credit scores

[Ren]

Got curious and found this:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/PerfectCreditYouDontNeedIt.aspx

[Raybyrnes]

Typically cut off for Tier 1 credit is 720. Anything more than that is probably costing you in opportunity cost.

By this I mean you would probably be better served to have a couple of 0 % credit card out there with a nice balance and have that money in a savings account earning you 4 or 5 %. You would still be in the mid 700 and if you had 20K in CC debt but simultaneously had 20 K in a bank account earning 5% than at the end of the year the 50Points on the Fico actually is costing you 1000 in cash. Just my Opinion. It does require a little bit of management to play the credit and credit card game.

[Raybyrnes]

Typically cut off for Tier 1 credit is 720. Anything more than that is probably costing you in opportunity cost.

By this I mean you would probably be better served to have a couple of 0 % credit card out there with a nice balance and have that money in a savings account earning you 4 or 5 %. You would still be in the mid 700 and if you had 20K in CC debt but simultaneously had 20 K in a bank account earning 5% than at the end of the year the 50Points on the Fico actually is costing you 1000 in cash. Just my Opinion. It does require a little bit of management to play the credit and credit card game.

[Raybyrnes]

Typically cut off for Tier 1 credit is 720. Anything more than that is probably costing you in opportunity cost.

By this I mean you would probably be better served to have a couple of 0 % credit card out there with a nice balance and have that money in a savings account earning you 4 or 5 %. You would still be in the mid 700 and if you had 20K in CC debt but simultaneously had 20 K in a bank account earning 5% than at the end of the year the 50Points on the Fico actually is costing you 1000 in cash. Just my Opinion. It does require a little bit of management to play the credit and credit card game.

[Raybyrnes]

Typically cut off for Tier 1 credit is 720. Anything more than that is probably costing you in opportunity cost.

By this I mean you would probably be better served to have a couple of 0 % credit card out there with a nice balance and have that money in a savings account earning you 4 or 5 %. You would still be in the mid 700 and if you had 20K in CC debt but simultaneously had 20 K in a bank account earning 5% than at the end of the year the 50Points on the Fico actually is costing you 1000 in cash. Just my Opinion. It does require a little bit of management to play the credit and credit card game.

[Raybyrnes]

Typically cut off for Tier 1 credit is 720. Anything more than that is probably costing you in opportunity cost.

By this I mean you would probably be better served to have a couple of 0 % credit card out there with a nice balance and have that money in a savings account earning you 4 or 5 %. You would still be in the mid 700 and if you had 20K in CC debt but simultaneously had 20 K in a bank account earning 5% than at the end of the year the 50Points on the Fico actually is costing you 1000 in cash. Just my Opinion. It does require a little bit of management to play the credit and credit card game.

[sd_bear]

This is just the information I was looking for. So it really looks like it won’t make a difference post 775 and I shouldn’t even bother trying to get it higher. I’ll just keep paying off the CC’s every month and accumulating $$$ for a down payment.

I understand what you are saying about the opportunity cost, but I am generally very opposed to sinking myself into any unneeded dead just to bank an extra 1000 at the cost of credit score and my own personal time for money management. The only debt I’m hoping to have is my mortgage, and I’m trying to minimize that as well.

[sd_bear]

This is just the information I was looking for. So it really looks like it won’t make a difference post 775 and I shouldn’t even bother trying to get it higher. I’ll just keep paying off the CC’s every month and accumulating $$$ for a down payment.

I understand what you are saying about the opportunity cost, but I am generally very opposed to sinking myself into any unneeded dead just to bank an extra 1000 at the cost of credit score and my own personal time for money management. The only debt I’m hoping to have is my mortgage, and I’m trying to minimize that as well.

[sd_bear]

This is just the information I was looking for. So it really looks like it won’t make a difference post 775 and I shouldn’t even bother trying to get it higher. I’ll just keep paying off the CC’s every month and accumulating $$$ for a down payment.

I understand what you are saying about the opportunity cost, but I am generally very opposed to sinking myself into any unneeded dead just to bank an extra 1000 at the cost of credit score and my own personal time for money management. The only debt I’m hoping to have is my mortgage, and I’m trying to minimize that as well.

[sd_bear]

This is just the information I was looking for. So it really looks like it won’t make a difference post 775 and I shouldn’t even bother trying to get it higher. I’ll just keep paying off the CC’s every month and accumulating $$$ for a down payment.

I understand what you are saying about the opportunity cost, but I am generally very opposed to sinking myself into any unneeded dead just to bank an extra 1000 at the cost of credit score and my own personal time for money management. The only debt I’m hoping to have is my mortgage, and I’m trying to minimize that as well.

[sd_bear]

This is just the information I was looking for. So it really looks like it won’t make a difference post 775 and I shouldn’t even bother trying to get it higher. I’ll just keep paying off the CC’s every month and accumulating $$$ for a down payment.

I understand what you are saying about the opportunity cost, but I am generally very opposed to sinking myself into any unneeded dead just to bank an extra 1000 at the cost of credit score and my own personal time for money management. The only debt I’m hoping to have is my mortgage, and I’m trying to minimize that as well.

[Anonymous]

785 just feels good
… and tastes even better 🙂

[Anonymous]

785 just feels good
… and tastes even better 🙂

[Anonymous]

785 just feels good
… and tastes even better 🙂

[Anonymous]

785 just feels good
… and tastes even better 🙂

[Author]

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