New credit rating agency

[Texashiker]

New credit rating agency trying to score people who have not used credit in the past 6 months.

Rather than looking at credit usage they may try to use stuff like utility bills.

http://money.cnn.com/2013/08/14/pf/credit-scores/index.html?iid=HP_River

Is there a way to stop credit agencies from rating you? Maybe send them a cease and desist order?

 

[WilliamM2]

Why would you want them to stop? But your article seems to suggest if you don't use any credit, eventually they will have no score.

 

[OCGuy]

Vantagescore has been pushed and pushed and I just don't see it being largely adopted.

If you have ever used credit, you have consented to your history being reported to all or some of the bureaus.

If you don't want to use credit for anything, it really doesn't matter what your score or lack of score is.

But yes, please issue them a cease and desist order...seeing as how the only time you are "rated" is when you consent to have your credit ran, or a current creditor is reviewing your profile. Haha.

 

[dud]

Glad to say that I have had no need for credit since 2004 and therefore care not hat my score is.

 

[OCGuy]

Glad to say that I have had no need for credit since 2004 and therefore care not hat my score is.

And there you go. As long as you never need it, it really doesn't matter.

Most people do use credit to obtain housing, transport, emergency funds. But if you can get by without it, it is meaningless.

 

[MrDudeMan]

It's actually kind of stupid to avoid credit if you are responsible enough to handle it. I've never paid a penny to any credit card company, but they pay me large amounts of money every year. I have to spend money anyway, I never carry a balance, and I automatically get 3% off of everything I buy. Maybe you guys like to pay more... I don't know.

I stick to my budget religiously, so the argument that I'd be spending less if I used cash doesn't work.

 

[halik]

Being scared of credit is a telltale sign of being poor...

 

[Texashiker]

Being scared of credit is a telltale sign of being poor...

Who said anything about being scared of credit?

 

[Rakehellion]

Being scared of credit is a telltale sign of being poor...

That's a pretty stupid thing to say. Rich people are often unable to repay their debts as well.

 

[dullard]

Glad to say that I have had no need for credit since 2004 and therefore care not hat my score is.

Credit scores may affect your insurance rates, ability to get certain jobs, or ability to get certain forms of housing. Also, without credit doing things like renting a car is a PITA.

I suspect that you had plenty of need for good credit scores and you didn't even know it. Enjoy missing out on things or paying more for things.

Credit is NEVER a bad thing. It means companies are willing to bend over backwards for you. Abusing credit is where life goes sour.

 

[JMapleton]

Being scared of credit is a telltale sign of being poor...

In all honesty, it is true that poor and uneducated people are more likely to avoid credit because either they don't understand it or cannot handle the responsibility.

If you have self control, credit is very profitable.

 

[waggy]

Being scared of credit is a telltale sign of being poor...

I disagree. Of the people i know with poor credit they are the ones that make the most money.

 

[JMapleton]

I disagree. Of the people i know with poor credit they are the ones that make the most money.

You must not know anyone with money. How do these people get loans for houses or cars? Or because of their poor credit they just live far below their means and pay cash for everything?

Also, why is their credit poor? Do they not pay their bills on time?

 

[Texashiker]

Or because of their poor credit they just live far below their means and pay cash for everything?

Its called living within your means.

I pay cash because I choose to be debt free.

 

[Mixolydian]

Its called living within your means.

I pay cash because I choose to be debt free.

You can have credit cards and never be in debt. It's called common sense and responsibility.

 

[bignateyk]

Its called living within your means.

I pay cash because I choose to be debt free.

You can use a credit card and be debt free. And make money in the process.

In the last 5 years I've gotten enough rewards for 4 round trip tickets to Europe, 2 round trip tickets to Hawaii, and 2 round trip tickets to florida.

Kind of stupid to use cash to buy something when you can use a card and get it for less.

 

[holden j caufield]

It's actually kind of stupid to avoid credit if you are responsible enough to handle it. I've never paid a penny to any credit card company, but they pay me large amounts of money every year. I have to spend money anyway, I never carry a balance, and I automatically get 3% off of everything I buy. Maybe you guys like to pay more... I don't know.

I stick to my budget religiously, so the argument that I'd be spending less if I used cash doesn't work.

what card gives you 3% back on everything?

 

[halik]

Its called living within your means.

I pay cash because I choose to be debt free.

Reiterating my previous statement. Implying that credit has anything to do with living within your means puts you in the aforementioned category.

My car is financed at 1.99%, mortgage at 3.2% (after tax benefits). My FI portfolio yields some 5.5% to maturity. Immediately money yields me ~1% on amex savings, creditcard gets 1% cash back.

 

[Texashiker]

Kind of stupid to use cash to buy something when you can use a card and get it for less.

Not stupid, just a moral choice to live my life a certain way.

In the last 5 years I've gotten enough rewards for 4 round trip tickets to Europe, 2 round trip tickets to Hawaii, and 2 round trip tickets to florida.

Who do you think paid for those trips?

 

[halik]

Not stupid, just a moral choice to live my life a certain way.



Who do you think paid for those trips?

Merchants? Amex charges around 5% of the dollar amount merchants run though. If anything you're getting shafted, as merchants will surely pass that cost onto customers and most places don't do cash discount (other than gas stations)

 

[bignateyk]

Not stupid, just a moral choice to live my life a certain way.



Who do you think paid for those trips?

People like you who don't take advantage of the rewards, but pay a higher cost for goods to compensate for people like myself getting said rewards? :biggrin:

Thanks for the free flights.

 

[WilliamM2]

Not stupid, just a moral choice to live my life a certain way.

What does using a credit card have to do with morals? Is convenience a sin?

 

[NikolaeVarius]

What does using a credit card have to do with morals? Is convenience a sin?

Apparently. People don't realize there is no difference between using a card or cash for everyday purchases.

Well except with a card there is more security because you're not carrying cash on you, a good credit score helps lower loan rates if you ever need one, easy to access emergency money, being less of a pain in the ass to use, and rewards cards. I must have gotten like 3,000 dollars of completely free shit over the years including plane tickets, concert tickets, and a few video games and never paid a single cent in fees or interest.

Its laughable to think that convenience is now a matter of morality.

 

[Patranus]

Don't really have an issue with credit rating agencies in general.

Have a huge issue with credit rating agencies selling identity protection.

 

[OCGuy]

This is why they need to teach people about credit in high school. Ignorance abound in the OP.