My Credit Score Got Better

[FunInTheSunParticipant 8286]

For many years, I had a low credit score. I had financial problems and a few periods of unemployment. I made a lot of late payments. Some credit card debt went to collection agencies.

About five years ago, I wanted to increase my credit score. It used to be “poor,” then it became “fair” for a long time. Now it’s “good.”

I couldn’t qualify for an unsecured credit card, so I made purchases with a secure card in order to create a positive credit history. I made sure I paid my bills on time. After a couple of years, I applied for a personal loan at my credit union. When I got approved, the loan officer offered me a Visa card. I applied for it and got approved as well. A year went by. I paid off my loan, and I made small purchases with the credit card.

A week ago, I looked at my credit score out of curiosity. It was “good.” I’m really close to being “very good.” A few days ago, I requested a few hundred dollars of more credit, and it got approved today!

I’m not going back to being a spend-a-holic. I learned my lesson. I’m going to manage my money carefully. I like having a couple of credit cards for emergency situations.

Someday I would like to get an “excellent” rating. I think I’ll get there when I get a car loan and pay that off. I’m not in a hurry to add more debt, though.

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[Anonymous 6]

Mine got better when 45 became President

[SlayherParticipant 2074]

Want an ‘excellent’ credit score rating? I suggest saying single.

Congrats FunInTheSun, keep it up.

[foolsgoldParticipant 5671]

My credit was stellar until the c~~~ divorced me. It’s never been the same since. I will say it has gotten better little by little. I will never see the score I once had though.

[bstoffParticipant 4885]

My credit, as well as my finances always suffered when I was in a relationship with a woman. Either as a bad habit I developed on my own, or prompting from a woman, I was always short of money and credit. Lots and lots of debt, though. hmmmm…. Is there a lesson to be learned here?
Even as a single guy, women have tried to talk me into buying crap for myself that I had no use for. Recently, it was a camper-trailer, so I could go on camping trips with her social circle. Nope.

[ResParticipant 542]

There seems to be some divergence on thought on the subject of credit. You have the opinion of the majority of people on the MyFico forums (and just in general) that having and using credit is a good thing. Use it responsibly and it will get you far. Credit is nearly universally accepted (but so are debit cards…). Credit can save you in a pinch. For example, I have a bit of debt at the moment, but I have cash sitting in investments to back it up. Investments aren’t liquid so it can take time to pull cash out to pay down bills. Enter the credit card. I have 4 prime cards at the moment, with about $60k of credit (not including store cards). Main thing is don’t spend more than you can afford so you pay the bill in full at the end of every month.

The other camp is the Dave Ramsey camp or perhaps the Mr. Money Moustache camp. These people advocate not using credit. They go so far as to suggest closing accounts (which will actually lower your credit score) to avoid potential temptation or issues with banks. Use debit cards and pay in cash always. The problem with this approach is that if you are planning to buy a house or car, you’ll want a decent credit score to get good interest rates. There are ways to work around this but it does require some effort.

Main thing is, spend less than you earn and save money for that rainy day.

Mr. Boats: "'Avoid the reeking herd! Shun the polluted flock! Live like that stoic bird, the eagle of the rock!' You know what that means, son?" -American Splendor

[BeerParticipant 11832]

Res wrote:

The other camp is the Dave Ramsey camp or perhaps the Mr. Money Moustache camp. These people advocate not using credit.

Its really crazy not to have at least one credit card. I’ve had one since I was 18 and never paid a penny in interest on it…you just have to pay it off every month in full. Its also great as a convenience item so I rarely have a reason to need to carry much cash, I use it for online purchases, I get a % cash back reward on every dollar I spend, and using a credit card and making your payment on time each month builds your credit score in case you ever want to take a loan, which most people at some point in their life will probably take a mortgage out.

Credit and debt in general aren’t bad things…you just have to use them responsibly. Taking a low interest fixed rate loan out for example to buy a reasonable place to live isn’t nearly as bad of a decision as putting vacations you can’t pay for right now on a credit card and buying a car with a 16% loan because your credit sucks.

[FunInTheSunParticipant 8286]

bstoff wrote:

Even as a single guy, women have tried to talk me into buying crap for myself that I had no use for.

I imagine the GDP of every nation is fueled by the spending habits of women. They love their trinkets.

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[ResidentEvil7Participant 9585]

When I checked my credit score in November 2015, it was 801.

https://themanszone.webs.com/

[1k205kParticipant 11]

Way to be autistic and make it about yourself RE7. Lol.

FunInTheSun, that’s great. Keep going. What are you going to do now with that improved credit, if anything? Just get lower interest rates? Avoid it like the plague? What have you learned in that time? What specific habits have you changed?

[FrostByteParticipant 19005]

Slayher wrote:

Want an ‘excellent’ credit score rating? I suggest saying single.

Good credit should be MGTOW bucket list item. It’s another way to prove you are in charge of your life. Good Job FunInTheSun!

If you rescue a damsel in distress, all you will get is a distressed damsel.

[ResidentEvil7Participant 9585]

1k205k wrote:

Way to be autistic and make it about yourself RE7. Lol.

Yeah, whatever.

https://themanszone.webs.com/

[Anonymous 3]

I confirm this, my financial stuff went a lot better since I go my way.(Although everyone mostly uses debit cards in this country.) It was not very bad before that, but sometimes I ran out of money by the end of the month. (and did not want to touch spared money or investmets). Now I can put away half of my salary into investments, and live well from the other half.

And the extra free time and no stress full night sleeps cannot be expressed in money.

You were talking about good credit rating and buying car and house.

Another money-sucking thing of life -beside girlfriend- is a car. I don’t plan on buying one just to have one to show off to bitches. Owning a car and adding up all costs from mandatory insurances, taxes, gas (and 2/3 of the price per liter is tax), amortization, washing, new tires and oil and repairs, speeding tickets, whatever) costs roughly an average of 200$ a month even if it has been fully paid off (not on loan) while public transport monthly ticket costs at least 5 times less, and bike riding even less.

Cars are a lot better for the bussinesses for work. A bussiness can subtract all expenses (with invoices of that) from income, and pay tax afterwards. A normal person gets paid by employer(100%), 50% of that is taken away as different form of taxes (he does not even temporarily receive the money, it goes to the state budget directly), then he has to eat and live somewhere and pay living costs (25%), and then there is not much more money (like 25%) for a car or expensive hobbies or women for most of the people here.

On buying a house: Most people buy house on bank loans here too. Interest rates are comparable percents per year, housing prices are cheaper but salaries are way lower. The result is, that people take out bank loans for 20 years to buy an apartment, and pay significant part of their income on that and if they don’t, than it is taken away, and sometimes they need to pay after they were evicted (stupid laws and contracts) Now, that is a sort of slavery. Especially, if one, after marriage, buys big apartment or a house for a family. Those people are in even deeper s~~~, lack of expendable income and locked together with a woman and children, and everything needs money. Even bigger slavery. And the bank loan lasts more time than a typical marriage lasts. House gets then sold for a bargain price at an auction quickly, and if it is sold cheap then the guy needs to pay even more.

So the safe option is to rent something at the start of life, and buy something small for yourself later on with cash or minimal bank loan. At least one does need to plan 20 years ahed of time. By the way a typical work contract is way shorter than that, and if one is good, they extend it many times. Only a few people have endless contract among better-paid part of society.

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