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12-24-2010, 05:38 AM
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#21
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Dryer sheet wannabe
Join Date: Jun 2010
Location: Erie
Posts: 22
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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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12-27-2010, 10:17 AM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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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..........
__________________
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.........:)
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12-28-2010, 08:44 AM
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#23
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Recycles dryer sheets
Join Date: Dec 2009
Location: Cleveland
Posts: 344
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Quote:
Originally Posted by RetireUnder40
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!
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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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12-28-2010, 10:34 AM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,566
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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
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way
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12-28-2010, 11:26 AM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by Sarah in SC
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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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.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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12-28-2010, 11:45 AM
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#26
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gone traveling
Join Date: May 2008
Posts: 3,864
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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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12-28-2010, 11:51 AM
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#27
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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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.........
__________________
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.........:)
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12-28-2010, 11:53 AM
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#28
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,130
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Quote:
Originally Posted by RetireUnder40
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!
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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.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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12-28-2010, 12:33 PM
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#29
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gone traveling
Join Date: May 2008
Posts: 3,864
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Quote:
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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