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Not sure why my score isn't higher....

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Anonymous
Not applicable

Re: Not sure why my score isn't higher....



credituser wrote:
Ah - OK, this may be good info - can you elaborate?

Well, if you carry a balance that shows CC util of between 1 and 9 percent, you will maximize your FICO scores. However, you'll be paying a little bit of interest on that 1 to 9 percent balance.
 
Which are you seeking?
 
No interest payments? If so, then pay off EVERY loan you have. However, I think with a few exceptions of folks way out on the fringe, almost no one in the world of finance would advise this. The loan on my minivan is, IIRC, 3.9 percent. If someone dropped $18K in my lap, I'd be a danged fool to pay off the van. I'd pay down CC debt and use the rest for a downpayment on a house. If I had zero CC debt and a mortgage, I'd max out IRAs for me and the wife and put the rest in 529s. If I'd already maxed out IRAs for this year (both Roth and Traditional) and maxed out 529s for both my kids, I'd put the money to use in the stock market and probably subscribe to Jim Cramer's stock alerts. I'd keep the van payment and house payment. If the vehicle loan was something like 12 percent, or I had a subprime home loan at 9 percent, then it would be a different story.
 
A higher FICO score? Then carry a balance on all your CCs of between 1 and 9 percent util and keep at least some of your installment loans.
 
Message 11 of 17
MercyMe
Frequent Contributor

Re: Not sure why my score isn't higher....

Hi, Noah.  Smiley Happy ...  I found it rather curious that the company my 26 year old son works for would require him to have a credit score of at least 750.  Fortunately, and through no effort of his own, he had it, when needed, to obtain an upper level -- no spending limit, credit card with which he makes rather costly purchases, and for which he has always been promptly reimbursed.  He's an Industrial Designer, and part of his job entails buying the competition's products for  design study.  I couldn't for the life of me understand why they wouldn't just give him an expense account or a company charge card -- it's just their policy.  
Message 12 of 17
Anonymous
Not applicable

Re: Not sure why my score isn't higher....



MercyMe wrote:
Hi, Noah.  Smiley Happy ...  I found it rather curious that the company my 26 year old son works for would require him to have a credit score of at least 750.  Fortunately, and through no effort of his own, he had it, when needed, to obtain an upper level -- no spending limit, credit card with which he makes rather costly purchases, and for which he has always been promptly reimbursed.  He's an Industrial Designer, and part of his job entails buying the competition's products for  design study.  I couldn't for the life of me understand why they wouldn't just give him an expense account or a company charge card -- it's just their policy.  


Hi MercyME - OK, so the score was an initial requirement.  How often did they recheck it, if at all?  Would he lose his job if it dipped to 730?
 
And Noah - you once considered a job at CapOne? Working for the dark side?!
Message 13 of 17
MercyMe
Frequent Contributor

Re: Not sure why my score isn't higher....

I don't know  that they would recheck it.  Surely, if he were  unable to make purchases, and had to ask them for the means, they might have something to say.  Then again, it's a rather large company and he's the only Industrial Designer, and they are quite happy with him, so I don't know what they would do if they checked his scores and found them floudering.  He quit a while back, and for a short time, when there were just too many trips away from home -- like to  L.A., Chicago, Costa Rica and Hong Kong -- outsourcing, you know -- to oversee the production of his designs.  Now he stays in the states, with an occasional trip to Costa.
 
This is upscale outdoor furniture that goes into the more posh hotels and resorts and outside multimillion dollar homes.  It's not unusual for him to load his truck up with several thousands of dollars worth of competitor's products, only to rip it all apart.  Can you imagine?  I'd put the stuff in my livingroom!  He does graphic design, as well, so is responsible for their catalog. 
 
He'll be leaving for Chicago -- The Merchandise Mart -- soon, for another show.  It's a big deal.  They all try to out do one another in design for various awards.  They won three, last year.  Ha!  His third grade teacher once said of him,  "He'd rather draw, than breathe."  That's for sure.  He'd rather be designing cars -- and had a full scholarship to the University of Michigan, which would have put him on Detroit's doorstep; but, he fell in love and got married instead.  Smiley Happy  It's just as well.  I would miss him.  Smiley Sad
Message 14 of 17
Anonymous
Not applicable

Re: Not sure why my score isn't higher....



MercyMe wrote:
I found it rather curious that the company my 26 year old son works for would require him to have a credit score of at least 750.
...
He's an Industrial Designer, and part of his job entails buying the competition's products for  design study.

Bizarre. Normally it's only financial gigs, like underwriters that do those sorts of things.
 
Message 15 of 17
Anonymous
Not applicable

Re: Not sure why my score isn't higher....



masdeocho wrote:
 
And Noah - you once considered a job at CapOne? Working for the dark side?!


Considered may be too strong a word. The headhunter called, he said Unisys and Richmond, so I knew it was one of two places. Cap 1 or the Commonwealth of Virginia. I asked, and he said Cap 1. I let out a silent ugh. Listened to the pitch, then said no thanks, particularly when they said gimme your SSN.
 
I talked to NASDAQ about a job, maybe 9 years ago. Job sounded very promising, except for money. It was in Trumbull, CT. Pay was higher than I was getting, but with the cost of living in CT, not even what they were paying woulda offset things to a break even point. Even with that, the headhunter (guy I know and trust) said most of the folks working there lived another 20 miles or so up the road, where it was more affordable. They never even mentioned credit reports or FICOs. I told the headhunter I wasn't interested, and they still wanted me to fly me in for an interview.
 
Message 16 of 17
MercyMe
Frequent Contributor

Re: Not sure why my score isn't higher....

credituser wrote:
Ah - OK, this may be good info - can you elaborate?
Noahbodie wrote:
Well, if you carry a balance that shows CC util of between 1 and 9 percent, you will maximize your FICO scores. However, you'll be paying a little bit of interest on that 1 to 9 percent balance.
 
Which are you seeking?
 
No interest payments? If so, then pay off EVERY loan you have. However, I think with a few exceptions of folks way out on the fringe, almost no one in the world of finance would advise this. The loan on my minivan is, IIRC, 3.9 percent. If someone dropped $18K in my lap, I'd be a danged fool to pay off the van. I'd pay down CC debt and use the rest for a downpayment on a house. If I had zero CC debt and a mortgage, I'd max out IRAs for me and the wife and put the rest in 529s. If I'd already maxed out IRAs for this year (both Roth and Traditional) and maxed out 529s for both my kids, I'd put the money to use in the stock market and probably subscribe to Jim Cramer's stock alerts. I'd keep the van payment and house payment. If the vehicle loan was something like 12 percent, or I had a subprime home loan at 9 percent, then it would be a different story.
 
A higher FICO score? Then carry a balance on all your CCs of between 1 and 9 percent util and keep at least some of your installment loans.
 
Mercy writes ...  my goodness!  I think I need to start taking notes, or compile a notebook of all of the financial advice some of you give, like you, Noah, and Tuscani, and Masedocho -- so many!   If I apply some of this, I'm sure not to end up a bag lady in say 25-30 years, huh?
Message 17 of 17
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