Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-04-2015, 08:12 PM   #21
Recycles dryer sheets
 
Join Date: Nov 2015
Posts: 189
Having a good credit score also translates into a good insurance score. That helps you on the pricing and underwriting for home and auto insurance. Higher scores get better pricing. It is one of those things that doesn't predict how you drive or how many claims you might have but does predict accurately what a large population will experience as a group.
__________________

__________________
rdy2go is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-05-2015, 07:32 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Florence, AL/Helen, GA
Posts: 2,092
My wife had a 820 FICO score last time we checked--and she has any income. Go figure? Benefit? She gets offers for loans and credit cards almost daily--none of which are used.

We recently applied for and received Capital One's latest and greatest Visa that pays back 2%. It comes with 400,000 points if you charge/pay $3,000 in the first 90 days and a $30,000 unsecured credit limit.

When I went to start the card, it couldn't be done automatically on the phone. Capital One asked a number of multiple choice questions about a previous address over 10 years old and even my height. It sounded like they had an extra detailed CBR report and had even run a drivers license check to verify my identity.

When I worked in the finance industry, I had contacts with a large bank in our city. They had a number of retired FBI special agents working in credit card security. They also volunteered with the sheriff's department and were carrying sheriff's badges. And they had arrest powers. That tells you what a serious problem credit card fraud is--costing banks and finance companies $ billions per year.
__________________

__________________
Bamaman is offline   Reply With Quote
Old 12-07-2015, 03:25 PM   #23
Full time employment: Posting here.
 
Join Date: Aug 2013
Location: North
Posts: 714
I check my credit score frequently using the free tools through my cc companies (Barclay, discover, American express) and credit karma.

Since I've been monitoring its boggled my mind how much my credit score has moved around.

I've turned and burned far more credit than my wife yet her score is higher...but she does pay her balance in full, sometimes I carry a balance on 0% cards. It seems if you slowly pay down your debt, and slowly decrease your debt to available credit, the score jumps about 3pts a month. Throw in some hard inquiries and it can drop about 30-40pts. I usually open 2 credit cards at the same time. These 13 hard inquiries are killing me though...wont be able to open new accounts for a year and a half.

I just had my dad add me onto an old card of his with a high limit to see how that affects my score. IMO the easy way to add time. We'll see how it effects me.
__________________
AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, (Value/Growth/Blend): X/X/X% REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Old 12-07-2015, 03:56 PM   #24
Recycles dryer sheets
bamsphd's Avatar
 
Join Date: Nov 2005
Posts: 337
If your old but undesirable card is with a major issuer, instead of closing the account you might be better off asking the issuer to change your card to one (or more) of their cards with better benefits. The benefits on new cards have been much better the last few years than they were a decade ago, so keep the "member since" date, but get the new benefits.
__________________
bamsphd is offline   Reply With Quote
Old 12-07-2015, 08:51 PM   #25
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
kgtest, you bring up an excellent point with getting added to an old account. I experimented with this for a friend, with two of my oldest cards, and his jumped about one hundred points from bad to very good. No risk to me, as I kept the cards, of course, and monitor the accounts religiously.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 12-13-2015, 10:00 PM   #26
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 1,316
I have a business credit card that was issued to my Dad's family trust ( using my credit and personal guarantee ). The rental units we used it for are long gone, the trust is settled, so technically the the trust is no longer. Not used in about 2 years , so I assume they may close it soon.

Any thoughts on asking the issuer to change the business name, to a small business I may be re-starting , keeping the same account number , and credit history? The account is about 5 years old.

It's my personal credit that was used to open it.
__________________
“The finance industry is 5% rational people and 95% shamans and faith healers.” - Charlie Munger
Lakewood90712 is offline   Reply With Quote
Old 12-13-2015, 10:10 PM   #27
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 2,930
I took the hit and closed a bunch of credit cards, I was nervous of fraud. It did go down temporarily, but now it's at an all time high.


Sent from my iPad using Early Retirement Forum
__________________
When I post IIRC, that means going by memory. Google is your friend for facts. Stop being a lazy bum, I can't do all the googling for you. I'm lazy too. LOL
Fedup is offline   Reply With Quote
Old 12-13-2015, 10:27 PM   #28
Full time employment: Posting here.
Al in Ohio's Avatar
 
Join Date: Jun 2013
Location: Columbus OH
Posts: 688
I highly recommend you close out all cc that you aren't finding that you use or need. Just call the number on the back and ask it be closed out. It only takes 5 mins. Then shred the card. Don' t just shred the card and leave it open. Your doing it to simplify your finances and lower your risk of fraud. Folks who worry about credit score are folks with credit worries. If you have not had to worry about credit score before, I wouldn't give it a thought now. Closing multiple cards same day wouldn't be a concern from those with good credit.


Sent from my iPad using Early Retirement Forum
__________________
Ohio INTJ ENG ER Hopeful
Al in Ohio is offline   Reply With Quote
Old 12-14-2015, 04:39 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,471
Quote:
Originally Posted by Al in Ohio View Post
I highly recommend you close out all cc that you aren't finding that you use or need. Just call the number on the back and ask it be closed out. It only takes 5 mins. Then shred the card. Don' t just shred the card and leave it open. Your doing it to simplify your finances and lower your risk of fraud.
Why? If you aren't using the card, it's not likely to be compromised. And it won't impact your current finances. They can be handy as a back up if something happens temporarily to a regularly used card.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 12-16-2015, 09:32 PM   #30
Full time employment: Posting here.
Al in Ohio's Avatar
 
Join Date: Jun 2013
Location: Columbus OH
Posts: 688
Quote:
Originally Posted by audreyh1 View Post
Why? If you aren't using the card, it's not likely to be compromised. And it won't impact your current finances. They can be handy as a back up if something happens temporarily to a regularly used card.

You leave open the opportunity for the cards to be lost or stolen. Also you might tend to forget to check on the account balance and in the meantime it can be discovered from insecure databases and then actively used before you discover the fraud has been ongoing. And all for what? You should have one backup card, not several that have gone dormant.


Sent from my iPad using Early Retirement Forum
__________________
Ohio INTJ ENG ER Hopeful
Al in Ohio is offline   Reply With Quote
Old 12-16-2015, 10:01 PM   #31
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 4,729
Quote:
Originally Posted by Al in Ohio View Post
You leave open the opportunity for the cards to be lost or stolen. Also you might tend to forget to check on the account balance and in the meantime it can be discovered from insecure databases and then actively used before you discover the fraud has been ongoing. And all for what? You should have one backup card, not several that have gone dormant............
No, you simply have them send you notifications via email like your regular CC accounts, so you would know if anything was charged on it.
I don't have any paper statements mailed as those can be swiped out of the mailbox.

I'll cancel a CC if they are going to charge an annual fee I don't want to pay, otherwise I keep it.

My Credit score is over 800, and I don't worry about it but enjoy the benefits of low auto insurance, fantastic CC offers, great Bank offers, etc.
__________________
Sunset is online now   Reply With Quote
Old 12-16-2015, 10:39 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,471
Quote:
Originally Posted by Al in Ohio View Post
You leave open the opportunity for the cards to be lost or stolen. Also you might tend to forget to check on the account balance and in the meantime it can be discovered from insecure databases and then actively used before you discover the fraud has been ongoing. And all for what? You should have one backup card, not several that have gone dormant.


Sent from my iPad using Early Retirement Forum
Not really. The cards you are actively using are much more likely to be lost or stolen. Those are the ones that will show up on databases. If the inactive card is put in a secure place and rarely used it's unlikely that it will magically show up in some insecure database.

Monitoring for fraudulent charges is pretty easy if you set up email alerts and get notified of statements ready/payments due.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 12-17-2015, 02:23 PM   #33
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 993
I have always closed several at a time. But another way is to close one a year. The effect should be very mild doing that. I don't like credit cards so I have them set up to pay my insurance once a year. That way 95% of the time I am not messing with them.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 12-17-2015, 02:32 PM   #34
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 381
I did a trade. While signing onto my credit union account, a popup appeared telling me I was eligible to increase my credit limit. I clicked yes. A couple of days later, my credit limit doubled. I then took one of my credit cards whose limit was about the same as the increase I got from the credit union and cancelled it online. Total credit limit across all of my remaining cards stayed about the same.
__________________
big-papa is offline   Reply With Quote
Old 12-18-2015, 08:33 AM   #35
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
As I stated earlier I opened 2 credit cards that I use for a small business which were quickly close to maxed out. Between that and several hard credit checks for vehicles and the credit cards my credit dropped from a bit over 800 to 690 or so.

The business could easily pay the cards off but they are interest free for the first year. My credit utilization was at 28% due to these 2 cards. I decided to pay them off to see what happened. I just checked Credit Karma and my credit utilization dropped to 6% and my credit score jumped to 799. Its hard to believe my score would jump 100 pts just from that. My previous 28% was listed as good.
__________________
utrecht is offline   Reply With Quote
Old 12-18-2015, 09:18 AM   #36
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 993
Quote:
Originally Posted by utrecht View Post
As I stated earlier I opened 2 credit cards that I use for a small business which were quickly close to maxed out. Between that and several hard credit checks for vehicles and the credit cards my credit dropped from a bit over 800 to 690 or so.

The business could easily pay the cards off but they are interest free for the first year. My credit utilization was at 28% due to these 2 cards. I decided to pay them off to see what happened. I just checked Credit Karma and my credit utilization dropped to 6% and my credit score jumped to 799. Its hard to believe my score would jump 100 pts just from that. My previous 28% was listed as good.
When a person maxes out two cards that drops a score a lot. I just had a hard pull fall off my report that bumped me up 11 points.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 12-18-2015, 09:59 AM   #37
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
I have 10 hard pulls my report. They are for a variety of legitimate reasons but one is from Pentagon Fed Credit Union. They did a hard pull when we sold our house and paid off the mortgage. That makes no sense to me? Now its stuck there for 2 years.
__________________
utrecht is offline   Reply With Quote
Old 12-18-2015, 11:49 AM   #38
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 1,316
Quote:
Originally Posted by utrecht View Post
I have 10 hard pulls my report. They are for a variety of legitimate reasons but one is from Pentagon Fed Credit Union. They did a hard pull when we sold our house and paid off the mortgage. That makes no sense to me? Now its stuck there for 2 years.
Some hard pulls , like several when buying / leasing a vehicle or a home loan should be considered as one. It might be worth getting the credit rating agencies to look at that, and conform to their own rules.
__________________
Lakewood90712 is offline   Reply With Quote
Old 12-18-2015, 12:08 PM   #39
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
Agreed. One of the credit bureaus shows 7 and one shows 10, because they didnt consolidate similar hard pulls (like 3 for the same vehicle we bought). But why would a lender do a hard pull of my credit when all I was doing was paying off my mortgage?
__________________
utrecht is offline   Reply With Quote
Old 12-18-2015, 12:19 PM   #40
Thinks s/he gets paid by the post
Lakewood90712's Avatar
 
Join Date: Jul 2005
Posts: 1,316
Quote:
Originally Posted by utrecht View Post
Agreed. One of the credit bureaus shows 7 and one shows 10, because they didnt consolidate similar hard pulls (like 3 for the same vehicle we bought). But why would a lender do a hard pull of my credit when all I was doing was paying off my mortgage?
A hard pull when paying off a loan, that is really bizarre. maybe it's s.o.p. they automatically try and pitch a re-fi to you. I thought hard pulls require your authorization. I would fight that one.
__________________

__________________
“The finance industry is 5% rational people and 95% shamans and faith healers.” - Charlie Munger
Lakewood90712 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Will closing a credit card hurt my wife's credit score? bank5 Other topics 4 06-03-2009 07:01 AM
Do credit unions cancel credit cards because of inactivity? rec7 FIRE and Money 11 12-22-2008 05:21 PM
Credit card closing questions Fireup2020 FIRE and Money 12 08-20-2007 09:20 AM
Credit Cards and Credit Matuski Other topics 21 08-14-2006 01:40 PM
Credit-union HELOC offer, no closing costs Nords FIRE and Money 4 11-06-2004 07:15 AM

 

 
All times are GMT -6. The time now is 12:45 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.