Just what we needed… it may be even easier now for consumers to get a credit card with the new FICO 8 scoring system. The logic of credit scores somehow evades me. If you have debt, your score is higher than if you manage to live within your means.
“If a consumer is applying for a mortgage and they tend to have higher utilization rates on their credit cards, it could (raise their credit scores and) make a difference” in how much they pay for interest, says Tom Quinn, Credit.com’s credit-scoring expert and formerly the vice president of scoring at FICO.
In other words, having a mortgage AND credit card debt will raise your credit score!
Wake up, people! I can go along with mortgages. But I just can’t go along with getting into credit card debt, not anymore. It is just too easy to get in over your head and have a disaster strike and then where will you be?
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