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92 Comments
- LawKSS, on 10/10/2007, -5/+55If you want a free credit report that is actually free go to www.annualcreditreport.com.
The gov't requires that the 3 credit reporting agencies give you a free report each year and the stupid freecreditreport.com site charges you for your "free" report. - razorgator, on 10/10/2007, -6/+43I'M THIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINKING OF A NUMBER
- swimzach_2009, on 10/10/2007, -1/+16He's right. Take a look here for more info.
http://redtape.msnbc.com/2006/09/dont_fall_for_f.html - FoxtrotUSAF, on 10/10/2007, -1/+14I couldn't get a car loan because I paid off all my credit cards and had no debt. If you don't show that you are willing to owe people money you hurt your cedit.
- fascfoo, on 10/10/2007, -0/+11I want to punch that guy in the balls so damn hard.
- kinerry, on 10/10/2007, -1/+11Wrong answer.
It's about your ability to pay back. The higher interest rate for lower scores is to offset the default rate and still make money. - Winters, on 10/10/2007, -0/+9Not for free. You almost always have to pay for a FICO score.
There is one exception and it involves a loophole with Exerians free trial credit monitoring system, which you must cancel after a month. - Winters, on 10/10/2007, -0/+8Kinerry is right. A credit score is merely a method that tries to predict how likely you are to pay back your loans.
- psykiv, on 10/10/2007, -5/+13This article is completely wrong.
1. Credit scores stop at 850 (not 900) unless youre using the new vantagescore bs (which stops at 990)
2. Credit inquiries stay on your record for two years (not one). There are ways to get them off before hand though (but only for transunion and equifax, not experian)
3. You can still have a high credit score and be denied for a card. CC companies don't just look at your score and how much you make, but they also look at your existing credit lines, amount of inquiries you've done, how much debt you have, how many cards you already have with them, etc. You can have a 750, but if you show too many inquiries, you will get denied, I know from experience.
4. Keep your cards at no more than 25% of the limit? I've heard and read on lots of places that 50% (and 85% on a single card) is when they start getting nervous and kill your score.
Overall, a decent article. - rhabd0mancer, on 10/10/2007, -1/+8All of this handwringing about credit scores amuses me. Your credit card company can jack up your rates on a whim, even if you pay every bill on time, even if you follow all these "expert credit tips" to maximize your credit score.
- CDoug03, on 10/10/2007, -5/+12OK wait. If you guys are really us, what number are we thinking of?
69, dudes!!!!!! - Barbarino, on 10/10/2007, -1/+7FICO scores are scams, pure scams. The less debt you have, the worst your score will be. Their model would have you to believe you need to go into debt to get credit, which makes no sense at all. If you listen to Dave Ramsey he says all the time, he has a zero FICO score, which is utter BS since he is a millionaire. CC companies and the 3 CRA are all scam artists. I'm almost completely debt free, haven't miss payments in years and as the debt comes off my score goes down. If you need a loan, you can ask for it to be manually underwritten, which most banks do. - Cash is king, debt is dumb and the paid off home mtg is the status symbol of choice, not the BMW- Dave Ramsey
- Winters, on 10/10/2007, -2/+7Some of the things you have said are very wrong. Not sure why people are digging you up.
1. This does actually depend on which credit bureau the lender uses. For example transunion can go as high as 925. It also depends on which scoring model is used. This info can be found easily all over the place.
2. Inquires stay on for only one year. Late payments stay on for 2 years.
3. This is true, mostly, but the amount of inquires on your credit report only reflects about 10% of your score. And on top of that "soft inquires" do not affect your score at all, only "hard inquires". http://maxcredit.net/img/credit-score-breakdown.jpg a chart of the breakdown.
4. NOBODY KNOWS what the perfect "utilization ratio" is, but most "experts" believe it's between 25% and 33%. Having it lower or higher than that is known to lower your score for sure.
Not trying to bash you, but I don't like the amount of misinformation about credit. - psykiv, on 10/10/2007, -0/+4ON another note, business credit cards > personal credit cards.
Business cards don't show on your credit report ;)
One other thing, they are no longer taking authorized users into account (like someone mentioned earlier). I guess they caught on to people who were buying a credit line just to increase their score. - bacon_skoda, on 10/10/2007, -0/+4the documentary Maxedout points out that the credit companies have no incentive to keep your report accurate. unless you are a well known person like a senator, then you can have screw ups that magically gets repaired. they have a separate VIP list that is always 100% clean.
- Barbarino, on 10/10/2007, -2/+6This is very true, FICO is a scam! A pure scam. When you pay off your debt it goes down, I should know I subscribe to Dave Ramsey's financial plan and as I paid off more debt my score went down. Fico only indicates how much money they can scam you.
- IllBeBack, on 10/10/2007, -1/+5Thanks for that info. Does www.annualcreditreport.com also provide you with your FICO scores?
- cococooky, on 10/10/2007, -2/+6As soon as you hit "submit comment" it shows +1, if you refresh straight away it shows 0. You can see how many times you have been dugg up or down at: http://www.neaveru.com/digg/index.html
- luckyp, on 10/10/2007, -1/+4I love how the credit companies cry foul when you are an aproved user on a credit card that increases your score but they love to drag your score down if a card you are a user on is maxed out. The credit agencies are shills for big business. They should be required to pay us for the use of our data to make huge profits. Instead, we take it up the ass when they screw up and we pay higher rates for things like car insurance even with a good driving record and payment a whole year ahead.
- FreydNot, on 10/10/2007, -1/+4Why are two of you people digging down this excellent Bill and Ted reference?
- nealpolitan, on 10/10/2007, -0/+3http://consumerist.com/consumer/clips/snl-skit-dont-buy-stuff-you-cant-afford-252491.php
- Urusai, on 10/10/2007, -3/+6Your credit history is *****, and lenders know it. It's gotten so bad nowadays, with random or bogus entries appearing and no practical way to amend your report, that you can pretty much walk in and get whatever loan you want. This doesn't work for large, impersonal institutions, or if you're black. However, the only loans you really might need are car and house loans, and those are both extremely easy to get.
- signal15, on 10/10/2007, -0/+3Wrong. When you pay off your cards and CLOSE them it hurts your credit. A major part of the score is calculated using the amount of credit available to you and the percentage of it that you are using. When you pay off a card, DO NOT close it. Any competent credit person will tell you this.
I know this because one of my clients is the company that calculates the FICO score. - MacSuxWindozSux, on 10/10/2007, -0/+3In Georgia the law mandates 2 free reports a year from each of the 3 major agencies.
Credit Score is not included in a Free Report expect to pay 5-8 Dollars extra. - djspike, on 10/10/2007, -0/+3Some cards (like the WaMu card I have) will let you know what your score is month to month. I think AmEx has something similar.
- synthesis811, on 10/10/2007, -0/+3Well anyone in the UK can use http://www.annualcreditreport.co.uk or a free one at http://www.creditexpert.co.uk as well
- signal15, on 10/10/2007, -1/+3If you want FICO scores, use http://www.myfico.com
My FICO is owned and run by Fair Isaac, the company that calculates the credit scores. I believe you want the Suze Orzeman's Platinum Kit for $99 if you want all three scores. I signed up awhile back, and my fiance just signed up. Very useful, as it also shows you what is making your credit score bad and tells you how to fix it. I successfully disputed everything off my record with Equifax and Experian, but TransUnion is a pain in the ass to deal with. If you dispute anything with them, they almost always deny it. And, after disputing the same item twice, they will start ignoring your dispute letters. - ronmexico, on 10/10/2007, -0/+2Unless you have an American Express business card. They will go after you if your employer doesn't pay ie. goes out of business.
- rhabd0mancer, on 10/10/2007, -0/+2Federal student loans do not depend on your credit score.
- JSager, on 10/10/2007, -0/+2...aaaaand that's why we have a subprime lending crash on our hands.
- muhadeeb, on 10/10/2007, -0/+2Does anyone know that applying for credit means that lenders and banks have an open license to charge you interest on credit and loans. How do you think they make their money
- whorunbartertwn, on 10/10/2007, -0/+2That's a silly blanket statement "debt is dumb" there is good debt and bad debt... debt is a tool that if used prudently can be beneficial, and for the vast majority it's the only way they are going to own a home. No, I'm not talking about the homeowners who got crap mortgages they can't afford I'm talking about responsibly leveraging a home as a place to live.
The bleating of the Dave Ramsey sheep "cash is king" is an appropriate message for those that don't have the self-discipline to manage their spending with a credit card. I pay my credit card off every month, I keep the same household budget as I would with cash, my life and tracking of spending is more convenient because of it, and I get a percentage cash back on every purchase. - Barbarino, on 10/10/2007, -0/+2It's not the "real" score, there is like 3452373495 scoring models and the wamu one is not the one the banks use. But it's close enough.
- signal15, on 10/10/2007, -0/+2They can, and most will routinely look at your credit record and adjust every three months. Bank of America took my rate from 5.9% to 23.99% because I got a new mortgage. I believe the Capitol One no hassle card and Citibank Visa has something in writing that they won't raise your rates unless you make late payments with them. If you're going to get another card, these are the ones to go with. The rest of the companies make their money by trying to screw you.
- psykiv, on 10/10/2007, -0/+2Good story :). Debt is not necessarily bad. The kind of debt that puts you through school or makes a profit for you is not bad. The kind of debt that is bad is taking out a cash advance on your credit card at 30% (plus a 3% fee) so you can make the payment for your escalade (which was a 6 year finance, at 15% APR).
- diggface5000, on 10/10/2007, -0/+2You don't ever have to pay the credit card companies interest if you don't spend more than you have.
And as for your auto loans/ mortgages, try a credit union. You'll usually get a better rate at a non-profit.
p.s. avoid "free" credit report . com!! - rblancarte, on 10/10/2007, -0/+2A better site would be: http://www.myfico.com/, the best thing they have is a PDF about understanding your credit:
http://www.myfico.com/Downloads/Files/myFICO_UYFS_Booklet.pdf, I read it recently, after digging up my FICO, which I wanted to check on recently since I did a number on my credit a few years back (lost my job, and stopped answering the phone - bad combo). Anyway, probably a better read than the HSW page. - SurferBette, on 10/10/2007, -0/+1You'll have variances because there are different items being reported to different credit agencies. Perhaps you have a merged file with someone who has a similar name over at Transunion, but not at EQ. Your points can also fluctuate depending on "hard pulls" made by someone who is checking your credit, but different companies use different agencies. It's bad to have lots of credit requests floating out there at the same time, but it would make a huge difference if Experian was used by most of the potential creditors looking at your account.
- SurferBette, on 10/10/2007, -0/+1That's really interesting Signal15... I don't doubt you, I think it's fascinating how experiences can vary. Right now only Transunion will play ball with us and send our report, we're having trouble with Experian and Equifax. And Experian, judging by the reports on CreditBoards, loves to violate the Fair Credit Reporting Act. They are infamous for keeping old addresses on your record.
- SurferBette, on 10/10/2007, -0/+1FoxtrotUSAF, did you close all your cards? Did you have a relatively slim amount of debts? (A "thin file"). Also, if you're in the military, some creditors will find you less desirable, particularly if you are enlisted and making a little less money. They don't understand BAH, for instance. It doesn't make sense to me, either, but we had more trouble getting credit when my husband was still in the service.
- psykiv, on 10/10/2007, -0/+1PLEASE NO. Three credit scores is already too much to keep track of. Imagine if there were 100. I do agree that they should open up their formula though.
- SurferBette, on 10/10/2007, -0/+1One thing that is also important to know... When you order a free credit report, and dispute the incorrect data on there (and there will almost certainly be some flaws), the clock for them to fix the error is increased by 15 days, to a total of 45 days. The normal amount of time it takes is 30 days, if the report was paid for with cash. Therefore, if you are working to get your credit cleared by a certain period, you may want to bite the bullet and actually pay for the reports.
- rblancarte, on 10/10/2007, -0/+1Actually, on the Citibank Visa (any any other Citicard), they have wording that says they can jack up your rate for any negative change of your credit score or credit report. Basically if you pay any other bill late, they can raise your rate.
- SurferBette, on 10/10/2007, -0/+1FICO has a big impact on the interest you pay in buying a house, and that is worth "handwringing". It's going to be more important in the next 12-16 months, especially in markets which are saturated with ARM and negative amortization loans.
CCs will be jacking up rates when they can, of course, as well. - SurferBette, on 10/10/2007, -0/+1Agreed, this is a wise example. It is really a bad idea to condemn all debt as being bad. It is definitely good, when building a business, increasing your salary (i.e. smart school debt), and getting a mortgage. Only unsecured credit card debt is generally unwise, and only if it's for stuff like eating out and buying clothes... assuming it has nothing to do with getting a better job or building a business.
You also make a good point about who Ramsey's advice works for. There are middle grounds that serve different spending styles and attitudes. If you have poor impulse control, then cash is definitely king. Completely cutting debt out is an extreme position that will work best for someone who needs extreme help. - nickerbocker, on 10/10/2007, -1/+2Another way to get a free credit report is to have the college you attended...say University of Phoenix...get a computer stolen that may or may not have had your Social Security number on it. Then you put a fraud alert on your credit and you're all set for a free report. Then say this college puts up for a year of free credit monitoring to avoid backlash.
- psykiv, on 10/10/2007, -0/+1I know people with credit so bad, they can't even get a checking account...
- whorunbartertwn, on 10/10/2007, -0/+1I've got no problem believing that people that use credit cards spend more on average. People with no financial self-discipline are surely more likely to spend beyond their means if they have access to easy money they don't have. That said for people who are able to manage and stick to a monthly spending budget method of payment is irrelevant and yes I submit one can actually pay less with no fee rewards cards, track their spending more conveniently, and take advantage of additional value such as some additional legal protection. It sounds like you're perfect for Dave Ramsey, and you're a big part of him being a millionaire... but the blanket statements about debt being bad don't necessarily apply to everyone who has self-control and personal finance skills. To each his/her own and debt can be either a good tool to reach goals in life or a bottomless pit, but it's not the concept of debt itself to blame it's how people manage it and use it.
- SurferBette, on 10/10/2007, -0/+1But Capital One is a TERRIBLE card to get. They will definitely hurt your credit score. They are infamous for not reporting your limit on CRA statements. So, for example, if you have a $10,000 limit and use $2,000 that you're revolving from month to month (paying in installments), the credit agencies assume that that $2,000 could be the actual card limit - not $10,000. Since your debt-to-credit limit ratio is important to FICO, they do this to hurt your credit score and keep you more dependent on their credit offers.
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