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Joined: Jul 2006
Posts: 62,043
Campfire Kahuna
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Campfire Kahuna
Joined: Jul 2006
Posts: 62,043 |
credit card balance is a big one, if you exceed 50% of the avaiable balance it hits the score hard.
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And that is one of the unfair scoring policies i have raised with the bureaus in recent yesrs. because of the advent of rewards points and certain card benfits, many have altered how they'd generally pay in oprder that they may accumalate reward points, for whatever. I pay my cards at the end of the month and it should be such that card companies offering rewards should wait until such time as the statement due date has passed before they report to the bureaus. Further, reporting highs should be discontinued for the same reason.
I'm surprised the credit card companies could consider involving themseleves in such a unfair quagmire when it is them who seek the enticements.
The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
William Arthur Ward
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Joined: Sep 2006
Posts: 1,267
Campfire Regular
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Campfire Regular
Joined: Sep 2006
Posts: 1,267 |
Just one more reason to be debt free; I could give a rats ass what my score is, it has absolutely no bearing on how I live my life....ain't freedom from credit cool:)
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Joined: Jul 2006
Posts: 62,043
Campfire Kahuna
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Campfire Kahuna
Joined: Jul 2006
Posts: 62,043 |
ain't freedom from credit cool:)
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It greatly depends. Small business owners unable to obtain credit could be in significant peril. Homeowners wishing to re-fi,the same. Being able to obtain credit is still a necessity for the vast majority in this country.
Not everyone, especially families, can satisfy their finaqncial needs on the premise that they don't have to worry about credit or borrowing.
The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
William Arthur Ward
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Joined: Oct 2007
Posts: 7,049
Campfire Tracker
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Campfire Tracker
Joined: Oct 2007
Posts: 7,049 |
VERY good stuff indeed! Heres the forum I learned about this stuff.... http://www.creditboards.com/forums/These guys know there schit!
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Joined: Jan 2001
Posts: 59,153
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2001
Posts: 59,153 |
I have been in the finance business for 25 years and the credit score system is far from accurate. One thing to rememeber is that is a snap shot in time and several factors can effect the score; credit card balance is a big one, if you exceed 50% of the avaiable balance it hits the score hard. Just because people pay on time does not mean a strong acore, avaiable balance factors into it.
The guy with limited credit will most likley have a lower score than the guy with debt but be a much better risk due to low debt to income ratio. Most lenders are looking beyond scores these days and that is a good thing, but 99% of the underwriting engines are score driven and the borrwer needs to first get by the system before a human gets to look at it.
742 is a great score tbear, most small banks and CU's want co-signers these days for added security, that does not mean the buyer is not good, but rather the thinking is why not attach another person to collect on in the event the loan goes bad. Exactimundo.. I, too, was in the finance biz for about 14 years and examined and judged credit reports on a daily basis.. Good interest rates were awarded to those with solid job history, D/I ratio less than 40% (AFTER any new loan) and any mortgage payment not exceeding 25% of gross.. A minor late-30 wasn't going to make much difference if on a credit card or similar.. But any late payments on a mortgage or, (especially) student loan, would be a near guarantee that much more bux would be needed down and/or interest rate given would not be prime.. This was during the mid 80s - late 90s..
Ex- USN (SS) '66-'69
Pro-Constitution.
LET'S GO BRANDON!!!
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