Don't obsess over your credit score

[blinblue]

A credit score tells a business if you pay your debt and if you pay it on time. What is an apartment manager's biggest problem? People not paying their debt (that month's rent) on time. It seems quite reasonable for them to want their customers to pay their rent on time. Plus, it means that they are more likely to be able to sucessfully sue for damages if you create a problem.

Plus, I bet for some landlords the credit score is a legal way to discriminate.

I had more of a problem on having this cutoff that the person above me described (725 in that case). As a landlord, which would you rather have: Person A with a 790 credit score, but no job and little savings. Or Person B with a 650 credit score due to some debt problem 3 years ago, but has had a steady high paying job since.

The point I'm trying to make is there seems to me a mentality that you credit score is some great indicator of how you are doing with money (or life in general), when it really isn't. It might provide some insight, but without some context it is pretty worthless.

 

[IronWing]

I wonder if neffing affects your credit score?

 

[AznAnarchy99]

I had more of a problem on having this cutoff that the person above me described (725 in that case). As a landlord, which would you rather have: Person A with a 790 credit score, but no job and little savings. Or Person B with a 650 credit score due to some debt problem 3 years ago, but has had a steady high paying job since.

The point I'm trying to make is there seems to me a mentality that you credit score is some great indicator of how you are doing with money (or life in general), when it really isn't. It might provide some insight, but without some context it is pretty worthless.

Well when I apply for credit cards they also ask for income, job (and number to job), and how much you have in your accounts. Anyone know if they actually check that?

 

[Zebo]

I keep my credit terrible. That way I never have to worry about having my identity stolen. The worst that might happen is they could make it better. Also, I don't have to worry about being approved for a loan or credit card.

Life is much simpler this way.

Credit is king these days. They effect:
Insurance rates
Bonding rates
SBA loans
Car loans
Home loans
Interest rates on all
Some employers require good credit such as any govt job with security clearance, and banking job, etc.

Not to smart.

 

[Eli]

I had more of a problem on having this cutoff that the person above me described (725 in that case). As a landlord, which would you rather have: Person A with a 790 credit score, but no job and little savings. Or Person B with a 650 credit score due to some debt problem 3 years ago, but has had a steady high paying job since.

The point I'm trying to make is there seems to me a mentality that you credit score is some great indicator of how you are doing with money (or life in general), when it really isn't. It might provide some insight, but without some context it is pretty worthless.

Yeah, I agree. I had perfect credit until I lost my job in 2008. Never missed a single payment from my first CC in 2001 until late 2008.

But now my credit is in the shitter, and will remain there for the next 5-7 years until all the charge-offs drop off, even though they have been paid.

I'm trying to build my credit as much as possible in the next year before we buy a house, but it still isn't going to be spectacular. We're hoping to show that we're credit worthy by having a large chunk of change in the bank, and essentially asking for some personal attention so they can take our story and history into account, rather than just label us based on credit score alone. Shit happens, after all. How well this will work, or whether it will even be possible remains to be seen though I guess.

 

[Svnla]

my score is right around 600 and I just managed to get a 3.8% mortgage, 3.9% on a vehicle, etc. I'm broke and in debt but still manage to do better than those with over 720 haha

Something is wrong with your post.

600 FICO is very bad. How did you get 3.8% mortgage? The best right now is in the low 4.xx% plus point for 30 years.

You can get 0% up to 60 months if you have good credit score for car loan.

 

[rudeguy]

Credit is king these days. They effect:
Insurance rates
Bonding rates
SBA loans
Car loans
Home loans
Interest rates on all
Some employers require good credit such as any govt job with security clearance, and banking job, etc.

Not to smart.

Sarcasm meter in the shop?

 

[Mermaidman]

To each his own. Some people spend countless hours trying to achieve Level 99 warrior-mage; some people hypermile to improve their car's MPG by 0.1. So I presume that there are people who try to achieve perfect FICO as a hobby.

 

[kranky]

Last time I checked (about 4 years ago), my score was 690 (yes, 690). I had paid off my mortgage and both car loans. Owed a few thousand on zero % credit cards but that was peanuts compared to my bank account of the time (they don't take that into account). I bet I owed less than 90% of the population (if not more) yet my score was shitty. I did take a look a month or so ago when SlickDeals had a FREE MYFICO score. Was 780 now. Doing nothing different than before.

If you paid off (or nearly paid off) those zero % credit cards since your score was 690, that would explain your jump to 780.

 

[Zebo]

Sarcasm meter in the shop?

Sometimes my posts are for all not quoted. We got kids here you know....no reason to fuck up on some flippant advice. And worse we got anti FED types who think they can live off the grid...go to P&N.

 

[aceO07]

I had more of a problem on having this cutoff that the person above me described (725 in that case). As a landlord, which would you rather have: Person A with a 790 credit score, but no job and little savings. Or Person B with a 650 credit score due to some debt problem 3 years ago, but has had a steady high paying job since.

The point I'm trying to make is there seems to me a mentality that you credit score is some great indicator of how you are doing with money (or life in general), when it really isn't. It might provide some insight, but without some context it is pretty worthless.

Related to my apartment example, they also wanted bank info, bank statements, W2, recent pay stubs.. basically everything. Also required salary of 45 x rent.

The apartment is still available since I wasn't interested in $200 processing fee that didn't even guarantee anything and on top of that also a 1 month broker's fee.

 

[MagickMan]

I sit around 720ish, it could be better but I don't have any debt right now.

 

[DrPizza]

Something is wrong with your post.

600 FICO is very bad. How did you get 3.8% mortgage? The best right now is in the low 4.xx% plus point for 30 years.

You can get 0% up to 60 months if you have good credit score for car loan.

A lot of variable rate mortgages are in the 3. range. Ours just dropped down close to 3% a couple weeks ago.

 

[Svnla]

A lot of variable rate mortgages are in the 3. range. Ours just dropped down close to 3% a couple weeks ago.

Oh, ARM. Got it. I don't think he could get that such low rate on regular 30- years term.

I still don't get it how he got 3.9% for car loan (60 months or less) with low 600s FICO. Maybe local CU?

 

[jlee]

The required score to get the best auto loan from my CU was 760..FWIW.