How's your credit?

[alnorth]

This may be a bit controversial, but I am very new to the whole concept of credit scoring, so we'll see what happens. I just got my FICO score today from Experian. I'll need to get a car loan next summer so I'll need to work on my credit till then, but I wanted to see how it compares with a random sampling of chiefs planet fans who are inclined to anonymously vote their range in a poll.

[alnorth]

Originally Posted by luv2rite

I put in 4% of my salary into my 401k. My company only matches 25% up to 4% of salary. You're the same age as me, but you consider moderate risk as a lot of risk? I have 50% in high risk, 25% in moderate, and 25% in low. I, too, rent, but I wish I could be putting my rent payments into house payments. On my salary, I can probably afford a decent older home, but I cannot afford all of the extras (maintenance, insurance, taxes, etc). I don't see how paying half the price you should be paying for rent is helping you at all. You are not getting anything back on your money.

Well, as long as you invest the other half that you would have put into the mortgage, then it depends. IF houses where I live are overpriced (check) and IF I am betting that they will fall or stagnate (check), and IF I work in a career that could mandate several moves in the future along with all the extra costs of buying and selling homes (check) and IF I can avoid the property taxes in a market where competitively the landlord cant pass it all down to me (check), then it gets more complicated. I think its a wash, so I'm taking the less-risky option by investing the difference.

If housing prices collapse, I will definitely consider buying.

[alnorth]

You're the same age as me, but you consider moderate risk as a lot of risk? I have 50% in high risk, 25% in moderate, and 25% in low.

We might have different definitions of high risk. I see high risk as putting the vast majority of it into foreign funds and low-cap high growth funds.

I've got it spread out into 9 different funds, with maybe 15% of it in Asia, and the rest of it distributed throughout the four corners of the style chart. None of it is in bonds or money markets, which are rock-solid safe with pathetic returns. So, I call it moderate, but many people might call what I've described as fairly high risk.

[luv]

Originally Posted by alnorth

We might have different definitions of high risk. I see high risk as putting the vast majority of it into foreign funds and low-cap high growth funds.

I've got it spread out into 9 different funds, with maybe 15% of it in Asia, and the rest of it distributed throughout the four corners of the style chart. None of it is in bonds or money markets, which are rock-solid safe with pathetic returns. So, I call it moderate, but many people might call what I've described as fairly high risk.

I see. I probably don't pay as much attention to details as I should. I look at the overall outcome over a period of time. If I lose some in the high risk, that's why it's called high risk. However, if I continue lose here and there over a period of time, then I call my representative to make some changes. I don't pay too much attention to the details of what country my stock is in, the reason for the drop, etc. I just know that if I am consistently losing money each quarter with what I've got, then I need to make changes.

[Jenny Gump]

My score is 29. That's good right?

[luv]

Originally Posted by JennyGump

My score is 29. That's good right?

Yep. Just like golf. The lower the score the better.

[alnorth]

Originally Posted by luv2rite

I see. I probably don't pay as much attention to details as I should. I look at the overall outcome over a period of time. If I lose some in the high risk, that's why it's called high risk. However, if I continue lose here and there over a period of time, then I call my representative to make some changes. I don't pay too much attention to the details of what country my stock is in, the reason for the drop, etc. I just know that if I am consistently losing money each quarter with what I've got, then I need to make changes.

Well, without diving into the gory details, you can quickly filter out a few funds as no-buys, by making sure you only buy no-load funds with the overall fee less than 1.5% (preferably under 1%). Managers of loaded funds claim they are able to significantly beat the average, but generally they do not do much better than average, and when you figure in the extra you pay for the load, its usually not a good buy.

[KCJake]

How can I find out what my credit score is? I have a feeling it's shitty. I applied for a credit card and got denied. Supposedly because I have bad credit. Never been late on a payment. Never filed for bankruptcyn. Not sure what i've done wrong?

[luv]

Originally Posted by alnorth

Well, without diving into the gory details, you can quickly filter out a few funds as no-buys, by making sure you only buy no-load funds with the overall fee less than 1.5% (preferably under 1%). Managers of loaded funds claim they are able to significantly beat the average, but generally they do not do much better than average, and when you figure in the extra you pay for the load, its usually not a good buy.

What do you do for a living again? Are you an advisor, or you just pay particular attention to your own financial concerns?

[alnorth]

Originally Posted by KCJake

How can I find out what my credit score is? I have a feeling it's shitty. I applied for a credit card and got denied. Supposedly because I have bad credit. Never been late on a payment. Never filed for bankruptcyn. Not sure what i've done wrong?

You can get your FICO score and credit report for $30-40 online quickly from Experian. (or you can go to the other 2 major credit reporting agencies, Equifax and Transunion) The FICO score is the score in the poll. under 600 is bad, 600-640 is shaky, 640-680 is averagish, 680+ is good. The credit report is the details of your credit history that youll need if your unhappy with your score and want to find something incorrect to dispute.

Or, if you arent in a hurry, Congress passed a brand-new law which allows every citizen to get their report once a year for free. I dont know if theyll give you a FICO score free or not, but you can write one of the agencies a letter requesting your free credit report once a year. I dont know the mailing address or any forms needed, since I wanted my score quickly and bought it online.

[alnorth]

Originally Posted by luv2rite

What do you do for a living again? Are you an advisor, or you just pay particular attention to your own financial concerns?

Actuary. I was required to learn a significant amount of financial mathematics. The rest I learned on my own just enough to be dangerous. You make life-altering decisions using my advice strictly at your own peril. Check with someone else to make sure I am not insane first, I'm fine if I lose my own money, I'd hate to lose yours too.

[luv]

Originally Posted by KCJake

How can I find out what my credit score is? I have a feeling it's shitty. I applied for a credit card and got denied. Supposedly because I have bad credit. Never been late on a payment. Never filed for bankruptcyn. Not sure what i've done wrong?

I can get a car, apartment, credit card, furniture, etc on my credit. I don't know what my score is either. However, I cannot seem to get a regular checking account. I must have a bad check out there from sometime 8-10 years ago, but I don't know what it was for. I have an electronic access account at a local bank. The company I work for set it up for direct deposit purposes. I can withdraw as much as I need to, but I can only do my transactions (additional deposits, etc) through the ATM. No chance of getting overdrawn, which is the point of the account. Sucks when I have to send payments by mail though. I either get money orders or give dad the cash for writing some checks.

[alnorth]

Originally Posted by luv2rite

I can get a car, apartment, credit card, furniture, etc on my credit. I don't know what my score is either. However, I cannot seem to get a regular checking account. I must have a bad check out there from sometime 8-10 years ago, but I don't know what it was for. I have an electronic access account at a local bank. The company I work for set it up for direct deposit purposes. I can withdraw as much as I need to, but I can only do my transactions (additional deposits, etc) through the ATM. No chance of getting overdrawn, which is the point of the account. Sucks when I have to send payments by mail though. I either get money orders or give dad the cash for writing some checks.

My credit has a few blemishes on it. I have a checking account from my first bank way back in Kansas that I opened years ago. However, when I tried to open a new account from a bank close to where I work, I was denied. So, me and my current bank in Kansas are both stuck with one another untill things improve. In the meantime, I have to pay ATM fees.

[luv]

Originally Posted by alnorth

My credit has a few blemishes on it. I have a checking account from my first bank way back in Kansas that I opened years ago. However, when I tried to open a new account from a bank close to where I work, I was denied. So, me and my current bank in Kansas are both stuck with one another untill things improve. In the meantime, I have to pay ATM fees.

You can also pay to get a listing from the check service you newer bank goes through. It would have any bad checks listed on it. What confuses me is how I can get all of these things on credit, but open a simple checking account due to the bad check.

[keg in kc]

I fall somewhere in the middle of "bad" and "don't care".

[teedubya]

Originally Posted by DTLB58

Good FICO score = Debt! Who needs it.

Your credit FICO score ranges from 300-850 it is based on your payment history 35%, How much you owe 30% The length of your credit history 15% The type of credit you use 10% and applying for new credit 10% is based on that.

Instead of working on your credit sscore till you need a car loan, why don't you save up and pay cash for the car instead?

The average car payment in America is $378 over 63 months (source: USA Today) If instead you pay cash for your vehicles and slowly move up in car over time you will be far ahead of the finacial game and have a lot more money than your broke friends who tie up their money paying payments most of their adult life.

Remember, "The borrower is slave to the lender" Go here www.daveramsey.com to change your financial future.

ah yes... thanks for getting him started!