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Old 08-25-2011, 02:29 PM   #81
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I checked my score about 2 years ago and it was 829. Although I don't care that much about my credit score at this time in my life I don't want it to go too low. Even home owners and car insurance check your score and charge accordingly now.
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Old 08-25-2011, 03:13 PM   #82
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That's a new twist to an old scam. They used to just hope you were late on one payment and they charged you back to payment #1 all the interest. Now they collect it up front, CUTE!
It's not really new. It sounds no different than all the people carrying large CC balances at 15% who subsidize those of us with 2% cash back cards who pay in full each month.
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Old 08-25-2011, 03:45 PM   #83
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Several years ago, I also was offered a 0% loan by Toyota. I took it. I walked into the the dealership after lunch and an hour later drove out with a new car without giving them a penny. My first payment was not due for 6 weeks! They were true to their word. They took the final price, divided it by 36 and that was the monthly payment. No gags, no strings, nothing but a great deal.
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Old 08-25-2011, 04:30 PM   #84
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For the record, I rejected all of the dealer 'packs' which add to the price of the car. Also, at that time a one year T-Bill was about 4%. I figure the 0% loan allowed me to earn another $1200 in interest over the life of the loan. Could I have got a better deal elsewhere? Maybe, but I doubt if I would have save much more than $1200 and the time involved would have been substantially more than one hour.
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Old 08-26-2011, 10:02 AM   #85
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I checked my score about 2 years ago and it was 829. Although I don't care that much about my credit score at this time in my life I don't want it to go too low. Even home owners and car insurance check your score and charge accordingly now.
Which is the opposite of what Dave Ramsey wants. He said his score is probably 0, since he has been a cash buyer for many years.
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Old 08-26-2011, 10:39 AM   #86
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Which is the opposite of what Dave Ramsey wants. He said his score is probably 0, since he has been a cash buyer for many years.
I don't have as much money as Dave.
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Old 08-26-2011, 11:12 AM   #87
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I don't have as much money as Dave.
I wonder if he is as rich as Clark Howard?
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Old 08-26-2011, 11:21 AM   #88
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I'll bet Clark has a higher credit score than Dave.
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Old 08-26-2011, 08:19 PM   #89
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Dave just built a new house worth about 5 million but I am guessing Clark is not in a shack either. I am a fan of both of these guys. I think they are doing a lot of great work for our country.
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Old 08-28-2011, 08:18 AM   #90
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Which is the opposite of what Dave Ramsey wants. He said his score is probably 0, since he has been a cash buyer for many years.
Don't know how he can do that since there is no such thing is a "0 credit score". the FICO scores go from 300 to 850.

Now, it is possible you could not have a credit score, but that would mean you never had a cell phone, cable bill, electric bill, mortgage, credit card, or any other kind of bill.

A credit score is made up of:
35% Payment history (This includes paying your phone bill)
30% Credit Utilization (Have you used credit)
15% how long have you used credit wisely
10% types of credit used
10% recent searches of credit score


Assuming you have had ever used any form of credit, you have a credit score.

I completely disagree with Dave Ramsey stating that a good credit score requires you to stay in debt. You can have an excellent credit score and not be in debt at all.
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Old 08-28-2011, 08:33 AM   #91
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Don't know how he can do that since there is no such thing is a "0 credit score". the FICO scores go from 300 to 850.

Now, it is possible you could not have a credit score, but that would mean you never had a cell phone, cable bill, electric bill, mortgage, credit card, or any other kind of bill.

A credit score is made up of:
35% Payment history (This includes paying your phone bill)
30% Credit Utilization (Have you used credit)
15% how long have you used credit wisely
10% types of credit used
10% recent searches of credit score


Assuming you have had ever used any form of credit, you have a credit score.

I completely disagree with Dave Ramsey stating that a good credit score requires you to stay in debt. You can have an excellent credit score and not be in debt at all.
I think "0" is not intended to be taken literally. You can have a "no credit score". Paying bills alone is not enough to provide one with a high rating. There is absolutely no way to achieve a high credit score without having a documented history of borrowing and repaying money.
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Old 08-28-2011, 08:47 AM   #92
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I think "0" is not intended to be taken literally. You can have a "no credit score". Paying bills alone is not enough to provide one with a high rating. There is absolutely no way to achieve a high credit score without having a documented history of borrowing and repaying money.
Ok, but you only need a credit score if you want to borrow money... if you never want to borrow money a credit score does not matter. If you do need to borrow money and pay it pack you will have a high credit score.

A credit score is a gauge of how well you handle credit. If you never need credit, you don't need a score.
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Old 08-28-2011, 08:50 AM   #93
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Ok, but you only need a credit score if you want to borrow money... if you never want to borrow money a credit score does not matter. If you do need to borrow money and pay it pack you will have a high credit score.

A credit score is a gauge of how well you handle credit. If you never need credit, you don't need a score.
Not entirely accurate.

Credit scores are also used by the insurance industry:
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Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider these factors when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit-based insurance scores.”
Credit or Insurance? Your Credit Score Helps Determine What You’ll Pay
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Old 08-28-2011, 08:58 AM   #94
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Ok, but you only need a credit score if you want to borrow money... if you never want to borrow money a credit score does not matter. If you do need to borrow money and pay it pack you will have a high credit score.
From earlier in this thread
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That would be good if credit scores were only used for going into debt these days. If you ever want to rent a home, if you purchase auto insurance, if you want a j*b that requires a background check (including credit history), all of these can be negatively impacted by a "zero" credit score.

It sucks and I don't like that credit scores are used for more than obtaining credit, but it is what it is and striving for a "zero" credit score may not be such a good idea.
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A credit score is a gauge of how well you handle credit. If you never need credit, you don't need a score.
The credit score is really a prediction of the likelihood that a borrower will default on a payment. As for needing the rating, see above.
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Old 08-28-2011, 10:32 AM   #95
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A credit score is a gauge of how well you handle credit. If you never need credit, you don't need a score.

It has already been stated that credit scores ARE used by employers.

Even if employees were like Dave Ramsey (zero credit rating), they'd get one after getting hired on to my Megacorp's business unit. It was Megacorp's rating that enabled them to obtain a corporate credit card but the liability was then on the employees. Failure to pay on time can cause them to lose their cards and their jobs since travel using a business credit card was mandatory.

I hired hundreds of people when I worked at Megacorp and never referred to credit scores in my decisions. However, employees who didn't pay their corporate CCs on time tended to be high maintenance, the worse performers, and/or had the most issues which interfered with business. Managers are notified when they miss payments and after while, we had to address it up the line. Therefore, I fully understand why credit cards are used for hiring decisions these days.
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Old 08-28-2011, 04:23 PM   #96
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I have heard that some employers also check applicants' credit scores to make sure they don't hire somebody who may be vulnerable to selling company secrets for a quick buck.
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Old 08-29-2011, 06:47 AM   #97
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exactly who is usaa and how do you find them. I live in iowa and have never heard of a car buying service. You can go into a car dealership and talk all you want but you can't beat a professional at his own business.
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Old 08-29-2011, 06:51 AM   #98
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exactly who is usaa and how do you find them.
USAA.com

To become a member you need to have served in the military. You may also be eligible if one of your parents served.

Pentagon Federal Credit Union also offers the same car buying service. Anyone may become a member.

penfed.org
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Old 08-29-2011, 08:51 AM   #99
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I did misspeak a bit... Yes, your credit score is used for other things than just borrowing money.... But, If you never borrow money and pay all your bills on time your credit score should be high enough that it will not negatively effect you when you get insurance or a job or anything like that.

At last check I have a credit score over 800. I do have a mortgage and a credit card, But, it has been over 10 years since I carried a balance on any credit card, or had any type of a loan (car, installment, store...)

I would be very interested in hearing of a situation where someone did not get a job or had to pay for higher insurance because of a low credit score, where the low score was only due to lack of credit history.
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Old 08-29-2011, 10:16 AM   #100
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I did misspeak a bit... Yes, your credit score is used for other things than just borrowing money.... But, If you never borrow money and pay all your bills on time your credit score should be high enough that it will not negatively effect you when you get insurance or a job or anything like that.

At last check I have a credit score over 800. I do have a mortgage and a credit card, But, it has been over 10 years since I carried a balance on any credit card, or had any type of a loan (car, installment, store...)

I would be very interested in hearing of a situation where someone did not get a job or had to pay for higher insurance because of a low credit score, where the low score was only due to lack of credit history.

You also might be assuming that you need to 'carry a balance' on a credit card for it to be considered credit.... this is false.. when you use a CC you are borrowing money right then... you might pay it back when you get the bill and not pay any interest, but you DID borrow money...
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