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Peter1469
05-30-2017, 03:57 PM
Credit scores to rise (https://www.wsj.com/articles/credit-scores-hit-record-high-as-recession-wounds-heal-1496055600)

More than 6M US adults will have their personal bankruptcies disappear over the next 5 years leading to a possible economic boom as their credit scores will rise and open up to loans.


Credit scores for U.S. consumers reached a record high this spring while the share of Americans deemed to be some of the riskiest borrowers hit a record low—a potential boon for lending and economic activity.

Consumers’ improving fortunes reflect falling unemployment and continued, if lackluster, economic growth. An added benefit: The passage of time since the recession and housing meltdown is helping household balance sheets.

Agent Zero
05-30-2017, 04:45 PM
People having recently filed bankruptcy can receive unsecured credit cards within a year and buy a home within two years. They're considered ok credit risks because they can't file again for 7? years.

Agent Zero
05-30-2017, 04:46 PM
Also most anyone can afford a new or newer car thanks to subprime lenders. Of course they'll pay exorbitant rates.

Peter1469
05-30-2017, 04:46 PM
People having recently filed bankruptcy can receive unsecured credit cards within a year and buy a home within two years. They're considered ok credit risks because they can't file again for 7? years.

I am not sure how big of a hit the bankruptcy is to credit, but I doubt you will get favorable interest rates with one on your record.

pjohns
05-30-2017, 06:05 PM
Also most anyone can afford a new or newer car thanks to subprime lenders. Of course they'll pay exorbitant rates.

You make a fair point.

But I am not sure that the traditional alternative to subprime lenders--i.e. loan sharks--is somehow superior...

Common
05-30-2017, 07:39 PM
People having recently filed bankruptcy can receive unsecured credit cards within a year and buy a home within two years. They're considered ok credit risks because they can't file again for 7? years.

They get secured credit cards immediately and some retail chains will issue cards with low limits like 200 or 300.00

Common
05-30-2017, 07:39 PM
Whats the highest credit score attainable now ?

Peter1469
05-30-2017, 07:40 PM
850

Don
05-30-2017, 07:54 PM
Credit scores to rise (https://www.wsj.com/articles/credit-scores-hit-record-high-as-recession-wounds-heal-1496055600)

More than 6M US adults will have their personal bankruptcies disappear over the next 5 years leading to a possible economic boom as their credit scores will rise and open up to loans.

Probably won't take long for most of them to go bankrupt again.

Don
05-30-2017, 07:56 PM
850

My score is 820.

Peter1469
05-30-2017, 07:59 PM
Probably won't take long for most of them to go bankrupt again.
Many in this group were people who got caught up in the housing market crash.

Peter1469
05-30-2017, 08:00 PM
My score is 820.

I am usually around 800.

Don
05-30-2017, 08:01 PM
You make a fair point.

But I am not sure that the traditional alternative to subprime lenders--i.e. loan sharks--is somehow superior...

"Loan sharking" has sure changed. When it was illegal and controlled by the mob the interest rates were actually lower than with today's legal loan sharks. And if you didn't pay up you got a warning, then roughed up, then had a leg broken. They went after the person who made the bad loan. Today's sharks just pass the costs along to all the people who do live up to their obligations.

Don
05-30-2017, 08:05 PM
I am usually around 800.

That's a good number, especially for someone still in the work force. Mine is where it is because I have a perfect record of paying my bills and credit card bills going back decades. They tell me it would be higher if I used more credit cards, paid interest on credit cards and or got a bank or car loan. The only loan I ever had in my life was a mortgage and that is the only interest I have ever paid.

Peter1469
05-30-2017, 08:08 PM
That's a good number, especially for someone still in the work force. Mine is where it is because I have a perfect record of paying my bills and credit card bills going back decades. They tell me it would be higher if I used more credit cards, paid interest on credit cards and or got a bank or car loan. The only loan I ever had in my life was a mortgage and that is the only interest I have ever paid.

A lot of the process is a racket to encourage debt- manageable debt, but that is interest payments to a bank.

Don
05-30-2017, 08:09 PM
Many in this group were people who got caught up in the housing market crash.

I excuse them but I have known a lot of people who think its OK to buy things they can't afford and then have no problem gaming the system. That's not what bankruptcy laws were intended for and to me those people are just thieves.

AZ Jim
05-30-2017, 11:37 PM
819 here.

Don
05-31-2017, 12:32 AM
Interesting graph...... The largest group is poor. The 2nd largest group is excellent.

http://www.gotcredit.com/wp-content/uploads/2017/05/excellent-credit-arrow-1.png

Peter1469
05-31-2017, 04:10 AM
I excuse them but I have known a lot of people who think its OK to buy things they can't afford and then have no problem gaming the system. That's not what bankruptcy laws were intended for and to me those people are just thieves.

I agree. However, the housing crash caught a lot of honest people as well.

Common
05-31-2017, 05:13 AM
850

I thought it was higher, im very close to that

pjohns
05-31-2017, 10:34 AM
My score is 820.
Mine is 797, according to Discover Card (which issues the score every month).

That is merely in the very good category (over 800 is in the exceptional category--as yours is).

Although I do not intend to ever purchase anything again on credit--so my credit score really has no relevance to anything important--I would like to have it above 800, just as a matter of pride.

pjohns
05-31-2017, 10:36 AM
850
That is the highest credit score issued by TransUnion.

I am not sure what the highest possible score is through either Equifax or Experian (which are the two other major credit-reporting agencies).

pjohns
05-31-2017, 10:48 AM
Mine is where it is because I have a perfect record of paying my bills and credit card bills going back decades..

Same here. (I have never been late paying a bill in my life; and I don't intend to start now.)


They tell me it would be higher if I used more credit cards, paid interest on credit cards and or got a bank or car loan. The only loan I ever had in my life was a mortgage and that is the only interest I have ever paid.

I, too, make a stark distinction between mortgage debt and consumer debt: Very few people can afford to pay cash for a house; but it is possible to avoid consumer debt. (As for mortgage debt, it usually cannot be avoided altogether; but my late wife and I got an amortization schedule, and made principal-only payments each month--thereby paying off our condominium early, and also minimizing the interest paid.)

I do have lots of credit cards--I frequently get an offer, in the mail, for $100 or $200 if I accept a certain credit card--but most, I simply do not use these. (I realize that this dings my FICO score a bit--the folks that analyze my habits simply look at any additional line of credit as an accident waiting to happen--but that is okay, since I am now beyond the borrowing phase of my life.)

pjohns
05-31-2017, 10:53 AM
I have known a lot of people who think its OK to buy things they can't afford....

That is the way that I look upon the promiscuous use of credit cards: If they are used merely as a convenience (which is the way that I use them), I see nothing wrong with them; but if they are used as a way of living beyond one's means, that is a very different matter. (The latter may seem like a simply splendid idea--for a little while. But then, it will all come crashing down.)

Kalkin
05-31-2017, 11:19 AM
My accountant friend said my score was the highest he'd ever actually seen. 831.

HawkTheSlayer
05-31-2017, 11:59 AM
My accountant friend said my score was the highest he'd ever actually seen. 831.

I hover between 828 and 832 but only use one card. If I used more than on card, it would be higher.

Peter1469
05-31-2017, 05:58 PM
That is the highest credit score issued by TransUnion.

I am not sure what the highest possible score is through either Equifax or Experian (which are the two other major credit-reporting agencies).
They use the same system.

Peter1469
05-31-2017, 06:00 PM
Same here. (I have never been late paying a bill in my life; and I don't intend to start now.)



I, too, make a stark distinction between mortgage debt and consumer debt: Very few people can afford to pay cash for a house; but it is possible to avoid consumer debt. (As for mortgage debt, it usually cannot be avoided altogether; but my late wife and I got an amortization schedule, and made principal-only payments each month--thereby paying off our condominium early, and also minimizing the interest paid.)

I do have lots of credit cards--I frequently get an offer, in the mail, for $100 or $200 if I accept a certain credit card--but most, I simply do not use these. (I realize that this dings my FICO score a bit--the folks that analyze my habits simply look at any additional line of credit as an accident waiting to happen--but that is okay, since I am now beyond the borrowing phase of my life.)
With the current tax laws, mortgage debt is good, so long as you don't buy too big of a house for your income.

Don't pay it off early. Use that mortgage interest tax deduction for all that it is worth.

Kalkin
06-02-2017, 01:35 AM
I hover between 828 and 832 but only use one card. If I used more than on card, it would be higher.

I use which ever one gives the best cash back and has no annual fee. Usually the citicard double cash, but recently a cap1 quicksilver ($100 cash back for spending $500) and the wells fargo cashwise ($200 back on your first $1000). It's like a 20% discount on everything. No balance rollovers, of course.

pjohns
06-02-2017, 12:28 PM
I use which ever one gives the best cash back and has no annual fee. Usually the citicard double cash, but recently a cap1 quicksilver ($100 cash back for spending $500) and the wells fargo cashwise ($200 back on your first $1000). It's like a 20% discount on everything. No balance rollovers, of course.

Good deal! (In fact, that is better than using cash--20 percent better!)

pjohns
06-05-2017, 10:08 PM
[Transunion, Equifax and Experian] use the same system.
According to my local bank, Equifax shows my most recent credit score as 808; and that is in a different category that 797 (which TransUnion show is to be).

In a way, it is immaterial, as I do not intend to purchase anything again on credit.

Still, it is rather interesting...