#23772 - 06/13/06 03:43 PM
Re: Anyone work at assessing credit?????
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paradocs
Member
Registered: 11/20/04
Posts: 2323
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Listen to the Dave Ramsey radio show. To find a station go to
http://www.daveramsey.com
You can listen on many stations across the country, both XM and Sirius, and over the web.
As I under stand his advice, Dave says to make what he calls a "debt snowball." You keep paying the minimums on all but the smallest debt, put your primary focus into paying off that one as soon as possible. Once that is paid off, you put the amount you were paying toward that, plus the minimum from the next largest into the next largest and so forth until you get them all paid off.
One word of caution: Dave's plan is that you NEVER buy anything on credit with the possible exception of a house and on that you NEVER finance that for more than 15 years at a fixed rate.
He claims his FICO (credit) score is 0 (ZERO) because he pays cash for everything.
In the few weeks I have been listening to the show and heard people call in claiming to have paid off huge amounts of debt in fairly short times by following his plan.
If you go his route, please report back.
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#23773 - 06/13/06 04:07 PM
Re: Anyone work at assessing credit?????
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paradocs
Member
Registered: 11/20/04
Posts: 2323
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I forgot to mention in the earlier post that on the show today someone called in with a similar question. If you can find a station that carries the rebroadcast (I think both Sirius and XM carry it later than the station I hear it on) you might be able to hear his comments in case I got something incorrect.
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#23774 - 06/13/06 04:10 PM
Re: Anyone work at assessing credit?????
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lazer
Member
Registered: 03/16/02
Posts: 7672
Loc: a world of my own...
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all good valid ideas posted....
something to remember, if you have lower rates on some, you can pay off the higher cards with the lower rated cards, so balance is on lower rated cards
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Memo: Don't get p*ssed at my OPINION, cuz thats all it is, my OPINION.........
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#23775 - 06/13/06 04:38 PM
Re: Anyone work at assessing credit?????
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paradocs
Member
Registered: 11/20/04
Posts: 2323
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The problem I had with transferring debt from a high-interest card to one with lower interest was the length of time it took. If you are coming up on a deadline for refinancing, the transfers might not have all gone through.
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#23777 - 06/13/06 07:11 PM
Re: Anyone work at assessing credit?????
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cass
Member
Registered: 03/01/00
Posts: 3505
Loc: WA
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Originally posted by Eric1: Originally posted by Wabi:
Is it true what I hear, that when you voluntarily close an account and get rid of a card, it counts against your score?
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#23778 - 06/14/06 06:55 AM
Re: Anyone work at assessing credit?????
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corlorde
Member
Registered: 04/24/01
Posts: 9246
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To a lender, it may affect their decision because multiple requests indicate that the borrower is seeking credit, and they will want to know why and how much. They are afraid that your income to debt ratio will end up being too high for you to satisfactorily pay back.
Be seeing you Cass,
~Corey
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#23779 - 06/14/06 08:20 AM
Re: Anyone work at assessing credit?????
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candra
Member
Registered: 05/17/00
Posts: 2877
Loc: Ripon, CA US
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I think it matters who accesses the file. For example some credit card companies (that you have an account with) check your files every month for other activity (like defaults, late payments to others, etc.) just to protect themselves and to set your interest rate higher if you are getting a bad history. I would think these would not matter when getting a loan. But when you are applying for new credit and that company accesses your record, then that may matter as you are seeking new credit or "too much new credit" at the same time you are also seeking a loan, which may be a signal to some that that person is a bad financial risk (on the brink).
It's also interesting in the credit card world, those that pay off their cards every month and accrue no interest (like me) are called "deadbeats", because they don't make any money off of us.
Candy
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#23780 - 06/14/06 10:22 AM
Re: Anyone work at assessing credit?????
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john55555
Member
Registered: 03/31/06
Posts: 531
Loc: "'cross the alley from the Ala...
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Question For The Credit Experts: We use credit cards. They are, after all, very convenient. I pay at the pump for gas Every time. I can't haul my withered, hurtin' bod inside, stand in line and limp back. Oh, I could..but why?
Anyway, we pay off the balances every month..BUT is that really a good thing? It's hardly "building credit." We purchased our house and several cars in the past "on time."
Do you think we should pay in "installments" occasionally to "build credit" or just keep paying them off. I want to maintain a good record, as you never know when a SHTF episode is going to land in your lap and you might have to live off the cards for a while.
I noticed recently that, even paying the balance every month, one of the Visa cards hit us with an interest charge $2.46! What's up with that?!
It's THIS congress that put the screws to us! 
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