topic What's a good FICO Score good for anyway? in General Credit Topics

What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 15:33:51 GMT

Everybody know that a crappy FICO score rings the dinner bell for predatory lenders and reduces credit lines, but I have the reverse question.

I worked two jobs for 4 years to pay off credit card debt that I ran up in my 20's, then spent the next 20 or so years being the model of responsibility, keeping my life and finances in order and making conservative finanacial decisions that kept my life on an even keel and eliminated anxiety, even though the recent Global Financial Untidiness.

I pay for everything with credit cards and pay off 100% each month on time, so it costs me nothing in interests or fees.

The reward for this is a FICO that runs around 825 depending on the reporting agency and the direction of the wind.

However, the problem is that now that I qualify for huge credit lines and great rates, I don't actually want to borrow money.

Is there any way to make an excellent FICO work for me? It's nice that the banks like me, but I no longer actually need them. Their warm feelings don't translate into anything for me. Aside from (frankly insulting) 1-2 "miles"/$ "rewards" is there any kind of really significant reward I can squeeze out of anybody for all this work and fiscal responsibility?

Are there any cards around that have really huge rewards like the $4/$100 that MBNA used to give on their Cruise Rewards card?

I know it sounds greedy, but somehow, it seems like there should be a reward for playing by their rules . . .

Re: What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 15:56:15 GMT

This has benefits both tangible and intangible....some of the benefits:

1. Best insurance rates

2. Employers like good credit (if they check)

3. Reduces risk of AA (to some extent)

4. Provides the opportunity and ability to borrow, if warranted and wanted

5. Personal sense of achievement and satisfaction

6. The envy and idolization by many on these boards (lol)

7. Combined with 4 bits, a can of coke (only at participating locations.....(fine print, etc))

8. Magical powers begin to manifest themselves when all 3 FICO's exceed 830

Great job on the scores. As for the use....the scores in and of themselves are not the objective, they are the reflection of you, your choices, your financial practices and lifestyle. I applaude such conservative and pragmatic approaches.

Message Edited by txjohn on 08-20-2009 08:56 AM

Re: What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 16:33:48 GMT

@Anonymous wrote:
This has benefits both tangible and intangible....some of the benefits:

1. Best insurance rates
2. Employers like good credit (if they check)
3. Reduces risk of AA (to some extent)
4. Provides the opportunity and ability to borrow, if warranted and wanted
5. Personal sense of achievement and satisfaction
6. The envy and idolization by many on these boards (lol)
7. Combined with 4 bits, a can of coke (only at participating locations.....(fine print, etc))
8. Magical powers begin to manifest themselves when all 3 FICO's exceed 830

Great job on the scores. As for the use....the scores in and of themselves are not the objective, they are the reflection of you, your choices, your financial practices and lifestyle. I applaude such conservative and pragmatic approaches.

Message Edited by txjohn on 08-20-2009 08:56 AM

Thanks! All it took was working my butt off, and not spending money on anything I couldn't eat or live in for four years, then never, ever being late or paying interest on anything. Ever. For any reason. 8-)

The peace-of-mind is worth quite a bit. My original post was just because I was wondering if I was missing out on any "freebies"

I will say this to the people stuggling with their bills and credit cards:

You can't even imagine how much "extra" money you'll have when you no longer pay any interest or fees and stop getting the "scr**-you" rates on anything that involves credit or financial risk.

No matter what it takes to rebuild your credit, it's worth it. If it means that the kids don't get a PS3 or you don't get a new flat-screen TV this year, or have to cancel cable, or have to drive a crap-mobile for an extra 5 years (I did), that's just the way it is.

In the end, it's absolutley worth it.

Terry

Re: What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 17:11:19 GMT

Pizza - you could be missing out on freebies if you don't have some good reward cards.

As a PIF guy, you can get some real benefits out of rolling expenditures through a couple good reward cards such as:

GAS/GROCERY: PenFed gives 5% gas, 2% grocery

Schwab: Has a 2% everything card

CapOne: Has a 2% everything card (but has $39 AF)

Discover More: Has up to 5% on revolving categories

Discover More: Allows for "cash" at grocery/retail checkout that is counted as a purchase with grace period and no fees (convenience to access cash, without incurring interest and leaving your own cash in savings as long as possible).

Many cards have Reward Bonus categories when you use your card at participating online retailers, sometimes as high as 20%....so I always check these retailers first when I am in the market for items.

There is also the fact that when you use a CC and then PIF by due date, you gain a little extra interest earnings by floating your purchases for 30 to 40 days.

Other than that, you nailed the benefits pretty well.

Re: What's a good FICO Score good for anyway?

Jazzzy — Thu, 20 Aug 2009 17:15:34 GMT

@Anonymous wrote:
@Anonymous wrote:
This has benefits both tangible and intangible....some of the benefits:

1. Best insurance rates
2. Employers like good credit (if they check)
3. Reduces risk of AA (to some extent)
4. Provides the opportunity and ability to borrow, if warranted and wanted
5. Personal sense of achievement and satisfaction
6. The envy and idolization by many on these boards (lol)
7. Combined with 4 bits, a can of coke (only at participating locations.....(fine print, etc))
8. Magical powers begin to manifest themselves when all 3 FICO's exceed 830

Great job on the scores. As for the use....the scores in and of themselves are not the objective, they are the reflection of you, your choices, your financial practices and lifestyle. I applaude such conservative and pragmatic approaches.

Message Edited by txjohn on 08-20-2009 08:56 AM

Thanks! All it took was working my butt off, and not spending money on anything I couldn't eat or live in for four years, then never, ever being late or paying interest on anything. Ever. For any reason. 8-)

The peace-of-mind is worth quite a bit. My original post was just because I was wondering if I was missing out on any "freebies"

I will say this to the people stuggling with their bills and credit cards:

You can't even imagine how much "extra" money you'll have when you no longer pay any interest or fees and stop getting the "scr**-you" rates on anything that involves credit or financial risk.

No matter what it takes to rebuild your credit, it's worth it. If it means that the kids don't get a PS3 or you don't get a new flat-screen TV this year, or have to cancel cable, or have to drive a crap-mobile for an extra 5 years (I did), that's just the way it is.

In the end, it's absolutley worth it.

Terry

Hi Terry...you're my new hero. I love your quote above about not spending any money on anything you couldn't eat or live in.

You should be very proud...and your kids will learn from your example.

We are very financially conservative, and that has rubbed off on all our kids. Our youngest, my 16-year old, got invited to prom last year as a sophomore. I was ready to go into 'prom mode'...new dress, etc. Nope. She informed me that she had already borrowed a dress from a friend who had graduated. She ultimately did let me buy her a pair of shoes. She was not about to let me buy her a dress.

It's fun to watch your kids turn out that way.

Re: What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 17:16:34 GMT

@Anonymous wrote:

Many cards have Reward Bonus categories when you use your card at participating online retailers, sometimes as high as 20%....so I always check these retailers first when I am in the market for items.

That sounds awesome! Any idea which cards have that?

Thanks!

Re: What's a good FICO Score good for anyway?

Anonymous — Thu, 20 Aug 2009 17:32:18 GMT

@LynetteM wrote:
Hi Terry...you're my new hero. I love your quote above about not spending any money on anything you couldn't eat or live in.

You should be very proud...and your kids will learn from your example.

We are very financially conservative, and that has rubbed off on all our kids. Our youngest, my 16-year old, got invited to prom last year as a sophomore. I was ready to go into 'prom mode'...new dress, etc. Nope. She informed me that she had already borrowed a dress from a friend who had graduated. She ultimately did let me buy her a pair of shoes. She was not about to let me buy her a dress.

It's fun to watch your kids turn out that way.

Thanks! I guess being able to sleep at night and not worrying about creditors was worth a little delayed-gratification.

Terry