Investing 102

[Bucketlist2012]

Haha..

My Wife's score is higher than mine too..I pay all the bills, and love to pay them early..She likes to leave them for the last minute..

But yet, she has the higher FICO, go figure..

I don't have a lot of wealth, another funny is that back in December 2008, we were looking at the Home we have now, it was an REO that sold in 2006 for 660,000 Dollars...I was buying it for 275,000 plus getting a 9000 Tax credit.

When I went to get a loan, they asked how much do you have to put down ?

I said all of it... But I want to finance 50% at these rates...You should have seen their face.

If the rates were high like in the 1990's , I would have paid cash, but now ? No way...at 4%, I can invest the rest and pay the payment with Investment profit.

[chr2002ca]

Originally Posted by Bucketlist2012

But yet, she has the higher FICO, go figure...

I work for FICO and I can tell you that the reason people often can't figure out how their FICO score is calculated is because we often can't figure that out either. I won't go into detail.

Love this thread. Learning a lot. Thanks to all the contributors.

[Rybar]

Looks like a good buyers market right now, some deals to be had. Alot of my portfolio is in the red since Obama was re-elected but that's ok. Sticking to them win or lose like Greg's suggested.

[GregWeld]

Originally Posted by Rybar

Looks like a good buyers market right now, some deals to be had. Alot of my portfolio is in the red since Obama was re-elected but that's ok. Sticking to them win or lose like Greg's suggested.

I wouldn't be buying YET... keep your powder dry... I'm thinking we have many more days / weeks yet to listen to the two sides go at each other with guns and knives ------ and that will roil the markets.

[Bucketlist2012]

Originally Posted by GregWeld

I wouldn't be buying YET... keep your powder dry... I'm thinking we have many more days / weeks yet to listen to the two sides go at each other with guns and knives ------ and that will roil the markets.

Amen....I went 10% into cash and took profits before the election...That is my powder and I will wait ...I see it getting worse before it gets better...No one knows where the bottom is, but IMO, we are not there yet..

And yes, my Wife's FICO is 25 points higher than mine

[GrabberGT]

FICO score HAH! I see it this way.. (could be right or wrong but its how I feel)

Your score does not tell how capable you are of paying a creditor but tells a creditor how well you pay your creditor. In other words... do you have history of paying interest. The more reliable you are at paying interest, the more valuable you are to them hence the higher score. So in essence we are paying a fee (interest payments) to get a higher score so that more creditors will want to offer us loans so that we can pay MORE interest.


^ not the most eloquently written response on this thread but....

[chr2002ca]

Originally Posted by GrabberGT

The more reliable you are at paying interest, the more valuable you are to them hence the higher score.

You nailed it Chris. It's a combination of your credit history AND your record of paying interest reliably on revolving debt. The more often you run a little balance on the credit card, the higher the score. Ass-backwards of course, but the score is tailored more for marketing than anything.

Greg, next time I see you I'll have a gold star for you. Big ass thing that'll cover the back of your shirt.

[GregWeld]

Originally Posted by chr2002ca

I work for FICO and I can tell you that the reason people often can't figure out how their FICO score is calculated is because we often can't figure that out either. I won't go into detail.

Love this thread. Learning a lot. Thanks to all the contributors.

I laughed at the FICO score deal -- because I said to the guy -- DUDE! I don't need ANY credit -- so whatever it is doesn't bother me one bit! I just thought it was funny that the two would be different numbers. I also found it interesting that both of ours are LOWER because we don't have revolving debt! WTF! I have 3 credit cards --- two with 60K limit and one with 100K limit - I don't OWE ON ANY OF THEM -- and that's considered a "negative". Really? My thinking is that I should be given a friggin' gold star! And apparently I get NO credit for my net worth either.... or that I own 13 cars with ZERO payments.... again that must be considered a negative? OMG! No wonder our world is so screwed up!!