Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 11:49 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Why should most ER's care about their Credit Score?

I always wondered about loans like an HELOC, mortgage, car loan, etc, once you're retired. For instance, if I had $1M or in my accounts, but didn't have a job, and therefore no wage income, would I have a problem getting a car loan? On one hand, I don't think I should have a problem, since I could easily just pay cash for it if I wanted to. But would the lender see it that way, or just look at the fact that I don't have any steady wage income coming in?
__________________

__________________
Andre1969 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!

Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 11:59 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Why should most ER's care about their Credit Score?

You dont have wage income, but you have investment income or some source of funding, or you'd be pretty hungry.

I take the figures from my last three tax returns and average the total 'incomes' including capital gains and dividends/interest. Its usually a decent enough number and with a good credit score, no problems so far.

On the other hand I own my home and cars outright and can list them as assets, along with a seven figure investment portfolio. So anyone that'd refuse me a loan is a little short of brain material.
__________________

__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 12:05 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,201
Re: Why should most ER's care about their Credit Score?

Here's a report on getting my free credit reports from the above link (annualcreditreport.com).

Checking it out through the FTC's site, the site seems genuine. You'll want to know that, because you have to enter things like your SSN. You fill out information to confirm your identity (like old street numbers and zip codes). Then, it sends you successively to the three reporting agency sites.

For Transunion you need to get an account (i.e. choose username and password - it's free). They offer to show you your credit score for $7.95, or just the report for free. It then shows you your report which you may print.

At Experian, after entering the last four of my SSN, it told me:

Code:
We were unable to process your request. If you entered your credit card information, we did not charge you.

 
Sending us your information 
 
To receive your personal credit report by mail, please mail us this letter (or the information in it), along with one copy of a government issued identification card, such as a driverís license, state ID card, military ID card, etc., and one copy of a utility bill, bank or insurance statement, etc.
Same for Equifax:

Code:
We're sorry, for your protection we are unable to deliver your FACT Act Equifax Free Annual Credit Report on the internet. There are a number of reasons that we may be unable to fulfill your request online. You may have a Security Freeze on your credit file, an Active Duty Military or Fraud Alert, or the identification information submitted online may not match the information on file.
For experian and equifax, it may be that the security freeze on my account (done to prevent identity theft) is what made them require that I do it by mail. Or, they may just figure I will decide it's not worth it (which is what I did).

This process took about 25 minutes.
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 12:08 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Why should most ER's care about their Credit Score?

That probably IS your freeze in action.

Same results when I was getting my wifes report shortly after we got married. I was told that the name change increased the "possibly suspicious stuff going on, dont give out anything online" flag the credit agencies use to try to slow down identity fraud.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 12:18 PM   #25
Recycles dryer sheets
 
Join Date: May 2005
Posts: 115
Re: Why should most ER's care about their Credit Score?

Not having a huge asset base, I occasionally use my good credit score to make a few extra bucks. Right now for example a bank is giving me $50000 on a credit card at 1.99% for 9 months which is sitting in my savings account earning over 5%. Hey, it's like $125 free a month!
__________________
Professional slacker, traveler and builder of a few websites: <br />Mexico: PuertoVallartaSatellite.com<br />Costa Rica: PuertoViejoSatellite.com<br />My personal blog: dougdo.com
dougdo is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 12:39 PM   #26
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Why should most ER's care about their Credit Score?

Quote:
Originally Posted by Andre1969
I always wondered about loans like an HELOC, mortgage, car loan, etc, once you're retired. For instance, if I had $1M or in my accounts, but didn't have a job, and therefore no wage income, would I have a problem getting a car loan?
Between our credit score and our assets we've been pretty much pelted with offers giving away cheap money. The best deal has turned out to be the HELOC with no closing costs...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 01:12 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Why should most ER's care about their Credit Score?

I am looking into LIFELOCK...........intriguing offer to reduce spam...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 01:13 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Why should most ER's care about their Credit Score?

I have noted that some 'freebie helocs' are starting to include inactivity fees for folks who get them 'just because i can'.

Read the fine print.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 01:30 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Why should most ER's care about their Credit Score?

Quote:
Originally Posted by Cute Fuzzy Bunny
I have noted that some 'freebie helocs' are starting to include inactivity fees for folks who get them 'just because i can'.

Read the fine print.
Usually are waived if they have you by the short hairs/all your money is there so they can repo all that you have if you get behind you hold large enough balances............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 02:02 PM   #30
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: Why should most ER's care about their Credit Score?

Quote:

I take the figures from my last three tax returns and average the total 'incomes' including capital gains and dividends/interest. Its usually a decent enough number and with a good credit score, no problems so far.
I submitted 2 years taxes with the re-fi ... that's probably the "rub"; with RE, I don't show much/enough income by the time I deduct: mileage, cell phone, depreciation, computer charges, tools ..... Mostly stuff I'ld be buying with/without the RE (but a completely legal business deduction).

During a phone interview I gave them addresses for ~2m in RE equity. While impressed, it did nothing to help my plea.

I think they like me paying the higher rate :P.

Do all states offer the credit lock?
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 02:09 PM   #31
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Why should most ER's care about their Credit Score?

Tryan, here is a thread where I listed the states that allow freezes on their credit reports. It was up to date as of December: http://early-retirement.org/forums/i...0770#msg200770

Your lenders should have cared about cash flow, not net income, but "should haves" doesn't get you a better rate.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 03:46 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
Re: Why should most ER's care about their Credit Score?

I am a renter, so my credit score and current income matters there to some landlords (although rental history probably much more important).

For items like getting a cell phone contract, it is not possible sometimes without established credit. Other items, like power & gas, require a deposit without credit.

Getting good credit cards. Since I'm FIREing soon, I have been applying for a couple credit cards, since I have never much used them in pre-FIRE life.

But like most FIREees, I have OK credit. The issue is more of not having a "real" or W-2 income. So the areas where I expect FIREing to negatively affect me are rentals and getting credit cards. On other things, my established credit should be OK independent of current income. Since I am getting credit cards before FIRE, then I guess rental is only issue. If I were a homeowner, I guess I would expect zero effect then.

I do not plan to borrow money ever again.

Kramer
__________________
kramer is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 04:05 PM   #33
Full time employment: Posting here.
 
Join Date: May 2004
Location: Worldwide
Posts: 913
Re: Why should most ER's care about their Credit Score?

Kramer,
You could try this as a rental strategy. Offer to pay a year in advance. That should stop any credit issues, and most likely you could get a discount as well.

Billy
RetireEarlyLifestyle.com

__________________
In 1991 Billy and Akaisha Kaderli retired at the age of 38. They have lived over 2 decades of this financially independent lifestyle, traveling the globe.
Billy is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 04:12 PM   #34
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: Why should most ER's care about their Credit Score?

Quote:
Tryan, here is a thread where I listed the states that allow freezes on their credit reports. It was up to date as of December: http://early-retirement.org/forums/i...0770#msg200770
Martha, thanx for the link!

Followed up ... found the big 3 credit agencies want $10 each and a certified letter to freeze credit then another $10 for an unfreeze ... and another $10 to re-freeze (??).... Didn't expect it was free. :
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 04:53 PM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,201
Re: Why should most ER's care about their Credit Score?

Plus it will be twice as much if you freeze it for spouse as well.

I did mine in August 2004, and I've never needed to unfreeze it.

It bugs me that you have to pay someone not to give out information about you -- what a racket.
__________________
Al
TromboneAl is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 04:56 PM   #36
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
Re: Why should most ER's care about their Credit Score?

Quote:
Originally Posted by Billy
Kramer,
You could try this as a rental strategy. Offer to pay a year in advance. That should stop any credit issues, and most likely you could get a discount as well.

Billy
RetireEarlyLifestyle.com

Thanks for the suggestion, Billy. I have thought about doing that, although for less time than one year. My only concern was if I had to move suddenly, and the fact that I am "locked in" and the landlord cares less about my whining (although I have never complained to a landlord, it is a possibility). But a rent decrease might be worth the risk. Especially for a shorter duration, like 6 months, and paying for each additional 6 months a month before the time is up. I like cash discounts

I take extra care to be a good renter. My last two landlords gave me little smily faces next to the cleanup checklist

Kramer
__________________
kramer is offline   Reply With Quote
Re: Why should most ER's care about their Credit Score?
Old 01-23-2007, 05:03 PM   #37
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: 16,528
Re: Why should most ER's care about their Credit Score?

Quote:
Originally Posted by TromboneAl
For experian and equifax, it may be that the security freeze on my account (done to prevent identity theft) is what made them require that I do it by mail. Or, they may just figure I will decide it's not worth it (which is what I did).
Yes, it was the security freeze that prevented you from getting your "free copy".

I had the same thing happen. I was able to get into equifax and get my free copy the same day I put a credit freeze on my ss#. The next day they wouldn't let me look at anything.

So - doing a credit freeze can prevent someone else from looking at your credit report - although obviously this is only implemented at some of the bureaus.

Audrey
__________________

__________________
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
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
Senator Wyden's "health care plan for all Americans" REWahoo Health and Early Retirement 81 12-19-2006 09:04 AM
New credit score available REWahoo FIRE and Money 15 06-22-2006 08:51 AM
Credit Score Strategies Tommy_Dolitte Young Dreamers 18 08-15-2004 07:31 AM
Credit Qs on PBHG's annual report (31 Mar 04) Nords FIRE and Money 1 07-28-2004 06:02 AM
Credit Reports--FREE mickeyd Other topics 3 06-13-2004 12:30 PM

 

 
All times are GMT -6. The time now is 04:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.