FICO Reveals How Common Credit Mistakes Affect Scores

[Cattusbabe]

Just in case you were wondering.

fICO-reveals-how-common-credit-mistakes-affect-scores: Personal Finance News from Yahoo! Finance

 

[Helen]

Wow, I'm surprised how much they nail people for a 30 day late payment.

 

[Walt34]

Wow, I'm surprised how much they nail people for a 30 day late payment.

It doesn't surprise me at all. It's called "honoring the contract" or "keeping one's promises".

I have no idea why that is so hard for so many people to understand why that is important.

 

[Texas Proud]

It doesn't surprise me at all. It's called "honoring the contract" or "keeping one's promises".

I have no idea why that is so hard for so many people to understand why that is important.

But the problem can be that someone THINKS you owe them money, but you do not... they put you as 30 days past due and WHAM... score goes down...

 

[youbet]

Wow! Did you notice how LITTLE foreclosure impacts your score? They say a max of 160 pts.

So, you're a multi-millionaire living a nice FIRE lifestyle. Your credit score is 800. You decide to purchase a lovely home and use a mortgage to do so after putting 20% down. The real estate market collapses in your area and you wind up upside-down to the tune of $150k. You're in California where the bank can't go after your assets so you simply walk away and the bank forecloses sticking others with your loss. You save $150k and your credit score is now 640 (if they hit you with the maximum reduction).

I think I'm beginning to understand why walking away and allowing foreclosure is becoming more common among those who could easily afford to pay off a loan.

I'm really an old fuddy-duddy I guess. I'm stuck with this old school mentality of being responsible for my own debt and that a foreclosure, bankruptcy or even paying bills late is a bad thing. No wonder it took me until 58 yo to reach FIRE...........

 

[Da Nag]

Wow, I'm surprised how much they nail people for a 30 day late payment.

Man...the number in the article (-90 to -110) is hard to believe. There's no way it's accurate in our case.

Just got annual credit reports for the first time in several years, and discovered three 30-day late marks I was unaware of within the last three years. One is legit, I plan on sending in a dispute on the other two.

Regardless, we were at 810 earlier this year - with all three on our record.

 

[WhoDaresWins]

Interesting article. I have never checked my FICO score. Maybe I should, to make sure there are no errors. I pay everything off every month and don't have any other debt at all. A few years ago I did forget to pay a small balance(like $50.00) on a credit card but paid it the next month when I got a second statement with a penalty fee. That is as ugly as it has ever gotten so I think my score should be pretty good. In any case, I don't plan to take out any loans.

 

[cashflo2u2]

Interesting article. I have never checked my FICO score. Maybe I should, to make sure there are no errors. I pay everything off every month and don't have any other debt at all.

Same here. How does one check their FICO score? Can someone comment?