Importance of good credit

[zander_zye]

Originally posted by Stump


Me. I have never had financial problems when I was younger, because I have always been very conscious of not living beyond my means. I was able to pay for my first car cash, and have only had a co-signer on a loan once - and that was because I couldn't legally be held to a contract (I was under 18). Out of the possible credit score of 850, mine is over 800, and always has been.

As far as getting into TROUBLE early on.... :shuffle:

I just ran my credit report - according to Experian, credit scores run between 300-950. Your credit score of 800 is excellent. The average credit score is 690-710.

With that said, credit scores are based on a fairly arbitrary formula. Lets say for example you started your credit history at 18, and in the last 25 years you have never been late, or had a bankruptcy. You have owned multiple homes and have had multiple mortgages, etc. You make over $100K a year and have a high net worth (compared to the National Average). That still does not guarantee a high credit score. Part of the reason is that if some third party company runs your history to provide an unsolicited CC, you take the hit. It blows, but that is the way it is.

The good news is that Congress has made significant changes in the credit laws. Experian can no longer wash their hands and just say that they merely report credit history (something that has always been totally false) - they can be liable as a company if they allow negative credit that is false. Sort of puts the ball in their court.

[kelly]

Agencies don't expect everybody to have A1 credit but they want to see that you are handling your credit responsibly. You can't be currently in bankruptcy and your accounts have to be current if you have outstanding debts you have to set up payment arrangements thats what they figure responsible people do. There is some truth to the debt thing though don't want officers who may be tempted to take bribes or payoffs because they are over their heads in debt.

[Jynkxxie]

Originally posted by razdaz
Sometimes, though, foreclosures, repos, late payments, bankrupcies can result NOT due to mismanagement of money, but due to forces that may be beyond one's control. How many people truly have the money to keep up mortgage payments, car payments, etc. if a severe loss of income happens over an extended period of time? I'll bet not many, if any, has it. Sell you say? Well, that is an option and good one at that, but what about those that try to sell, but no one buys? You see, you have to take the totality of the situation at hand and no two situation are exactly alike. That is why it is just PART of the hiring equation and not the sole reason.

Especially when you own a business, and the economy goes to shiznit, and no one will buy your business because the economy has gone to shiznit.

[Stump]

Actually, the credit score runs between 350-850...
:D