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Thread: Credit History?

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    213th's Avatar
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    Credit History?

    I tried to get a promo offer for dish network today, but was denied because of my credit score. I pulled up my latest report just to make sure, and it was 700. I thought this was an okay score; it was listed as "Good" and better then 40+% of US customers.

    I was a bit suprised, but maybe I was wrong. Is 700 a bad score? Or is it because I only have credit history on an auto loan and it only goes back 1.5 years?


    Edit for spelling
    Last edited by 213th; 04-17-06 at 02:50 AM.
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    Curt581 is offline Whatever
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    Some promo offers have high credit score threshholds. You would probably be able to get the system you want, but you'll probably have to pay more than the promo price.

    That credit score is pretty decent, but if it were the same over a longer period of time, it's be viewed better.

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    213th's Avatar
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    Quote Originally Posted by Curt581
    Some promo offers have high credit score threshholds. You would probably be able to get the system you want, but you'll probably have to pay more than the promo price.

    That credit score is pretty decent, but if it were the same over a longer period of time, it's be viewed better.
    Okay. The promo was free equipment/installation. That's no big deal. I'll probably go ahead and get it.


    I guess a lack of credit history/short credit history is worse then bad credit from what I've been told. Also, when I purchased the vehicle, I had no credit history at all. Do you think that this amount of credit history (18 on time payments) with that score is good enough to make it worth-while to refinance my loan?

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    FishTail Guest
    Have a look here.

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    thanks guys.

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    Curt581 is offline Whatever
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    Quote Originally Posted by 213th
    Okay. The promo was free equipment/installation. That's no big deal. I'll probably go ahead and get it.
    Most of those special promotions have all sorts of restrictions on them, including high credit scores. They're designed to get you in the door. It's the same with high end cars ads where they say "Well Qualified Lessees can lease a new BMW 750 for $xxx a month". The term "well qualified" meaning someone who's wealthy enough to BUY the car out of pocket cash.

    I guess a lack of credit history/short credit history is worse then bad credit from what I've been told.
    That's not always true. People with bad credit can sometimes get financing, but they'll pay outrageous interest rates. Those with a short history are sometimes limited in what they can buy, only because interest laws limit rates on things like home financing.

    This may not be true anymore, but I've always heard one of the best credit references you can have on your report is an American Express card. If you pay the full balance every month, it can be better than owning a home in certain cases.
    Also, when I purchased the vehicle, I had no credit history at all. Do you think that this amount of credit history (18 on time payments) with that score is good enough to make it worth-while to refinance my loan?
    It's going to depend on the refinance terms. I wouldn't refinance a vehicle loan unless the interest rate was at least 2-3 full points lower than what you're paying now. Anything less just isn't worth the hassle. Better to send extra money and pay the principle off sooner.

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    Quote Originally Posted by Curt581
    Most of those special promotions have all sorts of restrictions on them, including high credit scores. They're designed to get you in the door. It's the same with high end cars ads where they say "Well Qualified Lessees can lease a new BMW 750 for $xxx a month". The term "well qualified" meaning someone who's wealthy enough to BUY the car out of pocket cash.
    Ahh, hadn't thought of it that way. Well, guess it works...

    Quote Originally Posted by Curt581
    That's not always true. People with bad credit can sometimes get financing, but they'll pay outrageous interest rates. Those with a short history are sometimes limited in what they can buy, only because interest laws limit rates on things like home financing.
    Okay

    Quote Originally Posted by Curt581
    This may not be true anymore, but I've always heard one of the best credit references you can have on your report is an American Express card. If you pay the full balance every month, it can be better than owning a home in certain cases.
    Okay, no plastic here yet. I've been thinking about it for awhile, have a coworker/mentor who's quite knowledable, says getting one for groceries and paying it each month would help out alot. I'm tempted, but it'd have to be zero interest if paid on time or something like that. I won't pay more then I have to.
    Quote Originally Posted by Curt581
    It's going to depend on the refinance terms. I wouldn't refinance a vehicle loan unless the interest rate was at least 2-3 full points lower than what you're paying now. Anything less just isn't worth the hassle. Better to send extra money and pay the principle off sooner.
    Well I currently have an 9% loan. I only got that with zero credit because I have a co-buyer. I'd like to drop the co-buyer when I refinance, even if it means that I end up paying more to the point that my monthly payments are the same. It would help my credit score more.

    Also, since I got on orders afterwards, Soldiers/Saliors relief act applies, and I can get my loan lowered to 6%. This only applies for preexisting loans. What would happen if I refinance, is it still considered the same loan, and would it be limited to 6%?

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    Curt581 is offline Whatever
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    Quote Originally Posted by 213th
    Okay, no plastic here yet. I've been thinking about it for awhile, have a coworker/mentor who's quite knowledable, says getting one for groceries and paying it each month would help out alot. I'm tempted, but it'd have to be zero interest if paid on time or something like that. I won't pay more then I have to.
    Much is going to depend on which card you pick. I don't recommend using it for groceries, unless as you said, you pay the balance in full every month. The problems will start happening if something goes wrong, like you have a short month because of an unexpected expense, like the car breaking down. Once you get behind, it takes a long time to dig out. BTDT. I learned a rule of thumb for using credit to buy consumer goods, that breaks down into three parts:

    Consumables: This is stuff like gas for the car, food, etc. Things that you go through every month. Never buy this category on credit unless it's an absolute emergency. If you have to do so, make sure you pay the full balance immediately. Reason being, you'll have used the stuff and will have nothing to show for it except the bills (and the interest tacked on every month) Don't forget, credit cards also have monthly fees added in. They also have Default Interest Rates, which can automatically go to over 20% in some cases for the least reason.

    Depreciables: Things like cars, electronics, etc. Anything that depreciates in value over time. Choose what you buy and how you finance it carefully, since some things (like computers) depreciate MUCH faster than others. Short term financing is best, since you want to have the value of the item match what you'll pay total as closely as possible. Way too many people pay for a single item multiple times over.

    Appreciables: This includes things that increase in value over time. The best use of credit, since it's possible to make a profit even after you factor in the interest payments. This is stuff like houses, real estate, certain types of vehicles, and some jewelry.

    Well I currently have an 9% loan. I only got that with zero credit because I have a co-buyer. I'd like to drop the co-buyer when I refinance, even if it means that I end up paying more to the point that my monthly payments are the same. It would help my credit score more.

    Also, since I got on orders afterwards, Soldiers/Saliors relief act applies, and I can get my loan lowered to 6%. This only applies for preexisting loans. What would happen if I refinance, is it still considered the same loan, and would it be limited to 6%?
    It may, and may not. Read the fine print carefully on the refinance paperwork. In almost all cases a refinance means you're starting a new loan from scratch. Whip out the calculator and find out if you'll pay more in interest over the course of the new term added to what you've already paid, even at a lower rate, than if you stayed with the original note at a higher rate. If you're close to the end of the existing term, refinancing may cost you more.

  9. #9
    213th's Avatar
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    Quote Originally Posted by Curt581
    Much is going to depend on which card you pick. I don't recommend using it for groceries, unless as you said, you pay the balance in full every month. The problems will start happening if something goes wrong, like you have a short month because of an unexpected expense, like the car breaking down. Once you get behind, it takes a long time to dig out. BTDT. I learned a rule of thumb for using credit to buy consumer goods, that breaks down into three parts:

    Consumables: This is stuff like gas for the car, food, etc. Things that you go through every month. Never buy this category on credit unless it's an absolute emergency. If you have to do so, make sure you pay the full balance immediately. Reason being, you'll have used the stuff and will have nothing to show for it except the bills (and the interest tacked on every month) Don't forget, credit cards also have monthly fees added in. They also have Default Interest Rates, which can automatically go to over 20% in some cases for the least reason.

    Depreciables: Things like cars, electronics, etc. Anything that depreciates in value over time. Choose what you buy and how you finance it carefully, since some things (like computers) depreciate MUCH faster than others. Short term financing is best, since you want to have the value of the item match what you'll pay total as closely as possible. Way too many people pay for a single item multiple times over.

    Appreciables: This includes things that increase in value over time. The best use of credit, since it's possible to make a profit even after you factor in the interest payments. This is stuff like houses, real estate, certain types of vehicles, and some jewelry.


    It may, and may not. Read the fine print carefully on the refinance paperwork. In almost all cases a refinance means you're starting a new loan from scratch. Whip out the calculator and find out if you'll pay more in interest over the course of the new term added to what you've already paid, even at a lower rate, than if you stayed with the original note at a higher rate. If you're close to the end of the existing term, refinancing may cost you more.
    Okay, thanks for the advice. Incidently, the car that I'm paying on has been broken down. Been that way since November now. Kinda rough when you live 80 miles from the walmart, whole other story there tho.

    One of the reasons that I haven't gotten cards is because I know quite a few people who had to work out from major credit card debt. Some from being irresponsible, others made the wrong person their power of attorney when they went overseas. Which I guess is irresponsibility to some extent.

    Thanks for the breakdown, and telling me about the default interest rates. I'll keep that all in mind. Still haven't decided yet though if I'll get a card.

    As for the truck, not quite halfway through the loan. I doubt I can get something much lower though. We'll see. It can't hurt to ask and do some checking into it.

  10. #10
    Retdetsgt's Avatar
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    I agree with Curt, your problem is a lack of credit, not bad credit. I use two credit cards, an airline VISA that gives me air miles and an American Express which gives me a cash rebate. I buy just about everything on them and then pay them off at the end of the month. I never run a balance on a credit card. If I need to finance something, I borrow from a source that gives a decent interest rate, usually a credit union.
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  11. #11
    Cheech Guest
    Quote Originally Posted by 213th
    I tried to get a promo offer for dish network today,
    Thats your problem!

  12. #12
    213th's Avatar
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    Quote Originally Posted by 06AccordLX
    Thats your problem!
    what, the promo offer? Or dish network? If ya meant dish network, well, there isn't any other satellite companies for around here that I know of...

 

 

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