The Current State of Credit Scores in America

[smcc]

A must read, in today's USA TODAY:

http://www.usatoday.com/money/econom...t-scores_N.htm

[uzipolo]

A must read, in today's USA TODAY:

http://www.usatoday.com/money/econom...t-scores_N.htm

the funnest part of the article was the comments..(lol) but seriously lets get down to business........



A customer with a score of 679 recently walked away from buying a house because he could not get the best interest rate on a $100,000 mortgage. Had his score been 680, the rate he was offered would have been a half-percent lower. The difference was only about $31 per month, but over a 30-year mortgage would have added up to more than $11,000.

..i tried..and i tried..and i tried..i cant get no..(dah da dahh!)

i mean they should have went further in this discussion
but i guess it depends on the person, it seems and more than l8ikely this was a condo, a duplex, or a townhouse but what about what monies did the customer have up front? is this a family? single person that was getting the loan?
but overall he should at least try to come back in 3-6 months to get his credit to be where it needs to be which in this case 680 which i think would have been easy if he was around people to give him some sound advise, like us, on credit management or the CCC.or his actuall lender or bank that i guess would have issued the check
speaking of the bank, if he would have went that route, couldnt he have just negotiated with the owner who is selling the property to get the price down by 10,000? like i said alot of un answerd questions and not enought info on this statement.......






"There was nothing derogatory on his credit report," Workman said of the customer. He had, however, recently gotten an auto loan, which likely lowered his score.


..i think this plays with not being informed by his bank, his realotor, or whoever he was around at the time of the house purchased they should have told the customer that you just cant buy things like that ..especially that big of a purchase while trying to buy a home, they preach this to you like a religion
unless...he did this without knowing he was going to purchase a home in the future and just did it on a hum bug or did it because he needed to do something fast or his back was against the wall...like i said alot of empties in this discussion that we dont know about....




Studies have shown FICO scores are generally reliable predictions of consumer payment behavior, but Workman's experience points to one drawback of credit scoring: Lenders can't differentiate between two people with the same score. Another consumer might have a 679 score because of several late payments, which could indicate he or she is a bigger repayment risk.

wow didnt think you could have a 679 score with LATE PAYMENTS..wow! he must have had a 800 score to begin with..

says uzipolo-king of decatur

[smcc]

When I read the story uzipolo I thought of people who had good credit and because of the state of the economy, i.e. layoffs, working less hours, medical, that some people, through no fault of their own, were just not able to keep up with their bills.

then you have others who were making minimum payments on their accounts and the economy "reached out and touched them" also.

I think a lot of us here at FG have made it a priority to pay down / off our revolving accounts and use our cards when we have a plan on how to pay it ( the balance ) off before we make the transaction.

To give you and idea, I went on vacation recently, do you know I accounted for all my daily expenses at the end of everyday and sent that amount to AMEX through bill pay with BOA. I was paying off my expenses every night. The next day AMEX would show my expenses on their website from the previous day and I would go back and cross reference the charges against what I entered in my EXCEL spreadsheet.

I have said this before "Credit has never been so close to cash as it is now, I treat it ( credit ) like a priority................

[Wanderer]

When I read the story uzipolo I thought of people who had good credit and because of the state of the economy, i.e. layoffs, working less hours, medical, that some people, through no fault of their own, were just not able to keep up with their bills.

then you have others who were making minimum payments on their accounts and the economy "reached out and touched them" also.

I think a lot of us here at FG have made it a priority to pay down / off our revolving accounts and use our cards when we have a plan on how to pay it ( the balance ) off before we make the transaction.

To give you and idea, I went on vacation recently, do you know I accounted for all my daily expenses at the end of everyday and sent that amount to AMEX through bill pay with BOA. I was paying off my expenses every night. The next day AMEX would show my expenses on their website from the previous day and I would go back and cross reference the charges against what I entered in my EXCEL spreadsheet.

I have said this before "Credit has never been so close to cash as it is now, I treat it ( credit ) like a priority................

Hmm... very un-American "cash"... Yeah! Actually, I don't pay off every day but it is getting so weekly I submit payment. Also, I limit myself to certain cards that I will use each month (rotate and yes it is a pain). The others cards stay paid in full. Frankly, I would like to downsize more cards but the market place is so fussy I stopped closing accounts for now. Closed five bank credit card accounts since the fall of 2009 eliminating $24,850 in credit lines (not bad). Cooling it for now. Someone on the site mentioned creditors are too nosey. I agree. They seem to live by the credit bureaus. I watch my timing so bills are paid by the cutoff date the bank uses for credit reporting (and no it is NOT always the statement cutoff date).

[smcc]

You know Wanderer, you sound like me, trying to weather the storm until things get better. If you can live through this (current economy) and come out unscathed, you will be in a good place (credit score wise )

[Joeyman]

I pay daily on my CU Visa, only because I can transfer instantly from my CU checking account. So I basically run all my regular transations through my CU Visa if possible. Now, my Cap One card is for "long-term purchases?" I have a 0% APR until next year. I'm working on paying that down now, I call that card the devil card! My Elan card is lame, my credit monitoring service runs through that, nothing more. I don't care to use it anymore. The balance is $50 so it doesn't close...


I have 17.5% ult at the moment, with $3900 total credit. My goal is to make it 10% ult within 1-2 months.

[Joeyman]

[QUOTE=smcc;24945]entered in my EXCEL spreadsheet.[QUOTE]

Re:
http://www.financeglobe.com/SocialNe...ead.php?t=1581



PS:

Guys, this has turned out to be a cool thread - The Current State of Credit Scores in America.

[smcc]

Hopefully we can all say this is a "cool" thread if we can learn something from it, no matter how large or small, and react upon it. Obviously Joeyman your doing the right thing, hopefully others can learn something from what you do everyday and apply it to their financial strategy.

[uzipolo]

Hopefully we can all say this is a "cool" thread if we can learn something from it, no matter how large or small, and react upon it. Obviously Joeyman your doing the right thing, hopefully others can learn something from what you do everyday and apply it to their financial strategy.

welp i dont knwo what to actually learn from the topic in general, but here is what i did LEARN from the article....

it seems to me like the so called customer is not that bright
he didnt get sound advise and he didnt surround himself with people with great credit managing skills and also didnt use the resources neccessary to get where he needed to be as far as the 100,000 mortage/hose is concrened

now..back to the article on the outside looking in if you dont have money in the first place why even bother....

meaning that..
1.if you HAVE credit dont bother to charge if you are broke, i just dont get it, its not cute at all

2.if you are laid off,hospital leave, etc..and have credit dont use it ..period

3. if you dont have money, dont even try to apply because the name of the game is money..thats it its no easy way out

because these people want they money and its up to us to out beat them in they own game which is pay ahead of schedule and pay the full balance but without money dont even waste your time and effort dont put yourself in situations..i mean WHY GIVE THEM THE REASON

i mean i seen that thread where people have 20-30 credit/store cards and you cant get mad at them because they have a plan..one of them...money because they know they are not sock drawing these cards they are using them on a monthly basis dont let them fool you they are USING MONEY whether they borrow, money transfer,work at home, poker, etc..MONEY IS INVOLED

now if they have all these cards and they credit score is still in the 600's ..then houston we have a problem

when i read those particular 2 threads not one of them mentioned they credit score..which is why they would not mentioned that but the accounts are still open they mentioned they closed some but the other 17-20 cards are open so i guess they are doing something right




and lastly about the article when the customer purchase a auto loan/car i assuming 2-3 months before he tried to get that mortage..man come on..this is what i mean he didnt surround himself with the right people
they preach and preach and PREACH(the realters, brokers, bankers, csr, lenders, account managers,etc..) this to us like a religion
they tell you dont purchase anything big, ot take hits on your inquiry while trying to purchase a house.. i mean this was just foolish

but the good news is is his score if its just one point to make a difference hopefully someone has pulled him to the side and said, hey man.this is what you need to do...............

but at the same time we dont know why he wanted to get this house in the time frame that he got the automobile eithier..

is he goint through a divorce and had to move
did he not know basic credit procedures
was he a victim of a national disaster and he needed to move right away as far as emergency concerns

does he have a family?

well anyway......thats what i learned form the article.

says uzipolo-finance globe Ph.D

[Joeyman]

Hopefully we can all say this is a "cool" thread if we can learn something from it, no matter how large or small, and react upon it. Obviously Joeyman your doing the right thing, hopefully others can learn something from what you do everyday and apply it to their financial strategy.

Thanks man! I've been so tempted to apply for an AMEX, but I decided to hold off. I should let my current accounts age more, and wait for some CLI's to happen.



Where in the world has ColoNative, Meya, and Hjm been?????

[Wanderer]

Thanks man! I've been so tempted to apply for an AMEX, but I decided to hold off. I should let my current accounts age more, and wait for some CLI's to happen.



Where in the world has ColoNative, Meya, and Hjm been?????

Hey hey hey... I've been here for ya! Meya is in summer session College attending graduate school and getting smarter with a little going crazy. ColoNative has been around but quiet and hjm ... hmm..!

[smcc]

Joeyman, you have the right idea. AMEX isn't going anywhere and if they have solicited you for one of their cards, great ! As long as you continue to manage your credit in a responsible manner, that solicitation is an open invitation ! If they haven't sent you anything yet its just a matter of time.

As far as advice, Wanderer is always here and I try to show my face on a regular basis. Your a smart person Joeyman and you have been on this site long enough to make a wise and correct decision but we are always here to bounce anything off us

[Joeyman]

Joeyman, you have the right idea. AMEX isn't going anywhere and if they have solicited you for one of their cards, great ! As long as you continue to manage your credit in a responsible manner, that solicitation is an open invitation ! If they haven't sent you anything yet its just a matter of time.

As far as advice, Wanderer is always here and I try to show my face on a regular basis. Your a smart person Joeyman and you have been on this site long enough to make a wise and correct decision but we are always here to bounce anything off us

Thanks! But you and Wanderer are smarterrrrrrrrrrrrrrrrrrrrrrrrrrr!

[Joeyman]

Joeyman, you have the right idea. AMEX isn't going anywhere and if they have solicited you for one of their cards, great ! As long as you continue to manage your credit in a responsible manner, that solicitation is an open invitation ! If they haven't sent you anything yet its just a matter of time.

As far as advice, Wanderer is always here and I try to show my face on a regular basis. Your a smart person Joeyman and you have been on this site long enough to make a wise and correct decision but we are always here to bounce anything off us

AMEX pre-selected me in early June upon my entry. I decided to wait because it was only for the charge cards, and I really want like one of the Blue's or the Costco AMEX. So this month I filled out the form for pre-selects and they said I wasn't pre-selected for anything at this time. However, one of the generic responses was something along the lines of filling out the form within the last 30 days could renown to this. Which i don't know if I waited a full 30 days. I'm gonna do it again like mid August or something...

[JoeArg29]

AMEX pre-selected me in early June upon my entry. I decided to wait because it was only for the charge cards, and I really want like one of the Blue's or the Costco AMEX. So this month I filled out the form for pre-selects and they said I wasn't pre-selected for anything at this time. However, one of the generic responses was something along the lines of filling out the form within the last 30 days could renown to this. Which i don't know if I waited a full 30 days. I'm gonna do it again like mid August or something...

My scores are all well above 800, resposibility is key, credit is not a right, its a privelage of being an honest borrower. The financial collapse of 2007-and now is a result of both greed, and on the part of consumers rapid consumption of LUXURY goods. Using cards as loans, HELOC, etc At that time the market waa great yet people live Well beyond the means they should have. I dont feel sorry for any consumer whos card was revoked, cancelled, had a CL reduction etc. (Unless its amex related, that an entirely different story ha) You should have not been so wreckless, I believe things will remain the way they are as it safeguards and weeds out deadbeats from honesty. I also believe verification of INCOME will soon become mandatory for all credit instruments, think about it, the bank, CU, etc are issuing you an unsecured in some cases line of credit by way of credit card heloc personal loan. That is a huge risk if the borrower is overstating income by even 10%, and ILLEGAL. I always send my card issuers my Bank statements to have on file, I am glad its harder to get cards with large CL. People need to get out of DEBT and earn the trust of isssuers so many that were burned by deadbeats who declared bk. That ultimetly hurts others, because guess who absorbs the cost, US. Sorry for the diatribe but this issue is my soapbox