The score makes sense, but is also rather abused in this country, helped along (in no small part) by banking institutions that really reeeeeeaaallly want folks using credit cards for everything.
Example: Your credit rating affecting your ability to rent an apartment.
"Look around you. We're all liars here, and every one of us is better than you" - PB
Credit score is used so frequently because it is the only metric for measuring financial responsibility.
Last edited by yurano; 2013-02-12 at 03:54 AM.
Yes a lot of things are being based on the amount of things you pay for with your card. They're always encouraging people to pay using credit regardless of just shopping around the local Walmart or online.
Last edited by moremana; 2013-02-12 at 04:28 AM.
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Sounds like you need to sit down with the credit manager at your bank and find out what's going on?
For the car is it possible to get a loan from a friend or family member?
Just curious, I am new to the world of credit so I'm not too familiar with the whole system.
My first car was a $6000 loan, was supposed to be a 4-year loan. I had it down to $2500 in under a year, which means I was paying WAY more than I was supposed to. I got in a car accident, gap insurance covered the rest of it, and I took out a new loan for a new car.
This car was a $7700 loan, and I payed it off in roughly a year and a half.
I haven't taken a loan out since, and it has been roughly three years. I have never owned and never will own a credit card under any circumstance. Will my credit score be okay? I'm going to be looking for my first apartment soon, and I'm kind of worried about it, since most decent places want history of your credit score.
My bank wont tell me what it is and I really don't feel like going through the trouble of figuring it out on my own for simple curiosity. (Basically, if my credit score isn't "good" I'll be screwed whether I know what it is or not).
If your credit is good, you should get a credit card. Make small purchases with it, make your payments on time (always more than minimum unless you intentionally want to rack up interest), and you'll be fine.
Most important thing, besides making your payments on time, is to have a decent "revolving balance," which basically means - you have multiple sources that indicate you are a reliable person.
Those scores aren't stopping you from getting credit.
BTW, your score goes down a little bit every time there's an inquiry because that could be a new line of credit you just incurred and it hasn't had time to show up on your report yet.
dont people with scores in the 400's to low 500's usually enter what i've heard referred to as credit hell? where you can't get a loan for anything? or is that just for the low 400's?
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Last edited by Zafire; 2013-02-12 at 06:54 AM.
Oh you silly americans, why do you make things so complicated.
Don't say that the your credit system is dumb. Banks giving loans to people with a low score is a major reason for the crisis of 2008. Credit dealers even went as far as to forge credit scores, just to get their customers a loan in order to collect premiums. If the bank tells you that you shouldn't get a loan, you probably shouldn't.
Also, if you want to buy a car, don't go for a bank loan. Bank loans are usually higher than what the dealer has to offer you. Just don't go to shady dealers. Go to the official VW/Ford/BMW/Hyundai whatever dealer and talk to someone there.
Last edited by StayTuned; 2013-02-12 at 10:04 AM.
Don't loan anything or use a Credit Card ever, get stable job, profit.
Guessing you're in the amazingly free USA?
What kind of job do you have to have to buy your own house without a loan?
You only have to make sure that the loan has fixed interest rates, so nobody can fuck you over by selling your loan to someone who's going to raise your rates AND you have to make sure that you are going to pay it off by having a stable job. Don't take loans if you know your boss hates you.