Don't obsess over your credit score

[DrPizza]

http://consumerist.com/2010/09/dont-obsess-about-your-credit-score.html

I've read a lot of stores lately about "credit score enthusiasts" who want to get the perfect credit score or are obsessed with improving their score. While it's certainly better than not caring about your credit score at all, it almost never pays to get a perfect score.
Despite all the stories about the odd ways your score is being used, the reality is that once you have a good credit score, you don't need to obsess about it.
Consider this - if your score is better than 760, then Fair Isaac Corporation, the company that invested the credit score formula; says you get zero benefit from improving it. For mortgage interest rate purposes, a 761 is the same as an 850. For auto loans, the bar is even lower. If you have a score about 720, it's the same as having a perfect score of 850. Visit their site and look in the right hand column - there's a table listing FICO scores and APRs for 30-year fixed mortgages, 15-year fixed mortgages, and 36-month auto loans.
If you are planning on getting a loan in the next year or two and your score is close to the next tier, by all means try to improve it. If you aren't planning on getting a loan and you have a decent score, focus your energies on something else. I assure you that you will get a better return doing something other than obsessing about your credit score.

After seeing yet another credit score thread, I thought this article was worth reading.

 

[JEDI]

but i'm 1 point away from the mythical 850 fico!!!!

must.reach.holy.grail!

 

[Key West]

I don't obsess over it. It's been somewhere between 790 and 820 for the longest time.

 

[Schfifty Five]

http://consumerist.com/2010/09/dont-obsess-about-your-credit-score.html

I've read a lot of stores lately about "credit score enthusiasts" who want to get the perfect credit score or are obsessed with improving their score. While it's certainly better than not caring about your credit score at all, it almost never pays to get a perfect score.
Despite all the stories about the odd ways your score is being used, the reality is that once you have a good credit score, you don't need to obsess about it.
Consider this - if your score is better than 760, then Fair Isaac Corporation, the company that invested the credit score formula; says you get zero benefit from improving it. For mortgage interest rate purposes, a 761 is the same as an 850. For auto loans, the bar is even lower. If you have a score about 720, it's the same as having a perfect score of 850. Visit their site and look in the right hand column - there's a table listing FICO scores and APRs for 30-year fixed mortgages, 15-year fixed mortgages, and 36-month auto loans.
If you are planning on getting a loan in the next year or two and your score is close to the next tier, by all means try to improve it. If you aren't planning on getting a loan and you have a decent score, focus your energies on something else. I assure you that you will get a better return doing something other than obsessing about your credit score.

After seeing yet another credit score thread, I thought this article was worth reading.

Invested? Or did they mean invented?

 

[Exterous]

Pfft - How am I supposed to compete in an ATOT Credit Score e-peen thread if I don't obsess about this?

 

[Terabyte]

The only time you really need to make sure your credit score is high is when you're applying for a loan (for a house, car, and etc).

 

[gorcorps]

There's enough spelling errors in that article for me to not entirely trust them. I agree, but they really need to proof read.

Credit score is just basically real life achievement points or xp at a certain point. People want the number to go higher, even though there's no benefit anymore.

 

[drum]

mine was a blip over 800 when I bought my truck but was a blip below when my wife and I bought our house don't know know how that happened but at this point...
shouldn't be needing to find out what it is for many many years hopefully

 

[Svnla]

If you are over 800 FICO, you are in the "A" range and you will get the best rates/offers from CC companies/banks.

Just continue what you are doing and don't do anything stupid (paying late, too much utilization, etc.), then you will be just fine.

<<--- low 800s score ()

 

[mb]

I use Alliant CU and they give me my credit score every three months otherwise I'd probably never care enough to know.
But it is nice knowing I'm in the 800s


Edit: I think they do it differently. Ah yep:
The credit score displayed on Alliant online banking is the Advanced Risk Score 2.0 provided by Experian with scores ranging from a low of 150 to a high of 950. Since it is a next generation scoring model, the Advanced Risk Score 2.0 differs from Classic FICO scores available to consumers through the myFICO website.

Credit Score Date
865 December 2009
865 March 2010
875 June 2010

I already own a house and car so it doesn't matter much but it's still nice to know.

 

[Engineer]

I don't give a shit because I don't owe anyone and am not looking to borrow any money. I check the report from time to time to keep other peoples shit off of it. Had a bad run around a few years ago with people trying to collect money from me because my name was similar to the person who owed the money. Other than that, I don't care.

 

[dullard]

The only time you really need to make sure your credit score is high is when you're applying for a loan (for a house, car, and etc).

Or applying for a job (many employers now look, especially if your job involves managing company money).

Or applying for an apartment (sometimes they look at your score).

Or renewing/applying for insurance (in many states the price is directly related to your credit score).

I agree with DrPizza, that ATOT tends to obsess too much over the credit score. But to ignore it and think it only matters when you are applying for a loan is being pretty stupid too.

 

[Malak]

Don't obsess over your score, because it won't matter anyway. It's all going to burn. Everyone knows this.

 

[D1gger]

I have pulled my credit report/fico score about once a year just to make sure there are no shenanigans going on. Last week, my wife decided she wanted hers. She hasn't worked out of the home for about 20 years while raising our kids, and her only source of income is from investing. I was a little suprised when her score came out 10 points higher than mine. We both have very good credit, but this did suprise me.

 

[dullard]

I have pulled my credit report/fico score about once a year just to make sure there are no shenanigans going on. Last week, my wife decided she wanted hers. She hasn't worked out of the home for about 20 years while raising our kids, and her only source of income is from investing. I was a little suprised when her score came out 10 points higher than mine. We both have very good credit, but this did suprise me.

The credit report doesn't say how much money you or your wife earn. Thus the scores can't incorporate that information. To me, that is the biggest problem with the score itself. It only summarizes half of the relevant information. And 10 points is absolutely meaningless. You probably swing lots more than 10 points depending on the day you got your score.

 

[IronWing]

I've never checked my credit score. I've checked my credit reports of course but I don't see the point in paying to see the score.

 

[rudeguy]

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.

 

[IronWing]

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.

When I was in college Sears, Penneys, and a few other stores would give away stuff or offer good discounts if one applied for their store credit cards. I would fill out the applications stating no income (which was almost true), and everything else negative I could think of. I'd get the free stuff and then get declined on the CC. Life was good. Then Penneys approved my application and the gravy train sank.

 

[aceO07]

When I was looking into apartments last month, one property management company was only taking applicants with credit score of 725 or higher. The realty company for those properties didn't even want to talk to me unless I had at least a score of 750.

 

[blinblue]

I never understood why organizations that deal with things other than debt care so much about credit score. The only thing your credit score measures is your interaction with debt. If you are good at taking on, and paying off debt, your score will increase. It has nothing to do with how much you make a year, how much you have in savings, or anything like that.
So it seems really silly to me that a place like an apartment (as in the post above me) requires a certain score.
I can understand perhaps having your score be part of the application process (if you have a truly awful score, it is likely a sign of financial idiocy. But a good score is by no means a sign of financial security whatsoever), but to have a hard limit is crazy.

I have no idea what my credit score is, and honestly I couldn't care less. I won't be taking out any loans (except perhaps a mortgage, but if I do, it would be with a plan to get it paid off in less than 5 years), and any place that has some silly requirements for a credit score (say an apartment) won't be getting my business.
Of course I do check my credit report periodically to make sure there isn't anything on there that isn't correct.

Just remember people, your credit score is by no means an indication that you are doing well with money

 

[SandEagle]

my score is right around 600 and I just managed to get a 3.8&#37; 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

 

[rcpratt]

I checked a few months ago and I think it was 780 or so. Not bad considering I just graduated...I think the issue was that I don't have enough credit.

 

[dullard]

So it seems really silly to me that a place like an apartment (as in the post above me) requires a certain score.

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.

 

[Engineer]

I checked a few months ago and I think it was 780 or so. Not bad considering I just graduated...I think the issue was that I don't have enough credit.

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.

 

[AznAnarchy99]

Costco still wont give me their American Express credit card.. I guess im high risk since I only have 1 year of history.