Go Back   The Finance Forums > Finance forums > Credit Ratings



Credit Ratings Issues of credit ratings and credit scoring here.

Reply
 
Thread Tools
  #1  
Old 06-20-2006, 07:59 AM
kelkat's Avatar
kelkat kelkat is offline
Senior Member
 
Join Date: May 2006
Location: United States
Posts: 133
Default Value of credit rating

In this world of "must by now" wouldn't it be more valuable to not even need a credit rating. In other words, how about we teach everyone how to save for what they want instead of improving their credit rating so that they can borrow to get it?

Too simple?
Reply With Quote

Old Sponsors
  #2  
Old 06-20-2006, 03:08 PM
Benji Benji is offline
Member
 
Join Date: May 2006
Posts: 82
Default Re: Value of credit rating

It's fiscally responsible, yet it may not be practical in purchasing something like a home. If you don't have a good credit rating, you can't get a home mortgage. Current credit ideals leave a lot to be desired, but they also leave the end user in a catch 22. If they pay outright for everything they purchase and then need credit for something - they likely would be refused, because they have no history to prove their trustworthiness in repayment.
Reply With Quote

  #3  
Old 06-24-2006, 10:24 PM
Green Diva Green Diva is offline
Junior Member
 
Join Date: Jun 2006
Posts: 27
Default Re: Value of credit rating

But that would put tons of people out of a job! LOL...I agree. Cash only is the best way. Unfortunately it's not the way most go.
Reply With Quote

  #4  
Old 06-26-2006, 02:36 PM
Benji Benji is offline
Member
 
Join Date: May 2006
Posts: 82
Default Re: Value of credit rating

And because they know this - they aren't too afraid of those of us pounding the drum of fiscal responsibility. There's a whole lot more money invested in breeding a feeling of discontent through advertising - and there's always someone willing to pay money they don't have for things they don't really need using credit they shouldn't have.

Last edited by Benji; 06-27-2006 at 02:39 PM.
Reply With Quote

  #5  
Old 06-26-2006, 05:42 PM
kelkat's Avatar
kelkat kelkat is offline
Senior Member
 
Join Date: May 2006
Location: United States
Posts: 133
Default Re: Value of credit rating

Quote:
Originally Posted by Benji
and there's always someone willing to pay money they don't have for thigns they don't really need using credit they shouldn't have.
I like that, and it is sooooo true.

If people just set aside a "house payment" each month in an interest bareing account then they would be able to buy a house before they new it. Then if they started small and only traded up as the money would allow . . .

How I wish someone had taught us all this when my husband and I were starting out.
Reply With Quote

  #6  
Old 07-01-2006, 08:44 AM
brian brian is offline
Senior Member
 
Join Date: Jun 2006
Posts: 806
Default Re: Value of credit rating

The trouble is, it's not always easy to save for what you need.

When we moved up to Scotland, we found there was no way we could keep driving around in the existing car, as the kiddie car seats made everything much too cramped, so we looked to buy an MPV.

As I know nothing about cars, I had no idea as to how to tell if a second hand car was a good purchase or not, and frankly I was frightened by the risk - especially after nearly signing for one by a reputable dealerships that despite being 2 years old had more rust under the chasis than our ten year old motor. So we figured on a brand new MPV but we certainly couldn't save £18k quickly, but even then, I did put £5k in cash to make the loan smaller and more manageable.

Also - as I'm looking for my first mortgage soon, I figured a loan was a good way to help with increasing my credit rating, just in case of help when applying for a mortgage.
Reply With Quote

  #7  
Old 07-05-2006, 09:11 AM
kelkat's Avatar
kelkat kelkat is offline
Senior Member
 
Join Date: May 2006
Location: United States
Posts: 133
Default Re: Value of credit rating

If we could only save before we needed the money then what a wonderful world this would be. I know if (and the key here is if) my husband and I had been saving BEFORE we had kids and while we were both working instead of spending money like it was going to spoil then we wouldn't have to worry to day. See, I told you "if" was the key.

Last edited by kelkat; 07-05-2006 at 09:16 AM.
Reply With Quote

  #8  
Old 09-09-2006, 11:57 AM
palefrost palefrost is offline
Member
 
Join Date: Sep 2006
Posts: 34
Default Re: Value of credit rating

Quote:
Originally Posted by Benji
It's fiscally responsible, yet it may not be practical in purchasing something like a home. If you don't have a good credit rating, you can't get a home mortgage. Current credit ideals leave a lot to be desired, but they also leave the end user in a catch 22. If they pay outright for everything they purchase and then need credit for something - they likely would be refused, because they have no history to prove their trustworthiness in repayment.
So true, My brother needed a co-signer on his house and he was horribly embarrassed since he had a excellent history of paying debts but no real credit trail.
Reply With Quote

  #9  
Old 09-09-2006, 12:11 PM
DJDizzy1 DJDizzy1 is offline
Junior Member
 
Join Date: Sep 2006
Posts: 27
Default Re: Value of credit rating

I agree, it would be great if we could pay for purchases with cash. But the credit card companies, and loan companies would never allow this to happen. I read an article recently about how much personal debt has exploded since the credit card came on the market.
Reply With Quote

  #10  
Old 09-09-2006, 08:20 PM
triumph triumph is offline
Junior Member
 
Join Date: Sep 2006
Posts: 18
Default Re: Value of credit rating

It is scary how valuable a credit rating is. I worked in a high-end car dealer several years back, and I was continually stunned by the people who had high credit ratings but not the highest incomes still qualifying and buying cars they could not really afford.

Sure they worked hard to get that credit rating, but then they blow it all on a car they can't afford and in two years their credit will be ruined.
Reply With Quote

  #11  
Old 09-10-2006, 12:35 AM
kelkat's Avatar
kelkat kelkat is offline
Senior Member
 
Join Date: May 2006
Location: United States
Posts: 133
Default Re: Value of credit rating

I think I figured out the value of a great credit (I mean near perfect) rating. You qualify for all the no interest promotions that most companies have. Then it is to your benefit to buy on credit (if you have the money in the bank to pay it off later) and let your money stay in the bank and earn interest. Make sure if you do this that there is no prepayment penalties.
Reply With Quote

Old Sponsors
  #12  
Old 09-14-2010, 06:49 AM
okayvarkal okayvarkal is offline
Junior Member
 
Join Date: Sep 2010
Location: Turkey
Posts: 2
Default Re: Value of credit rating

Hi,

I'm an MT and currently working on a scoring model which help me find efficient credit limits for my company. I wonder what important criteria (e.g operational activity years, # of employees, financial ratios, market reputation of the customer) should be when you decide a good scoring model. Could you give me some spesific criteria in details?

Thanks,
Varkal
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 10:17 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.