IMF thinks your credit score should be tied to...

[favoritos]

1 hour ago, snoughnut said:

This is the part of "building a credit score" that is so incredibly stupid. 

It certainly doesn't make sense.

My wife was a cash only person when we met.  She made decent money, paid for everything including her first house with cash.  It was just the way she felt comfortable with money.  No credit cards and no loans ever.  I finally convinced her that a credit card wouldn't be a bad idea for purchase protections and occasional travel.

She finally did apply for a card.  The credit limit on that card was less than her hourly earning rate.  It was useless.  There is a glitch in the details for people that fall into that category.

Myself, at the same time, had a mortgage, car loan, and some credit card debt.  My ratio wasn't spectacular with my income.  But, I could get instant approval for a decent chunk of credit.  We still joke about the quirky system that would give money-credit to me and not her.

[Angry ginger]

1 hour ago, snoughnut said:

No doubt, home values are booming. I live in a highly sought after school district with homes in the range of 250k - 400k. In the last few years when a home here goes on the market, most of them are sold before they put the sign on the lawn and most of them have bidding wars. 

had a client offer 50k over list and lose a deal the other day,  the house would have been 700k where i live so they were thinking at 460 it wasn't a bad deal. 

 

 

[Angry ginger]

19 minutes ago, favoritos said:

It certainly doesn't make sense.

My wife was a cash only person when we met.  She made decent money, paid for everything including her first house with cash.  It was just the way she felt comfortable with money.  No credit cards and no loans ever.  I finally convinced her that a credit card wouldn't be a bad idea for purchase protections and occasional travel.

She finally did apply for a card.  The credit limit on that card was less than her hourly earning rate.  It was useless.  There is a glitch in the details for people that fall into that category.

Myself, at the same time, had a mortgage, car loan, and some credit card debt.  My ratio wasn't spectacular with my income.  But, I could get instant approval for a decent chunk of credit.  We still joke about the quirky system that would give money-credit to me and not her.

the bureau has no way to know income which is a weakness.  but once educated on the system it's not hard to keep a good credit score.   the free scores are not the most accurate but if you can keep it high 7's  a mortgage/loan score will be in the mid 7's.  

 

As far as the cash only people without data it's hard to make a decision,  are they scoreless because they are really a credit criminals and people have been smart enough to not extend them credit or are they just a true cash only person?   We won't give  a mortgage without a score,  banks that do will charge more which is why when a guy like Dave Ramsey says you don't need a score i cringe.  

 

 

 

 

[teamgreen02]

6 minutes ago, Angry ginger said:

We won't give  a mortgage without a score,  banks that do will charge more which is why when a guy like Dave Ramsey says you don't need a score i cringe.  

Many will wreck their finances trying to get a good score for a mortgage.  They will pay what, 25 basis points more for a manually underwritten loan?  With no debt, a good down payment, a 15 year mortgage, and less than 25% of their income going to a mortgage, that's not a cringe worthy situation.

We have credit cards paid off monthly, and I use index funds for investing with no international funds, otherwise we follow his advice pretty closely.

[Anler]

Doesn't every retard with a pulse already have access to too much credit? 

[Angry ginger]

15 minutes ago, teamgreen02 said:

Many will wreck their finances trying to get a good score for a mortgage.  They will pay what, 25 basis points more for a manually underwritten loan?  With no debt, a good down payment, a 15 year mortgage, and less than 25% of their income going to a mortgage, that's not a cringe worthy situation.

We have credit cards paid off monthly, and I use index funds for investing with no international funds, otherwise we follow his advice pretty closely.

.5 in rate+ most likely for a portfolio loan at a bank most of whom won't do a deal without  a score either.  '

 

Wreck their finances to get a good score SMH.   yes it's so hard to have a couple credit cards you use to 25% of the limit and payoff monthly.  Dave is good for people who have zero financial sense with his black and white rules.   But he is completely out of touch with modern lending and his investment advice is suspect at best considering it lines his pockets using his pet companies.  

 

 

 

 

 

 

[ActionfigureJoe]

3 hours ago, steve from amherst said:

Do you carry enough debt on cards for that to even matter?

I’m carrying $28k on one interest free credit card alone. I’m able to have the bank finance that money for a total of 18 months at 0% interest. It may sound bad on the surface, but I have more than enough capital to cover it. I just like to have that capital working for me in investments. Before the interest free period is over I’ll either renegotiate another period of interest free loanage or find another card. It’s all such a game. 

[ActionfigureJoe]

1 hour ago, Angry ginger said:

the bureau has no way to know income which is a weakness.  but once educated on the system it's not hard to keep a good credit score.   the free scores are not the most accurate but if you can keep it high 7's  a mortgage/loan score will be in the mid 7's.  

 

As far as the cash only people without data it's hard to make a decision,  are they scoreless because they are really a credit criminals and people have been smart enough to not extend them credit or are they just a true cash only person?   We won't give  a mortgage without a score,  banks that do will charge more which is why when a guy like Dave Ramsey says you don't need a score i cringe.  

 

 

 

 

Dave Ramsey has some good direction for people trying to dig themselves out of a self perpetuated hole. I recommended a couple of his books to past clients that had dug themselves a hole through drug, alcohol, or gambling addiction. He puts things in very simple terms for those in the credit repair phase. 

[racinfarmer]

6 hours ago, ActionfigureJoe said:

Dave Ramsey has some good direction for people trying to dig themselves out of a self perpetuated hole. I recommended a couple of his books to past clients that had dug themselves a hole through drug, alcohol, or gambling addiction. He puts things in very simple terms for those in the credit repair phase. 

We plan drives starting at 6pm to listen to him.  Some of the people that call in make us want to scream at them..

[Ez ryder]

10 hours ago, Cold War said:

Every one said that,  but I think it was mostly forgiven.  we have friends that stayed in their house for 2 years without paying. 
1-2 years later they were all in nicer houses for half the price.   

Yeah I know a few pos who played that game . I know 2 builders who ran there line of credit on the house to the max and built places up north with it and walked away. 

Now they are and have been building non stop again for about 6 yrs poping up spec homes and living large again 

[steve from amherst]

13 hours ago, Ez ryder said:

Yeah I know a few pos who played that game . I know 2 builders who ran there line of credit on the house to the max and built places up north with it and walked away. 

Now they are and have been building non stop again for about 6 yrs poping up spec homes and living large again 

Dude who used to live in the home my neighbor bouhgt pulled a home equity. Used the money to pay cash for a house. Walked on both mortgages.