I was paying my bills wrong for a decade and a $37 fee showed me

For years, I paid my credit card as soon as the statement posted, thinking I was being super responsible. I'd see a $300 charge, pay it off that day, and feel great. Then last month, I got a letter saying my credit score dropped 40 points. I called and the guy said, 'Your account shows zero balance every month when it reports to the bureaus... it looks like you're not using credit at all.' I was stunned. I'd been basically hiding my good habits from my own credit report. That $37 late fee I got once for messing up a different bill actually helped my score more than my perfect early payments ever did. The whole system feels backwards. Has anyone else had their 'good' adulting move totally backfire like this?

3 comments

3 Comments

elizabeth9004d ago

Remember the credit system was built for lenders, not us. It's not a report card for good money habits, it's a tool to show banks how profitable you might be. Your story proves you're playing a game where the rules are hidden.

kim1914d ago

Exactly. The house always wins.

the_nina3d ago

Elizabeth's point about it being a tool for banks is so true. It makes you wonder if a perfect score just means you're the most predictable source of income for them.