Credit Score Zealots

Jeff Rose is a 33 year old financial planner. He is fixated on trying to improve his credit score even though it’s 780. He opened up a second credit card last year to establish another line of credit and help boost his score. He said he doesn’t exactly know what actions will help or hurt his score, so wants to get it above 800 to ensure he gets the best rate if he refinances his mortgage….Jeff, chill out 😉

According to Greg McBride, a senior financial analyst at Bankrate.com :

Those efforts may be futile because once consumers have FICO credit scores of 760, a higher one doesn’t mean they’ll get better interest rates on mortgages and credit card offers.

There’s very little incremental benefit to getting a score above that. It’s a lot more difficult to move the score up in any noticeable way, and little reward.

Consumers with scores from 750 to 800 who want higher numbers should continue what theyre doing, just for a longer period of time, said FICO’s Paperno. That means continuing to pay bills on time, keeping a low amount of debt relative to available credit and not opening accounts unless needed, he said.

It seems to me that many companies are capitalizing on the ignorance and fear around credit scores; to make a lot of money….

Flexo has a good post called Increase Your Credit Score  for those seeking more advice.

You can read the entire article on Credit Score Zealots here.

Do you know associates who have become fixated on their credit score?

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Dansette