Merrick Bank 550 Credit Score? Internet

Thanks for the info.  In America, my generation & previous,  credit scores were not apart of our curriculum.   For a large number of us, credit cards were mailed to us fully-activated as soon as we turned 18.  Most of us never heard of a credit score until our 20's after we were in debt already. 

I recently had a collection account for $11.00 from a public library placed on my report from 6 years ago; I paid it when I saw it.  In fact every bill I've had has been paid on time for the last several years; all of my credit accounts are current & never late.

I still do not fully understand credit scores.  Yes I take home a nice amount of income now because I worked extremely hard to get where I am.  How in the world can Merrick Bank consider a person with a 550 credit score?  

Think about it, I purchased the item cash anyway, the bank is making no money on this deal.  I thought financial companies made their money through interest?  How can banks charge interest if they don't make loans to people who have the ability to pay them?  Would they prefer a borrower with an 800 credit score living check to check? 

I've been at my job for 7 years, take home $5000+ per month, 672 credit score, no repossessions, no bankruptcies, no charge offs, a couple small collections less than $200, no judgements, no foreclosers or anything major; I was turned down.

I don't understand why many Americans do NOT know how the credit score works but rather assume what it should be. Also, you are taking home that much but STILL got this LOW credit score? It shows how much you know about credit score.

If you miss a payment and the creditor report as LATE, your credit score will FALL, and it takes at least a couple months to get it back up.

Any passed due payments that have gone to a collection will hurt you BADLY for your credit score regardless the amount. It takes quite a long time to gain the score back to where it is. Multiple collections will hurt even more. The longer the collection stays in your credit report, the lower the score it could be. If you have paid it off but NOT contact ALL 3 credit bureaus, it will NOT automatically be removed from the credit report which will be computed as credit score by FICA.

The income you earn every month does NOT affect your credit score and it will NOT be recorded in your credit report.

If you pay everything in cash and never or not have a credit card, your credit score will be LOW because you have not built up your credit. However, if you have a lot of liquidate asset (such as money in the bank that can be withdrawn at will) and at the same time you have many credit cards with very high combined credit amount available, your score will be LOWER than you think.

Also, remember that the score maynot be the same for ALL 3 credit bureaus. One may be high and others may be low. The creditor may pull from all 3 or select only one which may happen to be the lowest score.

Your score is not that great (lower than 700) means something is not right with how you manage your money. Search online to see how to BUILD up your credit score. Don't ASSUME that making good money gives you good credit. And don't UNDERESTIMATE collection or late payments because they are evidences showing how you manage your money (in a negative way).