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Do You Have Bad, Good or Excellent credit?
Posted by busylizzy • 4/10/09 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: banking, credit, financing, money, mortgage
I just finished researching credit and credit scores and wrote a post about it at pinstripedpjs.blogspot.com/2009/04/credit-scores-understanding-and.html#lin.... There is also advice. You can look if you want but it's not necessary for this thread.
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I was wondering if people know what affects their credit rating?
What are the repercutions of your credit score?
Has anyone taken action to improve their credit?
Any bad credit stories?
Here's mine-
I worked with a lady who bought whatever the heck she wanted. Hubby acted the same way, too. Many times they did not tell eachother about the purchases or amounts. They never wrote down the checks they wrote to keep watch on the balance. They just wrote checks with no regard to how money was in their account. Checks bounced often. They only sent in minimums on the credit purchases. They ended up having to file for bankruptcy.
Several years later they wanted to buy a house. They got a loan (for people with bad credit) at 19% interest. There was a $10,000 penalty for paying the loan off early. Several years later, they got approved for refinancing at a much lower rate with another bank but couldn't afford to pay the first bank the penalty money, so they stayed in their higher interest mortage. I estimate that for every dollar they borrowed they are probably going to pay back $10 in the long run. What a waste of money!!!!!!
User Comments
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I recommend to people who have credit issues to pay down their credit cards to 25% of their credit limit. In fact I only recommend having perhaps 2 cards at all.
In paying down the credit cards this far, I have seen credit scores shoot up 75 points in a matter of days.-
Staying under a certain ceiling (not the credit limit) is excellent advise!
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I had excellent credit, but after the identity theft, it's in the dumps. Other than (attempting to) straighten out the fraudulent debt, I've taken no other actions to improve my credit. At the moment, I refuse to take out any loans, or use any credit for the purpose of keeping my records clear in the event that more fraudulent debt comes to the surface.
However, things that negatively affect your credit score (in no particular order):
*Late payments
*loan defaults
*foreclosures/charged off debt/closed accounts
*too many open ended credit cards
*too few/no open ended credit cards
*too much debt vs income
*too little credit/debt history
*too many major inquiries to your credit score (mortgage companies or requested lines of credit - unsolicited inquiries tend not to affect your score)
*too many loans or cards with high interest rates on your report (indicates bad credit or repayment problems)
Things that positively affect your credit:
*Positive loan payment histories
*Positive credit card payment histories
*Having a few open ended credit cards that are below 50% of the credit line
*Paying off your credit card debt in full every month (IE, make small purchases that you can pay off every month, rather than using the accrued revolving minimum payment option)
That's all I can think of at the moment...
By the way - for people trying to fix their credit score...getting a high interest credit card isn't the best way to repair your credit. You can do it - but it is better to take out a small, personal loan and pay it on time every month. Even if you simply take the loan, stash the money, and use that money to pay the loan back as a tool to repair your credit, you will be better off than trying to use a credit card to do it. -
I don't even have credit any more. I twice tried secured credit cards till I saw banks abusing the custom by discussing my account with other parties. Upon learning of that, I shut down both accounts.
I had intended to use future credit references through alternate tradelines - utility bill payments. Unfortunately, as of this year, FHA no longer accepts alternate tradelines to determine credit.-
What was there to discuss about your account? Were they chit chatting about financial info? About your personal issues? I hope you complained to one of the head honchos, letting them know why you closed your accounts. Perhaps the culture/climate at that bank was a bit flippant about people's private info. You should have tried again with a new bank, perhaps meeting with an account manager or loan officer to discuss why you left the other bank.
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O I did! And I don't do business with either bank anymore. And I did discuss the experience with the next bank only to face much the same. Plus their telemarketing almost caused my boyfriend to kick me out! Not worth it.
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I have excellent credit, but I'm marrying someone with okay credit, which concerns me.-
TinaTina - You can keep separate accounts. There's nothing written in stone that says you have to have joint accounts. If you do go joint, just make sure you are in charge of the checkbook, credit cards, bills, and finances. Don't be afraid to have a discussion if money gets tight and you two need to slow down the spending.
BTW-my BFF's hubby squandered away their money and they are about to be evicted even tho they have an excellent income. She wishes she knew he was like this before the got hitched.
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I'm working on mine. A few years ago I signed up for ACCC which helped lower my monthly bills. It got to the point that when I paid twice the amount of the minimum due, the next month's balance was higher because of interest. My problem is I love going to school. There was a problem with getting student loans, something dealing with my name being spelled wrong at social security. Anyways, I put everything on my credit cards thinking once I got my Masters I'd be set. Man was I wrong! Anyways, ACCC has helped and I make sure I buy only that which I can afford right on the spot.-
You are very smart!!!!
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My credit is excellent and I do not have any debts of any forms. So happy spending over the easter since the interest rate is so low
Help the economy by reckless spending!-
You should invest in a nice, 2ft tall solid chocolate bunny!
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I had terrible credit in my twenties (reckless, irresponsible spending, late payments, skipped payments), but I now have turned it around.
It's now considered solidly "good", but it took me several years to bring my score up to its current level.-
I thought you where in your twenties :\.. Wait does that make you a cougar?
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Still Thinking - Good for you!!!
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I am barely out of my twenties... LOL!
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20 is excellent for a cat!
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This is one area i need major help in, my credit is in disarray! Identity theft, divorce, Iraq, and reckless judgment.-
TJ -
This link talks about credit and how to improve it: pinstripedpjs.blogspot.com/2009/04/credit-scores-understanding-and.html#lin...
and this link talks about getting out of debt: pinstripedpjs.blogspot.com/2009/03/debt-how-to-avoid-get-out-and-stay-out.h...
It might be difficult but I have faith you can do it! -
There are many steps you can take to reestablish your credit. You need to contact an attorney about the identity theft. (That happened to me too and I will have to spend the rest of my life being ultra careful about my credit)
Second, you need to pay off your credit cards using a rolling method. What that means is making the minimum payment on most of your cards, and making a large payment on one card. That way, you should be able to pay that one card off faster. After you pay that card off, focus on another card. DO NOT CLOSE YOUR ACCOUNTS!
The biggest way to improve your credit score is to MAKE PAYMENTS!!! My credit score went up a couple hundred points after just one year of steady payments.
Also, enroll in a credit monitoring service and make sure you know what is on your credit report at all times. I also have fraud alerts at every single credit bureau. I renew them every 90 days.
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I have excellent credit, so does my hubby. Tina - yes, you can maintain separate accounts, etc. but here in WI anyway, that doesn't matter - your debt is shared. What you want to do is make sure you & the dude are on the same page regarding $ matters before you tie the knot. What are your goals? Priorities? It makes a difference if yours is to save for a house and his is to spend $10k on a vacation... -
I have not checked my credit recently. I have a credit card, but it has no fee, so I have it in a drawer somewhere. It does not matter that much to me. -
Cash only .. since 1991-
So I guess you'd be considered "no credit history" which could be problem if you ever apply for a loan for a car or home. You'll need a credit card if you ever need to rent a car.
On the other hand, you'll never be in debt and I suspect you are on your way to becoming a millionaire. Take me to Fiji!!!!
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to know more about this just follow.........
managefinancialrisk.blogspot.com/
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