Franchisees? Anyone here own one?

[archenemy]

I think many people here are confusing their credit SCORE with their credit REPORT. You can get a free copy of your credit REPORT every year now, by federal law (on the west coast only as of now). Your credit SCORE is what lenders use to decide if and how much they will lend you. And the more credit card accounts you open, CAN have a negative effect on your credit SCORE.

 

so how do you figure your SCORE once you have the REPORT in hand?

You average the three numbers together.

[archenemy]

 

someone's losing it.

Yes.

[sobo]

How many of you knew that when you apply for auto, home, motorcycle, renters etc insurance they run a credit score on you?

 

I knew that, Rob, and everybody should know that. Jeezus, peeples, it's how capitalism works!

[archenemy]

How many of you knew that when you apply for auto, home, motorcycle, renters etc insurance they run a credit score on you?

 

I knew that, Rob, and everybody should know that. Jeezus, peeples, it's how capitalism works!

Yes.

[sobo]

I think many people here are confusing their credit SCORE with their credit REPORT. You can get a free copy of your credit REPORT every year now, by federal law (on the west coast only as of now). Your credit SCORE is what lenders use to decide if and how much they will lend you. And the more credit card accounts you open, CAN have a negative effect on your credit SCORE.

 

so how do you figure your SCORE once you have the REPORT in hand?

You average the three numbers together.

 

Now that's just being mean...

[archenemy]

I think many people here are confusing their credit SCORE with their credit REPORT. You can get a free copy of your credit REPORT every year now, by federal law (on the west coast only as of now). Your credit SCORE is what lenders use to decide if and how much they will lend you. And the more credit card accounts you open, CAN have a negative effect on your credit SCORE.

 

so how do you figure your SCORE once you have the REPORT in hand?

You average the three numbers together.

 

Now that's just being mean...

Yes.

[Ireneo_Funes]

I think many people here are confusing their credit SCORE with their credit REPORT. You can get a free copy of your credit REPORT every year now, by federal law (on the west coast only as of now). Your credit SCORE is what lenders use to decide if and how much they will lend you. And the more credit card accounts you open, CAN have a negative effect on your credit SCORE.

 

so how do you figure your SCORE once you have the REPORT in hand?

You average the three numbers together.

 

Now that's just being mean...

Yes.

 

Pourquoi?

[archenemy]

Loan officers in WA (whom do not have to be licensed like the mortgage brokers they work for) often get all three of your credit reports and average the numbers together in order to start shopping for a loan for you. No shit.

[archenemy]

Your real score, however, is an amalgamation of payment history, current level of indebtedness, types of credit used and length of credit history and new credit in determining credit risk. Math geeks pick this number for you.

[sobo]

I think many people here are confusing their credit SCORE with their credit REPORT. You can get a free copy of your credit REPORT every year now, by federal law (on the west coast only as of now). Your credit SCORE is what lenders use to decide if and how much they will lend you. And the more credit card accounts you open, CAN have a negative effect on your credit SCORE.

 

so how do you figure your SCORE once you have the REPORT in hand?

 

ChrisT,

Go download at least two (I did all three, just to make sure they all said the same thing) of your reports from the site I linked. Compare all of them to see that all info is the same. Then look in detail under the section that's called "Potentially negative comments" or something close to that. If you've got something negative to fix, it'll be listed there (make sure you write to the reporting agency with why you believe it to be in error, or fix it with the creditor first, then check back to make sure it got changed/removed).

 

Then look at the history of your payments to your creditors. Are there lots of "green" months showing or are there lots of "red" months? These reports go back as much as seven years! Obviously, more green is better. As I said, knowing how these reports are put together (which you can get from the reporting agency's site or any quick google search for "credit score" or "FICO score"), you can make an educated guess as to what your SCORE is based upon the information in your REPORT. You really have no reason to know what your SCORE is unless you're going to buy something big, like a house or a yacht or something. At that time, your lending agent will tell you what your score is anyway. Higher FICO scores get you better rates/terms on your loans. Be that as it may, what you really want to know is WHAT IS IN YOUR REPORT AND IS IT AN ACCURATE REPRESENTATION OF YOUR PERSONAL SITUATION. Correct any mistakes you come across. The directions are on each of the Big Three's sites for how to go about doing that.

 

It will take some time for you to download all of the reports, depending upon how long your credit history is (over 25 years in my case - took me most of a Saturday afternoon, but my connection speed was suffering that day and I had uncorked a bottle of Cab, too) and the study/research of the reports after you have them in hand, but the reward for your efforts should be reassuring. If it isn't, then you at least know what you have to do next...

[sobo]

Your real score, however, is an amalgamation of payment history, current level of indebtedness, types of credit used and length of credit history and new credit in determining credit risk. Math geeks pick this number for you.

 

There you go, all. Arch hit it on the head. It's not a number that you're going to be able to calculate spot on, but you can guess close enough if you've got your reports and know a little bit about how they're put together.

 

Arch, what is that ratio that can work both ways for/against you? Utilization/obligation or something like that?

[archenemy]

Good advice.

But if there is anything wrong on a report--good luck. You will have an easier time amputating your own arm with a swiss army knife than rectifying the information. There was an error on mine; I ended up paying a "debt" I didn't know b/c there was no other way on god's green earth to get the error fixed.

[Kitergal]

ok. so I'm the niave one here. If I have zero balance on a card that I closed 3 years ago...why is it showing up as a negative report? Granted..this was my "college" card so I didn't exactly pay on time....or at all (Went like 6 months without making a payment...completely SHOCKED that Daddy wasn't going to pay it off!!)..but since it's paid off, and at zero balance and has been that way for over 3 years...why is it still under the bad column??

[archenemy]

ok. so I'm the niave one here. If I have zero balance on a card that I closed 3 years ago...why is it showing up as a negative report? Granted..this was my "college" card so I didn't exactly pay on time....or at all (Went like 6 months without making a payment...completely SHOCKED that Daddy wasn't going to pay it off!!)..but since it's paid off, and at zero balance and has been that way for over 3 years...why is it still under the bad column??

Perfect example of the u/o ratio that sobo just mentioned.

[sobo]

There was an error on mine; I ended up paying a "debt" I didn't know b/c there was no other way on god's green earth to get the error fixed.

 

One on mine as well, but I had already paid it years earlier, but The Bon still showed it as an unpaid late payment charge. I had contested it because the payment wasn't late at the time it was made years before. I went to The Bon, told the CS agent that it was all BS, showed her my old statements where it had been paid and credited, and they wiped it off the slate. Don't know why their bill processing software didn't do that for them three years earlier...

 

I checked back with the credit reporting agencies to see that it was removed from the "negative" side, and it was. Bummer for you about having to pay yours again.

[Kitergal]

So I would have been better off keeping that card Open? and not useing it??

[archenemy]

There was an error on mine; I ended up paying a "debt" I didn't know b/c there was no other way on god's green earth to get the error fixed.

 

One on mine as well, but I had already paid it years earlier, but The Bon still showed it as an unpaid late payment charge. I had contested it because the payment wasn't late at the time it was made years before. I went to The Bon, told the CS agent that it was all BS, showed her my old statements where it had been paid and credited, and they wiped it off the slate. Don't know why their bill processing software didn't do that for them three years earlier...

 

I checked back with the credit reporting agencies to see that it was removed from the "negative" side, and it was. Bummer for you about having to pay yours again.

I am glad to hear you were able to resolve yours. I get too many neg stories on this w/o being able to bal it out with sucesses.

[sobo]

ok. so I'm the niave one here. If I have zero balance on a card that I closed 3 years ago...why is it showing up as a negative report? Granted..this was my "college" card so I didn't exactly pay on time....or at all (Went like 6 months without making a payment...completely SHOCKED that Daddy wasn't going to pay it off!!)..but since it's paid off, and at zero balance and has been that way for over 3 years...why is it still under the bad column??

 

Although your balance is $0, you were late with your payments. You stated so yourself that you didn't make some at all!!! A late payment is bad, but a SKIPPED payment is even worse, and you skipped for 6 months! So do you think they'd put you in any category other than "Deadbeat CardHolder"? And they keep this stuff on your record for as much as seven years. Sorry, but I think there's nothing you can do about that card's record now. At least you closed it!

 

Which is another thing... accounts that are open, even with $0 balances, CAN hurt your credit score. Close inactive accounts! For potential creditors looking to give you a loan, it looks a lot better on your credit report to have "Account closed by card holder" rather than "Account closed by card issuer".

[sobo]

So I would have been better off keeping that card Open? and not useing it??

 

See my post immediately above. ^^

[Stretch75]

In order to get my house, my credit needed cleaning. I went to a lady who pursued, endlessly, to clean my report. She wrote letters for 3 months to the companies that had negative comments. Before long, my credit was spotless. Even with the " old but paid" accounts showing neg history.

 

Maybe not the answer, but it worked great for me.

 

I think I still have her number if anyone is interested.

[Kitergal]

gotcha....thanks peeps. Good to know I screwed myself years ago...and I'll be paying for it for years to come! spam!!

[thelawgoddess]

gotcha....thanks peeps. Good to know I screwed myself years ago...and I'll be paying for it for years to come! spam!!

the stupid things we do in college! sucks, eh?

[sobo]

Ya know, I wish there had been a course in high school about this sort of crap that I (and the rest of you, by the looks of it) have learned the hard way. My folks never talked to me about credit and shit, only about not getting girls pregnant.

 

Pffft! that was easy!

 

edited to add "not" !

Edited August 24, 2005 by sobo

[Kitergal]

I second that!! Although..my lecture was how NOT to get pregnant!!

[sobo]

Note my timely edit!

 

We now return this thread to willstrickland and the discussion of franchise experience. Thank you for your attention during this brief discourse on credit reports.