Why should most ER's care about their Credit Score?

[Nords]

I always wondered about loans like an HELOC, mortgage, car loan, etc, once you're retired. For instance, if I had $1M or in my accounts, but didn't have a job, and therefore no wage income, would I have a problem getting a car loan?

Between our credit score and our assets we've been pretty much pelted with offers giving away cheap money. The best deal has turned out to be the HELOC with no closing costs...

 

[FinanceDude]

I am looking into LIFELOCK...........intriguing offer to reduce spam...........

 

[cute fuzzy bunny]

I have noted that some 'freebie helocs' are starting to include inactivity fees for folks who get them 'just because i can'.

Read the fine print.

 

[FinanceDude]

I have noted that some 'freebie helocs' are starting to include inactivity fees for folks who get them 'just because i can'.

Read the fine print.

Usually are waived if they have you by the short hairs/all your money is there so they can repo all that you have if you get behind you hold large enough balances............

 

[tryan]

I take the figures from my last three tax returns and average the total 'incomes' including capital gains and dividends/interest. Its usually a decent enough number and with a good credit score, no problems so far.

I submitted 2 years taxes with the re-fi ... that's probably the "rub"; with RE, I don't show much/enough income by the time I deduct: mileage, cell phone, depreciation, computer charges, tools ..... Mostly stuff I'ld be buying with/without the RE (but a completely legal business deduction).

During a phone interview I gave them addresses for ~2m in RE equity. While impressed, it did nothing to help my plea.

I think they like me paying the higher rate .

Do all states offer the credit lock?

 

[Martha]

Tryan, here is a thread where I listed the states that allow freezes on their credit reports. It was up to date as of December: http://early-retirement.org/forums/index.php?topic=10982.msg200770#msg200770

Your lenders should have cared about cash flow, not net income, but "should haves" doesn't get you a better rate.

 

[kramer]

I am a renter, so my credit score and current income matters there to some landlords (although rental history probably much more important).

For items like getting a cell phone contract, it is not possible sometimes without established credit. Other items, like power & gas, require a deposit without credit.

Getting good credit cards. Since I'm FIREing soon, I have been applying for a couple credit cards, since I have never much used them in pre-FIRE life.

But like most FIREees, I have OK credit. The issue is more of not having a "real" or W-2 income. So the areas where I expect FIREing to negatively affect me are rentals and getting credit cards. On other things, my established credit should be OK independent of current income. Since I am getting credit cards before FIRE, then I guess rental is only issue. If I were a homeowner, I guess I would expect zero effect then.

I do not plan to borrow money ever again.

Kramer

 

[Billy]

Kramer,
You could try this as a rental strategy. Offer to pay a year in advance. That should stop any credit issues, and most likely you could get a discount as well.

Billy
RetireEarlyLifestyle.com

 

[tryan]

Tryan, here is a thread where I listed the states that allow freezes on their credit reports. It was up to date as of December: http://early-retirement.org/forums/index.php?topic=10982.msg200770#msg200770

Martha, thanx for the link!

Followed up ... found the big 3 credit agencies want $10 each and a certified letter to freeze credit then another $10 for an unfreeze ... and another $10 to re-freeze (??).... Didn't expect it was free. :

 

[TromboneAl]

Plus it will be twice as much if you freeze it for spouse as well.

I did mine in August 2004, and I've never needed to unfreeze it.

It bugs me that you have to pay someone not to give out information about you -- what a racket.

 

[kramer]

Kramer,
You could try this as a rental strategy. Offer to pay a year in advance. That should stop any credit issues, and most likely you could get a discount as well.

Billy
RetireEarlyLifestyle.com

Thanks for the suggestion, Billy. I have thought about doing that, although for less time than one year. My only concern was if I had to move suddenly, and the fact that I am "locked in" and the landlord cares less about my whining (although I have never complained to a landlord, it is a possibility). But a rent decrease might be worth the risk. Especially for a shorter duration, like 6 months, and paying for each additional 6 months a month before the time is up. I like cash discounts

I take extra care to be a good renter. My last two landlords gave me little smily faces next to the cleanup checklist

Kramer

 

[audreyh1]

For experian and equifax, it may be that the security freeze on my account (done to prevent identity theft) is what made them require that I do it by mail. Or, they may just figure I will decide it's not worth it (which is what I did).

Yes, it was the security freeze that prevented you from getting your "free copy".

I had the same thing happen. I was able to get into equifax and get my free copy the same day I put a credit freeze on my ss#. The next day they wouldn't let me look at anything.

So - doing a credit freeze can prevent someone else from looking at your credit report - although obviously this is only implemented at some of the bureaus.

Audrey