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Author Topic: Free credit reports extended to April 2022  (Read 261 times)

K Frame

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Grandpa Shooter

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Re: Free credit reports extended to April 2022
« Reply #1 on: April 30, 2021, 09:07:19 AM »

Just got this from my one credit union...

https://www.consumer.ftc.gov/blog/2021/03/free-weekly-credit-reports-during-covid-extended-until-april-2022

I've seen several threads recently with a ton of comments on credit ratings and reports, mostly in terms I have no knowledge of.  Is knowing your own credit rating really that big a deal?  We have one credit card we got when my wife's ambucamper needed tires to the tune of $1600 because it was zero interest for a year.  Other than that we don't use credit.  If we can't pay, we don't do it.  What's the obsession with credit scores these days?

Ben

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Re: Free credit reports extended to April 2022
« Reply #2 on: April 30, 2021, 09:21:55 AM »

What's the obsession with credit scores these days?

If you're an old fart, they are not that big of a deal. Since I retired and I'm not buying anything I can't pay cash for anymore, it doesn't matter much to me.

If someone is still a working stiff, and wants to buy a house, credit scores are critical. You mentioned "If you can't pay, you don't do it." Not everyone can pay $500K cash for a house, and if you take a mortgage, that credit score is critical regarding getting a good loan or a crappy loan.
"I'm a foolish old man that has been drawn into a wild goose chase by a harpy in trousers and a nincompoop."

K Frame

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Re: Free credit reports extended to April 2022
« Reply #3 on: April 30, 2021, 09:29:29 AM »

"Is knowing your own credit rating really that big a deal?"

These reports aren't for knowing your credit score.

These are for ensuring that credit records associated with your account are actually yours and are accurate, not inaccurate and especially not accounts opened by someone stealing your identity.

And, unless you're actively looking for credit, knowing your credit score isn't hugely important.

But know that a credit score can affect things other than the interest you pay... for example, many insurance companies are now using credit scoring as a way of assessing risk (yes, there's a significant correlation between low scores and higher likelihood of vehicular issues) and may adjust your premiums accordingly.
Carbon Monoxide, sucking the life out of idiots, 'tards, and fools since man tamed fire.

Ben

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Re: Free credit reports extended to April 2022
« Reply #4 on: April 30, 2021, 09:55:24 AM »

But know that a credit score can affect things other than the interest you pay... for example, many insurance companies are now using credit scoring as a way of assessing risk (yes, there's a significant correlation between low scores and higher likelihood of vehicular issues) and may adjust your premiums accordingly.

Yeah, that too.
"I'm a foolish old man that has been drawn into a wild goose chase by a harpy in trousers and a nincompoop."

Grandpa Shooter

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Re: Free credit reports extended to April 2022
« Reply #5 on: April 30, 2021, 03:26:42 PM »

If you're an old fart, they are not that big of a deal. Since I retired and I'm not buying anything I can't pay cash for anymore, it doesn't matter much to me.

If someone is still a working stiff, and wants to buy a house, credit scores are critical. You mentioned "If you can't pay, you don't do it." Not everyone can pay $500K cash for a house, and if you take a mortgage, that credit score is critical regarding getting a good loan or a crappy loan.

I guess I really don't get it then.  I can't imagine anyone willing to pay half a million for a roof over their head.  Really?  A house is a utility like a car, buy what you need to serve the purpose, unless your ego dictates what you do with your money.

Ben

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Re: Free credit reports extended to April 2022
« Reply #6 on: April 30, 2021, 04:34:53 PM »

I guess I really don't get it then.  I can't imagine anyone willing to pay half a million for a roof over their head.  Really?  A house is a utility like a car, buy what you need to serve the purpose, unless your ego dictates what you do with your money.

Okay, what about a $100K house? Most people don't have that sum of cash laying around either and need to get a mortgage.

Let alone having $400k laying around, which is the national average home price as of Q4 2020

https://fred.stlouisfed.org/series/ASPUS
"I'm a foolish old man that has been drawn into a wild goose chase by a harpy in trousers and a nincompoop."

K Frame

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Re: Free credit reports extended to April 2022
« Reply #7 on: May 01, 2021, 09:11:14 AM »

"I guess I really don't get it then.  I can't imagine anyone willing to pay half a million for a roof over their head."

In the area where I live half a million might buy you one of the townhouses in my community, but probably not.

People live here and deal with the traffic and the high prices because the high-paying jobs are here.

Doing what I do for a living means living in the DC metro, or another major metro, area. Those jobs aren't available most other areas, especially not with the security clearances I have.

I'd LOVE to be able to live in an area like where I grew up, but it would mean either not being able to find a job, taking a job for 70% less than what I'm making and doing nothing like what I currently do, or having to commute multiple hours per day over substantial distances to get to where there's a job for me.

Carbon Monoxide, sucking the life out of idiots, 'tards, and fools since man tamed fire.

Grandpa Shooter

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Re: Free credit reports extended to April 2022
« Reply #8 on: May 01, 2021, 05:02:36 PM »

"I guess I really don't get it then.  I can't imagine anyone willing to pay half a million for a roof over their head."

In the area where I live half a million might buy you one of the townhouses in my community, but probably not.

People live here and deal with the traffic and the high prices because the high-paying jobs are here.

Doing what I do for a living means living in the DC metro, or another major metro, area. Those jobs aren't available most other areas, especially not with the security clearances I have.

I'd LOVE to be able to live in an area like where I grew up, but it would mean either not being able to find a job, taking a job for 70% less than what I'm making and doing nothing like what I currently do, or having to commute multiple hours per day over substantial distances to get to where there's a job for me.

I guess we all make choices based on our personal priorities.  My major one is being left alone, and being low key.  I don't make decisions based on other people's priorities, and when I was working and owning my own businesses, made enough to live minimally and quietly.  We drive used cars, own a 101 year old farmhouse out in the country we paid half down on, and live well on my retirement.  I don't care what the Joneses have, or drive, and certainly wouldn't live in a congested area just to make a living.  Some do, we don't.

Calumus

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Re: Free credit reports extended to April 2022
« Reply #9 on: May 01, 2021, 05:13:00 PM »

As far as car insurance goes, bad credit can more than double your rate even if you have a spotless driving record.
https://www.carinsurance.com/worst-states-for-drivers-with-bad-credit

Ben

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Re: Free credit reports extended to April 2022
« Reply #10 on: May 01, 2021, 05:22:50 PM »

own a 101 year old farmhouse out in the country we paid half down on

So if you took a loan for the other half, then your credit score matters, especially if you live frugally. A low credit score means higher interest rates.

No one here was talking about "keeping up with the Joneses". You asked why people care about their credit score and we all posted money saving reasons why it is wise to keep your score up.

Calumus's link is certainly educational.
"I'm a foolish old man that has been drawn into a wild goose chase by a harpy in trousers and a nincompoop."

Calumus

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Re: Free credit reports extended to April 2022
« Reply #11 on: May 01, 2021, 05:57:18 PM »

There’s also the problem of real estate appreciating faster that you can save. The areas of the country where I’ve been keeping an eye on for us to buy our first house are up an average of 45% in the past year, and they’re pretty wide spread. We’re looking at the Tampa Bay Area, the SC side of the border near Charlotte, and just for kicks the San Antonio area.  No matter how hard we try, it just isn’t possible for us to save $100k in a year so credit plays a roll in that.

Ben

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Re: Free credit reports extended to April 2022
« Reply #12 on: May 01, 2021, 06:27:04 PM »

There’s also the problem of real estate appreciating faster that you can save.

This is a problem here too. It's not hard to see why native Idahoans hate Californians and people from the dotcoms that move here with cash. I just read this morning that we are up 38% since last year. Not as high as where you are, but enough to add $100K to an average home here.
"I'm a foolish old man that has been drawn into a wild goose chase by a harpy in trousers and a nincompoop."

Grandpa Shooter

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Re: Free credit reports extended to April 2022
« Reply #13 on: May 01, 2021, 09:29:13 PM »

So if you took a loan for the other half, then your credit score matters, especially if you live frugally. A low credit score means higher interest rates.

No one here was talking about "keeping up with the Joneses". You asked why people care about their credit score and we all posted money saving reasons why it is wise to keep your score up."

I took a 10 year loan at 4%.  I have less than $5,000 to pay on it, and will have paid it off in 8 years, not 10.  I have never paid more than 4% for anything other than one car loan years ago.  I wasn't pointing fingers at anyone, just saying having expensive stuff is not my thing, so I don't need to be a slave to a mortgage or car payments.  We live well below our means purposefully.

K Frame

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Re: Free credit reports extended to April 2022
« Reply #14 on: May 05, 2021, 09:33:05 AM »

"I guess we all make choices based on our personal priorities.  My major one is being left alone, and being low key."

That's why I live, and work, in a major metro area... so when I retire, which won't be all that long now, I'll be able to immediately move to such an area. I already have a target destination picked out.

By putting up with living in a major metro area it's allowed me to put aside one hell of a nest egg such that when I do retire, I won't have to worry about money at all. Yes, it's annoying now, but living and working here is a means to an end.

I already live pretty simply, and generally stick to myself. I don't feel the need to keep up with the next door neighbors or what they have; my biggest non-necessary expense is my dog.
Carbon Monoxide, sucking the life out of idiots, 'tards, and fools since man tamed fire.