Rolex28
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Oh contraire mon ami...just the fact that you use your credit card the institutions charges the merchant 3-4 % or more.. Merchants love it when you pay cash..
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FICO Score
- Thread starter Ole Joe Clark
- Start date
Oh contraire mon ami...just the fact that you use your credit card the institutions charges the merchant 3-4 % or more.. Merchants love it when you pay cash..
Huskerguy
Member
I tend to not worry about my credit score, I am in the Dave Ramsey camp on that one. But, I realize it isn't always feasible. I have a couple of rental properties and owe around 30K on them so just to keep some extra cash, decided to finance that at a different bank I bank at which means going through the entire loan process which I hate.
We owe no other money, everything is paid for and we pay off our credit cards (not something Dave Ramsey suggests having) every month. Bottom line is our credit score is sky high, two different loan officers told us they never see scores that high. The biggest determining factor, as near as we can tell is that we always, without fail, pay every bill on time, never ever late. Any late payments are reported and those become a black mark.
A while back I was doing my yearly negotiating with the satellite TV company for a better price and a customer service person called a couple days later and said she had been looking at our account and noted that in several years with them, we have never been late on payment. I give my wife credit for that. Anyway, she gave us one heck of a deal and made the comment that she rarely if ever sees that and she wished she was that prompt herself.
So, no I do not think owing or borrowing money is the key. The key is that you pay on-time everything. Read your reports, that is a key factor. That said, it is all about to change and they want to go to a social media kind of system like China now has. Beware of that. yikes
We owe no other money, everything is paid for and we pay off our credit cards (not something Dave Ramsey suggests having) every month. Bottom line is our credit score is sky high, two different loan officers told us they never see scores that high. The biggest determining factor, as near as we can tell is that we always, without fail, pay every bill on time, never ever late. Any late payments are reported and those become a black mark.
A while back I was doing my yearly negotiating with the satellite TV company for a better price and a customer service person called a couple days later and said she had been looking at our account and noted that in several years with them, we have never been late on payment. I give my wife credit for that. Anyway, she gave us one heck of a deal and made the comment that she rarely if ever sees that and she wished she was that prompt herself.
So, no I do not think owing or borrowing money is the key. The key is that you pay on-time everything. Read your reports, that is a key factor. That said, it is all about to change and they want to go to a social media kind of system like China now has. Beware of that. yikes
OP
Ole Joe Clark
Absent Comrade
Thanks for all the discussion and replies. I don't worry about my score, but in the scheme of things I like to know I have a good number. We pay our bills (power, water, etc) on time, every time, the same day each month.
We used to live week to week, but one day I put us on a strict budget, all our income went into the same bank account and the bills were ours, not yours and mine. Both the wife and I had (and still do) access to every account, there are no secrets. We don't follow the budget as close as we used to, but we have no car, home, or any other bills except living expenses. God has blessed our efforts in liberal giving, and if one of us sees something we want, we talk it over and make it happen. If we can't pay cash, we don't need it.
Have a blessed day,
Leon
We used to live week to week, but one day I put us on a strict budget, all our income went into the same bank account and the bills were ours, not yours and mine. Both the wife and I had (and still do) access to every account, there are no secrets. We don't follow the budget as close as we used to, but we have no car, home, or any other bills except living expenses. God has blessed our efforts in liberal giving, and if one of us sees something we want, we talk it over and make it happen. If we can't pay cash, we don't need it.
Have a blessed day,
Leon
Bless you and congratulations. In my last job I did some collection work, and I learned a lot about how people can get into financial trouble. Some people made bad decisions, some people just got caught in the 2008-2009 Great Recession. I did a lot of oral examinations of debtors to see if they had any income or assets that could satisfy the judgment against them. I found myself being an impromptu financial counselor for a lot of the defendants. I hope I helped them see the light like you did.
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Not a FICO score but the Advantage score offered by banks and credit unions. These are the factors:
Factors affecting your credit score, in order of importance ?
1. No open real estate secured loans in your credit file
2. Too high proportion of balances from bankcards
3. Oldest bankcard was opened too recently
4. No open retail accounts in your credit file
I have not had a mortgage in years, I pay credit cards every month and carry no balance over, my oldest bankcard is only 20 years old, I have no retail cards from individual stores and have no loans and owe nothing to anyone so I guess I am not a good risk.
Factors affecting your credit score, in order of importance ?
1. No open real estate secured loans in your credit file
2. Too high proportion of balances from bankcards
3. Oldest bankcard was opened too recently
4. No open retail accounts in your credit file
I have not had a mortgage in years, I pay credit cards every month and carry no balance over, my oldest bankcard is only 20 years old, I have no retail cards from individual stores and have no loans and owe nothing to anyone so I guess I am not a good risk.
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Jon651
Member
It's not about owing more or less from their perspective in your particular case - it's about showing you can responsibly handle credit: Having more than you need; Using less than you have; Using what you use responsibly by not missing payments or wildly varying the amount you use.
However, the advice they gave you is boilerplate only - if you already have a high number then don't worry about it. If you are in the 800 range then a 7-14 point monthly rise or dip will not be unusual even if nothing else changes with your finances.
As far as security goes, I STRONGLY (!!!) recommend putting a "freeze" on your credit with all three bureaus. No, it doesn't mean your score won't change; all a freeze does is prevent anyone from pulling a credit report or opening up a new line of credit in your name unless they speak to you directly and you answer the security questions to prove it is you allowing that to happen. Freezes are FREE to apply and remove, and can even be removed for a set period of time (e.g. - 2 days or a week) before they are automatically set back in place. It's the best way to prevent an identity thief from stealing your ID and applying for a loan or new credit card in your name.
I've seen this recommendation before. I don't pay much attention to my credit rating, and don't even know the names of the three rating companies, as I don't buy anything on credit, other than use a couple of credit card which I pay off through auto withdrawal monthly, so I don't think the rating matters to me.
(When I wrote a check for a new car recently the dealer ran my credit rating before accepting the check, but that sort of purchase is very rare.)
But, I do like the idea of being safe and preventing identity theft. What is the process whereby one puts a freeze on this? Go to each credit rating company's website and search for "freeze my credit?" What are their names?
Jon651
Member
Here are the three credit bureaus:
Transunion - Credit Scores, Credit Reports & Credit Check | TransUnion
Equifax - Equifax | Credit Bureau | Check Your Credit Report & Credit Score
Experian - Check Your Free Credit Report & FICO(R) Score - Experian
All three are required to offer free "freezes" to your credit account. BE AWARE - They also sell credit protection and monitoring services, and you DO NOT need to pay for any of that just to freeze your account, so don't get suckered in. It may take some searching on their sites (the federally mandated free stuff is always harder to find!) but it is there.
For example - on the Transunion website, the very first thing you see is a sales page to get you to buy their credit services
. If you click the TransUnion logo in the upper left corner you will go to their ACTUAL page 
. Credit freezes are listed under the link along the top for "Resources" --> "Credit Management" --> "Credit Freeze"But lucky for you I can short circuit that process. Here are the direct links:
Credit Freeze | Freeze My Credit | TransUnion
Security Freeze | Freeze or Unfreeze Your Credit | Equifax(R)
https://www.experian.com/freeze/center.html
Good luck!
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Thank you, Jon. Just froze access to my credit rating with all three using your direct links. I appreciate the advice and the help.
KKECK5
Member
FICO score is based on how good you pay off your debt... Monthly is fine, but paying it off a little at a time will get you an even higher score....But I hate paying interest to anyone......Now maybe the most important thing to remember never MAX out your card or total of all your cards....example if you have two credit cards. One with a limit of $10,000 and the other for another $10,000. You have a total limit of $20,000 to your name....Never in any case borrow more than 30% or in your case $6,000.......This will cause your FICO score to go down.....If you make your payments on time not go over the 30% rule ... your score will soar....
pittpa
Member
And I believe some of them have a different top number. When I went to buy my car the salesman said I had the highest score he’d ever seen. Maybe he tells that to all the boys.
I am not particularly well-heeled in my opinion. But I only have a car loan and I pay off my credit cards every month.
Credit karma gives me about an 825.
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pittpa
Member
I just don’t see that controversy here. This is a damn good thread. [emoji41]
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This post nailed it in every respect. I was in the credit reporting and collection agency business for a few decades.
Well said.
It’s simpler to get your credit reports, make disputes and put things like consumer statements on your report by using Annual Credit Report.com - Home Page.
This is the government (FTC) sanctioned web site set up a few years back when it became mandatory for the big 3 CRAs to provide your credit report once a year for free.
Please know all the fact as they pertain to your situation before you think about freezing your credit. The freeze requires maintenance and attention on your part ..... its not for everybody. And it will NOT become your shield against credit fraud or identity theft.
And yes, a “FICO score” is not the ONE score each of us have. FICO stands for Fair, Isaac Company, one of the first to develop a score. And yes, there are many different scores based on a different set of algorithms that are specific to mortgages, credit cards, installment loans, line of credit, etc.
What’s more, each lender makes their own determination on what’s a good or bad score depending on their comfort / risk level.
This is the government (FTC) sanctioned web site set up a few years back when it became mandatory for the big 3 CRAs to provide your credit report once a year for free.
Please know all the fact as they pertain to your situation before you think about freezing your credit. The freeze requires maintenance and attention on your part ..... its not for everybody. And it will NOT become your shield against credit fraud or identity theft.
And yes, a “FICO score” is not the ONE score each of us have. FICO stands for Fair, Isaac Company, one of the first to develop a score. And yes, there are many different scores based on a different set of algorithms that are specific to mortgages, credit cards, installment loans, line of credit, etc.
What’s more, each lender makes their own determination on what’s a good or bad score depending on their comfort / risk level.
Credit card companies make money 3 ways.
1. Transaction fees - These are charged to the merchant and generally passed on the consumer. Ever see cash / credit prices and credit price is usually 2-3% higher, well that is the fee charged to the merchant by the CC company. So, CC companies do make money from consumers using their cards regardless of whether they pay the balance monthly or not.
2. Interest charged on the revolving loans. Interest is generally calculated by multiplying the average daily balance by the daily periodic rate.
3. Fees - Annual, cash advance, late and or over limit fees.
Credit cards are very useful tools as is all credit. People love to bash banks, but the world would be a tough place with no credit.
FICO score enables what is referred to as risk based credit pricing. The scores are not calculated by the banks, they are generated by the credit reporting companies and used by lenders to determine pricing.
Good luck to all
Live below your means, put your money in appreciating assets and know the difference between wants and needs and you will be fine.
Jon651
Member
I've been elected our family's expert on credit, and I've had to give more than one lesson to nephews and nieces over the years. Here's a few additional tips about credit and credit scores:
1. "Credit Karma" is junk. They do not provide you with your actual credit score, but an estimated rating based on credit data that you give them access to. Frankly, why would anyone voluntarily fork over all of their personal information so a private company can give them their version of what they can get for free from their credit card or bank's website? My advice - STEER CLEAR.
2. Good credit is based on many factors, with each factor contributing a certain percentage towards your final score. In other words, it's not just how much credit you have or paying your bills on time - the length of your credit history and how much of your credit you use is just as important. My advice - Know all the factors that affect your credit score. Your bank and/or credit card's website will have a lot of good information on this.
3. Anyone can challenge an item on their credit report for free. You would be surprised just how many of us have bad info on their reports and may not know it. You can challenge any specific item once every 30 days, even if it is legit. If the creditor doesn't reply to the credit bureau's inquiry when you make the challenge then the item is removed. Here's a secret - This is exactly what the companies that offer to boost your credit score do. They challenge everything on your report every month and the law of large numbers says something will eventually get removed because a creditor doesn't respond, which naturally boosts your score. My advice - You can do what they do by yourself and never have to pay anyone a dime.
4. Bankruptcies generally factor into your credit report for 7 years - but can be listed for much longer. It is the discretion of the creditor whether or not to relist it on your report for as long as ANOTHER 7 years after the initial 7 years has passed.
1. "Credit Karma" is junk. They do not provide you with your actual credit score, but an estimated rating based on credit data that you give them access to. Frankly, why would anyone voluntarily fork over all of their personal information so a private company can give them their version of what they can get for free from their credit card or bank's website? My advice - STEER CLEAR.
2. Good credit is based on many factors, with each factor contributing a certain percentage towards your final score. In other words, it's not just how much credit you have or paying your bills on time - the length of your credit history and how much of your credit you use is just as important. My advice - Know all the factors that affect your credit score. Your bank and/or credit card's website will have a lot of good information on this.
3. Anyone can challenge an item on their credit report for free. You would be surprised just how many of us have bad info on their reports and may not know it. You can challenge any specific item once every 30 days, even if it is legit. If the creditor doesn't reply to the credit bureau's inquiry when you make the challenge then the item is removed. Here's a secret - This is exactly what the companies that offer to boost your credit score do. They challenge everything on your report every month and the law of large numbers says something will eventually get removed because a creditor doesn't respond, which naturally boosts your score. My advice - You can do what they do by yourself and never have to pay anyone a dime.
4. Bankruptcies generally factor into your credit report for 7 years - but can be listed for much longer. It is the discretion of the creditor whether or not to relist it on your report for as long as ANOTHER 7 years after the initial 7 years has passed.
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Unless Federal laws have changed recently, bankruptcy (Chapter 7, 11 etc.) remain on your credit file for 10 years. Chapter 11 ~ the reorganization where you pay back some or all of your creditors is 7 years.
The creditors have no say or control how long public record (bankruptcy, civil judgments, etc.) remain on your credit report. That is set by statute.
The creditors have no say or control how long public record (bankruptcy, civil judgments, etc.) remain on your credit report. That is set by statute.
https://consumerfed.org/wp-content/uploads/2003/06/6-12-03-Your-Credit-Score.pdf
Good explanation of credit scores from the Consumer Federation of America.
=============================
Home | Credit Score Quiz
Take their credit score quiz.
Good explanation of credit scores from the Consumer Federation of America.
=============================
Home | Credit Score Quiz
Take their credit score quiz.
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Jon651
Member
You are probably thinking of Chapter 13, not 11. Regardless, if filing for Chapter 7 the items can remain on your credit report for longer than7 years. Here's a link that gives a basic explanation: What Happens to a Debt After Seven Years?.
While the negative items will fall off your credit report after 7 years, with Chapter 7 the debt can still remain. Creditors, lenders and etc. may still be willing to pursue repayment and even though the original info is now off your report any NEW issues related to the old debt can be newly added and keep causing you problems - and starting a new seven year clock. That's what makes Chapter 7 so tricky.
Note - I am not a bankruptcy attorney nor do I play one on the internet. If anyone wants expert, valid advice concerning bankruptcy then this is NOT the place to be looking for it!
