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Do people worry way too much about their credit score?

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    Do people worry way too much about their credit score?

    I'm just wondering why some people obsess so much over their credit score. Does it really matter that much what it is? I guess in certain situations it does, but I look at like this: I have a house and two paid for cars. My mortgage is at a low rate and wil be paid off within 5 to 7 years. I have enough cash on hand to theoretically go out and buy whatever I may need. If I never plan to finance anything ever again, then who cares if my credit score is zero?? Any thoughts on this?
    Brian

    #2
    Many insurance companies check scores to determine which/how much discount to offer. (We got a letter from our insurance company advising this at our last renewal.)

    Also, many companies do credit checks on job applicants.

    So, at least a couple of possible times when a higher credit score may help.

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      #3
      I fully agree, problem is that your score has negative affects other than when you borrow. Insurance rates, certain jobs etc. are important as well. I personally think that the fico score should be eliminated. Credit reports and manual under writing should be the standard.

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        #4
        I agree that people really do get too obessesed with that number. Unless you're in the market for a loan, it's not that big of a deal.

        Yes, you need to make sure it's reasonable so that you don't get dinged on insurance rates or a background check, but I think that can be accomplished by just reviewing your credit reports regularly via the free annual credit reports.

        If anything ever were to go wrong for me based on credit scoring, I'm entitled to get the information for free and I'm sure I could clear up any errors soon enough.

        One of the perks of simplified living and financial security is not having to worry about these things. If my credit score stands in the way of me getting anything, I can either do without or come up with an alternate way to get it. I refuse to be a slave to some mysterious number that I have to pay to see.

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          #5
          It's important for low insurance rates and employability.

          My pet peeve is way too many people freak out about having a "perfect score" or worry too much about things that don't matter in their situation. (I recently saw a discussion where people were freaking out because Buffet's score was only 719. I think that is an ample score for low insurance and employment - yeesh).

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            #6
            From what I see through my Equifax account, mortgage rates in the top tier, 760 and above, average 0.2% lower than the next tier, 700-760. It goes down another 0.2% below that. On a $200,000 mortgage, that equates to roughly a $25 per month payment difference between each tier, if the Equifax chart is accurate, as opposed to a sales tool ;-)

            I think I would expect Equifax and others that benefit from tracking or managing FICO scores would tend to exaggerate the benefits of a high score. So I'm not certain the chart can be trusted.

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              #7
              I've seen more and more people are paying to have access to their credit scores more than their real credit reports. The word "score" really makes a lot of people motivated and worried as well.

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                #8
                In Michigan, a low or even good vs stellar score will get you hammered on auto insurance. They accidently bumped me down via a data entry error from like tier 8 to 9(think it goe sup to 10) for customer rating and it cost me like $150 more a 6 month policy. I got it corrected but it took a lot of red tape to figure out what and why it happened.

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                  #9
                  Originally posted by MonkeyMama View Post
                  (I recently saw a discussion where people were freaking out because Buffet's score was only 719. I think that is an ample score for low insurance and employment - yeesh).
                  I was freaking out also until I heard he was a victim of identity theft.

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                    #10
                    My hubby and I have learned a very valuable lesson about credit cards and credit card scores during this credit/mortgage meltdown. We had credit scores in the 700's until American Express slashed our credit lines due to where we shopped supposedly. Also homes in our neighborhood sold for less and that had an affect on our scores as well.

                    Our main focus now is on getting rid of our debt. Like a previous poster said, we will make the most of a given situation when the time presents itself. A "new" car will be bought for cash or affordable payments and another house will be dealt with if we decide to move. There are quite a few scoring agencies around when one applies for a loan. I'm sure we will find someone if there is a need. Hubby and I have done well with our credit over 30 years now. We just found out FICO existed and has been around for over 50 years.

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                      #11
                      Credit score affected by housing value? WEll look out everyone. It doesn't surpise me b/c while it says nothing about your behavior, it does mean you have less equity to tap and hence less wealth. Not that wealth has anything to do with credit scores b/c I have a higher score than dh and he has always outearned me. It is amusing. You gotta do what you can, and then throw up your hands.

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                        #12
                        Yes, but a good score is important!
                        LivingAlmostLarge Blog

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