Do you find this to be true. (Realtors, housing bubble, Long Island)

[CouponJack]

Originally Posted by amyla

How's New York doing? Specifically Long Island?

Amy- try the following....

What Realtors don't want you to know about Long Island Housing

The Housing Bubble Blog


This is market specific and there are "comments" areas after each article to ask questions to people local to that market.

Play around w/the sites and I guarantee you you'll have a better understanding of the areas your looking for.

good luck

[TimtheGuy]

Originally Posted by jimj

So? Credit scores are the highest according to you (I'd have to see proof of that)... Ok, all that means is that they should pay, it doesn't mean they can or will pay.
A couple of the places you mention are heavy in tech and banking, two areas that have seen mass layoffs and re-alignment causing people to not have a once high paying job to afford the house.

states in order of best to worst:

State Average Consumer Credit Score Year 2004/2006
USA National Average YR2004 - 677 YR2006 - 675
South Dakota YR2004 - 710 YR2006 - 708
Minnesota YR2004 - 707 YR2006 - 706
North Dakota YR2004 - 706 YR2006 - 705
Vermont YR2004 - 706 YR2006 - 707
Massachusetts YR2004 - 703 YR2006 - 701
New Hampshire YR2004 - 703 YR2006 - 704
Montana YR2004 - 701 YR2006 - 703
Iowa YR2004 - 700 YR2006 - 697
Maine YR2004 - 699 YR2006 - 699
Wisconsin YR2004 - 699 YR2006 - 695
Pennsylvania YR2004 - 696 YR2006 - 692
Nebraska YR2004 - 695 YR2006 - 694
Connecticut YR2004 - 694 YR2006 - 695
New Jersey YR2004 - 693 YR2006 - 691
Rhode Island YR2004 - 692 YR2006 - 693
Washington YR2004 - 691 YR2006 - 685
Wyoming YR2004 - 690 YR2006 - 689
Virginia YR2004 - 689 YR2006 - 689
Hawaii YR2004 - 688 YR2006 - 690
Idaho YR2004 - 688 YR2006 - 684
Maryland YR2004 - 688 YR2006 - 684
New York YR2004 - 686 YR2006 - 685
Oregon YR2004 - 686 YR2006 - 686
Ohio YR2004 - 685 YR2006 - 681
Delaware YR2004 - 684 YR2006 - 679
Illinois YR2004 - 684 YR2006 - 682
Missouri YR2004 - 683 YR2006 - 678
Utah YR2004 - 683 YR2006 - 684
Kansas YR2004 - 682 YR2006 - 679
Michigan YR2004 - 679 YR2006 - 677
Tennessee YR2004 - 679 YR2006 - 674
West Virginia YR2004 - 679 YR2006 - 675
Kentucky YR2004 - 677 YR2006 - 675
Washington DC YR2004 - 677 YR2006 - 674
Alabama YR2004 - 676 YR2006 - 670
Indiana YR2004 - 676 YR2006 - 672
Alaska YR2004 - 674 YR2006 - 674
Colorado YR2004 - 674 YR2006 - 671
Florida YR2004 - 673 YR2006 - 672
California YR2004 - 672 YR2006 - 672
Arkansas YR2004 - 668 YR2006 - 666
Georgia YR2004 - 668 YR2006 - 662
Mississippi YR2004 - 668 YR2006 - 666
North Carolina YR2004 - 667 YR2006 - 663
Oklahoma YR2004 - 666 YR2006 - 664
South Carolina YR2004 - 665 YR2006 - 663
Louisiana YR2004 - 663 YR2006 - 662
New Mexico YR2004 - 663 YR2006 - 661
Arizona YR2004 - 659 YR2006 - 659
Nevada YR2004 - 655 YR2006 - 654
Texas YR2004 - 651 YR2006 - 647

[VMH2507]

Your data is interesting, but I don't know enough about the way that credit scores are calculated to know if a 50-60 point difference (top to bottom) is significant. If you listen to Dave Ramsey, he says the only thing that a high credit score means is that you are good at borrowing money. Not exactly a ringing endorsement in my book. I think much more important is a healthy job market and affordable housing, both of which the southeastern region of the US has.

[TimtheGuy]

Originally Posted by VMH2507

Your data is interesting, but I don't know enough about the way that credit scores are calculated to know if a 50-60 point difference (top to bottom) is significant. If you listen to Dave Ramsey, he says the only thing that a high credit score means is that you are good at borrowing money. Not exactly a ringing endorsement in my book. I think much more important is a healthy job market and affordable housing, both of which the southeastern region of the US has.

so it is only good at borrowing....how about good at paying it back on time???

[VMH2507]

Again if you listen to Dave Ramsey, credit score is increased by borrowing more AND paying it back in a timely fashion. However, in the long term you are better off by borrowing less or not at all, which would lead to a lower credit rating score. In fact he says that his credit score is probably 0 since he does not believe in credit. Obviously not everyone is able to do that but it does point out the fallacy of believing that credit score is the holy grail. Credit score only indicates that you have borrowed and paid back in a timely fashion in the past, but does not give any information about financial resources to repay.

[jimj]

Credit scores vary widely depending on the company that's requesting the scoring and who's doing it.
Fico differs from Beacon which differs from Emperica and these vary depending on what institution is using it. While FICO is the pioneer of credit scoring and has their own models different companies tweak the models to fit what data they want scored, or have the scoring companies build a new model.
From what I've learned while working at one of these companies for several years is that to get a good score you need to have a couple different credit accounts open with mid level balance's and pay them as required for a couple of months. From what I've seen it doesn't matter if it's a low credit line or a big one as long as you are paying a mid level balance and don't have a huge debt to income ratio. There is no way to know ALL of the factors in scoring, they don't let many people see the whole model at one time (and I mean not many). As I have said before, credit scores don't mean anyone will or can pay, it's just a predictor of behavior. Also, in case you are unaware these scores are used everywhere now like when you buy car insurance, medical insurance,many services like phone,water,cell etc. and sometimes when you apply for a job.
And yes, a 60 point swing could be significant in some instances.
Evidently they work good enough since they are in such wide use.

[VMH2507]

A couple of years ago when I took out a small mortgage on a second home I was told that my credit score was 720. I had 3 credit cards which I paid off each month which would tend to disagree with needing to carry a balance to get a high score. I pay cash for cars and the only outstanding credit was mortgage on primary residence.

[jimj]

Originally Posted by VMH2507

A couple of years ago when I took out a small mortgage on a second home I was told that my credit score was 720. I had 3 credit cards which I paid off each month which would tend to disagree with needing to carry a balance to get a high score. I pay cash for cars and the only outstanding credit was mortgage on primary residence.

Like I said, depends on the scoring model and company doing it. 720 is ok, my wife and I are in the low 800's carrying a minimal balance. This score varies by about 20 points depending on what agency is used and what product is applied for. Also, that was a couple of years ago. Models are changed regularly to adapt to the current market conditions or to tweak them to what the buisness thinks they need.

[VMH2507]

I don't think that carrying debt (credit cards and car loans) should be necessary to get a good credit score. This is particularly problematic since, as you say, credit score is used for other things besides getting a loan.

[jimj]

At some point I agree except how else do they know you are willing to follow your obligations?