Objective: Credit score vs. Debt Free

iVillage Member
Registered: 12-31-2010
Objective: Credit score vs. Debt Free
7
Fri, 04-20-2012 - 3:15pm

Everyone here has different agendas and objectives and I have spent time this week looking at increasing credit scores, this after studying debt reduction for the past 4 years, all while monitoring my credit score weekly.

#Marie
iVillage Member
Registered: 01-12-2008
Fri, 04-20-2012 - 5:39pm
We ran into issues with DHs FICO score when we purchased our house! He didn't have enough debt income ratio. I always thought that no debt was a good thing. We had to prove trade lines, so it wasn't that big of an issue just a PIA.
Photobucket
Community Leader
Registered: 07-26-1999
Fri, 04-20-2012 - 5:18pm

Marie, I don't want to steal your post since you authored it, so if you havent' already, would you mind posting this same thread over on the Debt Q&A board, I think it would be a wonderful reference materials for those that also visit that board but don't necessarily make it to this board.

Photobucket
Community Leader
Registered: 08-25-2006
Fri, 04-20-2012 - 5:18pm

That is one reason I did not pay off my transmission loan and medical bills, to only be left broke and a high balance on my CC.

Serenity
iVillage Member
Registered: 08-24-2006
Fri, 04-20-2012 - 4:23pm
I am trying to rebuild my credit after bankruptcy so I've been working at "playing the game." I opened a new credit card right after my discharge and have been just charging a couple of grocery trips a month, then paying it off in full as soon as the bill comes. I also took out some more student loans, which I suppose will help diversify my debt but it won't help the debt-to-open credit ratio any.

I don't drive, haven't for nine years, don't want to start again, and couldn't afford it anyway. So I can't get any auto loans. I don't have a mortgage either, and my credit is not in a good place to get one right now.

I have only opened one new card so far because I already have several hard inquiries and don't want to start getting declined. I don't really know what my next steps should be. I would like to have the option of owning a home someday, and I also may want to open a business in the future, so I need good credit.
iVillage Member
Registered: 10-01-2008
Fri, 04-20-2012 - 4:21pm
All for trying to do the right thing..... :(

I'm surprised w/ our BK Chapter 13 that we have a score of 658. But we are still paying our mortgage outside of the plan. Everything else goes to the trustee.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 07-27-2009
Fri, 04-20-2012 - 4:16pm

"Settle back accounts

Say you have a 6 year old debt that has been charged off, you are doing well now and want to pay it off because you want to be debt free and take care of all negative marks on your credit report, BUT it could actually LOWER your credit score.

JenAaron.jpg picture by jen2075


iVillage Member
Registered: 10-01-2008
Fri, 04-20-2012 - 3:51pm
Very interesting!

Norma


"Patience is the best remedy for every trouble"- Plautus