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Thread: building and keeping good credit

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    Default building and keeping good credit

    Many dancers I know don't know too much about having and sustaining credit because they pay cash for everything. lolol

    MELONIE- YOUR VERY INFORMATIVE SO I'D LIKE FOR YOU TO OFFER TIPS for dancers who want to build, rebuild and sustain good credit.

    Thanks in advance.

  2. #2
    Banned Melonie's Avatar
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    Default Re: building and keeping good credit

    step one based on your post - in the eyes of banks, lenders and credit rating agencies, 'verifiable income' does NOT include unreported cash earnings ! Part of the 'formula' used by the big three credit rating agencies obviously involves verifiable income levels, so no / low officially reported income levels = low credit rating.

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    Default Re: building and keeping good credit

    I have next to no verifiable income, no car payments or loans, one late electric bill that was resolved, and I've only signed a couple leases and broke one of them. I was rejected by many companies but Capital One accepted me. I only have a $500 limit and the maximum APR (24.9% or something) but after a few months of paying religiously my credit score jumped to 730. I know nothing about credit reporting bureaus so I'm almost skeptical, but I found this out through Capital One's credit inform so hopefully they're correct.

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    Default Re: building and keeping good credit

    730? U go gurl!!!

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    Default Re: building and keeping good credit

    Thanks! It makes no sense to me whatsoever. But the good news is that apparently you can get away with everything I've done wrong and still get a nice score! I was expecting like a 400 after all of that.

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    Default Re: building and keeping good credit

    well one 'good' aspect of credit agency reporting is that many past 'sins' do fall off one's credit report after 3 years ... which is basically equivalent to those 'sins' never happening in the first place ! Obviously, bankruptcy and some other major league 'sins' hang around much longer.

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    Default Re: building and keeping good credit

    There's also another significant factor to consider ... that not all 'sins' are equal in the eyes of the credit reporting agencies. First inequality stems from whether or not the creditor will actually make a report ! Along these lines, it is absolutely guaranteed that banks / lenders will report late credit card payments, late loan payments etc. It is fairly certain that utility companies will report late payments. However, where landlords are concerned, unless you rent or lease from a major corporation odds are that late rent payments will NOT be reported. This of course means that if you are short of money at the end of the month, your credit rating will probably suffer the least if you pay your credit card and utility bills but stiff your landlord !

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    Default Re: building and keeping good credit

    Quote Originally Posted by Melonie View Post
    It is fairly certain that utility companies will report late payments.
    This is a maybe/maybe not issue. In the past, say before 2005 public utilities rarely reported to credit reporting agencies because the cost did not justify the returns. Public utilities have to take all customers regardless of credit score and charge exactly the same rate. The only rate differential is for high usage. (Really high, like factories.)

    But, beginning in the middle of 2000s the credit reporting agencies mounted a campaign to get utilities to buy their services. Here in North Carolina that lasted for about a year before Duke and Progress realized that they were gaining nothing beyond deciding how much of a deposit to charge. The cost for a credit report on a customer is a high percentage of the average deposit, so they quickly realized that credit reports were simply a raid on their treasuries. Thus, Progress, PSNC, Duke Power and a bunch of electric cooperatives set up an internal credit reporting agency simply for the purpose of sharing consumer payment info to help in setting deposits. The cost of the internal agency is considerably less than what the "big three" credit bureaus were charging. In a number of other states, the same thing has happened. So, paying your utility bill on time will never raise your score. Being delinquent may get a negative on your score, but it will certainly raise your deposit requirement if you move or get disconnected.

    HTH
    Z

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