Tuesday, January 15, 2013

FICO--the F word

I hate talking about credit ratings. I feel like the whole game is rigged.

Cancel an account--get punished for trying to control your credit. Bah!

They also offer a free copy of your report--but make you pay for your number.

See where I am going with this?

But if you are a responsible grownup, you need to think about this sometime. Everything--rates for insurance, a mortgage, even your fitness for a job--are dependent on your score. A credit score between 760 and 850 gets you an interest rate on a house of 3.08 percent. Between 660 and 679, you will pay almost $70 more a month. This means more than $24,000 more over the course of the 30 yrs.

This is so depressing. To get your free report, go to annualcreditreport.com. FICO has more nifty ideas for you at myfico.com.

One big thing you can do is pay bills on time. Do not close unused cards!

Oh--and I did not know this--shop for a loan all within a two-weeek period--it will be treated as one application. Yes, someone asking about your credit a lot hurts you.

I need a nap now.

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