Dave's Baby Steps: Which are you on and is it working?

[greedy4chips]

I have no clue what my FICO score is and honestly do not care that much since we aren't in the market to buy a house...perhaps rental property, but that has been shot down in the last 6 hrs due to clearer picture.

Anyhow where can one find out what their score is? When we bought our house we were at 780 and 788...wife was higher DOH! She was a SAHM at the time for 2 years too, but all bills were in her name.

[JoyJoy]

If you're not looking to buy a home or car in the near future, then your credit score isn't really important (so I've been told).

I get all 3 of my credit scores at MyFico.com; that's Equifax, Experian and Transunion.

[greedy4chips]

I just looked at my credit report from Transunion by going thru www.annualcreditreport.com

They charge $5.95 to give me the FICO score so I skipped it. I thought maybe there was a way to get it FOC. No luck...yet.

Only blemish on report was a 30 day late in May of 2005 and I am looking in the filing cabinet to see if that was true.

[meaghanchan]

I am on step 2. I was debt-free, with a 5-month emergency fund, when my job ended. I was unemployed for 7 months, and began using my credit card (that I didn't cut up, which I'm sure Dave would chastise me for) to pay for daily expenses such as food and transportation... even though I still had money in my emergency fund. I was just so scared of not being able to pay rent.

But the good news is I just started a new job, and have done my September budget, managing to earmark about $600 a month towards debt repayment. I only have one card, with about $2500 on it, so with some luck I'll be out of debt in about 4 months. And the chunk of change I still have in my emergency fund that I didn't use just because I was scared gets me a good start on step 3. And with no mortgage, no plans to buy a house in the near future, and no kids, I can move right on to step 7

[JoyJoy]

Originally Posted by greedy4chips

I just looked at my credit report from Transunion by going thru www.annualcreditreport.com

They charge $5.95 to give me the FICO score so I skipped it. I thought maybe there was a way to get it FOC. No luck...yet.

Only blemish on report was a 30 day late in May of 2005 and I am looking in the filing cabinet to see if that was true.

If you find a way to get free FICO scores, let me know!! I was sent this website, http://www.icetab.com for discounts on myFICO, but I don't see the coupons listed again at this time. You may want to keep checking to see if they will offer discounts for scores again.

[JoyJoy]

Originally Posted by meaghanchan

I am on step 2. I was debt-free, with a 5-month emergency fund, when my job ended. I was unemployed for 7 months, and began using my credit card (that I didn't cut up, which I'm sure Dave would chastise me for) to pay for daily expenses such as food and transportation... even though I still had money in my emergency fund. I was just so scared of not being able to pay rent.

But the good news is I just started a new job, and have done my September budget, managing to earmark about $600 a month towards debt repayment. I only have one card, with about $2500 on it, so with some luck I'll be out of debt in about 4 months. And the chunk of change I still have in my emergency fund that I didn't use just because I was scared gets me a good start on step 3. And with no mortgage, no plans to buy a house in the near future, and no kids, I can move right on to step 7

Well good for you meaghanchan and the very best to you!!!

[vsjhoc]

Originally Posted by JoyJoy

If you find a way to get free FICO scores, let me know!! I was sent this website, http://www.icetab.com for discounts on myFICO, but I don't see the coupons listed again at this time. You may want to keep checking to see if they will offer discounts for scores again.

I have never seen authentic, standalone FICO scores for free. The credit bureaus trick you into thinking you're getting a FICO, but usually you're getting their own version of the score. You can get a free estimate of your FICO score at http://www.bankrate.com/brm/fico/calc.asp?lpid=BKRATE29.

[puck36]

I guess I would have to say I'm on step 5.5 now. Step 5.5 to me is saving for a down payment. I have step 3 & 4 done and don't have any children to do step 5. I'm hoping to have as close to my 20% down payment by the end of next year.

[JoyJoy]

Originally Posted by vsjhoc

I have never seen authentic, standalone FICO scores for free. The credit bureaus trick you into thinking you're getting a FICO, but usually you're getting their own version of the score. You can get a free estimate of your FICO score at http://www.bankrate.com/brm/fico/calc.asp?lpid=BKRATE29.

Thanks vsjhoc! I did the free Fico Simulator and it was just as accurate as the scores I obtained earlier this year! Pretty much depends on the number of credit cards one has and how much utilization there is on them. I bookmarked this simulator as it's good enough for me!

I understand FICO has been used for several years to determine's one's credit score so it's really nothing new. I believe it is just a way to make more money from the public at large. Either you are paying your bills or not, have too many credit cards, have filed bankruptcy, etc. and each one of us knows that before we even look at our credit scores. This simulator gives us an idea of what our score is and that's really all we need to know for FREE!

Thanks again!

[TinyFish]

Hmmm. I'm not on Dave's plan, but I guess by his measurements I've got steps 1, 3, and 4 done and good progress on 2. I'm guessing here that fully funding your retirement stuff every year counts as 'done' even though one is continually doing it?

Oh and good progress on step 2, no 'bad' debt, though the king of debt free might quibble about our student loans. He will just have to live with that.

House is being paid off at the normal rate.

Oh and I don't have kids, so I get to skip step 5, right??? I love it when I get to skip a step!

-TinyFish.

[LuxLiving]

We are finally on the downside of step six with 24,000 to go on mortgage and my kids will pay for their own schooling if they want it. Although I've never read a Dave Ramsey book nor listened to him on the radio. I think I've probably read an article or two of his.

On step 7 we have always done our giving thru the tithe.

Actually the money to pay the mortgage is in the MM right now, but I can't convince The Hubster to release it! Financially we'd be better off if we did as the MM in only earning 4.57 and our interest on the mtg. is 6.75, so we are losing there! I keep talking and trying to persuade!! Fortunately it's not a significant loss but I don't like to waste any of our dollars!

That money in the bank makes him feel comfortable so I'm living w/i for now but scraping elsewhere like a madwoman to get out from underneath it! I hate giving the mtg company our money!! I'm glad they financed us, but I'm tired of owing them!

I've just about convinced him to at least let me take the interest the MM earns every month and include it as extra principal payment! Soon maybe!! A years worth of those extras would cut a couple of years off the remaining.

[LuxLiving]

Originally Posted by JoyJoy

If you're not looking to buy a home or car in the near future, then your credit score isn't really important (so I've been told).

I get all 3 of my credit scores at MyFico.com; that's Equifax, Experian and Transunion.

JoyJoy - I think that USED TO BE true, but isn't anymore. Nowdays potential employers even look at your credit score and Insurance agencies check it to see what rate you'll get. Bad score = higher rates! It means more than it used to!

[HelpMeFriend]

Originally Posted by Ima saver

I have started re reading the book.

I read the book, and even had the first step done, then I faltered. I guess I'll have to think up a new strategy.