Credit Scores

[Iwritecode]

Not sure if this would be the appropriate thread but since when do you need to be a spouse or a significant other to cosign on a loan for a relative?

 

Must be something fairly new. I co-signed a car loan just last year for a friend I'm not even related to. Had no problems with it. I had my parents co-sign for a car loan when I was 19.

 

I received a letter in the mail from Chase informing me they are closing a credit card account of mine due to inactivity and that there's nothing that I can do about it. Have any of you had this happen? It doesn't bother me aside from the negative hit to my credit score.

 

I had that happen once with a Capital One card. It only had like a $200 limit and I never used it. You'll take a small temporary hit to your credit score. But unless you are obsessed with having a perfect score, it shouldn't affect you too much.

[Jerksticks]

And at the end of the day all this is moot; credit shmedit. Either you have some capital to take out a loan or you don't. Either your income and history looks like you can pay it back or it doesn't. I'd argue it's a big waste of time to worry about a fluctuating credit score. Either you can cut a deal with a lender or not.

[Y2HH]

And at the end of the day all this is moot; credit shmedit. Either you have some capital to take out a loan or you don't. Either your income and history looks like you can pay it back or it doesn't. I'd argue it's a big waste of time to worry about a fluctuating credit score. Either you can cut a deal with a lender or not.

 

While a credit score is not necessary if you can prove you have the money to back a loan, it does make life much easier for the majority of people.

 

The issue with having credit is, that usually means you have credit cards, and most people cannot handle having credit cards.

[Iwritecode]

And at the end of the day all this is moot; credit shmedit. Either you have some capital to take out a loan or you don't. Either your income and history looks like you can pay it back or it doesn't. I'd argue it's a big waste of time to worry about a fluctuating credit score. Either you can cut a deal with a lender or not.

 

The biggest difference in having a good credit score and an excellent credit score is the interest you pay on loans. Even with a 3 or 4 year car loan your interest rate can make a difference of a few thousand dollars. So having a better credit score can actually save you money.

 

I grabbed this from a random article about credit scores.

 

To illustrate our point, let's take two fictitious people, Bob and Nancy. Bob has a FICO credit score of 720, an excellent credit score, whereas Nancy's FICO credit score is 650, a fair to poor credit score. Now, let's look at a scenario where they are both buying a car for $20,000 on a 60-month loan.

Bob takes out a 4 percent interest loan, his payments will be $368.33 per month.

Nancy takes out an 18 percent interest loan, her payments will be $507.87 per month.

Nancy will end up paying $8,672.40 more for the same car.

 

That's a lot of extra money for having a worse credit score.

 

Edited June 7, 2016 by Iwritecode