Credit score?

Ultradog MN · Jan 11, 2020

My wife and I opened a joint checking account last week. It'll just be for household bills and the like and I'm going to apply for Social Security soon and will have it sent there.
We still have our own individual accounts.
The bank ran a credit report on both of us. I hadn't gotten my credit score in 12 years or more so was rather surprised that I scored so high.
What is interesting is how they dock you for the wrong things.
- Not enough revolving accounts.
- Not enough mortgage experience (I only have 2 mortgages and have had about 8 of them in my life)
- Too few installment accounts.
- Too few credit card accounts and not much for balances on them.

I guess if you live within your means and don't go into hock everywhere you get pegged as less than a perfect credit risk.
I do know how it works, that you need to show Some credit history - to get credit.
But in my world that just doesn't seem to add up.

Sprint 6 · Jan 11, 2020

I had a boss that paid for everything in cash. When cell phones were just taking off, he had to get a bank reference letter after the cell company turned him down for a two year plan due to low credit score.

David G · Jan 11, 2020

Sounds like you have done well.

John in Mich · Jan 11, 2020

I've seen the same responses and I check my ratings regularly. The other thing that I've seen is, closing revolving credit accounts can lower the rating. As far as I'm concerned, anything above 700 is dang good.

oliver power · Jan 11, 2020

I use to pay cash, and had no credit. Went to get a small loan, and was turned down. Had to start at the bottom, and build credit. Now I always have something on credit.

Billy NY · Jan 11, 2020

It's a crock, I got the same impression about it. I went and got 3 different credit cards, rarely use them and never carry a balance,. Kind of concerned they would cancel me for lack of use. One is with CNH, for tractor parts. I have 2 active loans, a 3rd paid off 6 months ago.

I had always thought having a perfect payment history, never late on anything ever carried more importance, I guess not. They just ran me for a mortgage for the place down the hill I am acquiring, then again as they made a mistake on the loan amount to the tune of $30k, being 2 hard inquiries, did not drop but 2 points. Now when I bought the truck, it dropped quite a bit and took months to come back, go figure, what a crock like I said above.

shaun wallace · Jan 11, 2020

Couple years ago when looking at getting a bigger place with better house started looking borrowing part of it. So off to finance places,they run my info, had some expired CC that were joint with deceased wife that she had used. I had paid cash for everything for over 30 years because of getting in too deep in early 80s. They said had "0" scoreable credit. So borrow small amount and they talk me into credit card that is used every once in a while usually buying parts here.

Vito · Jan 11, 2020

Jerry you hit the nail with your synopsis.

Hope all is well

Vito

John in Mich · Jan 11, 2020

When we got married 54 years ago, my wife had credit based on buying a used car with payments. I had no credit. She had to co-sign my first loan.
Since then she has said that was a mistake. LOL I have bought 2 parcels of land, did a small land development and bought a house for a rental. I told her after the fact for each one. I finally got out of the dog house when I sold. ps I'm looking again. It is a disease like collecting tractors.

Billy Shafer · Jan 11, 2020

My wife got a credit card in the mail. I called about it. Was told my wife had great credit and the card was real. I ask the lady how could that be. My wife has been dead for 15 years.The phone went dead. So I guess my wife can forget her card.

BarnyardEngineering · Jan 11, 2020

Funny, modern view has censored this thread, probably due to the title of "credit score" being something that spammers would likely use.

Anyway, most of you missed the point. It's all about you being able to use credit RESPONSIBLY, not how you can get yourself in hock up to your eyeballs.

There are two reasons one would go through life paying cash. The second being that you CAN'T use credit responsibly.

Traditional Farmer · Jan 11, 2020

My wife checks our credit scores all the time why I can't figure since neither of us has borrowed money for literally decades and won't be in the future.We do have a couple of credit cards we pay off each month and the total charges on the cards changes our credit rating a few points.Not paying utility bills on time can have a negative effect on credit rating.I've heard if a mortgage is due on the 1st but has a 5 day grace period not paying by the 1st will hurt credit rating.Insurance rates factor in credit ratings and these days many prospective employers check credit ratings before hiring an employee.

Butch(OH) · Jan 11, 2020

When my oldest son was about 22 years old, single, fresh out of tech school a d 6 months into his first job and he decided it was tine to buy a place. I told him I would go along and cosign if it would save him points. Bank told us that his interest rate would go up if I cosigner because his credit score was higher than mine. Talk about a let down! I have borrowed money since I was in high school and never missed one payment, never late paid off 4 mortgages and countless car loans. I don't know what makes the credit score computers happy but it is certainly not closely tied to paying off your loans on time!

Bob N.Y. · Jan 11, 2020

I know a farmer who took over the farm from his parents. The family never borrowed any money. This farmer was talking to the banker about credit. The banker looked up his credit score and said "Based on what I see here, I couldn't loan you a nickle if you gave me a dime for collateral".

SweetFeet · Jan 11, 2020

Ultrdog,

Wow! For real??? Those seem like plumb crazy reasons to negatively impact a person's credit score. I would have thought that few mortgages and one or few credit cards would be a good thing.

Seems nuts.

NEKS · Jan 11, 2020

Years ago was talking to a first sergeant in the Army. He was retiring, never married and wanted to buy a house. Bank said no because he had no credit. Bank told him to go to Sears and buy a refrigerator and charge it.

Billy NY · Jan 11, 2020

Years back, I figured out this was the deal, I never really borrowed or financed things, paid outright, but changed my ways, financing a used car, then a tractor, paid them off, but continued acquiring things, putting half down, financing the rest. Got me up to a 752 score.

That is funny, hopefully those deals paid off, so when you did break the news, there was a little shopping money or something LOL !

paul · Jan 12, 2020

I?ve never really had much of a loan ever, I have had credit cards since high school and they keep upping my limits, I pay them every month.

Anyhow had to go in for a land loan, the banker was motivated to make my small loan work so the neighbors much bigger loan would work. Too complicated to explain, but how it was.

Ran our credit scores, wife and I were 815 and 820. I guess that was pretty good. Seemed one of the big score makers is to have 10k+ of credit card available. But not used.

Was funny talking to the loan officer, first meeting, he scribbled down notes, as we talked and I had a few papers along, he was taking less and less notes, just turned into a conversation about how tough the 1980s were. And we will shoot you some paperwork by the end of the week. See you then.

Paul

OregonAaron · Jan 12, 2020

I dont have any loans or credit cards. I buy vehicles with cash. I dont figure I need anything I cant afford. I have always viewed credit cards as a negative thing so I don't have any. The only thing I would go into debt for would be a house or property, however I already have a house and plenty of land. I know you need to use credit to get a good score and all that, but I dont feel it is necessary for me or my family. When I was ALOT younger I bought some things on credit and got in over my head a bit, nothing too crazy, but I learned real quick how easy it is to get in trouble. It was a great life lesson that i try to teach my kids about so they are careful.

showcrop · Jan 12, 2020

I thought everyone knew about this 50 years ago...............

caterpillar guy · Jan 12, 2020

Cash is king to me. Both paid and received. I pay for most parts cash or check. I do have to use a card if buying at online places. Wife and I both have credit scores in the 7-800 range. I've had truck dealers look at me when I walked in and asked about interest rates they say depends on credit. I tell them it is excellent. Of course they hear that all day long then the guy can't even get a cup of coffee on credit with a 20.00 dollar bill. They run mine and find out it is good. I've bought 4 semi tractors over the years. 3 of them were with the stroke of the pen. One place told the local dealer to let them know what I wanted when they heard I was looking again. Thought that was pretty good of them.

Bret4207 · Jan 12, 2020

I have a high credit score. I pay my bills on time, pay more than the min amont reqd and pay things off on time. When it came time to borrow money, none of that mattered much. I've been with the same small town, private bank for over 25 years. What I was told was, "Whatever you need, just name it." THAT is credit!

Geo-TH,In · Jan 12, 2020

I used to pay cash for everything.
Now, Credit cards are King. They pay me to use their money. 1-5%. I make hundreds on CC.
I'm lucky to write 10 checks a year. I have to buy my checks. Credit cards are FREE.
Credit cards give me a second set of records for tax purposes.
I used to pay cash for everything.
Now I leave my cash in stock market. Investments make payments on Kubota 0% interest loan. In five years tractor is paid for and I still have my money.

I survived the 2008 crash. The market is at record levels compared to 2008.
2008 dow $8k. 2020 dow $28.8K, A dollar in 2008 is worth $3.6 in the market 2020. So if you feel safe keeping your money in a .1% saving account and paying cash go ahead. It's your money.

I use lifelock. Any time my social security is used, lifelock notifies me.
I found it odd that I never got a notice from lifelock when I bought the Kubota.

BTW, I have no CC debt. No mortgage. No ATM.

My sister uses CC cards to pay her suppliers. They give her a discount for paying when delivered. She get rebates. Makes a lot of money using CC.

kent@junction · Jan 12, 2020

Have had that experience also.

Crazy Horse · Jan 12, 2020

What I like about this topic is that there doesn't seem to be any of the YT crew that owes any money to anyone. So we're not a typical sample from the whole population then? I wonder who DOES owe money if the YT crowd doesn't ???? By the way, I believe personal debt dwarfs governmental debt in both of our countries.

Billy Shafer · Jan 12, 2020

But why is it she can get a card and I can't.

Traditional Farmer · Jan 12, 2020

Read somewhere lately private debt in the USA was around 27 Trillion$,the Federal debt is around 23 Trillion,then there is state and local gov't debt.The other thing is not exactly debt in its pure form but unfunded liabilities by gov't and some private is way up in the Trillon$.Impossible for it to ever be paid in today's Dollar$.When the Bell Tolls it'll be a choice for the gov't default or massive inflation of the currency.Most always historically its been the massive inflation route that has been taken by
gov't.Which is really what is happening now the Fed is constantly flushing cheap money into the economy to help raise things like the stock market and to finance the
National Debt.Enjoy the good times while they last.

Bill(Wis) · Jan 12, 2020

When I bought my last new tractor about 3 years ago, I told the dealer (yes, I was talking to the owner of the dealership) that I would pay cash, no trade. He came up with a price which I recognized as excellent and then said: "I know you want to pay cash, BUT, if you finance this through John Deere finance you'll get an additional $4000 off from John Deere." As that was a no-brainer, I did that and then paid off the loan within a few days and incurred only a few days of interest ($20+/-) I hadn't borrowed any money in years but did have active credit card use because I travel a lot and don't like the idea of carrying wads of cash with me. The credit approval came through from John Deere for the full purchase price of the tractor in about 2 minutes.

Hobo,NC · Jan 12, 2020

I had one issue that affected my credit score a hospital wrote it up they had to send it to a collection agent the agent was the hospital. The mistake was the hospital they over billed me it was corrected BUT they listened it as a collection among other useless words :evil:

I wrote all 3 CC reporting agency's they told me to go pound sand to them it was nuttin to worry about. I was at 700 to 725 the only debit I had was a new bota tractor it took 7 years for the hospital deal to go away as soon as it did my score went to 790 as soon as the Bota was paid off it went to 832.

What gets me is someone can write a issue up wrong you can not rectify it...

There are several ways to boost a score.

1) get a pre-paid credit card say $200 use it a few mo's pay it off each time you use it then let it lay for 3 mo your score will POP to 700.

2) list someone say a son as a authorized user on one of your cards don't tell the son in 3 to 6 mo their credit score will have a dramatic rise. Its a free ride for them with all the benefits of a high score it will not affect yours...

Its been said a score of 700 is just as good as a score of 850 what they are looking at is you pay your bills on time and not a deadbeat... I believe there is merit to this it shows you can manage unsecured debt (Credit Cards)

Goose · Jan 12, 2020

Reminds me of back in the 1980's when I was raising hogs.

A loan officer at my bank gave me a stack of blank notes and told me whenever I needed money to just fill one out and throw it in the night deposit box.

Ozlander · Jan 12, 2020

You have to use credit to have credit.

doublebass73 · Jan 13, 2020

The whole credit rating system is a complete scam. A company can mistakenly put a negative on your credit report and you're screwed, guilty until proven innocent. If you're trying to buy a house it can totally screw up your plans. It's not an easy process getting negatives removed from your credit report even if they don't really belong to you.

Bret4207 · Jan 13, 2020

(quoted from post at 11:37:27 01/12/20) What I like about this topic is that there doesn't seem to be any of the YT crew that owes any money to anyone. So we're not a typical sample from the whole population then? I wonder who DOES owe money if the YT crowd doesn't ???? [b:3027f604b5]By the way, I believe personal debt dwarfs governmental debt in both of our countries.[/b:3027f604b5]

The most recent figures I find are total US personal debt at $13.86 trillion. US National Debt at just south of $23.2 trillion. Canadian National debt appears to be just under $1 trillion. Can't find numbers on total Canadian personal debt.

Credit score?

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