topic Re: Do I have to have a credit file? in General Credit Topics

Do I have to have a credit file?

Anonymous — Tue, 12 Apr 2011 01:11:43 GMT

This might be a dumb question but do I have to have a credit file?

If I pay everything in cash and don't borrow money can I request the big three to close my account. Everything I do is cash/debit card (rent, utilities, car insurance). I never sign up for a cell phone contract I'm always month to month and buy the phone out right. I never buy a car unless I pay cash. If an employer does not want to hire me cause I'm debt free and have no credit history I'll go somewhere else.

All a credit score seems to me is a way to just how well me handle debt but don't give you credit for being dent free.

It does not seem right the we are required to have a credit file. If someone did steal my SSN and open a CC or car loan It could impact my life.

I live the Dave Ramsey way. So that's why I have this question.

Re: Do I have to have a credit file?

Anonymous — Tue, 12 Apr 2011 01:31:45 GMT

I don't think it is up to us whether we have one or not. These companies have been around for a long time and it is a business.

If you have never applied for credit anywhere, you may have a file but not much will be in it, if anything. If you have no active credit in the last 6 months you won't have a score.

Other things, besides the good things, go in your CR. If you forget to pay a utility bill, it may eventually be there.

Re: Do I have to have a credit file?

llecs — Tue, 12 Apr 2011 01:52:08 GMT

OP, congrats on being debt free. Debt is dumb. Cash is king.

I've never seen that question before. Unfortunately I suppose a file will always be out there. Even if you pay cash for certain items, and even if you omit to the company you are dealing with your SSN, they can still find your info somehow and report an inquiry, account review, promotional inquiry, etc. Even some creditors, like the rare utility or apartment management have been known to report. I dunno. If you call and they say they'll close it out, be sure to post back.

Re: Do I have to have a credit file?

Anonymous — Tue, 12 Apr 2011 01:52:21 GMT

I guess that's part of my question. It's a private company collecting personal information without my permission. Maybe I'm wrong but it's seems to me it should be up to me to participate. It's one thing if it's run by the government but it's not. If I'm wrong that's fine but it's a question I've had for a while. Why can't I close my file and choose not to use their services?

Re: Do I have to have a credit file?

DI — Wed, 13 Apr 2011 01:03:54 GMT

@llecs wrote:
OP, congrats on being debt free. Debt is dumb. Cash is king.

I've never seen that question before. Unfortunately I suppose a file will always be out there. Even if you pay cash for certain items, and even if you omit to the company you are dealing with your SSN, they can still find your info somehow and report an inquiry, account review, promotional inquiry, etc. Even some creditors, like the rare utility or apartment management have been known to report. I dunno. If you call and they say they'll close it out, be sure to post back.

Cash is king only when one cannot afford to pay credit cards in full. For someone who can PIF their CCs, credit is king. Expecially if the card offers cashback.

Re: Do I have to have a credit file?

llecs — Wed, 13 Apr 2011 01:52:45 GMT

@DI wrote:

@llecs wrote:
OP, congrats on being debt free. Debt is dumb. Cash is king.

I've never seen that question before. Unfortunately I suppose a file will always be out there. Even if you pay cash for certain items, and even if you omit to the company you are dealing with your SSN, they can still find your info somehow and report an inquiry, account review, promotional inquiry, etc. Even some creditors, like the rare utility or apartment management have been known to report. I dunno. If you call and they say they'll close it out, be sure to post back.
Cash is king only when one cannot afford to pay credit cards in full. For someone who can PIF their CCs, credit is king. Expecially if the card offers cashback.

That's a playoff of what DR always says. I'm probably a hippocrate by posting this because I don't always PIF monthly as I should and I do put about $8k-$10k per month on CCs (Amex charge mainly), but given a choice between cash or a CC, I'd pay with cash for sure. IMO, it is easier to use cash and not have to worry about paying for it again come statement time. Plus you never know what might happen around the corner in terms of financial clouds. A job situation hit at the start of last month out of the blue and DW and I have been without income for a month now. It was a "aaaahhh" moment since we just signed a new mortgage. Now we will be OK since we have a chunk in savings to cover us for almost a year and we are owed money on top of that and this is temporary, but since we saw this coming we switched entirely to cash and we don't have to worry about hitting that brick wall that so many hit when they rely on CCs as an emergency fund. or worry about CC payments.

Re: Do I have to have a credit file?

JBjunior — Wed, 13 Apr 2011 03:51:59 GMT

I wanted to point out that you are not using their services. Lenders are using their services but you do have the the ability to view what is on there.

Re: Do I have to have a credit file?

Anonymous — Wed, 13 Apr 2011 12:34:20 GMT

@JBjunior wrote:
I wanted to point out that you are not using their services. Lenders are using their services but you do have the the ability to view what is on there.

Are you talking about the credit file?

Yes, you absolutely do have the ability to view what is in your file. First you get a free report each year. Second, the FCRA is very clear that if a consumer wants to see everything in their credit file, they have the right to do so.

Re: Do I have to have a credit file?

JBjunior — Wed, 13 Apr 2011 16:46:27 GMT

Are you trying to disagree with me? You just said the same thing that I did. My point was that credit files are compiled for the benefit of lenders, not us. Of course we have the ability to view them and they generate revenue (other than the 3 free per year) by giving us that option.

Re: Do I have to have a credit file?

Anonymous — Wed, 13 Apr 2011 22:49:54 GMT

@JBjunior wrote:
Are you trying to disagree with me? You just said the same thing that I did. My point was that credit files are compiled for the benefit of lenders, not us. Of course we have the ability to view them and they generate revenue (other than the 3 free per year) by giving us that option.

Well I was trying to disagree with you. I read your post incorrectly. I read you do not get to see what is in there.

My apologies.

Re: Do I have to have a credit file?

Anonymous — Wed, 13 Apr 2011 22:57:00 GMT

Seems like my question is still not answered. What legal right does a private company have to collect my government issued SSN and create a file with personal information about me without my permission?

On those lines, why can't I request the file be closed? It's more dangerous to me and my family for it to be opened.

Re: Do I have to have a credit file?

Anonymous — Wed, 13 Apr 2011 23:12:45 GMT

I really don't know what to tell you. The CRAs are legal companies in the US. Because of the type of information they collect they have to abide by the FCRA.

Have you done any searching on the internet or asked an attorney these questions?

Re: Do I have to have a credit file?

happy0510 — Wed, 13 Apr 2011 23:15:44 GMT

I guess if you never plan on applying for a mortgage or any big purchase you can't afford in cash, u wouldn't need it.

You can always Opt-Out which means you won't get any offers and will limit access to your file to only those who you authorize (which will be none)!

Re: Do I have to have a credit file?

happy0510 — Wed, 13 Apr 2011 23:18:40 GMT

I would also like to add that you pretty much do not have a file when you have nothing in there. You can request your credit score and it will be N/A. This is pretty much as far as you can get with this.

Re: Do I have to have a credit file?

haulingthescoreup — Wed, 13 Apr 2011 23:21:43 GMT

Info does fall off of a file over time. Eventually you'll have an empty credit file, which kind of equals no credit file.

It's an interesting question, though. If people choose to live off the credit grid, why should some of their info be viewable by businesses?

Re: Do I have to have a credit file?

happy0510 — Wed, 13 Apr 2011 23:31:49 GMT

@haulingthescoreup wrote:
Info does fall off of a file over time. Eventually you'll have an empty credit file, which kind of equals no credit file.

It's an interesting question, though. If people choose to live off the credit grid, why should some of their info be viewable by businesses?

This is very interesting. The OP probably has a regular checking account with a debit/credit card that they use. I'm sure the OP has even been asked for their zip while making a purchase with their debit/check card. IMO, this is equal to using a regular CC as far as personal data collected (Name, address, phone#, etc..).

Or do you not have a checking acct either OP?

It is rare to see someone who would like to be taken off the grid past an empty file. The system just simply works!!

Re: Do I have to have a credit file?

Anonymous — Wed, 13 Apr 2011 23:48:21 GMT

I do have a debit card and a checking account. There is nothing no my credit report to fall off.

I guess I should say what started my thinking. I recently spent $2000 and change fighting ID theft. Someone opened a cellphone in my name using my SSN and info. Long story short you can't just say it's not mine you have to actually fight it and in my case cost money.

So having a file open leaves me at unnecessary risk.

I guess I should call an attorney and see what they say. Honestly what would stomp me from starting a credit reporting agency and collect people's information.

The thought is interesting. If the library can't ask for your SSN and start tracking you why can they do it without your permission. Just because your born and have a SSN for work and taxes also means I have to have a credit report....thanks for all your ideas and comments. It's just frustrating.

Re: Do I have to have a credit file?

llecs — Thu, 14 Apr 2011 00:11:21 GMT

@Anonymous wrote:
I do have a debit card and a checking account. There is nothing no my credit report to fall off.

I guess I should say what started my thinking. I recently spent $2000 and change fighting ID theft. Someone opened a cellphone in my name using my SSN and info. Long story short you can't just say it's not mine you have to actually fight it and in my case cost money.

So having a file open leaves me at unnecessary risk.

I guess I should call an attorney and see what they say. Honestly what would stomp me from starting a credit reporting agency and collect people's information.

The thought is interesting. If the library can't ask for your SSN and start tracking you why can they do it without your permission. Just because your born and have a SSN for work and taxes also means I have to have a credit report....thanks for all your ideas and comments. It's just frustrating.

Wow. There were ways of fighting it for free.

If not planning to open a bank account or anything like that in the near future, you could add a fraud alert on all three reports. That makes it very difficult to get credit in your name. In some situations, though, you can get credit without looking at your 3 main credit reports. I am a 3rd party reseller for cell phones and we don't pull from the CRAs, but do use a service to check via a SSN and a driver's license number. If the crook did the same, the CRAs wouldn't even be involved. BTW, not like you only have 3 CRs to worry about there are others out there like Innovis, LexisNexis, and many many others.

Re: Do I have to have a credit file?

Anonymous — Thu, 14 Apr 2011 00:36:00 GMT

Well I did not know there was an issue until I was surved a summons to appear in court and they tried to sue. Lawyers are expensive. They did not buy the "I did not open it " line. Took 2 days in court to proove it. Months to get it off my credit report and to have the collection agency stop calling me at work.

Re: Do I have to have a credit file?

llecs — Thu, 14 Apr 2011 01:04:19 GMT

What a hassle!