Girl Claims She Can't Buy A House After Getting A Home Depot Credit Card

[Harpy Eagle]

I would say that they have no power if you don't buy on credit but that's not true. I have to agree to a credit check to get a job. I hate to say it but I have forgotten where else. I had to agree to a credit check for something else in the last couple of years and I don't remember why.

Insurance premiums are affected by credit score, as well as many other things.

 

[Meister]

If one has not missed any payments or gotten behind, there is no higher risk. We should not be punished for using the credit we worked hard to cultivate.

Well, you could lose your ability to pay tomorrow, so that is something that is taken into consideration.

 

[Harpy Eagle]

Well, you could lose your ability to pay tomorrow, so that is something that is taken into consideration.

So, you should be punished for something that might happen.

And you are good with this? Really?

 

[Slade3200]

If one has not missed any payments or gotten behind, there is no higher risk. We should not be punished for using the credit we worked hard to cultivate.

That doesn’t make sense. Let’s say you make $5k a month and have always paid your bills and Don makes $5k a month and always pays his bills. Let’s say you have one loan and credit cards that you pay off at $1000 a month and Don has 10 loans and credit cards that he pays off at $4500 a month. Now let’s say you both lose your jobs. Don obviously is a higher risk. His credit score is going to be lower than yours as a result of being so leveraged

 

[Meister]

So, you should be punished for something that might happen.

And you are good with this? Really?

I don't look at it as being "punished", I'm looking at it as a lending institution looking out for
it's lent money.
Not only is it looking out for itself, but also the consumer.
A consumer can get in way over their head in debt and has no way out
and ends up a lose-lose and files BK

 

[Turtlesoup]

Go here for the story. Forgive me for my lack of experience, which could very well be a good thing maybe, but what is it about these department store credit cards? If her new card was never once used, what gave it the ability to make her credit score take such a hit?

God bless you and the girl always!!!

Holly

Any time that one applies for a credit card-------the credit takes a hit. She likely has applied at several other places as well so the creditors see an idiot getting ready to go on a spending spree without enough sense to even realize that the credit cardSSSSS and a house mortgage will have to be paid back. Remember that paying back mortgages is optional in many people's minds as the government has forced banks not to foreclose.

Like wise WHERE you apply and get credit also matters------that payday/short term loan companies even if you pay them back---having them anywhere on your credit history hurts your credit more. I don't know what bank does home depot's credit but from what I understand it's a high interest credit card---so creditors think if you get a high interest credit card that automatically that you are financial idiot less likely to pay them back regardless of what you actually do.

 

[Turtlesoup]

I would say that they have no power if you don't buy on credit but that's not true. I have to agree to a credit check to get a job. I hate to say it but I have forgotten where else. I had to agree to a credit check for something else in the last couple of years and I don't remember why.

Credit scores are key to many aspects of modern life.

I look at why I can't get my credit score up to the max of 850. The number 1 suggestion on the credit reporting sites for increasing my score is to have a recent history of real estate purchase - my house has been paid for for 25 years. If you don't participate in the financial arena in the way that those companies want you to, you're not going to participate in society at all, if they had their way.

Edit: Oh, I remember the other place I had to have a credit check: changing my car insurance. Expensive advertising costs money, even when the star is a lizard. They need to be sure you can pay. In fact, the price of my insurance was related to my credit score. Luckily, I had this insurance before I bought the truck and, as far as I know, they didn't check it again when adding the truck.

We had to get one a year ago at a car dealership even though we pay cash for our cars.

 

[Harpy Eagle]

I don't look at it as being "punished", I'm looking at it as a lending institution looking out for
it's lent money.
Not only is it looking out for itself, but also the consumer.
A consumer can get in way over their head in debt and has no way out
and ends up a lose-lose and files BK

I do view it as being punished.

My wife had a CC in her name alone that she got when she started working full time to help build up her credit score. It was the only thing in only one name and early this year she got an upgrade offer that was pretty awesome and while doing the online process she also added me to the card so I could legally use it. The card has a limit of more than 8 grand and less than 1 grand on it when she did it. My score dropped 35 points due to this. Had I needed to use my credit till it went back up I would have been charged a higher interest rate for no reason at all.

 

[progressive hunter]

So, you should be punished for something that might happen.

And you are good with this? Really?

kinda like the insurance companies charging extra for not being vaxxed,,

 

[Harpy Eagle]

kinda like the insurance companies charging extra for not being vaxxed,,

no, that is more like insurance companies charging extra for being a smoker

 

[Harpy Eagle]

kinda like the insurance companies charging extra for not being vaxxed,,

Also, if an insurance company did that I have the power to find a new insurance company. Credit rating companies are beyond that, there is no choice, we have no say in waht they do or how they do it. People whine about how much information FB or Google has about us, but they never care about the power and the amount of information a credit rating service has.

 

[Meister]

I do view it as being punished.

My wife had a CC in her name alone that she got when she started working full time to help build up her credit score. It was the only thing in only one name and early this year she got an upgrade offer that was pretty awesome and while doing the online process she also added me to the card so I could legally use it. The card has a limit of more than 8 grand and less than 1 grand on it when she did it. My score dropped 35 points due to this. Had I needed to use my credit till it went back up I would have been charged a higher interest rate for no reason at all.

You can look at it anyway you want. But, remember one thing, when you use the card or get a loan, it's not YOUR money.
It's the lending institution's money, and they are looking out for their assets.

 

[progressive hunter]

no, that is more like insurance companies charging extra for being a smoker

smoking is an active thing you do that has known negative effects,, not being vaxxed is punishment for something that might happen,,

 

[progressive hunter]

Also, if an insurance company did that I have the power to find a new insurance company. Credit rating companies are beyond that, there is no choice, we have no say in waht they do or how they do it. People whine about how much information FB or Google has about us, but they never care about the power and the amount of information a credit rating service has.

youre spinning hard to get out of that flub,,

 

[Dana7360]

Go here for the story. Forgive me for my lack of experience, which could very well be a good thing maybe, but what is it about these department store credit cards? If her new card was never once used, what gave it the ability to make her credit score take such a hit?

God bless you and the girl always!!!

Holly

There are several potential reasons why her score went down.

If a person has a lot of accounts open and then open another one, that will decrease a credit score.

If a person has balances on a lot of credit cards, that will cause the score to decrease.

Yet if you had read farther down the article, she used the card to buy some paint and forgot to pay the bill.

When a person is delinquent on a credit bill their score goes down.

When you state "if the card has not been used" that tells me you only read the title of the article but not the whole article.

The article clearly states she used the card. It also clearly states she forgot about the card.

Please, read the whole article before you post it.

Home Depot and their card didn't cause her credit score to decrease thus deny her the ability to buy a house.

She did.

 

[Dana7360]

Not really, as long as he is paying his bills. Why should using your credit harm your credit? Makes no sense at all

It's a debt to income ratio thing.

 

[Slade3200]

So, you should be punished for something that might happen.

And you are good with this? Really?

It’s a measure of risk

 

[westwall]

How well you pay your bills is a factor but not what the entire score is based upon. The amount one is leveraged is also a significant factor

I agree with the amount you are leveraged, but they toss in other elements that make no sense. Do they lower your score merely for checking what it is still?

 

[Slade3200]

I agree with the amount you are leveraged, but they toss in other elements that make no sense. Do they lower your score merely for checking what it is still?

I hope not. Getting dinged for running a credit check is stupid and makes no sense. Also getting dinged for not keeping a balance on your cards is lame too. My sister got dinged for always paying her cards off in full and never holding debt. I disagree with that part of the formula.

 

[Markle]

Having too much available credit won't hurt your credit score. It's how much of it you've used to overextend yourself.

It might not affect your credit score but it will affect your ratios.

If you have 10 credit cards, but you only use three, lenders will assign a minimum payment to the unused accounts. Say $50.00 per card times seven cards, $350.00 a month.

Instead, if you have three credit cards, and use those three, they won't assign any additional payments to you. Their logic is, and has proven to be true, if you're buying a new house, and have a lot of credit open to you, you're going to use that credit for...