Credit Score, How stupid.

[Rocko9]

Also false. It only goes down if you fail to make a payment as agreed or incur too many hard inquiries for non-quality (mortgage or auto) debt.

I believe that your score can also go down if you don't use it for a long period of time.

They want a history of making payments on time, mostly.

[melodramocracy]

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.

[yurano]

Example: Your credit rating affecting your ability to rent an apartment.

If you were an owner of an apartment complex, wouldn't you rather rent out to someone who makes good on their credit card payments? Due to the laws protecting the tenant, eviction is an arduous and expensive process.

Credit score is used so frequently because it is the only metric for measuring financial responsibility.

[luckieststrike]

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.

[moremana]

Well im currently not applying for a loan, Were trying to get my Fiance a new car, and my debt to income ratio is perfect. And my income isnt whats holding us back at all, We just dont understand how stupid the system is.

And tell me about it, Ive had atleast one credit score hover around 800 for about a year and a half now...and still. Im getting screwed

I don't know where your trying to buy a car, my CS is 732 and I just bought a 2013 F150, no money down 1.9% interest through Ford Credit

OT, I do agree the CS system is retarded, If your paying your bills on time, and your dept ratio is good...that's all they need.

[Raegwyn]

I mean my point is, I dont understand if I get it checked to let say open a credit card, Why in the hell of hell does it go down? Please tell me

to make sure people dont run to 100 different places till they finally get accepted to open one i guess.
well its kinda stupid though im happy 90% of people in my country dont even have a credit card

[Skippy88]

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?

[yurano]

to make sure people dont run to 100 different places till they finally get accepted to open one i guess.
well its kinda stupid though im happy 90% of people in my country dont even have a credit card

And its probably impossible to get a loan without collateral in your country. There's a upside and downside to everything.

[PizzaSHARK]

O.O

Can I borrow your credit mojo?

Actually I have no idea what mine is. *cough*

Mine's in the upper 400's and lower 500's ;_;

And yeah, if you have a credit score in the upper 700's or higher, it ain't yer credit score that's preventing you from gettin a loan.

[Zafire]

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).

[PizzaSHARK]

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).

Well, if you've been making payments on time and don't have many late/missed payments, you should be alright. Keep in mind that paying utilities, cell phone bills (if they're under contract, which most major providers require you to sign), and all that kind of stuff will reflect positively or negatively on your credit as well.

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.

[ScottsdaleHokie]

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.

[breadisfunny]

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?

[Forsedar]

I never knew my credit score until I applied for an apartment and they did a background/screening.

I guess I'm at 747. I'm a bit surprised considering I'm only 21.

[Zafire]

Well, if you've been making payments on time and don't have many late/missed payments, you should be alright. Keep in mind that paying utilities, cell phone bills (if they're under contract, which most major providers require you to sign), and all that kind of stuff will reflect positively or negatively on your credit as well.

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.

Nope, I use a TracFone. I only use it for texting and short calls. I generally only need to put minutes on it once every 4-5 months, which is only like $80 for 1300. (A text requires 0.30)

I really don't like bills. I try to avoid them whenever possible.

[PizzaSHARK]

Nope, I use a TracFone. I only use it for texting and short calls. I generally only need to put minutes on it once every 4-5 months, which is only like $80 for 1300. (A text requires 0.30)

I really don't like bills. I try to avoid them whenever possible.

Yup, but they don't care about people being financially responsible. Hence why the system's kinda dumb. I fucked up my credit and I've completely sworn off of any kind of spending that isn't done in cash or check, but being financially responsible doesn't improve my credit score

[Wikko]

Oh you silly americans, why do you make things so complicated.

[StayTuned]

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.

[Deleted]

Don't loan anything or use a Credit Card ever, get stable job, profit.
Guessing you're in the amazingly free USA?

[StayTuned]

Don't loan anything or use a Credit Card ever, get stable job, profit.
Guessing you're in the amazingly free USA?

Please, stop giving the OP false information. Loans are awesome if handled correctly.

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.