hangunnr Posted June 9, 2006 Report Share Posted June 9, 2006 Has anyone used the online credit score websites? What exactly does the number mean that they come up with? Just curious..... hangunnr Quote Link to comment Share on other sites More sharing options...
elkoholic Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? While I have not used the online credit score websites, I am very aware of my credit score after going through the process of getting a construction loan and purchasing a new car. I am not sure how they come up with the score, but the higher the score the better off you are. Your credit score even comes into affect when purchasing insurance on your vehicles. Every time you get a loan it affects your score. Make the payments on time and your score goes up or be late on a payment and it goes down. Too many open accounts will lower your score. Even having someone check your score will lower it a few points. If you have no credit score (never had a loan from a company that reports to a credit scoring agency) you will find it hard to get a loan to buy a house or vehicle without a co-signer. A bad credit score will get you a higher interest rate, because you would be considered a higher risk, and higher insurance rates because you would be considered irresponsible. You want to know you qualify for a loan for that new pickup you've been eyeing and at the best interest rate available, so, make sure your credit score is as high as possible. Quote Link to comment Share on other sites More sharing options...
BowJoe Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Basically, you can use the once a year check set up by law to provide people a chance to better manage their own credit. You can do it free online and only at a certain website. I don't know the address but it does exist and I have used it. If you have a score of 500 or above then you are not in that bad of shape. 600 and above and you stand a great chance of getting a good loan with a slightly elevated interest rate. 700 and above and you are in a good range to buy pretty much anything without a co signer needed. Emphasis is placed more on debt to income ratio than it used to be. Most banks figured it out that just because you are a 715 doesn't mean you can afford a 60,000 dollar home or car. A good rule of thumb in buying a vehicle is to look in the price range of about half of your yearly gross income. As far as a home price range, I'd say not to go higher than your yearly gross income. Most banks won't let you purchase unless the monthly payment is 1/3 or less of your monthly net income. Hope I helped. Quote Link to comment Share on other sites More sharing options...
MCH Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Just from what I've seen, scores in the 600's are average. If you're in the 500 range, your credit isn't all that good. A credit reporting agency will always list reasons why your credit score is the way it is. They'll almost always say "Too many open accounts" "Too many inquiries" and etc. Never look into those too much. If you ask me, they're just covering themselves in case the customer thinks their's is too low. A credit score of 700 or above is great. Odds are, if you can afford it, you can get a reasonable mortgage with a 700. Quote Link to comment Share on other sites More sharing options...
Newarcher Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Last time I checked, my wife had 805 and I had 800..... It is actually complex formula of ratios, age of accounts, etc. Remember, it isn't just paying your bills that can affect it but this is a lender focused formula so if you are a credit card company, someone who pays their bills on time and never holds a balance isn't someone you want as a customer. So if you do like I do and open accounts solely for the 10% discount (like at home depot) and then pay it off as soon as the bill comes and then close the account....it actually hurts you. Odd formula but doing good things like paying your bills generally helps. New Quote Link to comment Share on other sites More sharing options...
snapper Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Yep...the more credit cards (accounts) you have open...the worse your score. They don't take into consideration your income. My wife makes more than double what I make and her score was lower than mine. She is another one who opens accounts for the 10% savings deals and pays them off and closes them. Its not a bad idea to check your credit to see whats on there. I had a few credit cards on mine that I never had! Quote Link to comment Share on other sites More sharing options...
Newarcher Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Definitely get your credit report and check it. I found Bellsouth put something on my wife's that actually belonged to my sister. They couldn't find my sister so they put it on my wife's file (matched her through our joint application with Bellsouth that had my old address--that I shared with my sister). It is called dead heading and it is illegal but very hard to prove. I called Bellsouth and told them that the SSN was wrong and the name was wrong but they STILL REFUSED TO TAKE IT OFF. It took a letter to the Georgia Governor's Office of Consumer Affairs and to Dwayne T. Ackerman--President of Bellsouth--to get it fixed. Bottom line, don't wait until you are a victim of identity theft or you are turned down for a loan to check your credit file. New Quote Link to comment Share on other sites More sharing options...
RangerClay Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Nice Avitar! Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted June 9, 2006 Report Share Posted June 9, 2006 Re: Credit score? Started to run the once a year free credit score thing once but never submitted it, was a little bit concerned about the legitamacy of the site. Anyone have a link for one that is legit? Quote Link to comment Share on other sites More sharing options...
TexasDeerHunter Posted June 10, 2006 Report Share Posted June 10, 2006 Re: Credit score? I know that 500 is really bad. In the 600's is average. The 700's is really good. I am pretty sure that 800 is the highest. My father in law is a banker of about 25yrs and says that he has only seen one person with 800 credit. I have no idea how they figure it , but there are 3 major credit reporters and the bank gets a score from all three and they base your score on the middle one. The most reputable company is Experian and is probably the most accurate. Quote Link to comment Share on other sites More sharing options...
AJ Posted June 11, 2006 Report Share Posted June 11, 2006 Re: Credit score? Here is some data from the Federal trade Commission. Quote Link to comment Share on other sites More sharing options...
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