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      02-22-2011, 12:02 PM   #1
Sara504
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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?
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      02-22-2011, 12:05 PM   #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, 12:15 PM   #3
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I hear having good credit gets you laid
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      02-22-2011, 12:18 PM   #4
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Quote:
Originally Posted by CollinsE90 View Post
I hear having good credit gets you laid
Having good credit gets you a BMW loan, having a BMW gets you laid
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      02-22-2011, 12:18 PM   #5
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Originally Posted by BTM View Post
Having good credit is not rocket science. Can't comment on the BMW card.
Agreed, it's not rocket science, but there's a lot of stuff out there that people just aren't aware of.
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, 12:18 PM   #6
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Quote:
Originally Posted by BTM View Post
Having good credit gets you a BMW loan, having a BMW gets you laid
lol!
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      02-22-2011, 12:21 PM   #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, 12:21 PM   #8
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Quote:
Originally Posted by Freakazoid View Post
Agreed, it's not rocket science, but there's a lot of stuff out there that people just aren't aware of.
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.
Im not thinking short term, I am absolutely thinking long term. Right now I have 3 and after reading that article it sounds like I should 4-6. Im not in desperate need to open anything infact the ones I've have now have been doing me just fine for the past 3 and 1/2 years. Just curious is all.
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      02-22-2011, 12:23 PM   #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, 12:24 PM   #10
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Quote:
Originally Posted by Freakazoid View Post
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?
When you say "use" how much of that cards available credit should you be using minimum?
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      02-22-2011, 12:25 PM   #11
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Quote:
Originally Posted by Freakazoid View Post
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?
Better question is why would you want a discover card...

Doesn't your credit score drop just by owning one...?
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      02-22-2011, 12:26 PM   #12
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Quote:
Originally Posted by Sara504 View Post
Im not thinking short term, I am absolutely thinking long term. Right now I have 3 and after reading that article it sounds like I should 4-6. Im not in desperate need to open anything infact the ones I've have now have been doing me just fine for the past 3 and 1/2 years. Just curious is all.
check out my addendum. if you're thinking long term then, and there's NOTHING else you can improve (getting a mortgage/car payment, paying down balances, getting credit line increased)...I'd say go for it, just remember you do have to use those cards for it to POSITIVELY affect your credit score. When you have say 3 cards with 100k limits, its hard to rationalize the need for getting another card on top of that unless you're liking buying cars with it lmao....but to get to that top echelon, they claim its required
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      02-22-2011, 12:27 PM   #13
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Quote:
Originally Posted by NYCGP View Post
Better question is why would you want a discover card...

Doesn't your credit score drop just by owning one...?
R U dum?

I like you GP, but this may be the dumbest thing I've seen you post, unless you have something remotely founded to back it up...
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      02-22-2011, 12:27 PM   #14
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Quote:
Originally Posted by MediaArtist View Post
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.
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, 12:28 PM   #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, 12:28 PM   #16
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Quote:
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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?
Lower interest rates maybe?
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      02-22-2011, 12:29 PM   #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, 12:30 PM   #18
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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.
Believe it or not, when you reach the upper echelon, it's quite the opposite. you get to exploit the credit card companies.
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, 12:32 PM   #19
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Lower interest rates maybe?

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, 12:32 PM   #20
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Quote:
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R U dum?

I like you GP, but this may be the dumbest thing I've seen you post, unless you have something remotely founded to back it up...
First off.. I was obviously kidding. I wouldn't seriously believe that owning a specific type of credit line would lead to a loss of confidence by the credit bureaus.

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, 12:33 PM   #21
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Quote:
Originally Posted by Blake View Post
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)

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, 12:34 PM   #22
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Quote:
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First off.. I was obviously kidding. I wouldn't seriously believe that owning a specific type of credit line would lead to a loss of confidence by the credit bureaus.

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.
VISA MC and who else? AMEX?
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