Topic: How much do you value your credit score? - page 4. (Read 10728 times)

Keep in mind, we always think of credit scores as something personal to us, but the fact is that the system was designed for the creditors_ to help them_ do more profitable lending.  It's a way to brand the cattle.  From their point of view it's quite logical.

Congrats on almost having paid off your home.  Out of curiosity, what interest rate did you have to pay for the mortgage?

i find this thread interesting as debt is not something that bitcoin addresses alot.
in particular I see people talking about trust. but in my experience its not trust these days thats the problem; its the ability to repay. its gambling; typically we gamble for a reward and the risk can be sometimes be.to loose everything. typically we are not equipped to assess the risk:reward payoff.

debt is running the world. its in our minds and has been, including in religion.

just because we choose to ignore leverage doesnt mean it doesnt effect us. are house prices effected by it? are markets distorted by it putting.those who avoid.it at a competitive disadvantage?

theres a book 'debt: the first 5000 years' I think... if you think its bad now just be thankful theres less.selling.of daughters these days.

question: what was the monetry value of pirates reputation before the problems, how much was taken vs this and how does this ratio compare to a typical credit.ratio rating?

Even with my bad credit as a result of being unemployed for six months and the dispute with Verizon, I was able to buy a house - but I had to do it through a credit union, regular banks wouldn't touch me.

I have two more payments and it is paid off, never having missed a payment.

Actually, it looks like it does.  I just looked up FICO scores, which is what the credit scoring system is in the US, and there is also a Canadian site for TransUnion, one of the credit scoring agencies.  Given that they have a Canadian site, I'd say that it's likely that the FICO scoring system also exists in Canada.

I don't think credit extends to outside your home country really, right? Say I live in the US and wanted to buy a house in Canada

I value mine because I want to buy a house some day, and that's the only thing I plan on going into debt for.  Sure, if you save up a shit ton of money, you can probably buy a house in cash some day, but you're actually probably better off paying the mortgage, especially if you're buying at today's interest rates.  If you can do better investing in the stock market whatever the percentage you're paying on a mortgage, then you're better off with a mortgage than without one.  If you can't, you're better off just paying off a house as quickly as possible.  I feel like I could do better in the stock market and the mortgage interest rates would have to go up substantially for that to change.

I don't really care what banks think, I have as much credit as I'd ever need within my circle. If I buy a house, I have family that would even take a loan in their name because they know I'm good for my word and money.

My credit score went to hell due to a dispute with Verizon.

End of the dot.com era, 2001, I had one month left on my cell phone contract. I had a $500 deposit.
Out of a job because my dot.com went dot.bomb, I called Verizon and told them I would not be renewing my contract.

They said fine. I asked if my last month could be deducted from the deposit. She said sure, she'd set that up, I'd get my deposit back less the last month's fee. Great.

Several months went by, I still had not reveived the check, but I received my last bill showing a negative balance equal to $500 less my last months pay.

Then I got a call from a bill collector. He wanted to collect for my last month. I told him what was up, and he said that wasn't his concern, he wasn't verizon - he was just paid to collect, I had to talk to them.

So I called them, told them what was up, and they said "We don't work that way, by not paying your last bill you forfeit the $500 and you still owe us the last month."

For years, every few months I'd get a call from a bill collector and the amount they claimed I owed kept going up. I kept telling them to have Verizon take me to court so a judge could see how absurd it was, but of course Verizon never did that. Instead they kept reporting my alleged debt to the credit unions, and fucked over my credit.

Yes, I value my credit score quite a bit.  Leverage is a great tool to enhance wealth if used responsibly.  I have a 0% loan for 18 months, something cash cannot do.  Same with margin accounts, goodluck shorting something with no credit score.  Not to mention certain jobs take into account your credit score in order to be hired.  Cash and credit are not mutually exclusive, you can and should have both.  The problem is not credit, it's the management of credit that gets people in trouble.

Just an update. It has been hard, but I am still maintaining my un-scoreable status. I am looking at buying some more land on the Ice Age trail and found a seller who values cash a lot more than credit scores. I am more convinced than ever that I do not need one. 

 With inflation it can be very tempting.

That is what I was told, but that is not what I see happening. Anyway my banker told me that if you have no score they rate you at about a 660. So I suppose I effectively still have a score. He then went on to say that they know me and would work with me, score or not. One may not be able to get that kind of co-operation from a big national bank, but I choose a small local bank after looking into their lending practices and their risk exposure. I feel like the only money I'm missing out on is the money no one should be offering me in the first place.
Besides, I choose not to participate in "common financial markets". I don't think they know what the hell they are doing anymore. As evidence I point to fact that they have broken the whole world.

Not having a credit score = a lot less options in common financial markets.

Clever???

 

Somewhat related= I took a closer look at 80 acers of forest up north. The owner is fine with financing up to 60k as a private investment. That's almost the total price and more than I need. I told him of my opinion of credit scores and he was even more eager to business. 
'm thinking about creating a wolf sanctuary with the land. We just got a crazy law to hunt wolves. Sad, as they are about the most non-threatening animal in th forest.

I have not had the same experience.

Having a non-existance (bad) score didn't seem to hurt at all.  They still did what I wanted.

A few years later when I went to get a "real" mortgage, they were concerned that I didn't have any credit history other than that little card.  The private mortgage wasn't reported, but the lender did write a letter saying that I always paid on time and usually paid extra.  Having lowered the loan a bit (impressive when your a starving student) plus all the improvements I did, the appraisal showed significant equity.  They gave me the loan.

Again showing that the scores aren't that important.

A few years later (after getting a full time job - but still a grad student) I got a loan for a 2nd house, still with only 2 accounts in my credit history (neither with any late payments).  No problem getting that loan.

Bottom line, if a person seems credible and low risk, they will be happy to lend you money and receive your interest payments.

Free low credit score. Banks do not want you if you pay off with no fees. That's the thing, a high score means you will borrow more than you can pay off and will go into debt. The credit business is about getting you in debt, not lending you money.

Get a credit card.  Pay your balances in full, monthly, then there are NO FEES.  Free credit score.

Haha @Bees Brothers. I guess a bad credit score is your reward for being responsible. This from the same industry that rates junk bonds as AAA.