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I'd never checked my credit score before, or even cared. But I just now took a look online. My score was 600-700. I was wondering why it is so low.
I've been completely debt free for 15 years or so, and paid the few bills I've had on time. Paid cash for my car (<$5K). I have 2 CCs, one I use occasionally (DC), one I use regularly (Visa), both PIF each month. They don't like deadbeats?
I've been in college f/t (non-trad, grants and scholarships) with no debt from that, but my income has been very low for the past few years (<10K/yr) since I've only worked p/t.
Your score isn't "low". Supposedly the 'average' score is 693. You need to contact the "big 3" to get a copy of your reports, which may show something that is not correct. It is rare for someone to have all 3 reports be 100% correct.
I have suspected for a long time that the 3 reporting agencies are in bed with the bankers. If you pay off everything right away and never give them their due of 'interest', they don't like it much. If you are hell-bent on having a great FICO score, try stretching out your payments for 3 months. It won't make you a "dead-beat".
My opinion is, who cares? Why bother with credit (debt) anyway?
Your score isn't "low". Supposedly the 'average' score is 693. You need to contact the "big 3" to get a copy of your reports, which may show something that is not correct. It is rare for someone to have all 3 reports be 100% correct.
I have suspected for a long time that the 3 reporting agencies are in bed with the bankers. If you pay off everything right away and never give them their due of 'interest', they don't like it much. If you are hell-bent on having a great FICO score, try stretching out your payments for 3 months. It won't make you a "dead-beat".
My opinion is, who cares? Why bother with credit (debt) anyway?
I agree. The score is how well you make payments and manage debt. It you don't plan to go into debt, it doesn't matter.
One reason may be becuase you have too little debt. Sad as it seems, the system looks at the # of accounts, mix of different types, length of history, etc.
So having only credit cards and only 2 might keep you from the top tier. You will get a good score, but its harder. Now don't go crazy and get 6-7 accounts, but you want a few, different types of accounts with long term history (>3 years) that you pay consistenly.
Credit has zero to do with income, employment, savings or how you pay bills... those are not included in the score. So all they can gauge you on is the history of paying debts back. Too little debt history makes it harder to judge your true credit profile.
I only have 1 debt..my mortgage. I got a car with a loan and paid it off in 1.5 years.
I pay my CC in full each month.
I just don't like debt and try to pay it off ASAP. I do add extra principal to my mortgage payment each month..and calculated this 30 year mtg will be paid off way before that time.
Yeah..what a sham. The more debt you have the better your score (assuming you pay on time). Can't fathom that.
Those folks that live nearly debt free should have scores near 1000 IMHO.
My SO is thinking of maybe buying a house in a year or two. I've been doing some homework on house buying and mortgages. I'm not sure if I'll be part of the buying equation or just pay "rent" to him when I live there. (I'm not hung up on owning things....)
He's never checked his credit score either. He got his first credit card at 39 yrs old. PIF every month. He never had car payments: payed cash for a Toyota truck that he drove for 20 years, then paid cash for replacement truck a couple years ago. He had a small student loan (<10K) that he PIF after graduation. He got a modest inheritance after his mom passed away. Was thinking of around $30K dwnpmt on modest house. Can he get a loan?
My SO is thinking of maybe buying a house in a year or two. I've been doing some homework on house buying and mortgages. I'm not sure if I'll be part of the buying equation or just pay "rent" to him when I live there. (I'm not hung up on owning things....)
He's never checked his credit score either. He got his first credit card at 39 yrs old. PIF every month. He never had car payments: payed cash for a Toyota truck that he drove for 20 years, then paid cash for replacement truck a couple years ago. He had a small student loan (<10K) that he PIF after graduation. He got a modest inheritance after his mom passed away. Was thinking of around $30K dwnpmt on modest house. Can he get a loan?
If I ran a bank then he'd be one of my "star" customers..but alas that is not how the banking industry works.
He can go to a bank and ask to get pre-qualified for a mortgage. There's no committment and the bank will run the numbers and tell him how much of a mortgage he can qualify for and how much of a house he can buy.
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