old cards open.  Everyone freaks out about that but it's never been an issue.  I had a 780+ credit score at some point when we had only 1 year of open credit (around the time we did our last refi).  I just happened to jump to a new primary credit card around the time we refinanced.  & we never keep old cards open.  The results = *shrugs*  

So...  I was fascinated when my boss told me it was about 18 months? from a 800+ credit score to *zero*

I guess that's how it works when you have absolutely no open credit.

I don't know if this means anything to me personally.  In a perfect world I would love to stop using credit cards (on principle).  But they are just so convenient...  I don't know that we will ever drop credit cards.  So will probably always have some form of credit.  

6 Responses to “Zero Credit Score”

  1. Lots of ideas Says:
    1664049022

    That is wild.

    Interesting that you, who understands and practices great credit card skills, would like to stop using cards.

    I know that vendors pay a fee for transactions on cards which probably is reflected in prices, but I use no fee cards with cash back and I like both the money I ‘earn’ and the ease of seeing what I spend money on.

  2. terri77 Says:
    1664137994

    If you follow the Dave Ramsey plan you’ll never use credit & this never have a credit score. I don’t plan on never using credit so I won’t have that issue. I don’t trust paying for everything in cash.

  3. rob62521 Says:
    1664149604

    That is just crazy, isn't it?

    I use a credit card to buy things like groceries and stuff, then pay it off and so far that has worked. But it is like one is punished for not incurring debt.

  4. LuckyRobin Says:
    1664157534

    One of my credit cards offers this advice on how to improve my credit score: Take out a car loan or a mortgage. Um...no, thanks. Not when I have a car under 60,000 miles I've had for 11 years and a truck that will go at least another 50,000 at least and is 17 years old and in great shape. They'll probably force us off the road with gas vehicles before these cars go belly up.

  5. GoodLiving Says:
    1664222216

    Yikes, money makes the world go around, I guess. I use a costco credit card and pay it off every month...mostly for the rewards. It's good information because how I do money might change in retirement.

  6. LivingAlmostLarge Says:
    1664254989

    That sounds amazing and good for them! I started CC arbitage in the last 2 years for some reason. Mostly because I was like oh i sort of want to try X, Y, and Z. I'm settling in though and i guess i'll replace our scores soon.

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