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-   -   What is the benefit of an 800+ credit score? (http://www.early-retirement.org/forums/f28/what-is-the-benefit-of-an-800-credit-score-82362.html)

ejman 06-17-2016 07:33 PM

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.

Senator 06-17-2016 07:41 PM

Bragging rights. Anything above 740 counts as the same.

You may also get a discount on insurance.

LastOfTheBoomers 06-17-2016 07:52 PM

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.

mystang52 06-17-2016 07:54 PM

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.

RobbieB 06-17-2016 07:55 PM

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.

Free 06-17-2016 08:56 PM

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.

JonnyM 06-17-2016 09:48 PM

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?

Texas Proud 06-17-2016 11:45 PM

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....

gauss 06-18-2016 03:31 AM

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.

MBSC 06-18-2016 06:15 AM

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.
Reference: Save Money With a High Credit Score: Insurance, Student Loans, Credit Cards, Financing

FI by 2024 06-18-2016 06:47 AM

Quote:

Originally Posted by LastOfTheBoomers (Post 1745878)
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.


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.

Senator 06-18-2016 07:08 AM

Quote:

Originally Posted by MBSC (Post 1745951)
It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.

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...

pb4uski 06-18-2016 07:23 AM

Quote:

Originally Posted by Free (Post 1745893)
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.

+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.

photoguy 06-18-2016 07:23 AM

Quote:

Originally Posted by MBSC (Post 1745951)
It's easier to find someone willing to rent you an apartment when you decide to try a different retirement location.

+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.

medved 06-18-2016 11:17 AM

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.

Drake3287 06-18-2016 11:43 AM

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!

FI by 2024 06-18-2016 11:45 AM

Quote:

Originally Posted by medved (Post 1746064)
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.


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...

Markola 06-18-2016 11:59 AM

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.

ziggy29 06-18-2016 01:49 PM

Quote:

Originally Posted by Markola (Post 1746080)
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.

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.

nash031 06-18-2016 02:23 PM

What is the benefit of an 800+ credit score?
 
Quote:

Originally Posted by mystang52 (Post 1745879)
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.



In a recent (this week) conversation with one dealership, the threshold for 0% was 675.


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