Non Nursing question: How do people with lots of credit card debt still have good credit?

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Specializes in ACE.

My co worker he used to be an ER Nurse and MH Nurse, he has like 5 credit cards with like $5000-$10,000 as a limit for each. Has thousands of dollars in debt, he pays the bill of course not in full but he pays maybe 50%-75% of it, and he has been doing this for months and his score is in the low 800's?

I ask him why he never pays off in full he says the money goes to the mortgage, car payments/insurance, phone bills, retirement, electricity bills, the kids etc.. stating if he paid his cards in full all the time, he would have no money for the listed above.

He says the credit cards he uses it for entertainment, house renovations, family trips domestic and above, going out to a restaurant with a friend etc...

So does not paying in full ruin credit score?

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Specializes in OB-Gyn/Primary Care/Ambulatory Leadership.

You want to keep your debt to total available credit ratio under 20% ideally. Paying it off each month is best, but it also runs the slight risk of a credit card company closing your account, which will increase that debt to total available credit ratio (because there is less total available credit if a credit card is closed).

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Specializes in OR, Nursing Professional Development.

A credit score isn’t a score of financial savvy. It’s a score of how good a debt customer you are. Credit score is made up of:

Types of debt (revolving vs installment)

Debt utilization (how much of the available credit is used)

Payment history (on time or delinquent)

Age of the accounts (longer history, higher score)

So while the high balances are hurting, a long time history of always paying on time will boost the score. That’s the kind of person credit card companies love- carry a balance they make a profit off in interest fees but also pays them as opposed to going into collections. 

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Specializes in New Critical care NP, Critical care, Med-surg, LTC.

https://www.debt.com/credit-score This website has an explanation on credit score. Your ability to make payments on time, and keep your total usage of credit under 20-30% is important. So if you have five credit cards, none maxed, but making payments on time, you're likely to have a good score. 

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Specializes in OR, Nursing Professional Development.

@DK123, since your question is not nursing related, we’ve moved it to the Coffee Lounge. 

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Specializes in ER.

Because I am debt-free I get to quit being a nurse

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Specializes in Private Duty Pediatrics.
7 minutes ago, Emergent said:

Because I am debt-free I get to quit being a nurse

Debt-free is  the way to go!

Emergent, are you tired of nursing or are you simply tired of the jobs that nurses have? I hope whatever you switch to brings you happiness and peace.

I can see myself retiring, but I'll always think as a nurse. 

I think.

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Specializes in ER.

I am totally mentally exhausted from dealing with the covid-19 nursing world. My claustrophobia from masks has become intolerable. My aversion to over-reaching, meaningless government regulations is utterly heightened.

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Specializes in Private Duty Pediatrics.
Just now, Emergent said:

I am totally mentally exhausted from dealing with the covid-19 nursing world. My claustrophobia from masks has become intolerable. My aversion to over-reaching, meaningless government regulations is utterly heightened.

Yeah, you need a break, or maybe something totally different.

It's been easier for me, as I've done private duty home care for almost 40 years with some hospital-based nursing before that. I wouldn't do well in a hospital. 

I hope you find a good place. ?

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Specializes in Pediatrics, Geriatrics, Call Center RN.
On 8/11/2021 at 8:18 PM, Emergent said:

I am totally mentally exhausted from dealing with the covid-19 nursing world. My claustrophobia from masks has become intolerable. My aversion to over-reaching, meaningless government regulations is utterly heightened.

I have to agree with this statement.  I'm tired of masks.  I'm tired of not being able to go on my AK cruise.  I'm tired of not being able to see friends and give them great big hugs.  I'm tired of meeting someone and not being able to shake their hand.  I'm tired of this being an "us vs them" issue.  It should not be political.  It should be national.  We should all want to work together to kick this thing in the butt.  

Along with the credit score business.  As long as your friends income to debt ratio is still good and he is at least making the minimum payment he is keeping the credit score going up.  If he ever misses a payment with that kind of debt his score will probably take a huge hit.

 

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