Value of credit rating

   / Value of credit rating #1  

reb

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Apparently a lot is tied to one's credit rating now. We have been thinking about dropping a credit card with an annual fee, since we got another without a fee last year. A neighbor told my wife that would cause my credit rating to drop. If so, should we care? We have no plans to borrow any money. I hear that insurance companies consider credit scores in setting rates. Are there other pitfalls?
 
   / Value of credit rating #2  
I doubt dropping a card does things to ones ratings. Have you looked at your credit history through the free on line services yet?
Here is the FTC link -
FTC

Here is the site -

Once a year

You will not get a score without payment. But you can examine your credit history.

In my case, a number of cards do NOT show up. In fact, credit cards in general were not well represented in MY report.

Loans and notes on the other hand...... /forums/images/graemlins/blush.gif

-Mike Z. /forums/images/graemlins/grin.gif
 
   / Value of credit rating #3  
I have Erie insurance and they do look at your credit score when assessing your premium.
I also learned that the more your credit rating is checked also has a bearing on your score too.
Too many open accounts can cause your score to drop also.
 
   / Value of credit rating #4  
I requested my yearly free report starting in 2005. Do one each quarter, staggered, so you get current data 3 times/yr.

What I saw that bugged me the most was the number of inquiries from Chase Bank. I have zero dealings with Chase, but they send each of the four in our family about one "deal" a week to get a "can't live without it" credit card from them.

IIRC, they hit my credit deal about 20 times last year--to see if I'm good and then try to hook me I guess.

I'm surprised my dog hasn't gotten one yet...................

Ron
 
   / Value of credit rating #5  
Over the past few years I have learned allot about credit /forums/images/graemlins/crazy.gif.....

Anyhow, regarding cards.. You would be better off having 3 cards with 1/3 the limit used on each than 1 card maxed out. This shows that you can manage credit availability.. As far as the card in question, if it is one of your longer standing accounts, you may want to leave it open as this will show credit history, the longer "good" history can be proven, the better...

I dont know if you have ever heard of Clark Howard but he is a cheapskate, that offers prety wise financial advise.. That website will give you some good tips, you may want to check it out..
 
   / Value of credit rating #6  
I was told by a friend of mine that sells car insurance, that your credit score will DIRECTLY affect your car insurance premiums /forums/images/graemlins/shocked.gif

I challanged him a bit on that thinking since it's prepaid how could it matter. he said they've found out statistically that the higher the credit scores, the more "responsible" the driver.

!!
 
   / Value of credit rating
  • Thread Starter
#7  
I hadn't heard of Clark Howard. After checking out the website I know why--he is on a local radio station from 10 to midnight, past my bedtime. Besides, AM radio reception is lousy here at that time of night. Looks like he might have some interesting message boards on his site. Thanx for the tip.
 
   / Value of credit rating #8  
</font><font color="blue" class="small">( ....
What I saw that bugged me the most was the number of inquiries from Chase Bank. I have zero dealings with Chase, but they send each of the four in our family about one "deal" a week to get a "can't live without it" credit card from them.
....
Ron )</font>

For nearly 10 years, consumers have had the option to opt out by mail, Read the very fine print on your offers. Now, thanks to the FTC and major credit statistical firms you have two more methods available to them -- by calling
(888) 5-OPTOUT, or by visiting opt out

-Mike Z. /forums/images/graemlins/grin.gif
 
   / Value of credit rating #9  
I agree that dropping one card may not have much effect on your credit rating, but there's no way I'd have a card again with an annual fee; just too many available that don't have a fee. But having too many credit cards, even with no outstanding balance, may affect your credit rating. I know an older couple (family members) who only got married about 3 years ago, and built a pretty expensive home about a year and a half ago. Each of them had several credit cards before they got married; each is retired with substantial pensions and savings. However, they ran into a problem getting a mortgage because of the large number of "open" accounts.

I have 3 credit cards; use one of them regularly, another when I encounter a place that does not accept my primary card, and the third has been used once in the past 5 years just to see if it was still active; it was. So last year, I decided to cancel that card and called to tell them to cancel it. The guy wanted to talk me out of cancelling it and even sent me a $50 gift card for Home Depot for not cancelling it. /forums/images/graemlins/laugh.gif Why they would even want me to keep it, when it isn't being used, is a bit beyond my comprehension. /forums/images/graemlins/laugh.gif And of course there's never a week that goes by without us getting 2 or 3 offers in the mail for additional credit cards that we have no use for. In fact, that's the primary reason I bought a paper shredder. /forums/images/graemlins/laugh.gif

It is true that many things are tied to your credit score now. We bought this house in September, found with our credit rating, every mortgage company around wanted our business, then when we had the phone service connected (new phone company I never heard of before), they checked our credit rating and said "no deposit" would be required. I told the lady I knew that; I've never had to pay a deposit and she said, "You'd be surprised, but over half our customers do." /forums/images/graemlins/shocked.gif And of course, the auto insurance company checked credit rating, also.
 
   / Value of credit rating #10  
i just found this out yesterday: to get homeowners insurance on a house cost me @ $400 a year: for a relative to get insurance on the same house, over $1000. with drastically reduced coverage, they would bring it down to the mid $700's.
heehaw
 
 
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