Would someone not having a credit score be a red flag?

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MonarchMom
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Anonymous 3 wrote: Sun Jun 04, 2023 8:51 am I’m shocked that this many adults don’t know how important a good credit score is.
It is most significant if you want a mortgage or car loan, which not everyone uses. But it can also be used to verify your status when renting an apartment, getting car insurance, or on some job applications.

https://www.nerdwallet.com/article/fina ... r-checking
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A credit score is how banks know how dependable you are
No credit and bad credit is seen as the same thing.
You have to have a good credit score to get a good interest rate.

Interest rate is how much you have to pay the bank for acquiring the loan.
If you have a good score, you can buy a house for $350,000, get an interest rate of 15% and end up paying $402,500 by the time the loan is paid off. If you have a bad credit score they’ll charge you a 29% interest rate and you’ll end up paying $451,500 by the end of the loan.


A good credit score will save you a lot of money. And this goes for ANYTHING that has a variable interest rate attached…. Houses, cars, phones, on the rare occasion medical debt, student loans…
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Inmybizz
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Bobcobbagob wrote: Sun Jun 04, 2023 8:26 am
Inmybizz wrote: Sun Jun 04, 2023 8:18 am
WellPreserved wrote: Sun Jun 04, 2023 7:12 am

I haven't had a CC for almost 10 years and have never had a problem traveling with my debit card or using my debit card to open utilities accounts. I don't currently have any loans so have no idea if I have a credit score.
I don’t remember the rental company I couldn’t use a debit card to “hold” my reservation even though I intended to pay cash when I returned it.

But, that was many years ago perhaps that policy has changed.

Do you need a credit score for a home loan?
A good credit score will impact how much you pay for a home loan.

A bad/no credit score will end up paying a lot more in the end than someone with a good credit score.
That’s what I thought.. there are advantages and disadvantages of having no credit.
I don’t believe we would have been able to get a loan with no credit.
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Inmybizz wrote: Sun Jun 04, 2023 9:14 am
Bobcobbagob wrote: Sun Jun 04, 2023 8:26 am
Inmybizz wrote: Sun Jun 04, 2023 8:18 am

I don’t remember the rental company I couldn’t use a debit card to “hold” my reservation even though I intended to pay cash when I returned it.

But, that was many years ago perhaps that policy has changed.

Do you need a credit score for a home loan?
A good credit score will impact how much you pay for a home loan.

A bad/no credit score will end up paying a lot more in the end than someone with a good credit score.
That’s what I thought.. there are advantages and disadvantages of having no credit.
I don’t believe we would have been able to get a loan with no credit.
I really can’t think of any advantage to not having a credit score… you don’t have to be in debt to have one, but your credit score increases each time you are given more credit.

So if you get a credit card, pay off whatever you buy on it (you can even do it that same day with phone apps) …

then you won’t go into debt, plus if you keep the amount of credit you use under 30% of the amount you are given your score goes up…

then after a while you ask the credit card company to increase your credit limit, and your score will increase even more.

The more you increase your score, the better loans are available to you, credit cards with perks are available , and job opportunities increase as well.
Anonymous 3

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MonarchMom wrote: Sun Jun 04, 2023 9:00 am
Anonymous 3 wrote: Sun Jun 04, 2023 8:51 am I’m shocked that this many adults don’t know how important a good credit score is.
It is most significant if you want a mortgage or car loan, which not everyone uses. But it can also be used to verify your status when renting an apartment, getting car insurance, or on some job applications.

https://www.nerdwallet.com/article/fina ... r-checking
Or getting cable set up, or internet set up, I mean the instances you need a credit score are endless. Fact is without one, you will have paid much more for bills and services by the end of your life than someone with a good credit score and have had much less chances to build income.
In some ways it is a predatory system because credit scores are used to keep the poorer people poor and help the richer people get richer. But if you want to end up as a rich person without just being handed a large inheritance, a good credit score is a necessity.
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Your experience when calling customer service is impacted by credit scores…

“According to company CEO Thomas Might, the Phoenix, Ariz.-based MSO has deployed a “very rigorous FICI credit scoring process” on its video customers since 2013. “We don’t turn people away,” Might said, but the cable company’s technicians aren’t going to “spend 15 minutes setting up an iPhone app” for a customer who has a low FICO score. “What we found is that through lifestyle and billing analysis, we could start to pinpoint where churn and bad debt was coming from, and credit scoring started to be a really good test,” Might said.

https://www.techdirt.com/2016/06/03/cab ... r-service/
Anonymous 1

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AZOldCoot wrote: Sat Jun 03, 2023 2:58 pm
Anonymous 1 wrote: Sat Jun 03, 2023 1:56 pm
AZOldCoot wrote: Sat Jun 03, 2023 9:50 am Have you actually seen the two homes and multiple cars or is this just something he claims to have?
Yes I have seen them. I have been to both houses multiple times and have seen the cars. I've also known him for a very long time but we didn't date until more recently.
He could be paying in cash, checks, etc for his things.

I would think you'd need a good credit score for both the homes he has as well as the cars. Maybe someone else has paid/is currently paying for these things?
He pays everything in cash including for his homes
Anonymous 1

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MonarchMom wrote: Sat Jun 03, 2023 5:23 pm
Anonymous 1 wrote: Sat Jun 03, 2023 2:00 pm
MonarchMom wrote: Sat Jun 03, 2023 12:48 pm So what about hotels, airline tickets, streaming services, car rentals, etc.? Has he never done these things?

I would be suspicious and also concerned about future plans to travel or make purchases if this becomes a long-term relationship.
You don't need a credit card for any of those things. I'm not really concerned because he makes really good money and so do I so IF there was going to be a big purchase we could afford it. Traveling isn't really impacted by not having a credit card.
I suppose if you go to a travel agent you can pay for airline tickets in cash, but I have never seen a hotel or car rental that would take a reservation without a CC on file. But I've also never tried to do it that way. I'd rather just use a CC, pay it off every month, and get the points for future purchases.
Most places these days don't care if it is a debit card or credit card, they just pull out the amount for a diposit and it's refunded at the end.
Anonymous 1

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Inmybizz wrote: Sun Jun 04, 2023 6:25 am Not a red flag. If he’s doing his thing without credit cards or score that’s cool. However, I would think a zero credit score or no CC would hinder his ability to get a loan, rent cars and all the other things. How does he get around that?
What does he do to earn his money?

I have never been able to rent a car without a CC or hold a hotel reservation. Some businesses would not accept a debit card only a CC.

I switched cable services I was surprised I needed a CC and light credit check was done. It’s cable not a million dollar loan. Lol!
It has never hindered him in anything. He would just buy something outright and would never want to take out a loan.
Anonymous 1

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Anonymous 3 wrote: Sun Jun 04, 2023 8:51 am I’m shocked that this many adults don’t know how important a good credit score is.
I always thought it was super important but it really isn't if you never want to take out a loan or be in any debt.
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