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Current Events & Hot Topics Current Events & Hot Topics

Credit scores

Posted by on Sep. 24, 2013 at 1:49 PM
  • 45 Replies

I was reading a yahoo article about credit scores, someone posted this question: "why credit scores should have an impact on insurance premiums, deposits on utlilites and rent, and the ability to be able to get a job? if someone has a bad credit score and can't get a job, how are they expected to live? or don't they deserve to live? I think credit scores are getting too out of hand"

Do you agree that the credit checking is getting out of hand?? I feel it is a bit intrusive and how about people that rather dont have debt and only pay cash for everything, including buying a house or a car, so then their credit score is low. When I was selling cars, I saw a lot of Chinese families buy cars cash, they didnt have credit cards. Their homes were also paid for. I rather pay for things cash if possible than having to owe the credit card. 

Also, while I was married my credit score was 750 but since my separation and later divorce and the lack of support from my ex and not finding a job at the time, and my ex using to the max the credit cards that both our names were in or taking my credit cards and doing the same, it didnt matter I cancel them, I was liable and my score went to 500, is now up a little bit but not enough to try and get a mortgage were I would be paying less than rent but here I am, having to pay higher rent due to my bad credit score. It seems to me that there are times that one can be a good payer but circumstances around us changes that and the credit score system doesnt help in this circumstances, one has to be stuck until the score goes up and it can change so quickly too.

Any thoughts?? 

http://finance.yahoo.com/news/credit-mystery-where-start-103024750.html

by on Sep. 24, 2013 at 1:49 PM
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Replies (1-10):
Annettey19
by Bronze Member on Sep. 24, 2013 at 1:53 PM
1 mom liked this

I agree with this somewhat. We don't do credit cards, and while we might get one just for the purpose of building credit and pay it off every month, it is a bother.

We tried to get approved to buy a cheap home, and even though we had a LOT more cash to put down than most people would, we didn't get approved because we aren't making payments on anything. I just wish people would see a large cash payment as a sign that you're responsible and able to save, and look past the credit score a little bit. 

lizzielouaf
by Gold Member on Sep. 24, 2013 at 1:57 PM

My firm used to only run credit checks for prospective partners, Jr & Sr, but it recently started running them for all employees. 

AMCMSM
by on Sep. 24, 2013 at 2:01 PM
2 moms liked this

 We have 2 credit cards. One is set to auto pay the cell phone bill and the other is set to auto pay the electric bill. We have our bank account set to auto pay both credit cards. These bills we pay monthly anyway. It has kept our credit scores healthy and we don't use them for anything else. Yes, I do think that credit scores are used way to much to screw people over.

Peanutx3
by Ruby Member on Sep. 24, 2013 at 2:08 PM
2 moms liked this

The theory is your credit score may reflect your reliability in paying obligations on time.  By not paying those obligations on time can reflect on your overall responsibility in other areas. 

lizzielouaf
by Gold Member on Sep. 24, 2013 at 2:11 PM
1 mom liked this


They also consider high debt a theft risk.

Quoting Peanutx3:

The theory is your credit score may reflect your reliability in paying obligations on time.  By not paying those obligations on time can reflect on your overall responsibility in other areas. 



Peanutx3
by Ruby Member on Sep. 24, 2013 at 2:14 PM
1 mom liked this

Yep.  Sometimes I think it may go too far but I definitely see the reasoning.

Quoting lizzielouaf:

They also consider high debt a theft risk.

Quoting Peanutx3:

The theory is your credit score may reflect your reliability in paying obligations on time.  By not paying those obligations on time can reflect on your overall responsibility in other areas. 





tscritch
by Silver Member on Sep. 24, 2013 at 2:18 PM
1 mom liked this

Seems in some ways to be a catch 22. You have bad credit, so you can't get a better job to (theoretically) be able to pay off debt and improve your credit.

muslimah
by on Sep. 24, 2013 at 2:20 PM
1 mom liked this

 Here in Michigan just about everything is based on credit scores. Credit scores determine the cost of insurance and with a bad credit score all unities or phone service require a deposit of a few hundred dollar and you can't even rent an apartment or a house if you have bad or no credit. That is why everything is in my name and not my husbands. He has never been responsible and his credit is shot where myself on the other hand have always made sure to keep up with my finances. I am never a penny short or a day late.

smalltowngal
by Platinum Member on Sep. 24, 2013 at 2:21 PM
3 moms liked this

I just hate that you have to take on debt in order to raise your credit score. Ok, I can see if you want to borrow money that won't to make sure you pay it back but if you choose not to open credit cards, you shouldn't have to pay higher insurance rates. 

flika
by Bronze Member on Sep. 24, 2013 at 2:34 PM

When I was married, we did it the same way, almost everything was under my name bc my exs credit was really bad when we first married. Then I helped him get his score up. 

I live in Fl and I had to put down payments for water, and electricity. I have a prepaid phone that when I can't afford it, I go without, which can be difficult but I do what I have to. I basically work to pay for rent bc it is so high and I can't move out of here bc I am asked for 3 months advance and due to my low score sometimes one extra month too. It makes it harder for me to move to a lower rent and forget about rental communities, they wont take me. I have to look for a owner renting their place.

Quoting muslimah:

 Here in Michigan just about everything is based on credit scores. Credit scores determine the cost of insurance and with a bad credit score all unities or phone service require a deposit of a few hundred dollar and you can't even rent an apartment or a house if you have bad or no credit. That is why everything is in my name and not my husbands. He has never been responsible and his credit is shot where myself on the other hand have always made sure to keep up with my finances. I am never a penny short or a day late.


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