Oprah Debt Diet Show, Part II

[disneysteve]

For the CCs, yes - but FICO doesn't really know either way if you're paying off in full before the CC reports to the CRAs. I think the only way to "combat" this, is to not PIF before the reporting date every time so that your reports show a positive payment history. If you're consistently PIF before the CC updates the info to the CRA it'll look like you never charge a penny on the accounts.

On the other hand, if you use your CC regularly, you never actually have a zero balance. I know we certainly don't. By the time we receive our statement for last billing period and send in our payment, we have already used the card numerous times in the current billing period. So when our payment posts, it doesn't bring the balance to zero.

 

[imsayin]

Is there anywhere I can find out my fico score for free?

 

[MyGoofy26]

No true FICOs for free but you can get them 20% off using code "CPPSAVINGS" at www.myfico.com

 

[Free4Life11]

If I join the Score Watch and cancel during the 30-day free trial, would that work??

 

[MrsPete]

I have heard Suzie Orman & others say that you can be 'penalized' for carrying too little debt--I should restate that to say paying off your cc as soon as billed.

When we bought our last car a couple years ago, the person at the dealership commented that we have literally the highest credit score possible -- I don't even know what the number is. We have only one credit card (well, DH has a company credit card -- not sure if it's actually in his name or the company's) and we don't carry a balance, but at that point we still had a mortgage.

I don't really care about the number. My goal now is to never finance anything again.

 

[disneysteve]

I don't really care about the number. My goal now is to never finance anything again.

This may not apply to you, MrsPete, but just for general reference, your credit score affects a lot of things besides financing stuff. Many employers check your credit before hiring you. Realtors check it before renting properties. Insurance companies base insurance rates on it, etc. So there is good reason to maintain good credit even if you aren't planning to be in the market for a loan. And even if you own your home, you may want to refinance some day or take out a home equity loan/line and your score would be important then too.

 

[minnie1928]

This may not apply to you, MrsPete, but just for general reference, your credit score affects a lot of things besides financing stuff. Many employers check your credit before hiring you. Realtors check it before renting properties. Insurance companies base insurance rates on it, etc. So there is good reason to maintain good credit even if you aren't planning to be in the market for a loan. And even if you own your home, you may want to refinance some day or take out a home equity loan/line and your score would be important then too.

Utility companies check credit as well. My mom's credit is not good and she had to pay a deposit in order to have the natural gas turned on at their apartment when they moved in. Recently, Verizon started reporting to the credit reporting agencies as well.

 

[minnie1928]

If I join the Score Watch and cancel during the 30-day free trial, would that work??

I did this for my mom about two months ago and yes, we did get a fico for free. However, we were only able to pull from one credit reporting agency...not all 3.

 

[MyGoofy26]

If I join the Score Watch and cancel during the 30-day free trial, would that work??

Scorewatch will only give you one report. . . Equifax I think? I should know this, I have scorewatch, LOL.

You could do the trial of Scorewatch and then pay for the other two individually. Each report may (and almost always do) report different information. Some creditors only report to certain CRAs, or report differently to the CRAs so the information can vary sometimes greatly. When I pulled mine last, they were within a couple points of each other (even with differing info) and the "explanation" I got was that this was highly unusual for them to be so close. Plus when you're applying for credit or a loan, they typically only pull one report so it's good to know all your scores so you know which one is "best" and find lenders who tend to pull that bureau.

 

[MrsPete]

This may not apply to you, MrsPete, but just for general reference, your credit score affects a lot of things besides financing stuff. Many employers check your credit before hiring you. Realtors check it before renting properties. Insurance companies base insurance rates on it, etc. So there is good reason to maintain good credit even if you aren't planning to be in the market for a loan. And even if you own your home, you may want to refinance some day or take out a home equity loan/line and your score would be important then too.

Oh, I know, and I have no intention of becoming a deadbeat at this point in my life! But most of those things don't apply to me: I intend to work 17 more years, probably for my current employer. Unless vacation rentals are going to check me out, I don't expect to rent any property (though now that I say that, I realize that it's possible that we could co-sign for one of of daughters to have an apartment in college). I don't have a mortgage to re-finance, and I'd probably borrow against my 401K before I'd borrow against my house (though I've never actually looked into the numbers for either one). Still, I intend to keep my credit clean, which is good general advice whether one is actively trying to finance something or not. Life can throw us curve balls at any time, and good credit is valuable.

While my GOAL is never to finance anything again, that doesn't mean I'll manage to do it. For example, before we bought my current car, I didn't expect we'd ever need to finance a car again; however, for a short period of time we had two mortgages and two kids in private school. And my car died. We could've paid cash for the car we bought (it was used, not all that expensive), but I didn't know how long that situation would go on -- thank goodness we finally sold our other house!

 

[MrsPete]

Is there anywhere I can find out my fico score for free?

The car dealership told us our number. Feel like shopping?

 

[imsayin]

The car dealership told us our number. Feel like shopping?

That's a tough one. What do I hate more - spending money unnecessarily or dealing with a car salesman? I think I'm going to have to live without my score for now. (You're idea is great though.)

 

[Chicago526]

Or go house shoping! The mortgage company pulled all three of my reports and the score for each, they were glad to give me copies!

 

[MyGoofy26]

Watch out car/house shopping. It's "costs" a hard pull, which typically are worth 3-5 points on your FICO for about 6 months. So if you're going to be applying for credit, that hard pull will stay with you for the next 2 years and drop your score a little for 6 months.

Also have to watch with some car dealerships. You can get a dozen inquiries on your report where some dealerships run the report through every lender they know trying to get you financed, and each one of those lenders dings a few points.

And those scores aren't completely accurate - there are special FICOs for mortgages and cars that are based on the regular FICO but they weigh certain types of accounts that most closely predict for that industry differently. So the auto enhanced score will probably be different from your Classic FICO.

 

[jonestavern]

Watch out car/house shopping. It's "costs" a hard pull, which typically are worth 3-5 points on your FICO for about 6 months. So if you're going to be applying for credit, that hard pull will stay with you for the next 2 years and drop your score a little for 6 months.
Also have to watch with some car dealerships. You can get a dozen inquiries on your report where some dealerships run the report through every lender they know trying to get you financed, and each one of those lenders dings a few points.
And those scores aren't completely accurate - there are special FICOs for mortgages and cars that are based on the regular FICO but they weigh certain types of accounts that most closely predict for that industry differently. So the auto enhanced score will probably be different from your Classic FICO.

I just get soooo steamed hearing about this, anything to work over folks.

calming down & not fomenting revolution, well, for today at least --

Jean

 

[disneysteve]

You can get a dozen inquiries on your report where some dealerships run the report through every lender they know trying to get you financed, and each one of those lenders dings a few points.

I thought multiple inquiries of a similar type within a certain period (30 days maybe?) all count as one to account for someone shopping around.

 

[MyGoofy26]

I thought multiple inquiries of a similar type within a certain period (30 days maybe?) all count as one to account for someone shopping around.

They're supposed to. . . but all too often they don't. Especially with some dealerships that cater to those with poor credit - each bank they use will pull their own hard inquiry and it's reported as such. It usually take jumping through a number of hoops before extras are removed - and most people don't watch their reports close enough to even realize that they are there. I think it's usually easier when it's the same lender pulling repeatedly, but when you have inquiries coming from multiple lenders and companies, they're often counted individually.

 

[NMW]

Ok help me because I'm confused on something. The second family it didn't say they used credit cards, but debit cards. Debit cards are tied to your checking account and the money is deducted from your balance, at least that is how mine works. How can she have debt this way??? I mean after a number of nsf charges I'm sure the bank wouldn't authorize any more charges right? What am I missing here??

Dh and I knew a couple who lived in our old neighborhood when we were first married. Very, very nice people, no kids. Wife would constantly have a job and then quit for really strange reasons like, she was having a birthday party for her husband and wouldn't be able to get the house clean and get ready for the party, if she was working. Or, she was having ceramic tile installed in the kitchen (or bathroom, or laundry room) and needed to be home for the installation. I'm not kidding.

Husband worked really hard but wife handled all the bills. Also, he never, at least in front of any of the neighbors, said anything about his wife quitting all her jobs. She bought very expensive gifts for her family and friends and even just someone in the neighborhood who had a baby. She was always having something installed, replaced or professionaly cleaned in her house. I'm talking sprinkler system, paver walkways, new hard wood, new ceramic tile, new appliances, chem-dry was there every 2 months cleaning her carpets-did I mention she had no kids! We bought our houses as new construction, so none of these things were old in her house. I could understand upgrading floors, doing lanscaping, etc. but eventualy DH and I started to wonder exactly how much money her husband really made. We have friends who have family money, so we thought maybe it was that, at first.

Then little things would happen, like I would call her to RSVP to a Pampered Chef party she was having, and her phone would be disconnected. She always had some answer for any questions and it was on the next day. Then one day DH was outside talking to her husband while our son played. It turns out that they were filling chapter 11. Wife had not payed regular mortgage payments since they lived there and not at all in the last 9 months. She also racked up about $40,000 worth of CC debt in 2 years. She apparently had just been spending his salary on "stuff" other than bills. Husband had no idea, she hid late notices and the bills from him. Oh, and she was pregnant. They were moving into an apartment. DH got the distinct impression that he would have left her if she was not pregnant, he was that upset. Everyone in our neighborhood was shocked, but started to think about little clues they had dismissed, and gossiped about it for months. You know how neighbors can be! We lost touch with them after they moved, and then we moved from NJ 2 years later. I wonder though, if she was able to change her spending habits.