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View Full Version : Credit scores and ratings......



Donziweasel
12-11-2008, 05:40 PM
I think this system sucks. I have excellent credit. I am somewhere around a 780. I have to keep it excellent. As a small business owner, whenever I finaince a vehicle, open an account or a line of credit, I have to personally gaurantee every vehicle or account. That is over 50 vehicles and 100's of vendor accounts. I have no problem with this as it is a small price to pay for owning your own business.

What I do have a frickin' problem with is that everytime someone pulls your credit report, it has a negative effect on it. As a matter of fact, the only reason I don't have over an 800 is because of this. I get pulled over a dozen times or more per year. I think it could show Equifax, Experian and Transunion you are shpping for the best deal or rate.

I do this with finaincing. I like to shop for the best rate. Of course, a fianincial institution can't give a rate without pulling your credit. It is a bad cycle. Also, I don't like how you have very little recourse against a credit company when you find something wrong. They make a decision, and that is it. Years ago I tried to fight something on my credit report and they said tough.

Since we seem to be overhauling our finaincail system, I think this could be looked at as well. I think good people are being screwed by this system. Just wondering if anyone else thinks this system is antiquated.

DonziJon
12-11-2008, 06:24 PM
I don't have my own businees..never have. Probably my loss. I have NEVER "pulled" my own credit rating...ever...not that I'm not curious.... I just don't need to know what someone else thinks my crediit rating is...WHY: I always pay my bills when they are due. Never a carry over balance on a credit card..etc.

I wonder if "pulling" your own rating..you ADD to the negatives??? John:lookaroun:

Donziweasel
12-11-2008, 06:36 PM
Looking at your own credit doesn't lower your score. You are actually entitled to a free report from all three agencies.....

Ghost
12-11-2008, 06:54 PM
Looking at your own credit doesn't lower your score. You are actually entitled to a free report from all three agencies.....

This sounds silly, but can you pull your own every 4 months and do your shopping with that, get a contingent agreement based on the actual being in line with the one you handed out while you were shopping, and minimize the actual number that they pull?

I'm just trying to be creative...this seems fair, and far less destructive than the creative guys who invented, say, the credit default swap.

BUIZILLA
12-11-2008, 06:58 PM
ya wanna take a 50-60 point hit??

report a credit card stolen and cancel it... then find out someone else banged it before you could cancel it.. agency see's this as a fraud case and that's the wording on your file..

yup, happened to me..

took me 4-5 months of weekly, sometimes daily work, to resolve this, now back to 793 :shades:

what pisses me off is the amount of new available credit notices or unrequested new cards I get in the mail... in the last 60 days I have received over 400k in new credit notices begging me to use it, companies I've never heard of before... one card company upped my limit from 10k to 50k without my asking them, then sent me a letter congratulating me and begging me to charge-charge-charge... uh, no, leave it where it was please, don't need it.. in the mulcher that crap went...

DonziJon
12-11-2008, 07:01 PM
I understand you are "Entitled" to a FREE Credit report every year. ................... Is it really FREE??.

BTW: Anyone who is willing to start their own business..with the Risks Involved.. is to be commended. This is what capitalism is all about. I SALUTE those who are willing to do this. AND...If they get RICH in the meantime...GOOD For Them. :cool: John

Donziweasel
12-11-2008, 07:38 PM
Buiz, samething happened to me, except I never lost the card, still had it. Some idiot stole the number from I store I had ordered something off the internet. Caught it, but took a "hit" for reporting it stolen.

DonziJon, you ought to take a look and see what is there. Loan belonging to other people with your name, credit cards, all your credit history. It is free, just go to thier website, get thier address and mail them a letter requesting it. I guess a 1.40 in stamps to mail it.:wink:

MOP
12-11-2008, 07:39 PM
Having been on the other end as the guy that gets the $$ for the buyer I know your pain! I found that people shopping for rates would get red flagged after the third contact, three was the magic number to cause a problem may be less now. There is another pit fall to credit and that is credit cards with to much of a credit line. When you have several cards with high limits a lender such as a bank will reject you on the grounds that you have what is called to much now money, meaning you could run your cards to the hilt and be in deep Doo Doo not being able to pay anything.

The Hedgehog
12-11-2008, 08:32 PM
Yes the inquiry thing kind of sucks but the aglorithm is by far from perfect and it never will be. Who is wanting over 800 any way? It was an app only thing in the past but not a huge deal these days. Basically over 700 and you are fine.

I spend a good bit of my life (too much) looking at credit, the credit process, funding costs, securitization and the whole nine yards. In the past month I have looked at tons of deals and rated credits from $100k to $40MM. Way more than I care. I have seen tons of business that have pieces of smaller business on their books.

Your best solution? Probably get a good banking relationship and let them do your funding. Estimate your capital expenses, set up a line, buy what you need and then get them to fund as you go. Don't piece it out too much. You can aggregate it in invervals to keep both your loan count and admin costs down. Rates are falling, you can ride it down and then lock in. My clients are fighting over good credit these days. If you are clean and have good cash flow coverage, they will do it without the need for too much up front. There are also ways to deal with the whole upfront issue as well.

I doubt that I have been in a good commercial bank that has cared if someone has a 700 vs 800 credit score in the last several years. They want to know about the repayment ability both primary and secondary. Other than that not much else unless you are getting into complex debt structure.

Can you take advantage of incentives on smaller deals but utilizing consumer like credit tactics? Sure. But those are going away quick and you have to ask yourself if it is worth the headache and hassel in the long run.

VetteLT193
12-12-2008, 07:38 AM
I heard they changed the rules recently... now if your credit gets pulled multiple times for the same reason withing a certain time frame (I think 30 days) they realize you are shopping around and don't ding you except for the first pull.

chappy
12-12-2008, 08:15 AM
I heard they changed the rules recently... now if your credit gets pulled multiple times for the same reason withing a certain time frame (I think 30 days) they realize you are shopping around and don't ding you except for the first pull.

I just read the same thing on the Experian site, seems fair.