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| Credit Score | |
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| Tweet Topic Started: Mar 2 2012, 09:05 PM (2,726 Views) | |
| starscream5000 | Mar 3 2012, 02:07 PM Post #16 |
Got 70 MPG?
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Yes, I had a tri-merged report from my home purchase. |
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| Horn | Mar 3 2012, 02:10 PM Post #17 |
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I gotcha. Well that score helped you with your loan. i would like 780 by next year but we will see what happens.i just want to be set when i decide to buy a house....several years from now |
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| Horn | Mar 3 2012, 06:14 PM Post #18 |
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My research and experience shows the opposite to be true. I pay my credit card off in full every 2 weeks and have a decent credit score[/quote] SMART MAN. Everything I have read/researched has said the same
NOPE. Why would you give the cc companies free money? If you do this I will make a credit card for you and I will take the free money!
A cc should not be used like a loan! A credit card should be more for small things for example an electric bill, you get paid next week, but have a bill due now. You pay the bill with your cc and then once you get paid you pay off the cc in full. If you use your credit card every month and pay if off every month, that looks good. Nerys if you are broke and I buy you a much needed set of tires for your geo. I say pay me by the end of the month or I will charge some interest. You say ok. You pay me in full at the end of the month. I am happy that it all worked out. Next several month you do the same thing. What does that show me? It shows that you are true to your word and you are of very little risk to me. Now if you don't pay me in full and only give me half, then I charge you interest, and you pay half the next month, that doesn't look good. Yes I am making money off you and that is great as a company, but it is hurting you, because in the back of my head I'm thinking why would I let nerys borrow money if he can't pay it back in full. Now if you have a loan, that is obviously for something that you can't just pay off at the end of the month. Its for bigger purchases that will take you a while to pay them off. As long as you pay it on time, it will look good. They don't expect you to be able to pay it off at once or you wouldn't need the loan. I think you may be a bit confused on how loans and credit cards should be used. Also you said they jacked your interest rate up to 32% once you had 780 score...Well like I said earlier if you pay it off at then end of the month you don't pay the 32%. Geostalker said that he only uses cash. Yes that is good if you have the cash, but it is always a good thing to have a high credit score just in case you need to borrow money......If you paid cash for everything you bought, your house, car, big purchases, then congrats. That is great and you probably don't need a fico score. I too have never had to borrow money, but have never had to make a big purchase. Also for people (especially younger people) that have never really used a debit card, I would recommend using that for quite a while. Once you are very comfortable with it and get use to it, then get a credit card and watch it. It is very easy to screw yourself over with credit cards, but it is also very easy to stay on top of it. If your cc bill gets out of control, then get a loan for it and pay it off that way. While we are talking about cc and loans. DON'T get a 30 year home loan and pay it off in 30 years.....that is very bad news. you will easily pay double or more than what the loan originally was. Also the first thing you pay off on loans like that is interest, so most of the time you aren't even paying off the principal. Try to get a loan that won't penalize you for paying more each month, and pay off as much as possible each month. Also a having a nice down payment always helps. |
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| Shinrin | Mar 3 2012, 06:44 PM Post #19 |
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The link I posted shows an actual number score. The reason having a balance is better is the companies don't won't to loan to the guy that shows he can pay it off every month. Their goal is to give it to someone that always makes their payments, but doesn't pay it all off. They're businesses. They make their money on interest. The best person in their eyes is the guy who leaves money on their card or loan to gain interest. Yes you pay a little money in interest, but it depends on how much you have. If I kept $50 on my card at all times, I'd have great credit that keeps increasing, and would lose a few dollars to interest. In the terms of your wallet, pay it off. Never use it for purchases you couldn't pay for in cash. Because of the high interest, it's easy to get into a hole. For your credit score, you want to dig that hole, have it there, maybe dangle a leg in it. The companies want to think you'll fall in and spend 30 years paying on a tv you bought and didn't have the cash for. |
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| Horn | Mar 3 2012, 07:06 PM Post #20 |
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Sorry friend you are a bit wrong. yes they do want you not to pay, but they also want their money back too. Several people ran the cc too high and filed bankruptcy. The cc companies never got paid for it. But keep money on the card, lower your score. They have tons and tons of people that wont pay. and they will gain interest from them. They know that people with high scores are more likely to pay it off. Honestly they want the person that will pay just the minimum. That is there goal. There is no way I would have a 766 score if I left money on my credit cards. I think that goes on your report as "revolving credit" iirc and it doesn't look good. according to the karma website my score it 773 Edited by Horn, Mar 3 2012, 07:16 PM.
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| JellyBeanDriver | Mar 3 2012, 07:20 PM Post #21 |
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Our credit rating is 830'ish (just refi'd). For the past 15+ years we've carried no balance, no car payments. Use credit cards all the time just to get 1-5% back on purchases, but pay them off full every month.
Edited by JellyBeanDriver, Mar 3 2012, 07:21 PM.
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| Horn | Mar 3 2012, 07:26 PM Post #22 |
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EXACTLY... I've been looking at getting a better cc for cashback. I have chase freedom now. |
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| Cobb | Mar 3 2012, 07:47 PM Post #23 |
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BANNED
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Nery, others, when you are not profitable to the credit card company, etc they jack up the interest rate to get rid of you. At that point, they dont like you as a customer and if you truely have excellent credit it should be no problem getting a loan else where and moving funds. Banks dont always like their existing customers, thats why they are always offering promotions and making changes. I think you guys mean revolving credit, vs carry a balance. I use a card for all my purchases too to get the rebate and or points depending on the program. I also get store cards just for the rewards/discounts. When it comes to a home loan, they take the lowest credit rating of the appliant if you have more than 1 person. Its best to get it inthe person with the highest, then add the other person later as a joint owner. |
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| nerys | Mar 3 2012, 08:28 PM Post #24 |
Grr
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its rather simple cobb. you can research this yourself this is "know" in the industry. when they have a person who "pays good" but is "maxed" and unable to "pay off" they jack the interest rate because they know there is nothing you can do about it. they can not do this to a person with low credit leverage because that person can "pay off" or move to a better credit environment with a transfer. its us in the "middle" that they screw because we pay ontime we pay good but we can't "pay off" I renewed my loan to "save my dad's home" so now I am stuck with bills I can barely pay. will he pay me back? without question. when he does my debt will go "poof" in on set of payments. but there is no way to tell when that will be. could be this year or 10 years from now with the way this economy is going. I am also stuck not being able to get regular work. (I essentially work for free I get "JUST" enough to pay my bills) its a family business. what else can I do. they can not afford to replace me with a person requiring a regular paycheck. it keeps the roof over our heads so I do what I have to do and just hope it all works out. Not a sob story. I went in eyes open. Just saying to simply say "its all the debtors fault" is not only cruel and inhuman but flat out wrong. |
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| Horn | Mar 3 2012, 08:41 PM Post #25 |
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No one has said its not the debtors fault....but you dont have to play the game. Ppl get these credit cards and screw up and only blame the companies. We forget that its our choice to get the credit cards. |
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| Jonathan6229 | Mar 3 2012, 09:37 PM Post #26 |
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when I was looking for a house, my credit was somewhere around 745ish. But one of the numbers that "they" use to help find that is your debt to income ratio, so if one half of the ratio (debt) is really low. a lender is going to love that. But as it turned out, it didn't matter what my credit was, because the bank wouldn't loan money on the house I wanted to buy, Which made no sense to me, as I was pre-approved for an amount 7 times what I was approved for. So, Geostalker is right, just pay cash, have a 6 month emergency fund, and go from there. I don't have to play games with a bank that is not going deal with me on a mortgage. I think once I get this house paid off, I'm going to try and never go into debt again. |
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| HelterSkelter | Mar 3 2012, 10:30 PM Post #27 |
#1 Pizza Driver
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you don't have to pay to get your credit score. you can check all three of them once a year for free, or at least i can/did. also you can sign up for their 3 credit score tracker trials and then immediately cancel, i did that also. also as long as you can pay off the interest, leaving a balance on the credit card and allowing the interest rate to be charged to it does in fact increase your credit score faster than completely paying it off. the creditors like to see that you borrow and then pay off over time, they don't like to just see that you pay for everything with a credit card and then pay it off like you were just spending cash. |
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| Horn | Mar 3 2012, 10:44 PM Post #28 |
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Are you taking about annualcreditreport.com? Yes the report is free off that website but the score isnt. Anyways i guess we will just have to disagree about paying them off because everything i have read and experienced is different. But either way if you pay it off relatively quick it is good. We can all agree that you cant let credit cards go |
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| HelterSkelter | Mar 3 2012, 10:56 PM Post #29 |
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#1 Pizza Driver
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No I'm talking about the scores. You can get them from the 3 bureaus for free once a year. I got all 3 of mine a few days ago. Free. 683 683 700, those are what they gave me. Experian Equifax Transunion Those are the bureaus. Don't go to one of those third party sites. Edited by HelterSkelter, Mar 3 2012, 11:00 PM.
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| Cobb | Mar 3 2012, 11:21 PM Post #30 |
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BANNED
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Nery, a bank is a business. It has to watch out for its employes and share holders too. If you pay the min payment andyour credit score has dropped you pose a risk to the bank as you may not be able to pay it off and only pay the min. Sure the bank gets interest, but its got the worry you wont pay it at all. Believe it or not some people dont like vaseline with the gritt in it.  You best defence is to not pay it for 6 months since your credit is shot anyways, then answer the phone and offer to make a deal on your terms. The only problem is you got to report what is forgiven as unearned income and you get taxed on that around 20% by the IRS. I dont agree with everything the bank does, however the customers sign their life away and rights for what they get. Guess why I still deal with prepaid phones? I dont want to commit to a contract. Thats why I bought a used clearwre acct so it was able to go month to month and I can cencel at any time. I got an offer in the mail from Capital One for 6 grand. 29.29% interest. Guess what I did? I ripped it up and tossed it in the trash. |
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