what do you guys know about equifax?

[gixer02]

They have a program that provides you with a FICO score ranging from 300-800. It is a credit rating and most mortgage companies/ big businesses use it when giving out loans. I'm a 17 yr old HS Senior, I'm going off to school and have about 4 years untill I enter the work force. What I want from you guys is advice on how to build my credit rating. I'm sure some of you on this board work for mortgage companies and things of the sort or would at least know alot about this. I'm fortunate enough to have parents that are willing to co-sign on a car or something if I want one and I know that's a good way to build credit but I'm sure there are other ways so if you have any ideas... Thanks. My goal is to have a home within a year of being in the workforce and it's only uphill from there.

Pat

[Sarah]

Here is my 2 cents and then some. I used to be a corporate fraud investigator so I know how credit ratings can affect many areas of your financial future.

Building your credit is a process of showing that you can make timely payments once you have secured credit and/or a type of service. Many service providers will report to the credit bureaus if you fail to make payments or default on something (i.e. fail to return a cable box...it happens).

If you have a credit card(s), loan(s), phone bill, cable, etc....just make sure you pay something each month because if you start to pay late such as 30, 60, 90, days....it does not look good. Also, if your checking account gets overdrawn, make sure to get it cleared-up fast!! If a bank has to close your account that also looks very bad!!

If you are going to be sharing an apartment at college which might mean sharing rent, phone and other various bills....PLEASE make sure the people who appear on the bills is/are extremely dependable!! Many peoples credit gets messed-up because their "roommate" was supposed to have paid that bill and years later when you are trying to get that mortgage loan...there it appears...that last phone or cable bill was not paid and now you have to clear it up.

OK....one more thing (I did not mean to make this so long) civil suits, tax liens, and a bankruptcy, can also show up.

So....to end this....just keep this and other info people give you in mind if you truely want to get a home right after college. Good Luck!!

(Boy....I guess this falls into the non-porsche related question department)

[Rick Lee]

This is NOT non-Porsche-related. I'm sure a lot of folks don't qualify for a loan to buy a Porsche because of credit score ignorance. I used to be loan officer, so here goes:

Get a credit card with a limit of $500-$1000. Run up at least one charge every month and pay it on time. Do not carry a balance, if you can avoid it. Do not open a bunch of revolving accounts at retail stores - Macy's, the Guitar Center, Sears, etc. These not only cause credit inquiries on your report, they lower your score. Even if you always pay on time, too many open accounts will hurt your score. If you get into trouble and can't make your payments, call the creditor and work something out. You can probably keep them from reporting you 30 days late, if you make some effort to pay something and do it on time. They don't want to screw up your credit rating anymore than you do and they want to get paid.

Screwing up your credit WILL take years to repair. Take it from someone who has seen a lot of credit reports. A lot of kids rack up a lot of debt in college. It will haunt you for years and can easily prevent you from getting a security clearance, should you pursue a career path that requires one. Also, check your credit report at least once a year. You'd be surprised what can show up there, if you don't keep on top of it. Identity theft is a huge problem and can ruin your credit for years - even after you think you have it fixed. Instead of signing the back of my credit cards, I write "PLEASE ID." That usually gets someone's attention if they look at all and it makes it hard for a thief to know how to forge my signature. I always thank clerks who read that statement and then ask me for ID.

[Sarah]

To clarify my last sentence.....I meant a physical porsche tech question....not that finances are not related to buying and maintaining a porsche.

[Dantilla]

There are lots of factors that go into your score, but the biggest single one is recent payment history. That alone counts for about 30% of your score. Stay current on all your bills, and you're on your way to an enormous amount of opportunity.

Also- I made sure that my wife has some accounts in her own name, so that if something happens to me she can stand on her own.

[Jdub]

Great advice in here! Remember, when you get a credit card you are now considered to be a person who could owe the full amount of the limit at any given time: that is always held against you when considering additional loans, etc. That is why you have GOT to put a limit on the card that is within your fiscal means. Also why you should always refuse a credit limit increase unless you, yourself, not the corporate drone, know you can handle the additional "lien" on your *potential* debt.

Case in point: going to purchase your first home. Every credit card you own is a case for and against you. For you, because like a good consumer you used it and paid promptly. Against you because every credit card limit, totaled up, is what you potentially could NOT put towards the amount of money you would owe on the home you are trying to purchase.

Live simply. Use one credit card for all your purchases. Pay promptly with no late payments. Check your credit report once a year.

John

PS: A Porsche holds its value. Stress that when you go to get a loan for one. SCs sold for around 20K in 1978. They get high teens now for those in top shape. That is not bad at all!

[Steve W]

As you probably already know, FICO scores can be as high as 850, and each negative black mark on your record reduces your score by a designated amount. The formula for computing the score used to be secret, until recently. Work with the following chart to figure out how to maximize your FICO score. One small thing a person with good credit already can do is what Richard said, get rid of all your unused credit cards. Each one deducts a couple of points from your score, and the credit provided by each card reduces the total credit available to you for that big loan you may need in the future i.e. that new house, 996 twin turbo .....

Experian/Fair Isaac Model Score Factor Codes

Following the FICA score will be a Score Factor section with several numbers. These numbers represent the following and are the criteria in determining the Fair Isaac Score.

A 01 Current balances on accounts
B 02 Delinquency reported on accounts
C 03 Too few bank revolving accounts
D 04 Too many bank revolving accounts
E 05 Number of accounts with balances
F 06 Number of finance company accounts
G 07 Unable to evaluate recent payment history
H 08 Number of recent inquiries
I 33 Proportion of current loan balance to original loan amount
J 09 Number of accounts opened in the last twelve months
K 10 Proportion of balance to high credit on banking revolving or all revolving accounts
L 11 Current balances on revolving accounts
M 12 Length of revolving account history
N 13 Length of time (or unknown time) since account delinquent
O 14 Length of time accounts have been established
P 15 Insufficient or lack of banking revolving account information
Q 16 Insufficient or lack of revolving account information
R 17 No recent (non-mortgage) account balance information
S 18 Number of accounts delinquent
T 19 Too few rated accounts current
U 24 Lack of recently reported balances on revolving/open accounts
V 20 Length of time since legal item filed or collection item reported
W 21 Amount past due to accounts
Y 32 No recent installment loan information
Z 30 Length of time since most recent account established
* 37 Number of finance company accounts established relative to length of finance history
* 25 Length of installment loan history
* 26 Number of revolving accounts
* 99 Lack of recent history on finance accounts, or lack of finance accounts
* 31 Too few accounts with recent payment history
* 28 Number of accounts established
* 98 Lack of recent information on auto loan, or lack of auto loans
* 36 Length of time open installment loans have been established
X 38 Serious delinquency and public record or collection filed
X 39 Serious delinquency
X 40 Derogatory public record or collection filed

[campbellcj]

I'm in the process of buying a house, and believe me the above advice is worth heeding very carefully! Trying to "explain" past digressions to a mortgage loan officer is like trying to squeeze a mug of Warsteiner out of a brick.

The other thing I'd reiterate is definitely check over your credit report - from all 3 major bureaus if possible. Mine had a few pretty major mistakes, and my wife's as well. Fortunately we took a peek a few months before the mortgage apps went out, and we were able to clean up the major glitches. (For instance, a car loan I paid off in 1999 was still showing as current/owing $35K!)

The bureaus are pretty decent about investigating and fixing errors, but it takes time. Don't wait until the last minute!

[widebody911]

Ok, while I have you credit experts online, can you answer me this: how do you prevent uninvited inquiries into your credit history? I've pulled mine a couple of times, and there were page after page of inquiries that I had nothing to do with. I have one credit card, one mortgage. Zero store cards. No car payment. No cell phone. No bills outside of the normal phone, electricity, etc.

I don't have the report in front of me, so I can't name names, but amongst the names I recognized were various credit card companies, a couple of insurance companies (including USAA - and I've never been in the military!), even the Sacramento Sherriff's Department (and I haven't been in trouble with the fuzz, either)

Why?

[campbellcj]

Originally posted by widebody911
Ok, while I have you credit experts online, can you answer me this: how do you prevent uninvited inquiries into your credit history?

I don't recall the details, but when I received a reply from one of the bureaus to a letter/inquiry I had submitted, they included some info about an "opt-out" service to remove yourself from the lists they send out for unsolicited marketing purposes. There is an 800 number you can call to request the necessary forms.

I did it but way to early to tell if it works or is bogus...

[Sarah]

Thom,

From what I recall, the report has to show you who inquired about you and some way for you to contact them to explain why.

When I used to do background investigations, we could not pull someones credit report unless they signed a waiver authorizing it.

Just as a side issue...Had you applied for any jobs where it stated by signing the application you gave your authorization. (Sometimes the small print on things state that). Good luck

[pwd72s]

Reading this...I believe that George Orwell was an optimist.