My credit score went up 80 points after getting a credit card. Normal?

Certainly.

My credit score went from 580 to 800 over a period of time where I never paid interest. I simply paid off my balance every month. And I pretty much used my credit card for everything I could instead of cash.

What matters is not the absolute balance, it is the percentage utilization of your credit limits. Ask for higher credit limits on your cards.

This means exactly what it says - your credit card accounts do not have a long history. It has nothing to do with paying interest.

You seem to have convinced yourself that there is some dastardly plot here to trick you. That’s simply not the case. It can be opaque at first, but once you understand what limited information the credit agencies have available to them, what they do does make sense. Given that limited information (they don’t know what assets or earnings you have) it’s the same thing you would do if you were lending money to someone, and it is solely about the probability that you will default. Understand the system and work with it.

I’ve had that CC for 37 years. If that’s not a long history, I’ll reply to this thread again in another decade when it gets longer.

Not saying this is a long-standing dark web conspiracy. I will maintain that a having a high credit score, and they way to get that score - benefits the industry by enticing consumers to borrow more and hold a balance by paying interest, which benefits lenders more than consumers.

Then for some reason they aren’t picking that up. Have you checked your credit report? It will show what credit cards they are picking up, and the age or average age of the accounts.

You seem to be just wedded to this idea whatever facts are presented to you, but it is just not true. I have an ~800 credit score and I haven’t paid anyone any interest in 20 years.

Same here, over 800, no credit card interest forever.

Just mortgage.

I’ve often seen it cited that having a consistently-paid mortgage is one of the very best builders of credit scores. After all you typically are paying quite a bit of interest in absolute terms (even with a good rate).

Anecdotally it certainly worked for me. I went from mid-700’s to deep into 800 over the course of just a few years.

That is odd. My journey from 580 to 800 took, I think, four or five years, as I needed some stuff from 7 years before to drop off my reports. But it went up fairly steadily up to 720 in maybe a year, then hovered there for maybe two years as the strikes against me faded into the past, then 750, then 800. No interest paid. But all cards used, showing regular credit use to the agencies, and paid off at the end of the month.

Unless your score is already near the 800s, I don’t see why it hasn’t gone up at all over 37 years.

There are a few ways to get a high credit score as many of us have demonstrated. One of those ways is to never miss a payment and have a decent amount of potential credit. They give us a high score because we are low-ish reward with effectively zero risk. I find it difficult to believe that a significant amount of people are carrying a balance and paying interest for the express reason of raising their credit score with the exception of someone early in life who needs to build a history and even then they need to pay it off fairly quickly.

There’s really not much of a problem with borrowing money if you’ve already got the funds on hand to pay it off when the bill comes due. In fact, my wife and I are still chipping away at our mortgage, in spite of having savings and investments that far exceed the payoff amount. The time for concern is when you’re borrowing money to buy something because you don’t have enough cash on hand to buy it outright. There are times when using credit like this is a useful tool (e.g. when a young person buys a house that costs more than their current net worth) - but if you’re borrowing money to cover your daily living expenses only because you won’t have the cash for it until the end of the month, then man, you’re on thin ice.

As for missing a payment, yes, that happens once in a while. I have Outlook set to remind me one week before each credit card bill comes due so that I can double-check to ensure that I’ve correctly scheduled the payment. and yet, it happens that I miss one every now and then. I find out when the next month’s bill arrives, and it includes a bunch of interest and a late fee. When this happened a few months ago, I called the card company up, acknowledged my slip-up and my responsibility for the interest, but I asked them if they could remove the late fee. I was on hold for a few seconds while the agent checked my history, and then he came back and said they would waive the late fee and the interest for me. Pro tip: don’t bother trying this two months in a row, as they won’t be so accommodating on the second pass.

The credit score system has lots of parameters. I used to be a merchant who had access to consumer credit scores and the full detail credit reports behind them. We also reported consumer monthly payment data to the rating agencies. Despite what somebody said upthread, many utilities do report your payment history.

I have 6 active mainstream cards; two primary that are heavily used plus 4 backup that each get used a couple times a year. Plus several store cards for the “Get a [Store Brand] card today and get 30% off on everything you buy for the next week” program @Jasmine mentioned. In fact I did just that last weekend.

I very occasionally pay a few bucks in interest when a payment glitches. Not so much since the widespread adoption of e-banking, but I can’t get all my cards on full-up autopay. And yes, you can usually get the late fee waived for the asking.

At the low end of the SES, paying everything on time and having a total credit limit not out of line with your income (net of housing cost) matters LOTS. At the higher SES, they don’t expect you to pay (much) interest; they’re falling over themselves to offer you more (and lower-rate) cards to improve the overall creditworthiness of their portfolio.

I haven’t paid much attention to my score for decades. No mortgage for a couple years now, 2 car loans, no job, large monthly CC spend. One of my recent CC issuers includes a real-time FICO score on their app. Mine’s over 850. :exploding_head: Who knew?

Bottom line:
There’s a lot more to credit scores than just your debt load or your interest spend.

Isn’t 850 the cap?

Edit: 850 is the cap for FICO and VantageScore but the Experian website notes:

Most credit scoring systems use a scale that ranges from 300 to 850. There are, however, some credit scoring models that go up to 900 or 950, including industry-specific scores used by certain institutions.

Yes, yes it is.

Ah, yes, great minds truly think alike! :smiling_imp: :rofl:

I should point out too that if you move a lot of money through your card, sometimes threatening to cancel the card can get the bank to back down on late fees and interest even if they’ve already refused your initial request to do so. They’d rather forego the fees and interest you owe if it means they get to keep you bringing them transaction fees in the future.

This.

I have a friend who runs ~$100K through a card every month. It’s all the purchasing expenses for his business, so that’s not his personal consumer spending. Which is rather more sedate.

But that $100K / mo does represent a goldmine of transaction fees to his card issuer nevertheless. And they know it. He gets no run-around when he calls them about an issue.

I am wondering what happens if I close one Visa account (because the bank treats me like garbage) and get one through a different bank? I have no idea what my rating is since I am not sure there is a way to get one free in Canada. It’s been a long time since I actually bought anything on time, although I use CCs a lot and pay them in full every month.

My credit union and a credit card account both provide monthly updates on my credit rating. The only thing they suggest to raise my score is the same thing you got from that financial advisor. Nope. Not gonna do it. 760+ is fine with me.

Find a Visa card that works for you (whether that be cash back, no foreign transaction fees, low interest rate, no annual fee, etc) and apply for it. You can have more than one card, so there is no reason to close the existing card right away, just stop using it when you get the new card. It will be an account with no transactions, but still in good standing so it shouldn’t hurt your credit. I don’t know how it is in Canada, but in the US keeping the old account helps in two ways: the total amount of credit (and thus your utilization ratio); and also with the age of the oldest account.