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If I am an underwriter, have two applicants, both who have been driving and owned homes and had insurance for 15 years. The first has zero or maybe one claim in 15 years, but a mediocre credict score. the other has great credit, but 10 claims in the past 10 years, I can tell you whose polilcy I write, or for less premium.
If you're an underwriter you'd know not to take just one variable as the reason for your decision. The credit score is but one factor not the factor.
Her way of thinking used to be the dominant way of thinking now from the top of government down if you don't borrow something is wrong with you.
And most have bought into that hook, line and sinker.
Quote:
Originally Posted by monkeywrenching
really, mine is below 600. I also have no debt at all, i own homes that i rent out, I have cash in the bank and at home as well. I bought a brand new car for my daughter last year, i did not take a loan out for it, I just paid the $27,000 for it right there at the lot. i am starting to get to my mothers example. another 10 years or so and i might get close.
I agree with your mother. I have been doing this for years also.
I take no loans at all, if i can buy it outright, then i buy it, including homes. I dont look to establish any credit at all. I prefer my ability to have cash at home and not in the bank as much.
when i bought my 1st home ~15 years ago, i had a credit score of about 680, had money in the bank, was willing to put 40% of the home as a down payment and the bank refused me. since then i dont get loans for anything at all.
cash now or dont get it. the only type of credit card I have is a check card. when i am going somewhere and need a CC, I put money into the bank to cover what I think i will be getting or need to cover.
If you take no loans at all that explains you score. On top of that even if you have a decent score but a small credit history banks are hesitant to issue mortgages. I have a buddy that had a 720 score but a very young credit history...he had a lot of cash and couldn't get a loan...it's not a racial thing.
On top of that...if you just have a debit card you DON'T have a credit card. There is no line of credit attached to it and running it as credit means nothing...neither does the visa logo...it's just the company your bank hires to facilitate its electronic transactions.....based in what your saying I can see why your credit may be low.
Obviously the only fair thing to do is to take credit-worthiness points from those who have earned it and give those points to the bottom 47% who have not earned any at all. Recent arrivals (from the Southern lands) will be provided with points as they are shown the path to credit nirvana. After all, they're just here for a better credit score.
All part of the plan to make it fair!
Now you're just being sarcastic. Where's the ?
It's possible for someone to have a good credit score without really earning it. For example you could inherit a big chunk of cash and/or assets including an income stream, and use the income stream to finance credit. (i.e. it's possible to build great credit without even working)
Also, since younger people inherently have lower credit scores than older people, you can't really say that aging is equivalent to earning points on your credit score, as you're not actively doing anything to 'earn' those points.
Since mortgages are the best type of credit for your credit score, government policy harms the working class by preventing the private secgtor from selling them homes they can afford.
Obviously the only fair thing to do is to take credit-worthiness points from those who have earned it and give those points to the bottom 47% who have not earned any at all. Recent arrivals (from the Southern lands) will be provided with points as they are shown the path to credit nirvana. After all, they're just here for a better credit score.
All part of the plan to make it fair!
SUPERB analogy! Had to rep you!
Shows exactly how totally screwed up our country is.
Shows exactly how totally screwed up our country is.
Since a mortgage loan repaid timely is the best type of credit for improving your credit score, NOW do you support economic freedom for property owners who wish to sell homes affordable to low-wage workers?
Did it ever occur to you that perhaps government policy is in the way of mortgage loans, equity-building, and higher credit scores for these people?
Since a mortgage loan repaid timely is the best type of credit for improving your credit score, NOW do you support economic freedom for property owners who wish to sell homes affordable to low-wage workers?
Did it ever occur to you that perhaps government policy is in the way of mortgage loans, equity-building, and higher credit scores for these people?
Is that a joke? The government's easy money policy that prioritized giving home loans to the low-income and poor credit risks precipitated the 2008 financial crisis when those loans began defaulting en masse, taking MBS and derivatives down with them.
Location: Just transplanted to FL from the N GA mountains
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Quote:
Originally Posted by freemkt
Since a mortgage loan repaid timely is the best type of credit for improving your credit score, NOW do you support economic freedom for property owners who wish to sell homes affordable to low-wage workers?
Did it ever occur to you that perhaps government policy is in the way of mortgage loans, equity-building, and higher credit scores for these people?
Actually the best type of credit for improving your credit score can be, believe it or not a line of unsecured credit. A credit card with a good-sized amount of available credit, which has not been abused over a good length of time is better than anything. It shows that even though you have credit that you can MANAGE credit responsibly. Your debt to credit ratio is actually about 28% of the factor that goes into your FICO score. Consequently.. you have to have credit available at all times as you pay off the debt in order to raise your score. A mortgage is a fixed amount of credit that you can not borrow from again without going to the trouble and expense of refinancing. A home line-of-credit would work, but a mortgage loan won't as effectively. The mortgage shows you can make timely payments, but not that you can manage credit.
What irks me about credit scores is when they are used by businesses where credit is not really an issue.
For example, did you know insurer's use your credit score to determine whether or not they will issue you a policy and at what price? Insurance is not bought on credit- if you don't pay, the policy is cancelled.
Half the drivers where I live just make one payment on the insurance so they can get the license plate and then never pay again.
Responsibility is reflected by credit scores. Living within your means, paying your bills on time. Not driving a big new pimp-mobile when all you can afford is a used car.
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