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credit cards?
lilshawn:
back on topic...
even though you have "good" credit, it's still bad... and here's why:
when you want a loan or need to finance a vehicle etc... they look at 3 things: how long you have carried your debt for... how your repayment schedule is... and what your income to debt ratio is.
the "credit score" is something credit card companies scam you into believing.
i have a "credit score in the mid to high 300's and have no problems at all getting a loan/credit card/financing... and here is why:
I make my payments on time. (keep this VERY IMPORTANT fact in mind... if you are a day late on your payment, it gets reported to the credit bureau as 30 days late. they have 3 slots for late payments 30 days, 60 and 90+ so a day late, is a month late, now reads as a missed payment.)
paying off credit cards as soon as you charge them up is okay, but they also want to see you carry some debt. personal loans and financing from vehicles etc... paying off big chunks of the loan in advance is actually BAD. you need to prove yourself worthy by making your payments for the duration of the loan. paying off the last little bit is okay, but you don't want to get halfway through a 5 year loan and pay off the balance. it will act negatively. they see it as a "windfall" payment. often banks will simply mark the loan as simply repaid. other banks will question the loan. also, don't get a loan to pay another loan... that looks REALLY bad and is, in some places, illegal.
being broke is okay. it shows you are able to handle and control your money. having a fu#$ton of money, but needing a loan doesn't look good. they question whether this person has some sort of gambling addiction or something going on.
the credit bureaus also keep track of who looks into your credit...if a whole bunch of banks and financing companies look into your credit in a short amount of time (say about 2 or 3 months time), you look like you are fishing. that is bad. stay low, you only want to try for new credit twice, maybe 3 times a year MAX. showing disinterest into maxing out your credit load will show you can handle without it. not needing credit, looks REALLY GOOD to creditors. that's when you pounce.
you want to get better credit, it takes time, patience and knowing what they are looking for.
ark_ader:
--- Quote from: pinballjim on September 29, 2011, 03:22:46 pm ---
--- Quote from: lilshawn on September 29, 2011, 03:03:48 pm ---I make my payments on time. (keep this VERY IMPORTANT fact in mind... if you are a day late on your payment, it gets reported to the credit bureau as 30 days late. they have 3 slots for late payments 30 days, 60 and 90+ so a day late, is a month late, now reads as a missed payment.)
--- End quote ---
Sorry, but no. Companies do not put anything on your credit report if you're a day or so late. People would get pissed off, close the account, and move the debt elsewhere. It's bad business. Perpetuating that myth is good business, though.
--- End quote ---
I'm sorry PBJ but it is true your credit gets dinged if you make a late payment.
I had this come up when I was buying my first house.
Not only did they said I made a late payment, they also told me when and where.
Now I make sure my payments are always on time, especially when you are buying your second home.
Keep away from credit cards. If you do not have the money in your hand you cannot spend it.
No point saying that your job is safe :blah: as bad things do happen.
Nice to see BofA charging for having a debit card, so it seems you would be richer not having any card.
One of the reasons why we are so much in a mess, and if you have bad credit just make sure your employer doesn't know. ::)
Donkbaca:
Who cares of your job isn't safe? If you can't pay back your debt, that is what bankruptcy is for. geez man, I don't get you "scared of debt" people.
Hoopz:
--- Quote from: ark_ader on September 29, 2011, 04:28:24 pm ---I'm sorry PBJ but it is true your credit gets dinged if you make a late payment.
--- End quote ---
Nope, it doesn't. Being a day or week late has zero effect on your credit score.
EDIT: Stupid effect v. affect....
TopJimmyCooks:
--- Quote from: Hoopz on September 29, 2011, 04:34:37 pm ---
--- Quote from: ark_ader on September 29, 2011, 04:28:24 pm ---I'm sorry PBJ but it is true your credit gets dinged if you make a late payment.
--- End quote ---
Nope, it doesn't. Being a day or week late has zero affect on your credit score.
--- End quote ---
Correctamundo. 30 days late means the bill was paid on the 31st day to the 59th day. If your credit repository reflects otherwise, i suggest you challenge it.
however, you should treat it like this is true and pay your ---steaming pile of meadow muffin--- on time, or else you'll be in bankruptcy court with Mr. Donkbaca.
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