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Credit Scores
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02-22-2011, 11:02 AM | #1 |
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Credit Scores
I read Yahoo News and saw this article. I was curious to know how much of this portion was true and what your insight is on this.
http://finance.yahoo.com/banking-bud...es-m-article-c Type of credit you use: Your mix of credit cards, retail accounts, finance company loans and mortgage loans is considered. Your credit score ignores your age, salary and occupation. It also does not take into account financial gifts, support you receive, or your financial assets. For this reason, credit scores are less important for borrowers who seek loans that take these factors into account. If you want to take action to increase your credit score, then take a look at folks with the highest credit scores. About 13 percent of folks have credit scores of 800 or higher. If you look at their credit profile, they have: • four to six credit card accounts, • no late payments in the past seven years, • at least one installment loan -- a mortgage or a car loan -- with excellent payment history, • an average of 10 years credit history per account and a few accounts with 20 years of good history, • a low number of credit inquiries (fewer than three in the past six months), • no bankruptcies, foreclosures, charge-offs or collections, and • debt levels at no more than 35 percent of their overall credit limits per account. The bottom line: Having a long history of making all payments on time, using the right mix of credit, and not maxing out on available credit are the keys to a having a great credit score. If this is nearly 100% accurate, I need to open one more credit card and was considering the BMW credit card. Does anyone have this card? |
02-22-2011, 11:05 AM | #2 |
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Having good credit is not rocket science. Can't comment on the BMW card.
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02-22-2011, 11:18 AM | #4 |
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02-22-2011, 11:18 AM | #5 | |
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Sara, to your question...the number of credit cards is less relevant than the amount of time its open and the balance/credit available. for example, my parents are like 5 points away from the absolute highest credit card score possible, but they only have 2 credit cards and a mortgage payment. Cards been open for like 25 years. They honestly make shit income, their credit line is significantly more than their income is...but they don't use much of it. to oversimplify...opening a new card is a horrible short term idea, but a good long term idea (like real long term > 4 years). I have 2 cards open myself and been contemplating opening more for the same reason, it really is a bad short term idea though. |
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02-22-2011, 11:21 AM | #7 |
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oh and the other piece, you have to USE the cards. this is where I have trouble coming up with the reason/way to use all 4+ credit cards. There's 2 credit cards that I use for everything, and I have no need or desire to get any others.
if you REALLY frequent a place, might be a good idea I suppose for their perks, but I don't frequent the same place enough. Using discover card as an example, they have tons of 5% rewards on random shit (electronics, etc). this is the equivalent of 5% off at best buy...so why would I want a best buy card? |
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02-22-2011, 11:21 AM | #8 | |
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02-22-2011, 11:23 AM | #9 |
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Credit score is just a measurement of how much credit institutions can exploit you. I actually find it funny that people find some sense of accomplishment by seeing a high number.
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02-22-2011, 11:24 AM | #10 | |
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02-22-2011, 11:25 AM | #11 | |
WTF are you looking at?
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Doesn't your credit score drop just by owning one...?
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02-22-2011, 11:26 AM | #12 | |
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02-22-2011, 11:27 AM | #13 |
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02-22-2011, 11:27 AM | #14 |
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Well there's also the fact that prospective employers will also judge you based on your credit history. I see what you're saying; you only need a great score to get more money that isn't yours anyway, but some employers use it as a measuring stick of potential employee character.
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02-22-2011, 11:28 AM | #15 |
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Is it really that advantageous to have a 780 over a 760? Once your score is excellent...what's the point?
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02-22-2011, 11:28 AM | #16 |
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02-22-2011, 11:29 AM | #17 |
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getting a loan is more about negotiation than anything. credit plays a small role in things, but it's more about what you can bring to the table then working with the lender to get what you want. (speaking about mortgage more than anything)
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02-22-2011, 11:30 AM | #18 | |
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There's all sorts of shit out there for this, but you know how credit card companies offer xyz amazing deal if you sign up for their card. If you mass sign up once (say 30 cards), you get roundtrips around the world for free, months worth of hotel stays, blah blah blah...and the only negative is a hit on your credit rating. (which if you're well over 800, that hit won't hurt you much). It also means you can get some insane deals for APRs and the such, such to that point that you can make money if you invest correctly. |
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02-22-2011, 11:32 AM | #19 |
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this, 780 over 760 is nothing. 850 over 760...you'd be amazed at what opens up... you can get interest rates that aren't published (you know the published 1.9% APR...you can get actual 0% APR from those deals). Credit rating is downplayed by those who don't have it. (i'm not boasting my credit is still shit courtesy of me being stupid 5 years back) |
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02-22-2011, 11:32 AM | #20 | |
WTF are you looking at?
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There are the big three... and then there is Discover. Not trying to get into a dispute about credit card companies.. the 5% discover offers for cash back is the best deal out there. Problem is, it isn't excepted in enough places.
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02-22-2011, 11:33 AM | #21 | |
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with mortgage you are 100000% right, if you can get the loan to value % low, your interest rate will PLUMMET...much more than a high credit score will. |
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02-22-2011, 11:34 AM | #22 | |
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