Question about credit scores..

stop2think · 11-02-2012, 08:15 PM

Quote:

Originally Posted by lobsterhound

I would never finance toys (bikes, sleds, etc) however a work vehicle or a primary source of transportation makes sense to finance with rates as low as they are. With interest rates so low I could keep my own money working somewhere and making more than the small amount of interest on the banks money for the short term of the loan (3 years)

I never finance a vehicle more than 3 years. They way vehicles depreciate and wear out it only makes sense. After 5 years if the vehicle is used much at all your paying on a worn out piece of equipment. Basically a vehicle is the worst possible investment that everyone has to make.

Taking into account expense ratio/management fees and taxes you better be earning a guaranteed 5%+ to make financing the safer fiscal move overall. Not to mention the necessity of full coverage insurance; I quite enjoy paying less than $300/yr for car insurance.

Never financed a car, never will, but I realize I am far from the norm. Probably will put my next car on the AMEX though and earn a quick $500-750 rebate. Highly unlikely at this point in my life that I'll ever finance another thing, unless I get a wild hair and start doing some RE speculating again.

Nine76Chris · 12-03-2012, 08:57 PM

Update...Scores updated reflecting new accounts..865, 843, and 876.

Quote:

Originally Posted by Maxxym

That score is not a FICO score.. it's called FACO score. FACO scores have higher range. FICO score only goes to 850

If you want really accurate score, buy it from myfico.com

When I applied for my home loan they had to send me all 3 scores, by law, and they matched what I was seeing exactly.

jelizondo_20 · 12-03-2012, 09:01 PM

Quote:

Originally Posted by Nine76Chris

Mine is 3.75% fixed 30 year VA

I got 3.5% fixed 30 year VA.

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Nine76Chris · 12-03-2012, 09:03 PM

Quote:

Originally Posted by jelizondo_20

I got 3.5% fixed 30 year VA.

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jelizondo_20 · 12-03-2012, 09:08 PM

Worked hard for it. Now I'm sleeping in my newly built home!

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Raven1Actual · 12-30-2012, 09:19 PM

Quote:

Originally Posted by polakw/aR1

and dont be quick to pay shit off right away, do it, !

This didn't work for me. I'm trying to build up my credit score and got knocked 2 points for carrying a $100 balance on a $300 card. The payment is NOT EVEN DUE YET! myfico.com said, "carrying a balance is an indication that you might not be able to repay debt." WTF is that crap? haha And I was only following your advice. Never again.

stop2think · 12-30-2012, 09:39 PM

Quote:

Originally Posted by Raven1Actual

This didn't work for me. I'm trying to build up my credit score and got knocked 2 points for carrying a $100 balance on a $300 card. The payment is NOT EVEN DUE YET! myfico.com said, "carrying a balance is an indication that you might not be able to repay debt." WTF is that crap? haha And I was only following your advice. Never again.

You will get hit if someone does a hard pull on your credit mid-cycle and you have a balance, regardless of if your bill is due or not. Anything over about 770 FICO is pointless, increasing your score through playing the stupid game isn't going to get you better rates so stop worrying about it.

The people with the highest credit scores are generally those who don't need credit at all.

ALTON05R1 · 12-30-2012, 09:51 PM

Quote:

Originally Posted by Raven1Actual

This didn't work for me. I'm trying to build up my credit score and got knocked 2 points for carrying a $100 balance on a $300 card. The payment is NOT EVEN DUE YET! myfico.com said, "carrying a balance is an indication that you might not be able to repay debt." WTF is that crap? haha And I was only following your advice. Never again.

If you are going to keep a balance on your card it needs to be below 30% of your credit limit Ive heard 15-20% is ideal for those that like to keep a balance on it.

Unlucky · 12-30-2012, 09:58 PM

I thank y'all for words of wisdom. I'm 26 and trying to get a house for me and the girl. Got a 3.2 apr. refinanced my truck twice in 5 years. Once to consolidate and once to move banks. Vehicle depreciation also depends on what the vehicle is.. In 5 years only lost 3grand on truck. 10 years old and still valued around 15-16

Raven1Actual · 12-30-2012, 10:01 PM

Quote:

Originally Posted by stop2think

You will get hit if someone does a hard pull on your credit mid-cycle and you have a balance, regardless of if your bill is due or not. Anything over about 770 FICO is pointless, increasing your score through playing the stupid game isn't going to get you better rates so stop worrying about it.

The people with the highest credit scores are generally those who don't need credit at all.

Thatd be all fine and dandy if my credit score was that high, but its not. Its more than 100 points less. Up until march of 2012 I paid everything strait cash, no cards ever. My mistake. So now I'm playing catch-up.

Raven1Actual · 12-30-2012, 10:02 PM

Quote:

Originally Posted by ALTON05R1

If you are going to keep a balance on your card it needs to be below 30% of your credit limit Ive heard 15-20% is ideal for those that like to keep a balance on it.

Thanks for the tip!

ALTON05R1 · 12-30-2012, 10:10 PM

Quote:

Originally Posted by Unlucky

I thank y'all for words of wisdom. I'm 26 and trying to get a house for me and the girl. Got a 3.2 apr. refinanced my truck twice in 5 years. Once to consolidate and once to move banks. Vehicle depreciation also depends on what the vehicle is.. In 5 years only lost 3grand on truck. 10 years old and still valued around 15-16

Im in your same age group. It seems like when we were growing up having a credit card and all that was bad. And I know the reason behind people saying that, but at the same time when people our age go to finance something for the first time its killing us having no credit history.

If you are serious about the house deal you should look into programs for first time home buyers. I went througth the USDA rural home buyer program, and ended up with a 3.75 fixed rate for 30 years, this was back in Sept and its gone down a ton since then. if you are lucky enought to find something throught the HUD program your could be looking at $100- $1000 down on a house.

ALTON05R1 · 12-30-2012, 10:11 PM

Quote:

Originally Posted by Raven1Actual

Thanks for the tip!

Not a problem Ive been trying to get my credit score up over the past year when I got my house so I know exactly what you are talking about lol

stop2think · 12-30-2012, 10:41 PM

Quote:

Originally Posted by Raven1Actual

Thatd be all fine and dandy if my credit score was that high, but its not. Its more than 100 points less. Up until march of 2012 I paid everything strait cash, no cards ever. My mistake. So now I'm playing catch-up.

Regardless of how high or low your score is, having a miniscule balance mid-cycle is going to have zero effect on your credit worthiness, especially in times (like now) where lenders are a bit more stringent. Playing the credit score game is pointless, the only thing that can improve your score right now is time. If you have all of 9 months of credit history, you have a good 5yrs until you have 770+ FICO regardless of what you do. There are no tricks that are going to magically hyperinflate your score. Constantly checking it and worrying about small deviations does you no good.

stop2think · 12-30-2012, 10:43 PM

Quote:

Originally Posted by ALTON05R1

If you are serious about the house deal you should look into programs for first time home buyers. I went througth the USDA rural home buyer program, and ended up with a 3.75 fixed rate for 30 years, this was back in Sept and its gone down a ton since then. if you are lucky enought to find something throught the HUD program your could be looking at $100- $1000 down on a house.

If the whole point of this is about getting a house, listen to this man. Tons of options for 1st time home buyers. None of the credit tricks are going to expedite the process.

Unlucky · 12-30-2012, 11:36 PM

Quote:

Originally Posted by ALTON05R1

Im in your same age group. It seems like when we were growing up having a credit card and all that was bad. And I know the reason behind people saying that, but at the same time when people our age go to finance something for the first time its killing us having no credit history.

If you are serious about the house deal you should look into programs for first time home buyers. I went througth the USDA rural home buyer program, and ended up with a 3.75 fixed rate for 30 years, this was back in Sept and its gone down a ton since then. if you are lucky enought to find something throught the HUD program your could be looking at $100- $1000 down on a house.

I'm actually going thru a USDA loan. That was just my pre approval. My lender said its gone down even more since. But the problem with USDA is you can only make so much per household ( my take on it might be wrong) and if I put my girls name on it too combined we make too much

Unlucky · 12-30-2012, 11:44 PM

And every house we look at is either slightly more than what I wanna pay or complete trash. I'm at a factory so trying to stay local-ish. And other problem is my girl just finished nursing school and is getting ready to take her boards so were not sure where she's gonna get a job yet. Trying to stay middle ground for both of us is becoming a pita.

ALTON05R1 · 12-31-2012, 01:55 AM

It took me about 5 months to find something. Most of the houses that were apart of the HUD were trashed and needed about 8k+ in repairs just to move in. I got lucky in getting a house that just needed paint on the inside (it had all the kitchen appliances), new paint cost me around 300 since I did it myself. Its definately a waiting and game to get the right one.

If you still want to stay under the USDA I would buy the house under your name, and just add hers to the deed after you get it

Unlucky · 12-31-2012, 03:58 AM

Quote:

Originally Posted by ALTON05R1

If you still want to stay under the USDA I would buy the house under your name, and just add hers to the deed after you get it

Or just never put her on it at all

fjorn · 12-31-2012, 05:16 AM

Quote:

Originally Posted by stop2think

This is actually one of the most important things for maintaining your score: even if you do not ever use it, do not close credit accounts where you have a long history. If you've had an AMEX for 15yrs but never use it, DO NOT CANCEL IT.

I've done this over the years, and there's a number of different opinions on it. If the person closes them, with the account in good standing, it's not a negative hit like most people think. You might drop a point or two. But, not enough to worry about. I would rather eliminate the potential of revolving credit than the miniscule negative impact on a FICO score. Now, if you have a large debt:credit ratio, then you wouldn't want to close it until you have your overall ratio low.

Quote:

Originally Posted by stop2think

Regardless of how high or low your score is, having a miniscule balance mid-cycle is going to have zero effect on your credit worthiness, especially in times (like now) where lenders are a bit more stringent. Playing the credit score game is pointless, the only thing that can improve your score right now is time. If you have all of 9 months of credit history, you have a good 5yrs until you have 770+ FICO regardless of what you do. There are no tricks that are going to magically hyperinflate your score. Constantly checking it and worrying about small deviations does you no good.

I'm at the point now where I don't really care about the credit game anymore. All of my credit cards are closed, and I'm making payments on the last one. I have no desire to buy a home, nor take a loan on a car. Same with financing anything. I'm paying off my debts and putting money away. Screw the FICO and credit score games. My goal is to pay cash for everything from now on.