credit score /credit cards = disaster

[Jim Smith]

Getting credit cards is easy in most cases. Every store wants to give you one to save an extra % of the purchase. However these cards are now are now part of your credit score / history and they will never go away. You can stop using them but if you cancel them your credit score drops. Its like a lose lose situation. Its better to use just one or two major cards and avoid any future headaches. I've looked a my report and it has accounts from stores that have long gone out of business decades ago. Don't get suckered in . Thanks, my 2 cents.

 

[Jumbo Jet]

I review my credit reports annually. Just yesterday, I had to call Transunion and Equifax to close accounts that were opened in 1998 that were paid in full in 2001 and should have been closed.

Those same accounts did not appear open on last years Credit reports.

 

[Flexiheep]

The more I see into how credit works and the "scores" we are supposed to worship the madder I get, they are not for our benefit mainly they are a tool to control us. Since when should you be penalized for cleaning up you finances and getting rid of credit you do not need because you live within your means... ... ... . #@$%!

I am getting ready to just do what I know is right for me and say to heck with the credit industry and my "score" I have my home loan and as long as they can't find a way to crank up my fixed rate I really don't care. I don't need or want a new car or car loan, my wife is happier driving something we own than renting a car from a bank anyways.

 

[Joe G.]

The more I see into how credit works and the "scores" we are supposed to worship the madder I get, they are not for our benefit mainly they are a tool to control us. Since when should you be penalized for cleaning up you finances and getting rid of credit you do not need because you live within your means... ... ... . #@$%!

I am getting ready to just do what I know is right for me and say to heck with the credit industry and my "score" I have my home loan and as long as they can't find a way to crank up my fixed rate I really don't care. I don't need or want a new car or car loan, my wife is happier driving something we own than renting a car from a bank anyways.

I agree. I own this pile of lumber I live in. Couldn't care less about my score.

 

[Jumbo Jet]

The more I see into how credit works and the "scores" we are supposed to worship the madder I get, they are not for our benefit mainly they are a tool to control us. Since when should you be penalized for cleaning up you finances and getting rid of credit you do not need because you live within your means... ... ... . #@$%!

What makes me check things out is the statement that comes with my auto and home insurance that says "your rates may have been affected by your credit scores". I suppose everyone is a crook just waiting to come out of the closet and screw the insurance companies.

As I said in the earlier post - I check my reports annually - one of them stated as a Con - "you do not have enough revolving credit history". I laughed. I am 59 years old, in the past owed money to JC Penney, Sears, Monkey Ward, and every conceivable credit card brand in the world. When Arkansas usury laws were ditched in favor of "National Accounts" I paid them all off and held on to an AMEX and a Shell card.

I have had the Shell card since 1983, the AMEX since 1984, and recently got the Visa because of the low interest rate and the fact that the AMEX is not accepted everywhere I travel.

Credit reports do not take in to consideration your savings or your income.

You have to be careful interpreting the scores too. A 761 could not be as good as a 720. I checked three different sources, and they used different scales. Most scales were from 300-850, but one scale went as high as 925. You would have to be a real piece of work if you have a 300 credit score!

... and there is not really anything free about the "free" credit reports. You might have 6 days to review and cancel, maybe 7, or maybe 9. Read the fine print. When you have to give a credit card # to get a free report, you know they are hoping you don't read the fine print.

If you go to buy a new vehicle and require financing, carry your own current credit report, or your own bank financing. The dealership's will shop around for the best interest rate for you. This could add up to several (even as high as 8) inquiries which lower your credit score, even though you only went with the loan company that had the best rate.

If you have credit cards, the scoring formula wants at least 50% available credit individually and 65% collectively. If you are over those percentages, the credit reporting agency will suggest you get another high limit credit card and just not use it.

There are lots of factors, and it is a game!

Bottom line - if you ever have to use credit, buy insurance for a house or an auto, it is good to have a high score. It is almost necessary to periodically check the reports. Things that did not appear last year that could be several years old, could appear this year. I wish I knew how that happens. About 4 years ago, I had to have several of my son's (same first names and previously lived at same address) credit history entries removed from my reports, even though the reports showed a different SS#! They were all good and didn't have a negative impact on my scores, but just showed me how wrong these reports can be!

 

[nickleinonen]

i am glad the credit ratings are a little different in canada. i usually cancel my credit cards every 5 years or so and get the exact same card just with a new number. when i got my mortgage done, i had to get the credit report done, and on it it showed the canceled credit cards [2 visa's and 1 amex] but no ill effect on the credit score/rating from them.