Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Jul 9, 2011 21:17:39 GMT -5
moneyning.com/credit/15-reasons-why-you-should-ignore-your-fico-score/15 Reasons Why You Should Ignore Your FICO Score by MoneyNing · ShareEmailWarning: Only read this if you are in “goofing off” mode. You may also want to ignore this post (along with your FICO score of course) if you just got yelled at by your boss. Everyone ignores their FICO scores anyway so why don’t you as well? Here are the reasons why I believe you should stop checking those reports and just relax, watch some TV and let the others do all the hard work. 1.Out of Sight – You never really see it unless you ask for it, out of sight, out of mind. 2.Promotes Use of Credit – I’m a cash person. No credit right here. 3.Seldom Used – How many times do you ever need a loan anyway? Why bother when the score is only used a few times in your life? 4.Not Always Used – Furthermore, not every company will use your FICO score to determine your credit risk. You can always try your luck and hope for the best. 5.Wait for the Bubble – If you couldn’t get a loan approved, you can always just wait till the next credit bubble when everyone including the no-income retired folks were approved to buy million dollar homes with $0 down. Actually… I take the no-income part back. They have social security to pay for the loans. 6.Just a Number – The thing is only three digits. Who cares? How much of a difference could it make? 7.Scams – All you hear are scams associated with credit scores and reports. This can’t be important. 8.I Live in a Vacuum – The FICO score is country specific, so whatever you do here means nothing in another country. In fact, only Canada and United States call it a FICO score. 9.No Hope – I just got disapproved so whatever I do, it won’t make a difference anyway. I want a house NOW. 10.The Thing is Jumpy – The score is a snapshot of information in your credit report so it fluctuates. Who has time keep track of something that’s ever-changing? 11.Government Cares – Since the government pretty much screws up everything and they claim that credit scores are reliable, FICO scores must be useless. 12.Temporary – Most negative credit information only stay on file for seven years. Even a bankruptcy is gone by the tenth year. I’m young. I have patience if any mistakes get on there… 13.No Control – No one (except the people who actually make money off us with this) really knows exactly how it’s calculated, so if it can’t be manipulated, you can safely ignore it right? 14.Against the Grain – Whenever everyone talks about something, it’s reason enough to ignore it. I’m special. I don’t need to think about what everyone else worries about. 15.Still Reading? – By now, you should know how ridiculous it is to think that your FICO score doesn’t matter. Do you check your credit reports regularly? Are you on top of your credit score? If not, you are already ignoring your score. Think again if you’ve been ignoring your FICO score… and congratulations. You must be in a happy mood if you got this far
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cronewitch
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Post by cronewitch on Jul 9, 2011 23:06:38 GMT -5
I didn't even know what one was until the late 90s. I refinanced a mortgage and the broker said I had the third highest he had ever seen and the highest with only 15 years credit history. I continued to ignore it and didn't remember what it was since it didn't seem to matter. I have refinanced twice since and so asked for my score. First time it was around 795 and this last time it was 805-809. I will continue ignoring it but I do check my credit report for errors and paying debts as agreed. I probably should have financed my car but I didn't think about improving my credit score so paid cash.
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cronewitch
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Post by cronewitch on Jul 9, 2011 23:06:54 GMT -5
I didn't even know what one was until the late 90s. I refinanced a mortgage and the broker said I had the third highest he had ever seen and the highest with only 15 years credit history. I continued to ignore it and didn't remember what it was since it didn't seem to matter. I have refinanced twice since and so asked for my score. First time it was around 795 and this last time it was 805-809. I will continue ignoring it but I do check my credit report for errors and paying debts as agreed. I probably should have financed my car but I didn't think about improving my credit score so paid cash.
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❤ mollymouser ❤
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Post by ❤ mollymouser ❤ on Jul 9, 2011 23:22:51 GMT -5
I have no idea what my FICO score is, nor do I know what my wonderful DH's score is.
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hockeygrl
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Post by hockeygrl on Jul 10, 2011 0:01:15 GMT -5
The only reason I know ours is because they were disclosed to us last year when we bought our house. Mine is 780, my DH is 806. I had to unfreeze my credit files for them to approve our loan.
I put a permanent freeze on my file when I found out the University I attended lost a computer containing our student loan files and then someone broke into my car and stole my briefcase which contained my passport. I highly recommend it - my credit information is NEVER disclosed unless I specifically contact all three credit reporting agencies with my PIN number, pay a fee, and request that it is disclosed. To me, it is worth paying a nominal fee to unfreeze the report for a specific purpose. Since we've got our house, cars, and all the credit cards we need, I don't see a need for unfreezing it any time in the near future. Yes, I am paranoid. I'll own it.
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DVM gone riding
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Post by DVM gone riding on Jul 10, 2011 0:39:44 GMT -5
I know mine is high 700's was about 750 when I bought my house and about 795 last time I had a need to know. Mostly I never worry but do check my credit report every year for inaccuracies etc.
I don't get people like Indebt that are in a ton of debt and then PAY to know their score every month--that just doesn't make sense to me.
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midjd
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Post by midjd on Jul 10, 2011 12:41:23 GMT -5
I didn't know mine until I applied for a mortgage - it was about 760. I think it's gone down a bit since then, but we're not looking for credit anytime soon (that's excuses #2 and #3, right?) so I'm not too worried. DH declared BK about 3.5 years ago and his is 630, which is honestly much better than I'd expected!
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Deleted
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Post by Deleted on Jul 10, 2011 12:47:08 GMT -5
"I don't get people like Indebt that are in a ton of debt and then PAY to know their score every month--that just doesn't make sense to me."
Maybe seeing his score increase as he dramatically reduces his debt helps keep him motivated to continue. I think he also mentioned looking into transferring some balances once his score improves enough to qualify for good BT options.
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Post by tiredturkey on Jul 10, 2011 17:24:26 GMT -5
I am completely puzzled by a friend of mine who chooses a no-credit lifestyle and then complains loudly that she pays more for property insurance because of her poor/non-existent credit score, the credit score she won't pay to get She says her refusal to use credit shouldn't be a factor but I'm looking at the peeling paint, the broken window, the mildewed siding and going, yeah, well, maybe. She thinks you have to run a balance and pay interest to have a good credit score. DH's score is 802 and we never, ever pay interest; we just pay our bills ontime, every time.
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Poppet
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Post by Poppet on Jul 10, 2011 17:44:24 GMT -5
"DH's score is 802 and we never, ever pay interest; we just pay our bills ontime, every time"
Those with the highest scores are usually smart enough to see how stupid the almighty FICO score is. I only know my score and dh's score because we just bought a car with cash. Still insisted on checking our credit. I said go ahead knowing it'd would change their preconceived notions of us. We were dressed extremely casual and buying a modest car. It did. Our scores are in the 800s.
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Deleted
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Post by Deleted on Jul 11, 2011 8:02:16 GMT -5
Maybe seeing his score increase as he dramatically reduces his debt helps keep him motivated to continue. I think he also mentioned looking into transferring some balances once his score improves enough to qualify for good BT options. I used to hang out on another Board where the members were obsessed with their credit scores. In some ways, it was good- many were doing what it took to get their finances in order and it was a learning experience for them to see what improved their scores and what dinged them. I also had to chuckle when one person caught a sleazeball car salesman in a lie- they were buying a car, had the financing arranged elsewhere, and told the salesman not to pull a credit report. The salesman promised not to, but did anyway and was quite surprised when the poster caught him at it because he was able to review his own credit report activity any time he wanted to. I don't know what my credit score is- I just know that I get good terms when I want credit. In October I got a couple of airline-branded credit cards that gave me enough miles to fly Business Class to India for a friend's upcoming wedding (if she likes the potential groom her parents have picked out!). I'm about to refinance a mortgage at 3.75% foxed for 15 years with no closing costs. DH and I never pay credit card interest but I think that once you have a mortgage and pay that on time, and don't have too many other credit lines open, you're fine.
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RoadToRiches
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Post by RoadToRiches on Jul 11, 2011 8:40:04 GMT -5
LOL, I used to be credit score junkie. I took my credit from 400's to mid 700's in a matter of one year. I knew FCRA inside out. I even won when I was sued by a crazy collection agency trying to collect money on 15 year old debt.
For me, to pay small amount to see my credit report and a score is worth it. First, I keep check on my credit and want to make sure that as I am paying those cards off, they are accurately being reported on my reports. Second, I want to bring my score as high as I can so I can re-fi my place. Also, if I could, get a nice BT card. And yes, it does keep me motivated to see it go up every month.
BUt yeah, I was one of those people who was obsessed with credit score. You guys should see my folders lol Every month I would be going to post office mailing letters via certified mail. lol
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alabamagal
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Post by alabamagal on Jul 11, 2011 9:17:25 GMT -5
I don't know what ours is. I don't think super high due to some old issues, but I am sure it is decent. We have gotten decent rates on car loans (HORROR to all the YMer to even have loans). We have a house and in no need for a mortgage anytime soon.
I think many are overly concerned with credit scores, indebt in particular, but if he uses that as a measure to see the benfits of paying off credit, then so be it. Whatever works for you.
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Deleted
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Post by Deleted on Jul 11, 2011 10:32:03 GMT -5
You can ignore your fico score all you want, but none of your creditors are ignoring it.
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midjd
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Post by midjd on Jul 11, 2011 10:47:51 GMT -5
Yes, but I think most of us who are "ignoring it" or who don't know it off the top of our heads have similar habits and probably fairly high credit scores as a result... If you pay your bills on time, don't max out your credit cards, and keep a healthy DTI ratio, even if you don't know your credit score, you're probably OK.
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Clever Username
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Post by Clever Username on Jul 11, 2011 12:31:50 GMT -5
I think the list comes from a faulty premise. Except in dire circumstances, wise financial choices will yield a good credit score. This is like saying that you should ignore your Cholesterol Score.
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Wisconsin Beth
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Post by Wisconsin Beth on Jul 11, 2011 14:09:29 GMT -5
We only found ours out when we applied for the HELOC in 2009. Mine was 804 and DH's was 795. He was surprised mine was higher than his. lol.
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Deleted
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Post by Deleted on Jul 11, 2011 14:20:16 GMT -5
Yes, but I think most of us who are "ignoring it" or who don't know it off the top of our heads have similar habits and probably fairly high credit scores as a result... If you pay your bills on time, don't max out your credit cards, and keep a healthy DTI ratio, even if you don't know your credit score, you're probably OK. Agree. I check our reports periodically to make sure nothings been opened that I don't know about, but could care less about the score. Mine was upper 700's last I got a mortgage, and really nothing much has changed with how I handle my finances since then. If I could find out for free, I would check, but I don't care enough to pay the 7 or 8 bucks, whatever it is. I have enough cash to get me through most emergencies without borrowing and have no plans for buying anything large enough to need a loan, so pretty much don't care about that number.
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midjd
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Post by midjd on Jul 11, 2011 14:23:41 GMT -5
There's the rub. Why do they charge for credit scores, anyway? Because they can? It doesn't seem quite fair... I mean, it's good that they provide the report for free, but if the FICO is SOSOIMPORTANT it seems they would be obligated to provide it free of cost...
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Deleted
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Post by Deleted on Jul 11, 2011 18:49:25 GMT -5
I just got a disclosure from Wells Fargo, which offered to refinance our mortgage out of the blue, as I mentioned earlier. My Equifax score is 808, with the highest possible score being 818. Reasons I'm not at 818, according to the report, include "time since most recent account opening is too short". That would be the 2 new credit cards last October. I'll live with that.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Jul 11, 2011 19:26:11 GMT -5
Two reasons you should pay attention to your FICO score:
1. It can effect your ability to get a job, or slow or stall advancement at your current job.
2. It can, and does, effect your insurance rates.
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brdsl
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Post by brdsl on Jul 11, 2011 22:04:12 GMT -5
I check it yearly, just like a doctors checkup. I wondered why some obsess over it, but I guess they have good reasons.
The number seems so silly to me, because it is so often wrong....how could it be a good indicator of anything?
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RoadToRiches
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Post by RoadToRiches on Jul 12, 2011 11:45:54 GMT -5
I check it yearly, just like a doctors checkup. I wondered why some obsess over it, but I guess they have good reasons. The number seems so silly to me, because it is so often wrong....how could it be a good indicator of anything? You just answered your own question.
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Post by pig on Jul 13, 2011 8:45:11 GMT -5
We just got a car yesterday and they pulled our scores. I find it hard to believe that we have higher scores than any listed here because I'm not a money obsessed kind of person. Go PIG! I can't take credit for it though my wife does all the finances.
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Deleted
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Post by Deleted on Jul 13, 2011 10:12:00 GMT -5
I don't know anyone that obsesses over their FICO score...whether it's good or bad.
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Formerly SK
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Post by Formerly SK on Jul 13, 2011 11:44:13 GMT -5
I never check our scores or credit reports (I should probably do that every once in awhile just for fraud detection). That said, we seem to do some sort of credit transaction every two years or so and get a copy of our reports/score that way. We're both 800+.
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brdsl
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Post by brdsl on Jul 13, 2011 12:09:08 GMT -5
I check it yearly, just like a doctors checkup. I wondered why some obsess over it, but I guess they have good reasons. The number seems so silly to me, because it is so often wrong....how could it be a good indicator of anything? You just answered your own question. Two separate contexts.
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brdsl
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Post by brdsl on Jul 13, 2011 12:11:16 GMT -5
I don't know anyone that obsesses over their FICO score...whether it's good or bad. Really? I might be strange, but I know plenty that look at it weekly, try to raise it, clean any old items off it, etc.
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Deleted
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Post by Deleted on Jul 13, 2011 12:37:11 GMT -5
I don't know anyone that obsesses over their FICO score...whether it's good or bad. Really? I might be strange, but I know plenty that look at it weekly, try to raise it, clean any old items off it, etc. That's pretty OCD. I can't imagine a situation where that would be necessary.
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brdsl
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Post by brdsl on Jul 13, 2011 12:46:33 GMT -5
I agree.
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