Should I Care About My Credit Score if Debt Free?

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watchnerd
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Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 10:03 am

We don't have any loans in our family -- no mortgage, no car loans, no HELOCs, no student loans.

We do have revolving credit in the form of credit cards, both for the 1-3% cash back rewards for everyday stuff, and the necessity to use them under the usual mandatory circumstances (travel, etc.).

I don't foresee any need to increase the limits on our credit cards, as they're already stupidly high, like more than our annual living expenses if you add it all up.

Mint, as a free feature, provides credit score updates using TransUnion.

As far as I can tell our credit score, while pretty good, is also utterly useless to us given how we run our personal finances. After all those years of getting told how important it was to maintain good credit, I'm now finding it a bit of cognitive dissonance to just now ignore it.

Am I wrong?

Does our credit score still matter for something that I'm overlooking?
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Jags4186
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Re: Should I Care About My Credit Score if Debt Free?

Post by Jags4186 » Sun Sep 23, 2018 10:07 am

It matters if you want to get new credit. Insurance companies also look at it when determining rates.

Mike Scott
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Re: Should I Care About My Credit Score if Debt Free?

Post by Mike Scott » Sun Sep 23, 2018 10:12 am

Credit score can impact things like insurance premiums, rentals and utility deposits etc. I would not be surprised if credit scores continue to creep into other things as well as time goes by. If you are buying a car you might get an offer on an auto loan that is worthwhile considering. As long as your credit score stays over (760?) generally keeps you in the higher credit score bracket. If you do run into something in the future that requires a good credit score, it needs to have already been there. But don't overthink it either.
Last edited by Mike Scott on Sun Sep 23, 2018 10:16 am, edited 1 time in total.

retiredjg
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Re: Should I Care About My Credit Score if Debt Free?

Post by retiredjg » Sun Sep 23, 2018 10:13 am

watchnerd wrote:
Sun Sep 23, 2018 10:03 am
Does our credit score still matter for something that I'm overlooking?
My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums.

47Percent
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Re: Should I Care About My Credit Score if Debt Free?

Post by 47Percent » Sun Sep 23, 2018 11:06 am

watchnerd wrote:
Sun Sep 23, 2018 10:03 am
We don't have any loans in our family -- no mortgage, no car loans, no HELOCs, no student loans.

We do have revolving credit in the form of credit cards, both for the 1-3% cash back rewards for everyday stuff, and the necessity to use them under the usual mandatory circumstances (travel, etc.).

I don't foresee any need to increase the limits on our credit cards, as they're already stupidly high, like more than our annual living expenses if you add it all up.

Mint, as a free feature, provides credit score updates using TransUnion.

As far as I can tell our credit score, while pretty good, is also utterly useless to us given how we run our personal finances. After all those years of getting told how important it was to maintain good credit, I'm now finding it a bit of cognitive dissonance to just now ignore it.

Am I wrong?

Does our credit score still matter for something that I'm overlooking?
This question is along the lines of "Should I have an umbrella in the house if it is not raining".

No need to fuss about the score.. but having a good score is definitely better than having a bad score. That's all there is to it.
If an umbrella stored away in the corner of a closet is taking up too many cycles in your conscious mind, then time to get rid of it.

moehoward
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Re: Should I Care About My Credit Score if Debt Free?

Post by moehoward » Sun Sep 23, 2018 11:12 am

Don't know what my credit score is because I don't really need it. I think the interesting question would be if someone like me has no debt and pays off his credit cards every month, does that effect my score in a negative way? I think my credit score was checked when we rented a condo and I wonder if AirBnB checks? I use them a lot.

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Re: Should I Care About My Credit Score if Debt Free?

Post by NoHeat » Sun Sep 23, 2018 11:24 am

watchnerd wrote:
Sun Sep 23, 2018 10:03 am
We don't have any loans in our family -- no mortgage, no car loans, no HELOCs, no student loans.

We do have revolving credit in the form of credit cards, ...

As far as I can tell our credit score, while pretty good, is also utterly useless to us
Same for me. You are missing nothing.

Credit scores matter for a young person getting started, seeking a new job, then a new credit card and an apartment, a first insurance policy, and ultimately a mortgage. But if you’ve already won those battles, then a credit score is indeed utterly useless in your life.

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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 11:37 am

moehoward wrote:
Sun Sep 23, 2018 11:12 am
Don't know what my credit score is because I don't really need it. I think the interesting question would be if someone like me has no debt and pays off his credit cards every month, does that effect my score in a negative way?
As long as you use your cards, it is good for your score to pay them in full every month. Your credit report shows the statement balance, which confirms that the cards are active. And since you pay in full, you aren't carrying large balances, which would be a negative factor.
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Re: Should I Care About My Credit Score if Debt Free?

Post by MathWizard » Sun Sep 23, 2018 11:43 am

moehoward wrote:
Sun Sep 23, 2018 11:12 am
Don't know what my credit score is because I don't really need it. I think the interesting question would be if someone like me has no debt and pays off his credit cards every month, does that effect my score in a negative way? I think my credit score was checked when we rented a condo and I wonder if AirBnB checks? I use them a lot.
Paying of the credit card does not affect it. Having credit cards gives a measure of the amount
of credit somebody else was willing to extend to you, and on-time payments reinforce the wisdom
of that credit. Credit utilization is also important, I believe keeping it below 10% is optimal.
The only time I am above that is when I have extensive travel.

I have no debt and pay of the credit card every month, and have a credit score that would gove
me the lowest interest rate if I needed a loan, which is all I care about.

OP:
I care only because I may need a loan if I am stuck with 2 houses for a time when we downsize.

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Re: Should I Care About My Credit Score if Debt Free?

Post by boater07 » Sun Sep 23, 2018 11:52 am

I'm like the OP and am intrigued by soft inquiries periodically by banks etc where I no longer do business.
Credit inquiries supposedly affect credit scores.
For instance, I closed Cap One CC a year ago and they checked my report a few months ago. Why??

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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 12:08 pm

boater07 wrote:
Sun Sep 23, 2018 11:52 am
I'm like the OP and am intrigued by soft inquiries periodically by banks etc where I no longer do business.
Credit inquiries supposedly affect credit scores.
For instance, I closed Cap One CC a year ago and they checked my report a few months ago. Why??
Soft inquiries (reported only to you) don't affect your credit score; they can't, since the lender which is getting the score doesn't know about the inquiry.

If you haven't opted out of pre-approved credit offers (it is recommended that you do, because this protects against identity theft), that is the most likely reason for soft inquiries from creditors you do not use.
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Re: Should I Care About My Credit Score if Debt Free?

Post by adamthesmythe » Sun Sep 23, 2018 1:01 pm

I am in a similar situation.

I care rather little about my credit score. I try to not do stupid things though.

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Re: Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 1:05 pm

grabiner wrote:
Sun Sep 23, 2018 12:08 pm
boater07 wrote:
Sun Sep 23, 2018 11:52 am
I'm like the OP and am intrigued by soft inquiries periodically by banks etc where I no longer do business.
Credit inquiries supposedly affect credit scores.
For instance, I closed Cap One CC a year ago and they checked my report a few months ago. Why??
Soft inquiries (reported only to you) don't affect your credit score; they can't, since the lender which is getting the score doesn't know about the inquiry.

If you haven't opted out of pre-approved credit offers (it is recommended that you do, because this protects against identity theft), that is the most likely reason for soft inquiries from creditors you do not use.
Is this different from freezing my credit?

And if so, how do I do it?
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retiredjg
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Re: Should I Care About My Credit Score if Debt Free?

Post by retiredjg » Sun Sep 23, 2018 1:31 pm

Here's how to do it. I don't think it has anything to do with freezing credit.

https://www.consumer.ftc.gov/articles/0 ... nce-offers

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Re: Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 1:45 pm

retiredjg wrote:
Sun Sep 23, 2018 1:31 pm
Here's how to do it. I don't think it has anything to do with freezing credit.

https://www.consumer.ftc.gov/articles/0 ... nce-offers
Thanks.

Noted that online is for 5 years only. Permanent requires physically mailing them.... :annoyed. What a bunch of buttheads.
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Re: Should I Care About My Credit Score if Debt Free?

Post by boater07 » Sun Sep 23, 2018 2:56 pm

boater07 wrote:
Sun Sep 23, 2018 11:52 am
I'm like the OP and am intrigued by soft inquiries periodically by banks etc where I no longer do business.
Credit inquiries supposedly affect credit scores.
For instance, I closed Cap One CC a year ago and they checked my report a few months ago. Why??
I now know the answer. Banks offer credit scores that are regularly updated. When I closed this account I neglected to
unenroll in the service. It appears this is quite common with most CC issuers. I don't especially want this going on in
the background and will be deleting the service when ever I'm offered to monitor my score.
I'm perhaps paranoid with the agencies after the Equifax fiasco :annoyed

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Re: Should I Care About My Credit Score if Debt Free?

Post by Nissanzx1 » Sun Sep 23, 2018 3:03 pm

No, don't worry about it. I'm in the same boat. The only thing active is my credit card. As long as you have activity on that and aren't paying late, your credit score will remain fine enough to borrow anything you don't care to buy ;)

Congrats on keeping your money and not sending it off to bankers. Well done.

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Re: Should I Care About My Credit Score if Debt Free?

Post by JBTX » Sun Sep 23, 2018 4:26 pm

retiredjg wrote:
Sun Sep 23, 2018 10:13 am
watchnerd wrote:
Sun Sep 23, 2018 10:03 am
Does our credit score still matter for something that I'm overlooking?
My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums.
This is true, but sometimes it isn't the 3 agencies scores. The insurance company will sometimes take the same credit information and essentially create their own credit scoring criteria. This is definitely true of progressive insurance. Your premium can change significantly with only seemingly minor changes to your credit profile.

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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 5:43 pm

JBTX wrote:
Sun Sep 23, 2018 4:26 pm
retiredjg wrote:
Sun Sep 23, 2018 10:13 am
watchnerd wrote:
Sun Sep 23, 2018 10:03 am
Does our credit score still matter for something that I'm overlooking?
My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums.
This is true, but sometimes it isn't the 3 agencies scores. The insurance company will sometimes take the same credit information and essentially create their own credit scoring criteria. This is definitely true of progressive insurance. Your premium can change significantly with only seemingly minor changes to your credit profile.
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
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watchnerd
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Re: Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 5:59 pm

grabiner wrote:
Sun Sep 23, 2018 5:43 pm
JBTX wrote:
Sun Sep 23, 2018 4:26 pm
retiredjg wrote:
Sun Sep 23, 2018 10:13 am
watchnerd wrote:
Sun Sep 23, 2018 10:03 am
Does our credit score still matter for something that I'm overlooking?
My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums.
This is true, but sometimes it isn't the 3 agencies scores. The insurance company will sometimes take the same credit information and essentially create their own credit scoring criteria. This is definitely true of progressive insurance. Your premium can change significantly with only seemingly minor changes to your credit profile.
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
Huh...is there some actuarial phenomenon where people who have more credit cards file more insurance claims than those who don't?
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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 6:46 pm

watchnerd wrote:
Sun Sep 23, 2018 5:59 pm
grabiner wrote:
Sun Sep 23, 2018 5:43 pm
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
Huh...is there some actuarial phenomenon where people who have more credit cards file more insurance claims than those who don't?
Here is a link to a study done by Allstate: Allstate Insurance Scoring Model 7

Note that Allstate's score model, and also my experience with Credit Karma, show that the score is affected by inquiries to open credit cards, much more than by new credit cards themselves. On Credit Karma, since my one inquiry was not associated with my newest credit card (that card was opened with an inquiry from a different bureau), I could see that my score improved much more on dates correlated with the inquiry rather than with the new account.
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Re: Should I Care About My Credit Score if Debt Free?

Post by JBTX » Sun Sep 23, 2018 6:53 pm

grabiner wrote:
Sun Sep 23, 2018 5:43 pm
JBTX wrote:
Sun Sep 23, 2018 4:26 pm
retiredjg wrote:
Sun Sep 23, 2018 10:13 am
watchnerd wrote:
Sun Sep 23, 2018 10:03 am
Does our credit score still matter for something that I'm overlooking?
My understanding is that credit score is a factor in a lot of things one would not expect - such as insurance premiums.
This is true, but sometimes it isn't the 3 agencies scores. The insurance company will sometimes take the same credit information and essentially create their own credit scoring criteria. This is definitely true of progressive insurance. Your premium can change significantly with only seemingly minor changes to your credit profile.
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
This is true. I had 2 refi inquiries years ago, and my premiums went up about $150 per 6 months. I ended up talking to the progressive credit group, and they said statistically people who refi are more likely to have claims. So suddenly I'm a worse driver for refi ing to shorter term and lower rate. :oops: 10 years of actual history with progressive was less important that how I finance my home.

I eventually left progressive because I got tired of dealing with that.

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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 7:44 pm

JBTX wrote:
Sun Sep 23, 2018 6:53 pm
grabiner wrote:
Sun Sep 23, 2018 5:43 pm
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
This is true. I had 2 refi inquiries years ago, and my premiums went up about $150 per 6 months. I ended up talking to the progressive credit group, and they said statistically people who refi are more likely to have claims.
This is partly a failure of the model. Your credit report doesn't distinguish inquiries for lower-interest refinancing (which is debt-neutral), cash-out refinancing (which is debt-increasing), and new mortgages (which may also be debt-increasing). People who do cash-out refinances are probably more likely to be financially strained and not maintain their cars well.

I had a similar problem in 2010. I moved from MD to NJ, and before I could move, I had to let my future landlord and electric company check my credit. When I applied for auto insurance, I paid a higher rate because of the two inquiries, even though neither one represented new credit: I was paying a landlord and an electric bill at my old home as well. My insurer did have a procedure for requesting an adjustment based on extenuating circumstances (in this case, being relocated by my employer is not something which should be relevant to my credit or insurance risk). However, by the time I received the adverse action notice, I had just opened a new credit card and had a legitimate inquiry for that, so it was too late for me to request an adjustment.
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Re: Should I Care About My Credit Score if Debt Free?

Post by JBTX » Sun Sep 23, 2018 7:54 pm

grabiner wrote:
Sun Sep 23, 2018 7:44 pm
JBTX wrote:
Sun Sep 23, 2018 6:53 pm
grabiner wrote:
Sun Sep 23, 2018 5:43 pm
Even if it is an agency score, it won't be the same as the score you get from FICO. Credit scores are intended to predict the probability that you will default on a new credit obligation; insurance companies care about the probability you will file an insurance claim, which depends on other factors. For example, I noticed that my Credit Karma insurance score was much more sensitive to inquiries for opening credit cards than my Trans Union or VantageScore credit score was.
This is true. I had 2 refi inquiries years ago, and my premiums went up about $150 per 6 months. I ended up talking to the progressive credit group, and they said statistically people who refi are more likely to have claims.
This is partly a failure of the model. Your credit report doesn't distinguish inquiries for lower-interest refinancing (which is debt-neutral), cash-out refinancing (which is debt-increasing), and new mortgages (which may also be debt-increasing). People who do cash-out refinances are probably more likely to be financially strained and not maintain their cars well.

I had a similar problem in 2010. I moved from MD to NJ, and before I could move, I had to let my future landlord and electric company check my credit. When I applied for auto insurance, I paid a higher rate because of the two inquiries, even though neither one represented new credit: I was paying a landlord and an electric bill at my old home as well. My insurer did have a procedure for requesting an adjustment based on extenuating circumstances (in this case, being relocated by my employer is not something which should be relevant to my credit or insurance risk). However, by the time I received the adverse action notice, I had just opened a new credit card and had a legitimate inquiry for that, so it was too late for me to request an adjustment.
The model is stupid but it isn't that way at all insurers. I went from the best credit category to maybe #3, which was still high but the change lead to higher premiums. I would think these factors should be largely irrelevant to existing customers with a long history.

Several things hit me. 2 refi requests (which came about when chase bought wamu and chase ran another credit check) a new credit card, my avg credit age decreased slightly and my car loan from years ago fell off the record, and apparently having a car loan leads to LESS accidents. :oops:

After much haggling they finally put me back in the original category which lowered premiums. But 2 or 3 years later it all came up again so I decided to leave, even though they again agreed to change back credit categories.

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Re: Should I Care About My Credit Score if Debt Free?

Post by UpperNwGuy » Sun Sep 23, 2018 8:04 pm

Whether you care about your credit score or not, your credit score will continue to be an important part of your life — even if you are not applying for loans. Check your credit reports and your credit scores often. Check for fraud. Check for mistakes. Be aware of how the way you have chosen to live your life influences your credit scores. You really don't have a choice. This is how the world operates.

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Re: Should I Care About My Credit Score if Debt Free?

Post by peetsperk » Sun Sep 23, 2018 9:15 pm

UpperNwGuy wrote:
Sun Sep 23, 2018 8:04 pm
Whether you care about your credit score or not, your credit score will continue to be an important part of your life — even if you are not applying for loans. Check your credit reports and your credit scores often. Check for fraud. Check for mistakes. Be aware of how the way you have chosen to live your life influences your credit scores. You really don't have a choice. This is how the world operates.
Balderdash.

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Re: Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 9:17 pm

UpperNwGuy wrote:
Sun Sep 23, 2018 8:04 pm
Whether you care about your credit score or not, your credit score will continue to be an important part of your life — even if you are not applying for loans. Check your credit reports and your credit scores often. Check for fraud. Check for mistakes. Be aware of how the way you have chosen to live your life influences your credit scores. You really don't have a choice. This is how the world operates.
What do you mean by this?
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Re: Should I Care About My Credit Score if Debt Free?

Post by Lancelot » Sun Sep 23, 2018 9:30 pm

I churn credit cards to maximize (mostly) free air fare travel with rewards credit cards, so yes, I have an interest in keeping my score high. It probably is also helpful in scoring bank sign up bonuses.
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Re: Should I Care About My Credit Score if Debt Free?

Post by peetsperk » Sun Sep 23, 2018 9:30 pm

UpperNwGuy wrote:
Sun Sep 23, 2018 8:04 pm
Whether you care about your credit score or not, your credit score will continue to be an important part of your life — even if you are not applying for loans. Check your credit reports and your credit scores often. Check for fraud. Check for mistakes. Be aware of how the way you have chosen to live your life influences your credit scores. You really don't have a choice. This is how the world operates.
This may be true for you but does not necessarily hold true for many others. Our credit has been frozen for many years and it has not impacted our lives in any way that I can remember. We pay cash for what we buy and live well below our means. During this period we have also changed homeowners, auto and umbrella insurance coverage and not once has it been an issue. We have no reason to check for fraud because the file cannot be opened without us unfreezing it. And if it's ever required by a company for some reason in the future, we would simply decide not to do business with them. That is how we operate.

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Re: Should I Care About My Credit Score if Debt Free?

Post by tindel » Sun Sep 23, 2018 9:39 pm

My 82 year old grandpa tried to apply for a home depot credit card a while back to save 10% on a decently large project he was doing - Perhaps totaling ~$5k. Application came back "denied". He has zero credit history.

He hasn't ever had a credit card before I don't think, and he hasn't had a mortgage for 3 or 4 decades. He's always paid cash for everything.

He has a great story about starting a landscaping company. He said it wasn't fun because he could outbid everyone and get any job he wanted in town. Why? Because he owned his bobcat, dump truck, pickup truck, and trailer. All the competition had $100k+ in loans on all of those things. Grandpa just needed a little bit of insurance and to pay for his license every year. He enjoyed the work, but didn't need the work - he liked the fun of the negotiating and winning the job the best.

Anyway, he's a millionaire several times over, I'm sure, and couldn't qualify for a $5000 credit line. He gets a kick out of that story!

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Re: Should I Care About My Credit Score if Debt Free?

Post by HIinvestor » Sun Sep 23, 2018 9:42 pm

Our credit scores were in the 800s when we paid to have our credit frozen with all the credit bureaus. We also have no debt and so far, haven't seen any changes in anything, other than Macy's cancelling our credit card with them and refusing to re-issue (we rarely ever used our Macy's card anyway). Our other CCards have limits up to $30K apiece.

We always pay our balance in full for all our CCards and never have paid interest or late fees on any CCard. We don't anticipate applying for any loans and have an unused $250K home equity line of credit available as well.

I've heard having a low credit score COULD affect insurance and lending rates, but have no personal experience. One of my employers required me to provide a credit report annually as a condition of keeping my job. It was never explained to me how the credit report would affect my job but I know someone who declined to provide it did not have her job renewed.

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Re: Should I Care About My Credit Score if Debt Free?

Post by Taylor Larimore » Sun Sep 23, 2018 9:47 pm

watchnerd:

I have one credit card which I use regularly. I do not care about my credit scores because I always pay my bills when due (mortgage and condo-maintenance are the big one's) I assume my credit is good and I don't anticipate needing credit. My credit-rating accounts are frozen for protection.

I'm not saying this is the ideal way, but it is simple and has worked for me for many years without a problem.

Best wishes.
Taylor
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Re: Should I Care About My Credit Score if Debt Free?

Post by grabiner » Sun Sep 23, 2018 9:53 pm

HIinvestor wrote:
Sun Sep 23, 2018 9:42 pm
One of my employers required me to provide a credit report annually as a condition of keeping my job. It was never explained to me how the credit report would affect my job but I know someone who declined to provide it did not have her job renewed.
The report (not the score) could affect your job. If you have not paid your debts in the past, an employer may not want to offer you a position requiring trust. However, your employer doesn't care about your credit score. If you have only one credit account which is paid on time, you will have a poor score, but your employer can see that you have been financially responsible.
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khh
Posts: 301
Joined: Sat Dec 27, 2008 10:31 pm

Re: Should I Care About My Credit Score if Debt Free?

Post by khh » Sun Sep 23, 2018 10:50 pm

I had a score of 740 when I checked during the Equifax debacle. I just checked via Chase and my score is 667 per Transunion. I have had zero credit and zero debt for years, and my net worth has increased by about $75K since I had the 740. I've had credit freezes in place with the big 3 for at least 10 years.

I can't think of a thing that's changed, other than adding a few recommended freezes in addition to the big 3. Not worried about it, just curious why it would fall so much.

Edit: Just looked at my 3 credit reports directly. My score is 761 on all 3.

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watchnerd
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Re: Should I Care About My Credit Score if Debt Free?

Post by watchnerd » Sun Sep 23, 2018 11:35 pm

tindel wrote:
Sun Sep 23, 2018 9:39 pm
My 82 year old grandpa tried to apply for a home depot credit card a while back to save 10% on a decently large project he was doing - Perhaps totaling ~$5k. Application came back "denied". He has zero credit history.

He hasn't ever had a credit card before I don't think, and he hasn't had a mortgage for 3 or 4 decades. He's always paid cash for everything.

He has a great story about starting a landscaping company. He said it wasn't fun because he could outbid everyone and get any job he wanted in town. Why? Because he owned his bobcat, dump truck, pickup truck, and trailer. All the competition had $100k+ in loans on all of those things. Grandpa just needed a little bit of insurance and to pay for his license every year. He enjoyed the work, but didn't need the work - he liked the fun of the negotiating and winning the job the best.

Anyway, he's a millionaire several times over, I'm sure, and couldn't qualify for a $5000 credit line. He gets a kick out of that story!
We're not quite in that boat...we actually do have a credit score (812 according to Mint). After all, once upon a time, we did have car loans, mortgage, etc. We just don't any more, and we don't expect to finance anything again as we don't need to. Although I'll admit to once having done what your grandpa tried to do...getting a Home Depot card to save 10%. Maybe I'll do that again when it's time for the next big remodel.
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