I finally have a credit score
Nov 29th 2005, 12:26 pm
#16
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Re: I finally have a credit score
Originally Posted by Angry White Pyjamas
I think what he means is that a lot of lenders want to see 3 years or more of 3 or more revolving credit lines managed well before they will give you the good stuff in terms of credit cards, etc.
The other thing is a short credit history means that your score will ding more from things like credit checks than would a longer history.
So although an average FICO (700+) will mean lenders will be interested enough in you to not just ignore you completely you wouldnt get the real juicy stuff for another couple of years.
The other thing is a short credit history means that your score will ding more from things like credit checks than would a longer history.
So although an average FICO (700+) will mean lenders will be interested enough in you to not just ignore you completely you wouldnt get the real juicy stuff for another couple of years.
What are the major items you need credit for in your life? A mortgage, a car loan, a few credit cards, possibly a HELOC or other personal loan... what am I missing? Could I have had better than prime rates on these things if I'd had this elusive perfect credit?
I think Americans in general, and this board in particular, are obsessed with appeasing Mammon and the Gods of Credit and have created a whole mythology about how their lives would be so much better if only their credit record was perfect.
Like most of you, we came here with no credit history, and we were pretty effective at building one quickly and easily. Within a year our score was 720+ and we had all the lines of credit we wanted, all at good rates. Since then, our score has hardly increased, mainly because we spend well over 50% on our credit card each month (but pay it all off), have the occasional hard hit on our credit score due to queries (but that's what it's for, isn't it?) and lack of long-term credit history... but why would we care? Sure, I'd like our score to stay "good", but I'm not going to structure my life around the search for a perfect 850.
AWP, before you announce that I'm picking a fight with you again, please consider that this is a genuine question: what aspects of my life would be better if I had better credit?
Nov 29th 2005, 2:18 pm
#17
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: I finally have a credit score
Originally Posted by dbj1000
Which makes sense... but what the **** is "the real juicy stuff"? You and SAS imply that there's a whole world of amazing credit offers out there reserved for those in the population with stellar credit scores maintained perfectly over a long period of time. Please give an example, because this all sounds like some kind of urban myth.
What are the major items you need credit for in your life? A mortgage, a car loan, a few credit cards, possibly a HELOC or other personal loan... what am I missing? Could I have had better than prime rates on these things if I'd had this elusive perfect credit?
Like most of you, we came here with no credit history, and we were pretty effective at building one quickly and easily. Within a year our score was 720+ and we had all the lines of credit we wanted, all at good rates. Since then, our score has hardly increased, mainly because we spend well over 50% on our credit card each month (but pay it all off), have the occasional hard hit on our credit score due to queries (but that's what it's for, isn't it?) and lack of long-term credit history... but why would we care? Sure, I'd like our score to stay "good", but I'm not going to structure my life around the search for a perfect 850.
what aspects of my life would be better if I had better credit?
What are the major items you need credit for in your life? A mortgage, a car loan, a few credit cards, possibly a HELOC or other personal loan... what am I missing? Could I have had better than prime rates on these things if I'd had this elusive perfect credit?
Like most of you, we came here with no credit history, and we were pretty effective at building one quickly and easily. Within a year our score was 720+ and we had all the lines of credit we wanted, all at good rates. Since then, our score has hardly increased, mainly because we spend well over 50% on our credit card each month (but pay it all off), have the occasional hard hit on our credit score due to queries (but that's what it's for, isn't it?) and lack of long-term credit history... but why would we care? Sure, I'd like our score to stay "good", but I'm not going to structure my life around the search for a perfect 850.
what aspects of my life would be better if I had better credit?
1. you would be in the driving seat with lenders
2. interest payments should be less leading to more disposable income and more ability to waste money on cheap chinese tat at walmart
Case in point - to get 4.25% on our mortgage, it had to be only in my wifes name. my score at the time was marginally below 700 and for me to be on it also would have cost an extra .5%
I also had a recent altercation with a mortgage company ini a transaction. despite putting 20% down and have just over 700 fico, they still said my credit was not quite good enough and I needed to put another 5% down
when it come to HELOCs - yes you can get better than prime - we now have prime minus 1.75% (i think), we were able to get this because of my wifes good credit
another example is AMEX - they used to advertise blue cash as having 'up to' 15 months interest free for balance transfers. despite having scores in the mid-700's, we only got 5 months interest free. I can only imagine thast the credit history/score is to blame
score is important but in just one factor. i've been refused 'prime' credit cards purely on the basis that my credit history was not long enough, despite having FICO 730+
Nov 29th 2005, 2:25 pm
#18
Back where I belong!
Joined: Aug 2005
Location: Melbourne, Oz to Banbury, England to El Mirage, AZ & now back to England!
Posts: 5,989
Re: I finally have a credit score
I suspect that it probably affects you the same way as if you were only employed for a short time. Hubby has excellent credit now, but was refused a loan by our bank because he had only been in his new job for a couple of months, even though it was a military bank & they knew he had just got out of 6 years in the service & had banked with them for years, had a loan with them which was paid back in full, with no late payments, you'd think they'd be a bit more lenient, but nooooooooo. 
Nov 29th 2005, 6:02 pm
#19
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Re: I finally have a credit score
Originally Posted by BritGuyTN
I suppose in answer to that question,
1. you would be in the driving seat with lenders
2. interest payments should be less leading to more disposable income and more ability to waste money on cheap chinese tat at walmart
Case in point - to get 4.25% on our mortgage, it had to be only in my wifes name. my score at the time was marginally below 700 and for me to be on it also would have cost an extra .5%
I also had a recent altercation with a mortgage company ini a transaction. despite putting 20% down and have just over 700 fico, they still said my credit was not quite good enough and I needed to put another 5% down
when it come to HELOCs - yes you can get better than prime - we now have prime minus 1.75% (i think), we were able to get this because of my wifes good credit
another example is AMEX - they used to advertise blue cash as having 'up to' 15 months interest free for balance transfers. despite having scores in the mid-700's, we only got 5 months interest free. I can only imagine thast the credit history/score is to blame
score is important but in just one factor. i've been refused 'prime' credit cards purely on the basis that my credit history was not long enough, despite having FICO 730+
1. you would be in the driving seat with lenders
2. interest payments should be less leading to more disposable income and more ability to waste money on cheap chinese tat at walmart
Case in point - to get 4.25% on our mortgage, it had to be only in my wifes name. my score at the time was marginally below 700 and for me to be on it also would have cost an extra .5%
I also had a recent altercation with a mortgage company ini a transaction. despite putting 20% down and have just over 700 fico, they still said my credit was not quite good enough and I needed to put another 5% down
when it come to HELOCs - yes you can get better than prime - we now have prime minus 1.75% (i think), we were able to get this because of my wifes good credit
another example is AMEX - they used to advertise blue cash as having 'up to' 15 months interest free for balance transfers. despite having scores in the mid-700's, we only got 5 months interest free. I can only imagine thast the credit history/score is to blame
score is important but in just one factor. i've been refused 'prime' credit cards purely on the basis that my credit history was not long enough, despite having FICO 730+
I think I can live without most of this "juicy stuff", but it's good to know that I can aspire to all that extra Chinese tat at Walmart if I'm a good boy and sacrifice regularly to the Credit Gods!
Nov 29th 2005, 6:54 pm
#20
Account Closed
Joined: Sep 2005
Posts: 8,271
Re: I finally have a credit score
Originally Posted by dbj1000
Which makes sense... but what the **** is "the real juicy stuff"? You and SAS imply that there's a whole world of amazing credit offers out there reserved for those in the population with stellar credit scores maintained perfectly over a long period of time. Please give an example, because this all sounds like some kind of urban myth.
What are the major items you need credit for in your life? A mortgage, a car loan, a few credit cards, possibly a HELOC or other personal loan... what am I missing? Could I have had better than prime rates on these things if I'd had this elusive perfect credit?
I think Americans in general, and this board in particular, are obsessed with appeasing Mammon and the Gods of Credit and have created a whole mythology about how their lives would be so much better if only their credit record was perfect.
Like most of you, we came here with no credit history, and we were pretty effective at building one quickly and easily. Within a year our score was 720+ and we had all the lines of credit we wanted, all at good rates. Since then, our score has hardly increased, mainly because we spend well over 50% on our credit card each month (but pay it all off), have the occasional hard hit on our credit score due to queries (but that's what it's for, isn't it?) and lack of long-term credit history... but why would we care? Sure, I'd like our score to stay "good", but I'm not going to structure my life around the search for a perfect 850.
AWP, before you announce that I'm picking a fight with you again, please consider that this is a genuine question: what aspects of my life would be better if I had better credit?
What are the major items you need credit for in your life? A mortgage, a car loan, a few credit cards, possibly a HELOC or other personal loan... what am I missing? Could I have had better than prime rates on these things if I'd had this elusive perfect credit?
I think Americans in general, and this board in particular, are obsessed with appeasing Mammon and the Gods of Credit and have created a whole mythology about how their lives would be so much better if only their credit record was perfect.
Like most of you, we came here with no credit history, and we were pretty effective at building one quickly and easily. Within a year our score was 720+ and we had all the lines of credit we wanted, all at good rates. Since then, our score has hardly increased, mainly because we spend well over 50% on our credit card each month (but pay it all off), have the occasional hard hit on our credit score due to queries (but that's what it's for, isn't it?) and lack of long-term credit history... but why would we care? Sure, I'd like our score to stay "good", but I'm not going to structure my life around the search for a perfect 850.
AWP, before you announce that I'm picking a fight with you again, please consider that this is a genuine question: what aspects of my life would be better if I had better credit?
Heres a quick example from a major player (Capital One).
Look at how they describe the requirements for each type of card and what represents excellent credit to them.
Note how the APRs range from around 20% for those who are "New to Credit" right down to under 6% for those with "Excellent Credit" along with other benefits.
http://www.capitalone.com/creditcard..._C1_03_T_CCOMP
Equally - believe it or not - if you require health care the cost to you canbe influenced by your credit score by considerable amounts.
If (like a number of expats) you are in the fortunate position of not actually needing credit then its not such a big deal. However to your average American who will need considerable credit during their life time its a very big deal indeed.
Last edited by Angry White Pyjamas; Nov 29th 2005 at 6:59 pm.
Nov 29th 2005, 8:34 pm
#21
BE Forum Addict
Joined: Nov 2004
Location: SC
Posts: 4,153
Re: I finally have a credit score
Fortunately it's not something I lose sleep over. Like lbj1000 I pay everything off before the end of the month. My credit is 800+. Every offer I get for another credit card goes straight into the shredder. The credit card is used as a safeguard only for the purchase. I am fortunate in a lot of ways and thank goodness that is one problem I do not have to load myself with.
Nov 29th 2005, 9:16 pm
#22
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Re: I finally have a credit score
Originally Posted by Angry White Pyjamas
Heres a quick example from a major player (Capital One).
Look at how they describe the requirements for each type of card and what represents excellent credit to them.
Note how the APRs range from around 20% for those who are "New to Credit" right down to under 6% for those with "Excellent Credit" along with other benefits.
http://www.capitalone.com/creditcard..._C1_03_T_CCOMP
Equally - believe it or not - if you require health care the cost to you canbe influenced by your credit score by considerable amounts.
If (like a number of expats) you are in the fortunate position of not actually needing credit then its not such a big deal. However to your average American who will need considerable credit during their life time its a very big deal indeed.
Look at how they describe the requirements for each type of card and what represents excellent credit to them.
Note how the APRs range from around 20% for those who are "New to Credit" right down to under 6% for those with "Excellent Credit" along with other benefits.
http://www.capitalone.com/creditcard..._C1_03_T_CCOMP
Equally - believe it or not - if you require health care the cost to you canbe influenced by your credit score by considerable amounts.
If (like a number of expats) you are in the fortunate position of not actually needing credit then its not such a big deal. However to your average American who will need considerable credit during their life time its a very big deal indeed.
What is apparent is that there's something of a Catch-22 going on here. If you "need" credit (e.g. if you keep maxing out your credit card, whether you pay it off in full or not) then your credit record suffers. If you don't need it, but have it, you can get more of it.
If the average credit score is in the low-700-range then the average American does not have "excellent" credit. Clearly there's a disparity between the ideal borrower according to the credit reporting agencies' algorithms and borrowers in the real world.
Nov 29th 2005, 9:39 pm
#23
Forum Regular
Joined: Nov 2005
Posts: 113
Re: I finally have a credit score
Originally Posted by dbj1000
Another excellent reply to my rant. Thanks.
What is apparent is that there's something of a Catch-22 going on here. If you "need" credit (e.g. if you keep maxing out your credit card, whether you pay it off in full or not) then your credit record suffers. If you don't need it, but have it, you can get more of it.
.
What is apparent is that there's something of a Catch-22 going on here. If you "need" credit (e.g. if you keep maxing out your credit card, whether you pay it off in full or not) then your credit record suffers. If you don't need it, but have it, you can get more of it.
.
Nov 29th 2005, 9:49 pm
#24
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Re: I finally have a credit score
Originally Posted by jamjar
Actually if you max your credit card out and then pay it off steadily over a period of time it will help your credit rating more than paying your card off in full every month. Don't forget lenders are in business to make money off you. If you pay your card off every month they're not making any money.
Nov 29th 2005, 10:00 pm
#25
BE Forum Addict
Joined: Oct 2004
Location: The Big Apple
Posts: 1,834
Re: I finally have a credit score
Originally Posted by dbj1000
I think you'll find that's a myth. I'm sure FatBrit or one of the other members who know more about credit will correct me if I'm wrong.
Certainly if you max it out then that will go against you. If you keep a balance then this isn't necessarily bad but wont help your credit score. It will help you with that company as they are making money from you - so they may offer you other products etc, but it doesn't necessarily make you desireable for other lenders. Thats pretty much the case on the UK side - i would imagine similar here - guys?
Nov 29th 2005, 10:01 pm
#26
Septicity
Joined: May 2004
Posts: 23,762
Re: I finally have a credit score
Originally Posted by jamjar
Actually if you max your credit card out and then pay it off steadily over a period of time it will help your credit rating more than paying your card off in full every month. Don't forget lenders are in business to make money off you. If you pay your card off every month they're not making any money.
Totally and absolutely
WRONG!
Nov 29th 2005, 10:36 pm
#27
Account Closed
Joined: Sep 2005
Posts: 8,271
Re: I finally have a credit score
Originally Posted by jamjar
Actually if you max your credit card out and then pay it off steadily over a period of time it will help your credit rating more than paying your card off in full every month. Don't forget lenders are in business to make money off you. If you pay your card off every month they're not making any money.
And djb1000 you are correct it is a catch 22. Its a slow and dull game you have to play but it does work. To be honest though, if you are reasonably well off and dont need credit to live (other than a mortgage) then anything over 700 is fine for stuff like utilities, medical insurance etc. Long term 700+ will just make it solid and less likely to take a hit.
Last edited by Angry White Pyjamas; Nov 29th 2005 at 10:38 pm.
Nov 29th 2005, 11:24 pm
#28
Arrogant ****
Joined: Jan 2004
Location: Plano, TX
Posts: 4,323
Re: I finally have a credit score
Originally Posted by fatbrit
Totally and absolutely
WRONG!
WRONG!
I knew you wouldn't fail me
Nov 29th 2005, 11:40 pm
#29
Septicity
Joined: May 2004
Posts: 23,762
Re: I finally have a credit score
Originally Posted by dbj1000
What, you mean JamJar is WRONG?
I knew you wouldn't fail me
I knew you wouldn't fail me
Yep -- was deliberately avoiding this thread but couldn't ignore that crap post.
Nov 29th 2005, 11:48 pm
#30
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: I finally have a credit score
Originally Posted by dbj1000
I think you'll find that's a myth. I'm sure FatBrit or one of the other members who know more about credit will correct me if I'm wrong.
I love the phrase - 'I think you'll find' it sounds so reasonable and so patronising at the same time!
Last time i used it on the wife, I got clouted!