My Credit Scores... Huh?

[maat55]

Originally Posted by jIM_Ohio

First- my score is higher than yours, did I win anything?
Second my wife's score is lower than yours- did you win anything?

Credit scores only matter if you need to tap credit. You got dinged a few points because you probably had mass inquiries when you refinanced, and over time (6 months) you should see scores rise.

I have not checked my credit since we refinanced last spring. I would not worry about identity theft unless you are using credit quite a bit (like using your cards everyday, or purchasing things online).

I would worry more about cash flow and household budget, and then worry more about saving enough, then worry more about interest rates on mortgage before I worried everyday about a credit score.

If you have a credit score of 775 with little savings and I have $500,000 in the bank, but a score of 650, which situation is better? If I had to take some credit risks to get the 500k, then the risks are worth the lower score.

The risks taken might be not using credit at all.

I knew you were a closet DR fan.

[jIM_Ohio]

Originally Posted by noppenbd

From what I understand, disneysteve is correct. The Fair Isaac company that created the FICO score owns the rights to it and I think they are the only ones who can give you the "FICO score". However, all the credit bureaus have created their own "credit scores" which are not the same as the true FICO.

Also, have you considered freezing your credit? It costs at most $10 per bureau (less depending on your state, e.g Maryland residents pay $5 per) and prevents anyone from opening new accounts in your name (credit, loan, cell phone, cable/satellite). It is a bit of a pain if you do have to open a new account/credit card, but you can temporarily thaw the bureau that is going to be used for a $10 fee. Seems like a cheaper deal than paying $7.50 a month. Let me know if you want more info, I can provide links to put the freeze in place.

Please post the links. For $30 (is that one time or per year?) it seems worth the cost.

Would this cause problems if I opened a new investment or brokerage account, or only credit accounts?

[jIM_Ohio]

Originally Posted by maat55

I knew you were a closet DR fan.

nothing in that post had anything to do with DR

[noppenbd]

Originally Posted by jIM_Ohio

Please post the links. For $30 (is that one time or per year?) it seems worth the cost.

Would this cause problems if I opened a new investment or brokerage account, or only credit accounts?

Here is a link that gives links to the individual bureaus' info pages, as well as form letters you can use for each bureau.

clarkhoward.com: Topics

Most common cost is $10 per bureau for the initial freeze and $10 for each temporary or permanent thaw (states can set their own lower prices). So for an individual the cost would be a one-time $30 hit. Usually opening store credit, utility account, or savings account requires at most 1 temporary thaw ($10 cost). The store, bank, or utility should be able to provide the bureau they use. Thawing is very easy now and should be almost instantaneous.

My credit has been frozen for 3 months and I was able to open both a Vanguard acct and USAA brokerage with no problem without thawing.

[vsjhoc]

Originally Posted by Seeker

And also be aware that when you do need to get a loan or "unfreeze" your account, you will have to pre-plan and submit a form (which takes time to process etc).

You can unfreeze (temporarily or permanently) by making a phone call to each credit bureau. Two of them (TransUnion and Equifax, I think) will do it instantly. The other (Experian) makes you wait 3 business days.

[noppenbd]

Originally Posted by vsjhoc

The other (Experian) makes you wait 3 business days.

I think this depends on the state as well. In Maryland starting Jan 2009 the thaw has to be effective within 15 minutes.

[MoneyAdvice]

It is better to plan for our future now and avoid worrying later in life.Everything boils down to one thing in common,Planning.Proper planning can do wonders.Be it credit repairs or anything for that matter.