Young Dreamer Question

[Tommy_Dolitte]

Credit score....over or underated? Your strategies, limits, utilizations, etc?

Thanks,
TD

[lets-retire]

If you need to obtain a loan for whatever purpose underrated. *If your done with debt who give a rats tail what your credit score is?

As far as my strategies. Pay the bills on time to avoid late fees and don't worry about the credit score.

[Helen]

[quote]If your done with debt who give a rats tail what your credit score is?
quote]

I was just thinking of this recently. I should have my mortgage paid off in one year and will never borrow a cent again !!!!!!! Never did care or know what my credit score was and now I really don't care !

-helen

[BUM]

Quote:

If you need to obtain a loan for whatever purpose underrated. If your done with debt who give a rats tail what your credit score is? As far as my strategies. Pay the bills on time to avoid late fees and don't worry about the credit score.

Lets,

You nailed it! Those worried about their credit are (or were) lousy credit risks or paranoid about ID theft. I've always behaved like you pay... on time and often ahead of schedule.

Lenders cant wait to see guys like us walk in.

BUM

[MRGALT2U]

I have seen my credit report in the last year. It's
golden, although about the size of the New York phone book. I didn't order it. There was some kind of glitch and they asked me to comment. Anyway, people keep
offering to shower me with cash. I am not a borrower
but it's nice to know it's there I guess.

JG

[brewer12345]

Quote:

I was just thinking of this recently. *I should have my mortgage paid off in one year and will never borrow a cent again !!!!!!! *Never did care or know what my credit score was and now I really don't care ! -helen

Unfortunately, credit scores are used for more than just lending decisions. For example, many auto insurers routinely check credit scores of new policyholders when they apply. A higher score equals cheaper rates. Want satellite TV? Directv checked my credit report and score when I signed up. No doubt there are many, many other examples.

[Martha]

I read in the WSJ yesterday about moves in some states to allow people to freeze access to their credit reports to prevent identity theft. Apparently California allows you to prevent access, even if you have not experienced identity theft. Texas apparently lets you do so if you have experienced identity theft. There is discussion on the federal level about allowing people to prohibit access. You can "open" you file (for a charge) to those you want to see it.

I know a number of people who have experienced identity theft and having a fraud alert on your credit report doesn't seem to go far enough. This might be worth looking at.

With information floating around so freely, identity theft isn't the only problem people have. I know a bankruptcy lawyer who erroneously put down the wrong social security number on a client's bankruptcy petition. It was wrong by one digit. It turned out that it was the SSN of another person in town who was trying to adopt a foreign child. The bankruptcy ended up on her credit report and it caused her no end of problems that ended up delaying the adoption by months.

[Beachbumz]

Quote:

Unfortunately, credit scores are used for more than just lending decisions. *For example, many auto insurers routinely check credit scores of new policyholders when they apply. *A higher score equals cheaper rates. *Want satellite TV? *Directv checked my credit report and score when I signed up. *No doubt there are many, many other examples.

Right on Brewer! No need to care about your credit score as long as you pay your bills on time and don't max out your credit, because it will be fine.

My mother in law wasn't concerned about here credit score, so she paid some credit cards late when money got tight. Now, her husband died unexpectedly and she needs to do some refinancing, except she can't!

Tommy, pay attention to the balance to available credit ratio, keep it under 75%. Also, don't get too much credit on credit cards. I don't like the gazillion months same as cash deals everybody offers, because they end up setting up another line of credit that goes on your report.

IMHO, you can never know for sure that you are done with debt, who knows what the future holds!

Beachbumz 8)

[preben]

Never heard of credit scores in Scandinavia - the banks will do a check based mainly on income/fee cash flow.

Only exeption is the registry for bad payer - but one REALLY have to mess up to end there - and they have fairly strict confidentiality rules.

Anyway; I don't owe anything to anybody and prefer it like that. Cheers!

[Calgary_Girl]

I check my credit score once a year because you can't be too careful with identity theft these days.

[Tommy_Dolitte]

Thanks for the advice. I currently have no debt. But have been thinking of leveraging my good credit to do balance transfers and invest the money...

Basically...do what the FED and banks do everyday...make money from NOTHING...

Sounds like that strategy doesn't have merit....

TD

[Garrick]

The strategy has merit if you're certain you can handle it. I'm sure it's not popular here, but I do something similar. When I get a 0% offer for at least 12mo I take advantage of it, then pay that balance transfer on my mortgage, then pay back the 0% over that 12 mo.

I originally did it to pay off everything except the house, then figured to extend it even into that area.

[MRGALT2U]

I'm betting the -0-% offers will disappear soon.
Too bad! I have made thousands of dollars taking this "free" money and investing it. And, it's all tax
free as my income is so low no tax is due.
A real no-brainer.

JG

[Patrick]

Quote:

Credit score....over or underated? *Your strategies, limits, utilizations, etc? Thanks, TD

Underrated. Try to get a loan with a low score. I was able to purchase real estate with a debt/income ratio way over normal limits because I have a great credit score. Purchase something on time, then pay it off early, repeat, repeat, repeat. The small amount of interest you pay will be well worth it. Good luck.

Patrick

[cute fuzzy bunny]

Many small situations tell me credit score is very important.

Besides getting great rates, even though I havent held a job or had any earned income in ~4 years hasnt caused me any problems.

When I applied for a cell phone a couple of years ago, the first thing they did was pull up my credit score on the terminal. The guy said "Wow...I think thats the highest one I've ever seen". He practically threw the phone at me a few moments later. The 'phone store' was littered with people walking around waiting for them to follow up on something or other, people coming in to vouch for stuff, people leaving who had to return with some kind of documentation. I was in and out in < 5 minutes, no questions asked.

Home Depot had a big credit promo going on, 10% off and zero payments/interest for a year for "qualifying applicants". Same thing, I spent a few minutes filling out the forms with the same usual qualms about putting down "investor" and my SWR as my annual income level. They pulled the credit rating, a temporary credit sheet was handed to me and off I went. There were people with the other service reps there long before I got there, and long after I left. One was still there when I pushed a pallet with ~1000 bucks worth of stuff to the register. Some problem with a former marriage or something from what I overheard.

Even "pretty good" credit doesnt cut it. When my wife and I were still in our 3rd year of going out, I noted she was still paying mortgage insurance on her 7 year old loan. We called the bank to ask them to remove it, as clearly she had a good payment pattern. I had checked her FICO, it was in the 'very good' vicinity, no problems on the equifax report I checked. The bank declined, saying her credit wasnt 'good enough'.

Showed them. I paid off the mortgage the next day with a cashiers check. No more 6.5% soup for them! I think that also sent a fairly clear message to the wife-to-be about my level of seriousness as well

[VoyT]

Quote:

*I paid off the mortgage the next day with a cashiers check. *No more 6.5% soup for them! *I think that also sent a fairly clear message to the wife-to-be about my level of seriousness as well

Yowza! I'd say that was a pretty clear message! (and I know of women who'd kill to find someone that serious!)
Did you tie the engagement ring to the payoff notice?

[MRGALT2U]

I don't think my DW looks beyond about 24 hours
when it comes to finances. I. on the other hand, am
thinking money 24/7. At first blush we might seem
mismatched. OTOH, this might be an excellent
combination as long as everyone carries their own weight on a day to day basis.

JG

[cute fuzzy bunny]

Quote:

Yowza! *I'd say that was a pretty clear message! (and I know of women who'd kill to find someone that serious!) Did you tie the engagement ring to the payoff notice?

Well you see, it actually worked out the other way. She felt so much more secure seeing that I was willing to make such a large financial committment that she didnt feel any need to push along the engagement. The car I bought her the year before helped too.

If it hadnt worked out...cheaper than jumping into a marriage and getting divorced...right JG?

Not that its important, but for this hypothetical woman, do I get to pick who she kills or is it up to her?

[charlie]

Good Lord, TH! Don't you ever sleep? Or was it your
turn to feed the baby? :

Cheers,

Charlie

[cute fuzzy bunny]

Yep, I get "first shift". I was pretty sleepy before I fed him, but I was wide awake afterwards. He's pretty amazing. Who could sleep after looking at the most amazing thing in the world?

Mommas "at work" for a couple of hours getting her re-cert in neonatal care right now, so I'm getting the morning shift too.

8am sucks! I havent seen it in a little while...