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What is the benefit of an 800+ credit score?
06-17-2016, 06:33 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,525
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What is the benefit of an 800+ credit score?
Like ( I assume) many of the posters at this forum I have an 800+ credit score but I'm not sure what it does (or doesn't do) for me. I never buy anything on credit ( that is, I buy as much as I can on my credit cards and pay the balance at the end of the month). I pay cash for cars since they won't let me pay with my CC without adding a fee. I honestly don't know what good that credit score does for me but I would certainly like to hear from the experts here.
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06-17-2016, 06:41 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Bragging rights. Anything above 740 counts as the same.
You may also get a discount on insurance.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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06-17-2016, 06:52 PM
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#3
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Recycles dryer sheets
Join Date: Feb 2014
Posts: 188
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I asked our FP about a declining credit score - he said why would you care - you won't be buying anything on credit ever again.
But I did find that some or most insurance companies run a credit check - but if you are an established customer I don't know if they repeat the check every few years.
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06-17-2016, 06:54 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,940
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About the only benefit I can think of is it would qualify you for a zero % auto loan if you're in market for a new car (and 0% promotion is offered). My 2 cars are 3 and 2 years old, so it's going to be quite a while before I need another car.
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06-17-2016, 06:55 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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If you have a high credit score you can be assured that your mailbox will always be stuffed full of offers for credit cards.
These offers can be stored in a box and used to light your fireplace in the winter to keep you warm.
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06-17-2016, 07:56 PM
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#6
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Dryer sheet aficionado
Join Date: Dec 2015
Location: Sandy
Posts: 47
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I've saved several hundred dollars a couple of years ago due to incentives offered for financing two new Toyota vehicles. I had planned to pay cash, but by financing got an extra thousand off each car, and the finance contract required the financing to continue at least 4 months. So at the end of that period, the loans were paid in full. We incurred a few hundred in interest, but the net savings was heavily in our favor. Our credit score allowed us to get a better interest rate than we would have otherwise.
This was the first time we'd financed anything in many, many years.
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06-17-2016, 08:48 PM
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#7
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Recycles dryer sheets
Join Date: Mar 2004
Location: Modesto
Posts: 334
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Similar but different. We have fixed income streams, but don't tend to save large amounts of cash for large purchases. We found good credit allowed us to buy two cars from two dealers on a day back in Jan of this year. Zero down, so completely using other peoples money. No trade in as we kept our previous "big" purchase from 2004.
Agree the fanmail from CC companies is ridiculous. Why would I want double digit percentage cards?
__________________
It's about the music
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06-17-2016, 10:45 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,203
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One thing that I know it can do is get you approved for a loan pretty darn quick...
Seven or so years ago I went to a furniture store and bought like $5 or $8K worth of stuff.... they had zero interest blah blah blah....
Well, the guy calls the info in to get approval and hangs up... the phone rings in less than a minute... approved... he looked at me and said 'that is the fastest I have ever seen anybody approved'.... tried to sell me some more stuff....
Now, funny thing is that my credit score must have dropped some... you know these CCs put your score down... I have seen it as low as 780ish and as high as 820 something.... but for the life of me I do not know what changed between these two extremes... maybe different companies scores....
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06-18-2016, 02:31 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2011
Posts: 3,594
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Perhaps no obvious effect and that is just fine.
Having a low credit score, on the other hand, and society will constantly remind you of that fact.
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06-18-2016, 05:15 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2014
Posts: 1,174
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It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.
Lower insurance premiums. Also, my second oldest card was discontinued by the issuer and I replaced it with a new card. A few months later I received a letter from my homeowner's insurance that my premium would be increasing at the next renewal due to a change in my credit history.
Quote:
Based on 2013 data, drivers with median credit-based insurance scores—considered a fair score—paid 24% more for auto insurance than those with excellent credit. And those with poor credit paid a whopping 91% more. For home insurance in a 2014 study, those with a fair score could pay 29% more for their policies, while homeowners with a poor credit score could pay 91% more.
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Reference: Save Money With a High Credit Score: Insurance, Student Loans, Credit Cards, Financing
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06-18-2016, 05:47 AM
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#11
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Recycles dryer sheets
Join Date: Dec 2013
Posts: 331
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Quote:
Originally Posted by LastOfTheBoomers
I asked our FP about a declining credit score - he said why would you care - you won't be buying anything on credit ever again.
But I did find that some or most insurance companies run a credit check - but if you are an established customer I don't know if they repeat the check every few years.
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I don't know whether this is standard, but my insurance company reruns my credit every time it renews. Having good credit gives me a good discount on insurance.
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06-18-2016, 06:08 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by MBSC
It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.
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I use credit score as a go/No-go indicator.
At least you will be able to get into a good apartment. Otherwise, you are stuck living with a bunch of other neighbors with a low credit score...
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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06-18-2016, 06:23 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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Quote:
Originally Posted by Free
I've saved several hundred dollars a couple of years ago due to incentives offered for financing two new Toyota vehicles. I had planned to pay cash, but by financing got an extra thousand off each car, and the finance contract required the financing to continue at least 4 months. So at the end of that period, the loans were paid in full. We incurred a few hundred in interest, but the net savings was heavily in our favor. Our credit score allowed us to get a better interest rate than we would have otherwise.
This was the first time we'd financed anything in many, many years.
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+1 .... just closed on new truck yesterday. Took out a loan and will pay off in 4 months and the financing incentive was used to increase the allowance for my trade. Funny thing is that I know the president of the bank and see him regularly and after I pay it off I'll have to thank him for the bank's contribution to the purchase of my truck.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-18-2016, 06:23 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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Quote:
Originally Posted by MBSC
It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.
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+1
I thought it would be a huge pain renting after FIRE with no rental history. But it's been very easy, even with a dog. I can't prove it's due to credit score but I can't see what else it could be.
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06-18-2016, 10:17 AM
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#15
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Recycles dryer sheets
Join Date: Apr 2016
Posts: 284
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Its a good pickup line to meet girls at bars: "Hi, I have a really high credit score; wanna go out with me Friday night?"
On the off chance she's not impressed by your credit score, you could try telling her your SAT score.
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06-18-2016, 10:43 AM
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#16
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 575
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Have to agree with many of the comments. Unless I plan to finance another property, my 850 score doesn't mean a lot other than bragging rights.
I agree with the 0% auto loans though. My last car loan was 0% and the finance manager at the dealership said almost no one will qualify for it. I told my wife to sit back and watch the finance guys face when our credit report comes back. Sure enough the guy couldn't believe it.
Apparently they see very view of these!
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06-18-2016, 10:45 AM
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#17
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Recycles dryer sheets
Join Date: Dec 2013
Posts: 331
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Quote:
Originally Posted by medved
Its a good pickup line to meet girls at bars: "Hi, I have a really high credit score; wanna go out with me Friday night?"
On the off chance she's not impressed by your credit score, you could try telling her your SAT score.
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I had a guy try to pick me up by saying "I'm a good guy, I read. BOOKS!"
You can try combining all three and really impress the ladies...
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06-18-2016, 10:59 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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I changed j*bs recently and part of the process at the new place was a background check, which included a credit check. I have a high score so no problem but it still seems a modern evil somehow because, at an employee level, how can a credit score predict job performance? A low score might indicate someone with poor financial skills but it also might surface a highly-committed and willing wage slave whom the company can control more. At the population level, it also seems wrong somehow to use a credit score as a proxy for separating the hirable from the non-hirable. Good people can get into hock for all kinds of reasons. Statistics, I guess.
In a few short years when I FIRE that score won't matter at all to me unless I take up playing the frequent flier points credit card swapping game in my abundant spare time to get cheap travel.
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06-18-2016, 12:49 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by Markola
I have a high score so no problem but it still seems a modern evil somehow because, at an employee level, how can a credit score predict job performance? A low score might indicate someone with poor financial skills but it also might surface a highly-committed and willing wage slave whom the company can control more.
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I suspect it's more a matter of worrying about employees getting into serious financial problems which might make them more likely to steal, or make them more susceptible to bribes and blackmail.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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What is the benefit of an 800+ credit score?
06-18-2016, 01:23 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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What is the benefit of an 800+ credit score?
Quote:
Originally Posted by mystang52
About the only benefit I can think of is it would qualify you for a zero % auto loan if you're in market for a new car (and 0% promotion is offered). My 2 cars are 3 and 2 years old, so it's going to be quite a while before I need another car.
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In a recent (this week) conversation with one dealership, the threshold for 0% was 675.
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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