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  • Credit score

    I don't know about some of you that actually like to keep up with this sort of thing, but with the exceptional credit I have, I glad to know things like this and thought I'd pass it on.

    Clicky

    I will find you... it's only a matter of time.

  • #2
    Pay your bills on time and don't worry about pecadillos of the credit scoring algorithms companies use. Banks don't give you any better deals with a score of 720 vs. 760 anyway.
    Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

    So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

    Comment


    • #3
      Originally posted by Baker View Post
      Pay your bills on time and don't worry about pecadillos of the credit scoring algorithms companies use. Banks don't give you any better deals with a score of 720 vs. 760 anyway.

      That's all I've ever done. All my cards have a limit so that wouldn't effect me. I do have some asinine limits on some though. I just couldn't see myself spending the limit.

      They may not give you deals, but you can walk in and get probably any amount you want w/out hesitation... provided you can swing the note.

      I've done silly things that will reflect on my report, like once I thought I paid my car note and swore by it. When it came down to showing receipts, I couldn't find them. Long story short, I saw the error, paid it and everyone was happy. That's about the extent of me being late.

      I will find you... it's only a matter of time.

      Comment


      • #4
        Credit scoring systems can easily be manipulated.

        The largest factor is, of course, whether or not you pay on time.

        Ironically, it is best to accept a reasonable number of pre-approved credit cards, activate them and then either cut them up or store them away somewhere.

        This will inflate your revolving debt credit limit, so when the scoring systems do a debt to limit ratio, it will result in a low percentage. Never cancel a card, just pay it off and stop using it.

        Installments loans have no such calculation, at least not one that matters for credit scoring. So whenever possible convert any debt to an install loan. One of many ways this can be done is over financing your vehicle, take the extra cash and pay away revolving debt.

        Also, it can be fun to BUILD up others credit score with your own credit. The credit scoring by at least one of the 3 or 4 major credit scoring companies counts "authorized users" in their calculations.

        So --- what is fun to do, add your brother/sister as an authorized user to your credit card but never give him the card. Use it just a little and -- viola! --- he has developed a positive credit history and established a repayment period. Age is irrelevant to authorized users, just make sure he/she share your current address so that the credit reporting companies match it with them as authorized user accounts usually don't require social security numbers. (Has the Patriot Act changed this ... hmmmm, I don't think so).

        So as a result, you can give your 16-year-old brother a 4 year credit history by the time he is 20, so he can get easily approved for credit cards and loans, hehehhe. Length of credit history is a MAJOR factor in calculation of a credit score.

        On another note:

        If you have a car, ALWAYS make sure you have comprehensive with a $0 deductible even if you don't have or need full coverage. The cost is trivial (like $30 per 6 months) and comprehensive covers the b.s. you didn't do yourself (things that happen to your car when you aren't driving it like theft, vandalism, flooding or even hitting a deer).

        Let it be the insurance company's problem if something like happens, not yours.

        Heheh
        Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

        So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

        Comment


        • #5
          Whats a credit score?

          Comment


          • #6
            A credit score is the number assigned to your credit by the major credit companies. Someone actually has 3 or 4 of them, and they vary by which credit reporting agency provided the score.

            Experian, Equifax and Transunion are the 3 largest ones in the United States -- there some Mr. New Boots credit reporting agency, I don't remember their name.

            Each of these 3 companies creates their own credit score based on what they have in their database. Since their databases differ, they produce different numbers. Each company is stronger in some regions of the country and less strong in others.

            The number varies from 450 to 800 (mostly) with a decent number being 660. Below 620 is considered bad, above 720 is considered strong.

            Banks determine credit card solitication off of these numbers, car loan interest rates and approval are often based on these numbers as well.

            Banks typically additionally use their own internal scoring system (which is often a clusterf**k) as an additional measuring stick.

            If you want a free copy of your credit report, instead of being a sucker and being commerically exploited at "freecreditreport . com" you should apply for something you have no chance of being approved for and then call the credit company's phone number on the decline letter and get a free copy of your credit report as they are required by law to provide it.

            Option B is to go to a car dealership and have them pull your credit report and ask to see it.
            Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

            So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

            Comment


            • #7
              Originally posted by Baker View Post
              Credit scoring systems can easily be manipulated.

              The largest factor is, of course, whether or not you pay on time.

              Ironically, it is best to accept a reasonable number of pre-approved credit cards, activate them and then either cut them up or store them away somewhere.
              I do have many credit cards. I've activated a few but I have them stored away. I don't think I've used them. There are only two credit cards I use and they are paid off every month.

              Originally posted by Baker View Post
              Also, it can be fun to BUILD up others credit score with your own credit. The credit scoring by at least one of the 3 or 4 major credit scoring companies counts "authorized users" in their calculations.

              So --- what is fun to do, add your brother/sister as an authorized user to your credit card but never give him the card. Use it just a little and -- viola! --- he has developed a positive credit history and established a repayment period. Age is irrelevant to authorized users, just make sure he/she share your current address so that the credit reporting companies match it with them as authorized user accounts usually don't require social security numbers. (Has the Patriot Act changed this ... hmmmm, I don't think so).

              So as a result, you can give your 16-year-old brother a 4 year credit history by the time he is 20, so he can get easily approved for credit cards and loans, hehehhe. Length of credit history is a MAJOR factor in calculation of a credit score.
              Is it possible to do that with my 8 year old? Or is it restricted to "brother/sister"?


              Originally posted by Monster View Post
              Whats a credit score?
              To add to Baker's reply, there's more info here, The first paragraph explains the basics as well..

              I will find you... it's only a matter of time.

              Comment


              • #8
                Originally posted by Grim View Post
                Is it possible to do that with my 8 year old? Or is it restricted to "brother/sister"?
                Anyone. Any day. Any way.

                BUT ... if they do not live with you, the credit reporting agencies might not make the connection for the information to boost their credit report, an authorized user doesn't sign anything and you don't provide their SSN.

                Remember: authorized users do not have any obligation to repay debt! It's all you.

                Originally posted by Wikipedia link you gave
                The number of recent credit checks also can weigh down the score, although the credit agencies claim to allow for credit checks made within a certain window of time to not aggregate, so as to allow the consumer to shop around for rates.
                Extra info not explained on Wikipedia ... car loan inquiries do not affect your credit score! They have a special code which is excluded from the calculation because it is typical for as many as 15 different banks to pull your report and make an offer for a car loan.
                Last edited by Baker; 08-14-2006, 11:12 AM.
                Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

                So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

                Comment


                • #9
                  Originally posted by Baker View Post
                  Credit scoring systems can easily be manipulated.

                  The largest factor is, of course, whether or not you pay on time.

                  Ironically, it is best to accept a reasonable number of pre-approved credit cards, activate them and then either cut them up or store them away somewhere.

                  This will inflate your revolving debt credit limit, so when the scoring systems do a debt to limit ratio, it will result in a low percentage. Never cancel a card, just pay it off and stop using it.
                  You need some credit to get credit Granted. There was a time when these companies would call and offer to send you pre-approved cards at like 2 in the morning and all you say is yeah yeah yeah.. Bingo you have a card with a nice chunky line on it. You think.. Wow.. How cool is that. But.. get to many of these w/o closing them up and it does get creditors leary of extending you credit for that New House or Car.. Why? Because they think as soon as they do you will start jumping on those cards so they evaluate your lines on all cards. Keep Three Cards. Two Major and a Fuel. You really don't need anything other then that.
                  www.Net-Tyme.com
                  Lifes a game.. It's time to Play!
                  Quake.net-tyme.com Pick your Poison.

                  Comment


                  • #10
                    Originally posted by Baker View Post
                    So --- what is fun to do, add your brother/sister as an authorized user to your credit card but never give him the card. Use it just a little and -- viola! --- he has developed a positive credit history and established a repayment period. Age is irrelevant to authorized users, just make sure he/she share your current address so that the credit reporting companies match it with them as authorized user accounts usually don't require social security numbers. (Has the Patriot Act changed this ... hmmmm, I don't think so).

                    So as a result, you can give your 16-year-old brother a 4 year credit history by the time he is 20, so he can get easily approved for credit cards and loans, hehehhe. Length of credit history is a MAJOR factor in calculation of a credit score.
                    To my knowledge this only effects the original users credit and has nothing to do with the "Authorized" user. At least not here. For instance.. They can't go to the Authorized user to collect a debt when the card is not issued to them nor did this Authorized user sign a payment agreement. They would go to the original party. Most are mis-informed about this process so please don't do this.

                    Also.. Co-signing for your kids car does reflect on YOUR credit until they refinance it or pay it off.

                    Credit scoring is a rip.. No matter how you look at it.. They never prove to you why they scored you the way they did. A perfectly clean Credit could still produce a low to mid 700 rating.
                    www.Net-Tyme.com
                    Lifes a game.. It's time to Play!
                    Quake.net-tyme.com Pick your Poison.

                    Comment


                    • #11
                      Originally posted by Net-Tyme View Post
                      To my knowledge this only effects the original users credit and has nothing to do with the "Authorized" user. At least not here.
                      Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

                      So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

                      Comment


                      • #12
                        http://www.bankrate.com/brm/news/cc/...sp?prodtype=cc

                        Originally posted by Downside of being an authorized user
                        Guilty by association
                        Even though you never applied for the card and you're not responsible for the card's payment, the card account and its payment history may still be recorded on your credit report. Once there, the account will carry just as much weight as a card account opened in your own name.

                        Being an authorized user on a well-managed account with a long payment history could boost your credit rating. But if the account goes unpaid, your credit score could take some serious hits.
                        Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

                        So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

                        Comment


                        • #13
                          "Not all credit card companies report account information on all authorized users to credit bureaus. For example, MBNA America only reports account information if an authorized user is a spouse."

                          In this same aspect they woudln't be reporting the good rating for that "authorized" user either.



                          "Guilty by association
                          Even though you never applied for the card and you're not responsible for the card's payment, the card account and its payment history may still be recorded "

                          Apparently there are some cards that allow you do do this although no all. So It seems to be up to the card.
                          www.Net-Tyme.com
                          Lifes a game.. It's time to Play!
                          Quake.net-tyme.com Pick your Poison.

                          Comment


                          • #14
                            The Equal Credit Opportunity Act was passed in 1974 with the aim of helping married women, especially those who did not work outside the home, establish credit in their own names. Under the Act, a creditor that furnishes information to credit bureaus must report account information for both spouses on joint credit accounts and on accounts where a spouse is an authorized user.
                            And due to the Equal Credit Opportunity Act ... lenders are not allowed to discriminate based on martial status. The best way for a bank to avoid being sued under the ECOA is to never ask for your marital status because then "they don't know" and therefore can't discriminate (or have an employee screw up).

                            They are required by law to report authorized user accounts for spouses, yet they don't ask if you are married or the relationship between card holders.

                            So they report ALL authorized users, and there is no law against that.

                            Not all credit card companies report all authorized users, but the exceptions to the rule are few and far between. As a general rule of thumb, any large bank generally reports them all (Discover, Chase, Citibank, etc.)
                            Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

                            So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

                            Comment


                            • #15
                              It is funny because this works the opposite of the way that you would think it should work. It is one of the many upside-down things about credit industry.

                              And like you said earlier, the credit scoring system is dumb. I've heard someone describe it as "a good predictor of the present", heheh.

                              Credit scores are popular because

                              1. they are a simple number
                              2. Banks screw up their internal credit adjudication processes because they don't know what they are doing
                              3. The Board of Directors at a bank says "Hey, we can buy these scores for 15 cents each and do graphs!"

                              Credit scores are the most arbitrary and stupid thing ever invented (a 750 credit score can be a 590 in 3 months, and people with 800 credit scores go bankrupt all the time). They ought to just go by whether or not your pay the bills or not.

                              It gets even WORSE with internal bank scoring systems, which are barely audited and they write it themselves --- and with any bank that isn't one of the 6 or 7 largest, they don't have enough smart people to do a quality job of it --- and ridiculous things can get factored in.

                              The thing scariest about banks writing their own scoring systems is that they do not have statistical analysts using data to determine statistically meaningful relationships, they use "human judgement".

                              Which is why when someone with perfect credit gets a retarded decline letter and the person has a 750 credit score, it's the bank's internal procedures.

                              It's truly retarded, heheh.
                              Quakeone.com - Being exactly one-half good and one-half evil has advantages. When a portal opens to the antimatter universe, my opposite is just me with a goatee.

                              So while you guys all have to fight your anti-matter counterparts, me and my evil twin will be drinking a beer laughing at you guys ...

                              Comment

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