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> I didn't even know credit scores got as high as yours. A bit of an aside, but the richest person I know (as in buys multi-million dollar cars on a whim and h

by jjav 5y ago

> I didn't even know credit scores got as high as yours. A bit of an aside, but the richest person I know (as in buys multi-million dollar cars on a whim and has many many of those) says his credit score is pretty mediocre because he's never had a loan. I'd thought having gazillion dollars in the bank would give you a good credit score but guess not.

no_wizard 5y ago
I imagine once you have a verifiable net worth over a certain amount (at least 10 million in near cash assets + a hefty amount on hand) you are able to bypass certain things the rest of us simply can't. This is what I've heard second hand anyway
- tekknik 5y ago
  Once you have a balance above a few hundred thousand your bank starts treating you differently. Sometimes you even get a different entrance to the bank, different tellers, so on.
smoldesu 5y ago
As another side note, the richest person I know regularly maxes out his credit card so he can pay it all down and rake in the score bump. Every couple times he does this, they issue him an upgraded card with less limits: the cycle continues. Not a bad way to buy stuff if you have the means to pay it off.
- devoutsalsa 5y ago
  Imagine the airline miles you’d get by purchasing Twitter on your credit card.
  - k_sze 5y ago
    “Nobody’s gonna try to buy Twitter with a credit card, right?” “Nah.” “Alright, we don’t need BIGINT in the ‘balance’ column.”
- jjav 5y ago
  > regularly maxes out his credit card so he can pay it all down and rake in the score bump Does it really? I have a very high credit score but putting a large charge on one credit card (nowhere close to maxing it out though) dramatically drops my credit score for one month until I pay it off in full at the end of the month. I pay my child's tuition in full for the year each August (school in California is way too expensive so it's a lot of money, but that's a different topic). I put it on the credit card to get some cash back. My credit score drops by about 150 points right away. Once I get the bill at the end of the cycle and pay it off, the credit score goes right back to where it was before. I don't get any bump though.
gonzo 5y ago
correct. a credit score is mostly about one's demonstrated ability to service debt. Just because you have a lot of money doesn't mean you'll make payments on a loan.
- seunosewa 5y ago
  I believe the system was intentionally designed that way by lenders to make borrowing a universal habit.
- bmitc 5y ago
  The credit score system is really about incentivizing you to get, use, and keep credit cards, including retail credit cards, and loans, i.e. take on debt. The fact that so many things require a high credit score is a forcing function for you to take on these debt instruments, and the credit score is a way for the system to optimize that it get its money. The entire system is gamed against the consumers unwittingly or unwillingly forced to participate.
  - HWR_14 5y ago
    Your credit score is higher if you pay off your credit card in full every month. Although, yes, it does reward having multiple cards with a high limit.
    - tekknik 5y ago
      It’s almost like they’re testing your ability to manage a fund.
MrMan 5y ago
I can only get loans from my private bank because my credit score is bad. I only borrow on margin foe trading I don't really need other debt but it's embarrassing
thedailymail 5y ago
Not having loans is not one of Elon Musk's problems.

by jjav 5y ago

no_wizard 5y ago

I imagine once you have a verifiable net worth over a certain amount (at least 10 million in near cash assets + a hefty amount on hand) you are able to bypass certain things the rest of us simply can't. This is what I've heard second hand anyway

tekknik 5y ago
Once you have a balance above a few hundred thousand your bank starts treating you differently. Sometimes you even get a different entrance to the bank, different tellers, so on.

smoldesu 5y ago

As another side note, the richest person I know regularly maxes out his credit card so he can pay it all down and rake in the score bump. Every couple times he does this, they issue him an upgraded card with less limits: the cycle continues. Not a bad way to buy stuff if you have the means to pay it off.

devoutsalsa 5y ago
Imagine the airline miles you’d get by purchasing Twitter on your credit card.
- k_sze 5y ago
  “Nobody’s gonna try to buy Twitter with a credit card, right?” “Nah.” “Alright, we don’t need BIGINT in the ‘balance’ column.”
jjav 5y ago
> regularly maxes out his credit card so he can pay it all down and rake in the score bump Does it really? I have a very high credit score but putting a large charge on one credit card (nowhere close to maxing it out though) dramatically drops my credit score for one month until I pay it off in full at the end of the month. I pay my child's tuition in full for the year each August (school in California is way too expensive so it's a lot of money, but that's a different topic). I put it on the credit card to get some cash back. My credit score drops by about 150 points right away. Once I get the bill at the end of the cycle and pay it off, the credit score goes right back to where it was before. I don't get any bump though.

gonzo 5y ago

correct. a credit score is mostly about one's demonstrated ability to service debt. Just because you have a lot of money doesn't mean you'll make payments on a loan.

seunosewa 5y ago
I believe the system was intentionally designed that way by lenders to make borrowing a universal habit.
bmitc 5y ago
The credit score system is really about incentivizing you to get, use, and keep credit cards, including retail credit cards, and loans, i.e. take on debt. The fact that so many things require a high credit score is a forcing function for you to take on these debt instruments, and the credit score is a way for the system to optimize that it get its money. The entire system is gamed against the consumers unwittingly or unwillingly forced to participate.
- HWR_14 5y ago
  Your credit score is higher if you pay off your credit card in full every month. Although, yes, it does reward having multiple cards with a high limit.
  - tekknik 5y ago
    It’s almost like they’re testing your ability to manage a fund.

MrMan 5y ago

I can only get loans from my private bank because my credit score is bad. I only borrow on margin foe trading I don't really need other debt but it's embarrassing

thedailymail 5y ago

Not having loans is not one of Elon Musk's problems.