MyFico webinar tip
I attended a www.myfico.com Webinar today. I learned this tip:
Skip those credit "deals" where you are offered 20% off for all purchases on a given day if you open a new store credit card. In the long run, that extra credit drives your FICO score down and increases your overall cost (interest rate) of credit.
From MyFico:
Retailers love to tell you how opening a department store card can save you an extra 10% or 20% on your purchases. We've all done the math at the register when the cashier offers to save you 10%; hmmm, so that's $15 bucks off these $150 leather boots by opening this card – tempting alright. The bad news is these department store cards typically charge very high interest rates, so if you carry that $150 balance for even one month, you'll be giving that $15 savings back and then some. Not to mention, each time you open one of these new credit accounts might be dinging your FICO® score. As a general rule, don't accept the new credit offers when shopping; that small savings today, most likely isn't worth it in the long run.
Other tips: Improving Your FICO® Credit Score
I like what Dave Ramsey says about the FICO score. He calls it the "I love debt score" because in order to have a "good"score, you have to have gone into debt for things. He also says that he does not worship at the altar of FICO.
ReplyDeleteYes, you can get a mortgage without a FICO score, it is called traditional mortgage underwritngn
Interesting comment, Terry, and I appreciate it.
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