credit score

[Silver R/T]

So my mom thought she had nice credit and stuff, when she contacted bank they said she has "0". So we're like wtf?? she has like 4 credit cards and always paid them even before payment was due. How could she have 0 credit

[Telvis]

Credit scores start at 350.

[Blown70]

Exactly, you cannot have a 0.

Low is 350.

Most will have almost 450 even after bankruptcy.  I would get on with experian and find out if she has any old outstanding issues.

Apparently 7 years ago I made one late payment....   WTF...

Ohhh well I have no need for any more credit.

Tom

[Silver R/T]

just checked experian and theres no negative records, only shows everything that was paid off, no late payments or outstanding fees of any kind.

[Telvis]

They should also give you a fico score. That's what lenders use to determine if they want to give you a loan. Anything below 600 is poor, over 700 and you are doing average to above average.

[Silver R/T]

I didnt find fico score

[TK73]

I didnt find fico score

costs extra to get your score with those credit companies...

[Silver R/T]

ya I found that out

[NHCharger]

Yeah something is definitely wrong. I run credit checks on any prospective tenant and "0" doesn't exist.
If she's looking to get a loan she should try another bank. Any bank with a loan officer that stupid can't be good.

[69_500]

Making minimum payments always on time for a credit card doesn't always mean you are getting a good credit rating either. And another point is that paying off loans early can sometimes hurt your credit score.
Had a 4 year car loan that I paid off in 1 1/2 years, after that I applied for another car loan credit score was 600, and that was the only loan I had ever had up to that point. NO credit cards or anything. Now someone explain that one.

[derailed]

another thing that I found out hurts your credit score is everytime you apply for a loan or a bank or credit company does an inquiry on your credit it goes against you, dont know why this is 

[Blown70]

another thing that I found out hurts your credit score is everytime you apply for a loan or a bank or credit company does an inquiry on your credit it goes against you, dont know why this is 

Well you are trying to get credit.  So if you do more than 3 check on your credit in 6 months they wonder why you are needing the credit.

Tom

[Charger_Fan]

another thing that I found out hurts your credit score is everytime you apply for a loan or a bank or credit company does an inquiry on your credit it goes against you, dont know why this is 

I've always thought that was pretty damned idiotic too.
You'd think that if anything, the more times your credit is pulled, the higher the score...you know, because you're trying to get another loan & make some friggin' company more money.

[greenpigs]

Making minimum payments always on time for a credit card doesn't always mean you are getting a good credit rating either. And another point is that paying off loans early can sometimes hurt your credit score.
Had a 4 year car loan that I paid off in 1 1/2 years, after that I applied for another car loan credit score was 600, and that was the only loan I had ever had up to that point. NO credit cards or anything. Now someone explain that one.

Because that was the only loan you had, you need a history to get a rating. The X has that problem, everything was in my name and "we" payed all the bills on time and some loans off early. Well my credit is good but hers isn't because she has no history.

Just one more way the little dummy screwed herself

[derailed]

another thing that I found out hurts your credit score is everytime you apply for a loan or a bank or credit company does an inquiry on your credit it goes against you, dont know why this is 

I've always thought that was pretty damned idiotic too.
You'd think that if anything, the more times your credit is pulled, the higher the score...you know, because you're trying to get another loan & make some friggin' company more money.

:iagree:Or just the simple fact that sometimes when your in Sears or any other department store they offer you 10 percent off your purchase if you apply for one of there foolish credit cards and alot of people do it and they do a credit check on you, doesnt necessarily mean you will use the card after you get it which makes me think of something else I remember reading or seeing on the news awhile back, if you have alot of credit cards even with a 0 balance on them that you dont use, thats not suppose to be to good for your credit report either.

[Blown70]

That is becasue it is potential debt.  Meaning if you have 4 cards with 10,000 limits you have a debt potential of 40,000.  One alone is not bad but people used to run them up then file bankruptcy.  Thus it is not good to carry a lot of potential debt.

Tom

[Silver R/T]

Ya that previous post makes sense to me.

[Rocky]

Your credit score is essentially based on your debt to income ratio, along with any bumps and bruises along the way.

[Silver R/T]

Basically what I think it is, we got stupid loan officer. She checked credit history 3 times already too, basically hurting mother's credit. So now instead of conventional loan we'll have to use FHA loan. If we go to different bank now, they'll have to check credit again, which is bad for credit score. And there's no assurance that we get better loan officer who wouldnt say that she got "0" credit score.

[Troy]

Any credit checks within 14 days should all count as one and shouldn't hurt your score. This way you can "shop" for the best rate on loans - especially for major purchases like a house or cars. It pays to act fast in those cases. If you are declined credit then it will hurt the score which I think is stupid since you didn't actually do anything but I don't make the rules. There's a reason I try to pay cash for everyting except large purchases.

Troy

[Silver R/T]

well she did it like once each month for 3 consecutive months

[Darkness]

What I think is stupid is if you pay off loans or credit cards quicker than expected and they ping your credit score. I've already had three credit cards already and I have paid two of them off and working on getting the third one paid off. I have already closed the account. Anyways, crazy stuff I tell ya.

[ChgrSteve67]

There is a difference between paying something off early and showing a steady long term payment history.
If you have a auto load that lasts 6 years and you pay it off in 4 1/2 there is no problem.
If you keep opening and closing credit cards moving the balance from one card to another you may have a problem.
Good credit history is just that history. A long term financial picture that you can handle credit and not let it get out of control.
Things you do not want on your history are bankruptcy,  late and non payments.
Another thing to keep in mind. Credit Cards with large credit limits can hurt you as well.
Say I have three platinum cards with $20,000 or more available credit, I could potentially get $60,000 in debt over night.
This can look very bad to financial institution that are considering you for a load especially when you are buying a house or car.
Paying off credit cards as soon as posible is a very good idea, its the opening and closing that looks bad.

Good credit is not easy and you should educate yourself.
I'm sure there is lots of good information on the Internet.

Also check your credit at least once a year to keep on top of any negative item that may have been added.

Just my 2 cents

[Charger_Fan]

Also check your credit at least once a year to keep on top of any negative item that may have been added.

Now & then I hear a radio ad telling people to check their credit reports online, some place like "free credit report.com", or something close.
To me, while it sounds like a good idea (I hate having to pay to obtain my own credit report), I'm very squeamish about just typing in all my info on some friggin' site like that. I feel like I'd be just begging for some scammer to bend me over & go to town.
Do any of you guys have experience with places like that?

[ChgrSteve67]

I would not use any of the free credit report options.
They are trying to sell you a services for a monthly fee and then give you your credit report for free.

I just asked my Credit Union about obtaining a credit report and here is what they sent me.
~~~~~~~~~~~~~~~~~~~~
To obtain a copy of your credit report you may contact one of the following Credit Bureau's.
Equifax                                           
          PO Box 740241
         Atlanta,GA 30374
         Phone: (800) 685-1111
         http://www.equifax.com/

Experian
          PO Box 2002
          Allen, TX 75013
          Phone :(888) 397-3742
          http://www.experian.com/

Trans Union
          PO Box 4000
         Chester, PA 19016
         Phone: (800) 888-4213
         http://www.transunion.com/index.jsp
~~~~~~~~~~~~~~~~~~~~

Talk to your bank or credit union to see what they recomend.

You will most likely have to pay for a copy of your credit report.