carl1647545492 Posted March 2, 2016 Report Share Posted March 2, 2016 (edited) I see people posting about credit questions every now and then how can I build my credit how can I check my credit,this link is free for you to check that out without the horse and pony show bs. Due to the passage of the 2003 Fair and Accurate Credit Transaction Act (FACTA), all Americans are entitled to one free credit report from each of the three major credit reporting agencies -- Equifax, Experian and TransUnion -- upon request every 12 months. There are several ways you can request yours: https://www.annualcreditreport.com/index.action (This is the ONLY site that's truly free! Don't be fooled by ads saying otherwise.) Get your Free credit score https://www.creditkarma.com/about Edited March 3, 2016 by carl Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 2, 2016 Report Share Posted March 2, 2016 I usually do mine every April at tax time and use this site. They try to get you into bullshit monthly subscription stuff, but once you get past it, it's not bad. I'll probably pass doing it this year as I saw it a couple months ago when Marc did my refi. Quote Link to comment Share on other sites More sharing options...
Geeesammy Posted March 2, 2016 Report Share Posted March 2, 2016 Credit Karma is 1.5 billion times better than that site. Credit Karma has helped me drastically change my credit. It wasn't awful before, but between the tips and resources in the forum they have it is amazing for being "free". I've even applied for two cards from their recommendations even though that's basically their ad revenue, and got pretty good terms on both. The approval odds are very nice to see and a huge help to most building credit. It also helped me catch quite a few mistakes on my reports. The site and and app layout is very nice to use compared to the free check site. Maybe it's easier for me since I'm a "millennial"? Who knows. Quote Link to comment Share on other sites More sharing options...
Geeesammy Posted March 2, 2016 Report Share Posted March 2, 2016 Don't take my post as saying not to use the site though. I still rotate my free reports so I can check them every 3-4 months. I just prefer credit Karma for the reasons listed above Quote Link to comment Share on other sites More sharing options...
carl1647545492 Posted March 3, 2016 Author Report Share Posted March 3, 2016 Don't take my post as saying not to use the site though. I still rotate my free reports so I can check them every 3-4 months. I just prefer credit Karma for the reasons listed above Just added t a Credit Karma link. Quote Link to comment Share on other sites More sharing options...
Berto Posted March 3, 2016 Report Share Posted March 3, 2016 I can vouch for credit Karma, good way to keep up on your credit score. Quote Link to comment Share on other sites More sharing options...
Wease Posted March 3, 2016 Report Share Posted March 3, 2016 Good info here. 833 credit score checking in... Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted March 3, 2016 Report Share Posted March 3, 2016 Credit Karma is well known for being very high on your credit "scores". Those scores, by the way, are created by the reporting bureaus (TransUnion, Experian, Equifax) and are essentially meaningless, as there is no common formula. Credit Karma is popular because they are optimistic and, case in point (post above) people like bragging about their credit scores even though they don't actually mean anything. I've seen people with 750 credit scores who can't get financed for a car because their file is super thin; sure, they've never missed a payment on their CC, their debt to income ratio is super low, but their high credit limit is only $2000 on that CC, and no lender has any idea what they'll do on an installment loan for a $25k car based on their limited history. On the other hand, I've seen people with a 650 Beacon (custom score system for the auto industry) get the best rates possible because, although they have a lot of medical debt and they had a bankruptcy 4 years ago, they have never once missed a car payment on the 8 car loans they've had in their life. My "scores" are around 709 right now despite higher-than-I'd-like debt to income ratio (2 car loans in my name, me and fiancée). If I went to apply for another auto loan right now, it'd almost certainly be declined even though I have good credit scores because there's very little justification for a person to have 3 open auto loans in their name, especially at my income. TL;DR don't get hung up on the scores, do the Annual Credit Report and do some reading so you know what you're looking at. The "scores" are not an appropriate substitute for knowing what your actual annual credit report is telling you. Quote Link to comment Share on other sites More sharing options...
Wease Posted March 3, 2016 Report Share Posted March 3, 2016 Credit Karma is well known for being very high on your credit "scores". Correct. Mine was straight from FICO... :nod: Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted March 3, 2016 Report Share Posted March 3, 2016 Correct. Mine was straight from FICO... :nod: It takes a lot of work to get your FICOs that high for your base FICO score, assuming they're all around 833. Even with FICO Auto or Beacon 5.0 I've seen spreads as much as 120 points, but I've never seen a score higher than 857 (again, auto-specific). When I say my scores were 709 that's FICO Auto/Beacon and I believe the spread was +/- 15 points. I have not "exercised" my credit in such a ways as to maximize it, I just have some outstanding loans, higher-than-ideal DTI, but literally perfect payment history and good credit utilization. Even if I spent the next 5 years trying, it'd be very difficult to get my scores that high unless I made all the exact right moves...and no one really knows what those exact moves are. I do know one thing that's not helping is a lack of a mortgage loan on my history. Quote Link to comment Share on other sites More sharing options...
Wease Posted March 3, 2016 Report Share Posted March 3, 2016 It takes a lot of work to get your FICOs that high for your base FICO score, assuming they're all around 833. Well for one, I haven't been late on any payment in nearly 20 years. And the only reason I was late on that car loan was because I was in Basic Training and foolishly thought I'd have time to make my payment. I kind of forgot about it and had to have my father pay it for me when I actually got to talk to him. So that and factor in living below your means, etc. It all adds up. Whenever I do get a car loan for something, I always get a kick out of the car salesman's reaction to my score, they don't often see them that high, I guess... Quote Link to comment Share on other sites More sharing options...
HotCarl Posted March 3, 2016 Report Share Posted March 3, 2016 My "scores" are around 709 right now despite higher-than-I'd-like debt to income ratio (2 car loans in my name, me and fiancée). If I went to apply for another auto loan right now, it'd almost certainly be declined even though I have good credit scores because there's very little justification for a person to have 3 open auto loans in their name, especially at my income. I actually never thought of that . That the quantity of auto loans being applied for would be considered. Wasn't there a stickied thread somewhere on CR a while back that had similar information? I'll admit, I only check my credit reports when I have to make a large purchase (like my truck) so I should definitely be more proactive in that sense. Quote Link to comment Share on other sites More sharing options...
gillbot Posted March 3, 2016 Report Share Posted March 3, 2016 Well for one, I haven't been late on any payment in nearly 20 years. And the only reason I was late on that car loan was because I was in Basic Training and foolishly thought I'd have time to make my payment. I kind of forgot about it and had to have my father pay it for me when I actually got to talk to him. So that and factor in living below your means, etc. It all adds up. Whenever I do get a car loan for something, I always get a kick out of the car salesman's reaction to my score, they don't often see them that high, I guess... This, and LOL! :lolguy: I've had salesmen come back shaking their heads and letting me know that's the highest they've seen. /bragthread Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted March 3, 2016 Report Share Posted March 3, 2016 I actually never thought of that . That the quantity of auto loans being applied for would be considered. Wasn't there a stickied thread somewhere on CR a while back that had similar information? I'll admit, I only check my credit reports when I have to make a large purchase (like my truck) so I should definitely be more proactive in that sense. Credit reports are just an indication of risk. That's why there are so many factors involved, and why multiple car loans look exponentially more risky than a single one. Look at it this way; let's say you've got 2 cars which you pay on perfectly, and you apply for a 3rd loan. If you get that loan, but then some cataclysm hits, how likely are you to keep paying on that loan if presented with the choice between paying your mortgage and paying your 3rd car loan? You're going to let that 3rd car loan go into default, because if you have limited resources and the choice is between paying to keep a roof over your head or pay for your weekend toy, you're going to keep a roof over your head. It just doesn't make a whole lot of sense from a risk assessment point of view to offer you a super low rate for an unnecessary loan. However, as with any risk assessment, it's not that straightforward and there are other mitigating factors. If you've been on your job for 18 years, making MORE than enough money to cover 3 car loans, and your home is paid off, the risk is significantly lower. There's even the consideration of past relationships; even if a loan doesn't make a ton of sense for the lender, if you've used them before for a couple loans and always paid on time, they'll have personal experience with you and know that you're a good repeat customer, so they may work harder for your business. In my personal (though limited) experience, Wells Fargo and PNC are the easiest lenders to work with and often have rates that even compete with the military lenders like USAA/Navy Federal, who are historically bonkers with their rates. I've seen Navy Federal approve a guy with a sub-500 credit score for a 2.9% rate for 60 months with $0 down. You know why? Because they have the name of his CO, and they can get in touch with him and make ABSOLUTELY SURE his payments are made if he's ever late on a payment. There's basically zero risk for them unless the guy gets court-martialed. Quote Link to comment Share on other sites More sharing options...
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