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Old 12-24-2010, 06:38 AM   #21
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I've had one credit card since April 2000. Since I make frequent online purchases with it, I've paid off the outstanding amount every month. Paid off two car loans early - one in 2004 and one in 2008. Pay all bills and mortgage on time.

I ran a FICO score check described through this link a week before Thanksgiving and it came up as 813.

Of course, YMMV!
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Old 12-27-2010, 11:17 AM   #22
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Well, Dave Ramsey doesn't need a FICO score, he's a multi-millionaire that pays cash for everything........

For the rest of us, one credit card with rewards is peobably the ticket..........
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Old 12-28-2010, 09:44 AM   #23
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Originally Posted by RetireUnder40 View Post
I recently finished reading Dave Ramsey's Total Money Makeover. My wife and I have a good amount of debt between our student loans and auto loans. I like a lot of his ideas about snowballing your debt and staying away from debt altogether.

My only concern with this is that it will basically kill your FICO score. We are looking to purchase a home down the line with a large downpayment after we kill this debt. He claims you don't need to use your FICO score but I don't see how this is possible and also I believe having a poor FICO could hurt us in other ways in the future.

Can anyone provide some insight on this? How important is the FICO? What are some good ways to maintain a good FICO score without using a credit card? Is this another area Ramsey is incorrect on?

Thanks in advance!

I have 3 or 4 credit cards but never carry a balance. I just use each two or three times per year so that the do not get closed due to inactivity. This helps maintain my high FICO score (805) without really using "credit" that much.
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Old 12-28-2010, 11:34 AM   #24
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Here's an annoying tidbit about our lack of debt--I got notice yesterday that we didn't get the rock bottom-est of Progressive's rates because of DH's not having had a car loan or lease in the past 10 years.
...sigh
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Old 12-28-2010, 12:26 PM   #25
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Here's an annoying tidbit about our lack of debt--I got notice yesterday that we didn't get the rock bottom-est of Progressive's rates because of DH's not having had a car loan or lease in the past 10 years.
...sigh
Just sign up for 50 credit cards like I did and you'll be in the top credit tier. Just don't max out the balances taking zero percent loans.
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Old 12-28-2010, 12:45 PM   #26
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I bought a new Dodge Ram truck a few months ago, they were offering an additional $500 bonus cash if you financed through GMAC (Chrysler Credit). Minimum amount you could finance was $7500-$8000; you also had to make three payments before paying it off (depending on who you talked to...)so I financed $8000.

First statement arrived, sent them $7950
Second statement arrived, I sent them $50
Third statement was the title, and a note thanking me for my business.

When I took the truck in for it's first scheduled service the sales manager told me that he heard I'd paid off the truck "early" when received a call from GMAC chewing him out for "allowing" me to finance the $8K
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Old 12-28-2010, 12:51 PM   #27
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When I took the truck in for it's first scheduled service the sales manager told me that he heard I'd paid off the truck "early" when received a call from GMAC chewing him out for "allowing" me to finance the $8K
Dealerships don't make much money financing that small of an amount. I can't blame you for taking the extra $500 and short-term financing. The F&I dude probably only made a flat $150 to finance your truck, which GMAC pays the dealer for going through GMAC instead of a local bank. However, since you only had the loan for 2 months, GMAC actually "lost" money on the deal, because they gave you $500, paid the dealer $150 or so, and therefore made virtually no money on the loan.........
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Old 12-28-2010, 12:53 PM   #28
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What are some good ways to maintain a good FICO score without using a credit card? Is this another area Ramsey is incorrect on?

Thanks in advance!
Our son, aged 28, has never had a credit card, car loan or mortgage. He did have a $6k student loan when he graduated and paid it off within 12 months. He uses a Debit Card.

I did get his FICO a year or so back through one of those free offers and it was high 700's.
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Old 12-28-2010, 01:33 PM   #29
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Dealerships don't make much money financing that small of an amount. I can't blame you for taking the extra $500 and short-term financing. The F&I dude probably only made a flat $150 to finance your truck, which GMAC pays the dealer for going through GMAC instead of a local bank. However, since you only had the loan for 2 months, GMAC actually "lost" money on the deal, because they gave you $500, paid the dealer $150 or so, and therefore made virtually no money on the loan.........
Worse than that, they actually loaned me the $8K for four months at N/C since it took them 60 days just to get the loan paperwork in place. I was expecting the last payment to include a few dollars in interest, but they just closed the loan and sent me the title; I never even had the opportunity to request a payoff amount.
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