Credit Scores Are Not The End All

Hi fjv4

Say thanks to your friend for passing this important info. It's much appreciated.

When the future lenders view someone's credit, they look into all factors that make up the credit scores. If the payment history isn't good enough, the finance companies wouldn't be interested in extending credit because the borrower may be a risky preference for them in the future. Take a look at this page. These points are reviewed very carefully before extending credit. It is important to have a good credit score as well as a good credit history.

Half of my job is approving credit applications. When I look at a person's credit report, I don't look at the credit score at all. To me, it's just a made up number.

Generally, a bank (or any other lender who deals with "A" paper) might say "to get a loan you need to have a score of at least 720." It is relatively assured that anyone who has a score of 720 has pretty good credit.

A lender who deals in the secondary market (scores of 500-650) don't rely on the scores as much as they do the actual tradelines. The tradelines themselves will be a predictor of what a person pays, and what they don't. For me I don't care much about cell phone/utility collections, medical collections or late payments on the credit cards. But if I see a person who is way behind on their mortgage and car note, I may say to myself "this will be a collection problem since they will always be putting me off to play catch-up on their mortgage and keep their car from being repo'd"

The basic premise in evaluating a credit application is 1) a person's ability to repay the loan and sustain payments on a new account, and 2) a person's willingness to repay their debts.

When I have applied for personal loans, no one ever mentions looking at my credit score. They are always looking at my credit report to see if I have been paying my bills on time. But I am careful not to have too many people looking into my credit because that does bring your credit score down. I don't know why credit scores are determining factor as to whether you will pay your bills or not. Mostly, when I am denied credit, it has nothing to do with my credit score but more to do with the bankruptcy that is on my credit report.

But thanks for the information.

Thanks for the info :D

I have been looking into home mortgages. I was told by one lender my score was 590 absolutely stinky. Was going to charge me 10.98 percent. I called and spoke to another one my score is good for one year after bankruptcy. I have worked hard to improve them. So there is life folks just keep working on it. I never thought I would see interest rates like this again. KYSIDE38

Thanks, you guys, for all the info. Is it possible to build good credit after a garnishment?

A creditor won't like the fact that somebody else had to sue you to get paid. But if the credit report shows that the judgment was paid, and your credit has been pretty clean since then, they will probably give you a second chance.

debtcruncher, I have a credit rating in the mid-to-high 600s..I always thought this was good, since I have a great interest rate on my car loan, and we just refinanced our house.

Now I'm finding that it's not as good as I thought. Is there a difference between 500 and 650? Or is it all one big group?

Thanks, Debtcruncher. The judgment will be paid off within a month (I've been paying on it since September), and will attempt to restore credit.

Fins I would think you are ok in that credit score. I wasnt wanting to pull mine too many times because it brings it down. I had a mortgage company pull it they came back with 590. Sucky interest rate. Then something just didnt sound right. I called GMAC and they ran it and guess what its 650. I felt like a totqal victim. After telling people to check I was so stupid as to believe one company. NEVER again. KYSIDE38

What's even more gross is how much the scores can vary on each bureau...

All of my reports show the exact same information...Balances, Accounts, Payments, Etc...And the scores are very different....So if I'm going to have someone run my credit, I have to pray that they run my Equifax since it's about 50 points higher than any of the others.. :shock:

Ok, I have a few questions. Thanks for the info before hand of everything that was said before my post. Ok 1) Why do places of business that you apply for check your credit? Does that not also bring down your credit score if they check it too? I am in debt and was and idoit and am paying for it, but I just lost my job and have been applying to different places for work. I have noticed when signing the end of my application that they check credit. 2) Why is it nessecary? 3) How can one start to repair their credit as they are taking care of debt, most being charge offs?

Luckyduck you are exactly right it sucks that they have to check credit for everything. Even your car insurance checks credit. Employment renting buying a car or home. Thats why it is important to stay on top of credit. You can check yours for free once a year at annualcreditreport.com . KYSIDE38

It's my understanding that every time someone runs your credit, your score decreases by 6 points. Depending on the job your are seeking, employers run your credit history. I personally don't agree with it but I can understand it. If your credit history shows charge offs on several accounts, the only way I'm aware of that being resolved is through time. After seven years I believe the charge offs disappear - I believe that's correct.