RBL: "Gym" shorts at SECU?
From my credit card issuer: "Welcome, James! "Great work - your FICO credit score has gone up! [😎 Where's my trophy?]
✅ But that's the end of the story, not the beginning!
Early in June, 2024, my credit score dropped overnight by -61 points! Not a minor matter. That abrupt drop came despite exceptional ratings by FICO on payment history over a 50-year period and minimal debt. What happened, how had I failed? The announcement above was received this week in July, 2024, congratulating me on my success in improving my finances! A 120+ point credit score flip flop in 30 days! What happened, how had I succeeded?
😎 Did you know that even if you use your credit card faithfully it can cause a "substantial decline" in your credit score? Does that make sense to you - or to anybody? Does that sound fair? Here take a look for yourself ...
✅ "Does carrying a balance affect your credit scores?"
"Carrying a credit card balance can affect your credit score in several ways. However, the biggest impact is generally on your credit utilization. Experts recommend keeping your credit utilization below 30% of your total available credit." [😎 then why do you give me such a high credit limit?]
"A high utilization rate will likely hurt your credit score, often causing a substantial decline." [😎 if I use it, I lose it?]
"Credit card issuers often report balances around the end of the
statement period. With many cards, this happens around three to four
weeks before the bill is due and when your utilization is high. As a result, you could make credit card
payments in full every month and still see a decline in your credit score." [😎 evidently there is an algorithm for "completely idiotic"!]
✅ According to NerdWallet: "The Fix": "Pay down the high balances as soon as you can and return to using a small portion of your available credit. Or, you could consider asking for a higher credit limit. " [😎 Whoa, would you repeat that again slowly, I'm missing something !!!]
😎 So you see, the risk/race-based lending (RBL) system approved by the SECU Board of Directors [😎 and the "ELT" wizards of finance!] charges the majority of SECU members higher loan rates even when members may be using credit responsibly - that's unjust discrimination, isn't it?
... why won't the SECU Board accept... the naked truth 😎?
