This is a discussion on credit score within the Broken Arrow forums, part of the Gun Forum category; For the first time ever I checked my credit score. Am I missing something here? My guess is if there is no record of you ...
For the first time ever I checked my credit score. Am I missing something here? My guess is if there is no record of you paying a mortage then they assume you rent. I see nothing about whether you own your home outright.
I have what is only considered a fair credit score. And that is only based on the balance of the one credit card I have & car payment. Utilities I always pay on the first of the month. Credit card & car payment are with the same credit union so I called & ask them about my credit score & was told they don't set the credit score only report balances & monthly payments. Credit union thinks more of me then the credit score companies. Last March when I decided it was time to get another vehicle I called & ask for a check good for up to $8,000 for a used vehicle but they said they would make it for $12,000 to give me more leway in shopping & interest rate would be 2.99%. And that doesn't jive with my credit score.
But I do know that no matter what, I will only deal with the credit union for any type of loan.
Reason I even checked my credit score was the thinking of maybe getting a used RV come about June.
Last edited by huntinghawk; June 3rd, 2014 at 09:59 AM.
Yes it's a game. I refinanced my 30 year mortgage to a 15 year mortgage 3 years ago. I shaved 10+ years off my mortgage, I didn't take any equity, and I have 70K in equity in my house. MY credit score went down, because my new 15 year mortgage was not paid down at all, instead of the 5 years off my 30 year mortgage, I made a better financial decision to pay my house off sooner, still have the same equity in the house, but they don't see that. They assume you take the mortgage for the whole value of the house, and now have no equity.
Racket indeed, to generate a high credit score requires some number (3-4) revolving credits accounts and no late payments. Also keeping the balance of these accounts under %40 used will also assist with this. Gotta spend money so they give you more money.
A good idea with all the fraud these days it to check your credit for free, they won't give you a score with the free credit check but you can see if there are any open accounts that you don't recognize or addresses that don't belong to you.
As long as you are dealing with your Credit union, I wouldn't worry about a credit score, it is a scam to keep you in revolving debt. If you paid cash for everything your credit score would be zero, no matter what your assets were.
All a credit score is, is a score on how well you borrow and repay money. If you were a millionaire that had never borrowed money your credit score would be 0. It is essentially a dumbed down method to lend money without having to do a diligent job of looking as someone's assets and liabilities.
Another tip - don't close accounts, as it drops your open credit to loan ratio making you look appear to have a higher debt ratio than you are (if I recall correctly). Doesn't make much sense, does it? Google search it.
Do what you can to bring it up. The $hitty part is insurance agencies look at your score and raise your premiums thinking you're more of a risk with a worse score, costing you more money in the long run. Brilliant, right? And of course some employers require a credit report depending upon what position you'll be fulfilling with them.
As for paying off your mortgage, the loan papers should note that you own your property with no mortgage payment and no retn. They should be taking that into account as to your ability to repay a loan, along with the report. But the stupid score drops you into a bucket regardless. Also bitch to the loan manager if they want your money that badly. You can always walk away.
The problem with a credit union (mine is wings) IF and only if you want to call it a problem, is that every member (Union remember) is the same....So, mortgage rates are especially awful through a credit union
Yes, the credit union auto loan is 3%, BUT they will never give you 0% if you find a car you MUST have at a dealer.
FWIW, my 2005 was bought USED the day before Christmas in - 2005, and yes I used my credit union, because of it's used car rate
BTW: I use my Discover card for everything possible and then pay it off in entirety every month. I then get the cash back rewards which I upgrade to a "partner" restaurant gift card = more money on that card than just my traded in value.
I work in retail big ticket with finance . credit is 80 % of consumer base 20 % cash . credit is based on ability to repay but credit score on multi points of information .... loan to balance fresh new loans have a high to balance ratio so lower score till average brings it up. to offset this one could not put $ down finance 100% then with first payment send bank large lump sum to lower balance to limit but not needed for most people . high revolving credit balance to limit will hurt score more than new mortgage with high balance to limit. paying minimum on revolving will keep score same vs. paying large $ even if balance is ok will build points. length of accounts good vs. new accounts bad. score range bad 350 to 540 poor 540 to 620 average/good 620 to 720 great 720 to 800 excellent 800 + not all scores are real so be warned fico is a standard score and well reguarded , but most companies will try to sell you the "advantage" score read the fine print it is not what banks or lenders use and is not worth the 7$ to get it . credit bureaus score people with all three loan types ( revolving / cards , installment short term / auto , installment long / mortgage ) best with length of same accounts long ,balance to limit lower than 30% on revolving , older same mortgage acct. score is only the start some young people have a high # score with 1 account and short history but can not get a loan because there profile has no depth .disclaimer I am not a credit counselor and only talking in general terms .
Believe it or not, that makes sense to me. My credit score is 695 & was told if I bring my credit card balance down by $1,000 it would get me to about 720.
But then too, I have dealt with the same credit union for 30 years.
I read there is something about a Credit to debt ratio is somewhere factored in too. I have one Credit Card that has like a 30k limit that I use for everything and pay it off at the end of the month and it's worked for me so far, 809 when we bought our house in Sept.