Originally Posted by njyork42
You said you just finished your finance degree. Did you already have an accounting degree? I thought I seen mention of you being a CPA at one point.
No, not a CPA. Someone else on here but I don't recall who.
Finance degree is what I'm finishing up next week. Assuming I don't blow a final all to hell for some dumbass reason. This will be my first degree.
Originally Posted by 93goatfucker04
Good read Wag
Thanks. Question though.. Whats the reason for keeping your score up at this point if you have your house paid off and have enough income to buy corvettes with cash? In case you ever get into a situation in the future where you need a loan
Or did you just do payments on the vette just so that you could keep more money in your account. I suppose that would be smarter to do anyways, since you have the money already there
1a. Keeping your credit score up saves you money in other areas. Insurance, for example. If your credit score is high, insurance companies have shown mathematically that you're less likely to file a claim. They don't care why but people will speculate that people who manage their finances responsibly are also less likely to take unnecessary risks in other areas of their lives as well. (Don't tell them I ride a Busa though.
1b. We generally pay off our credit cards every month but on occasion, we'll let it roll for some odd reason. About once every couple of years. Since my credit score is high, my credit card interest rate is low so a $50 interest charge becomes $49.95.
1c. If I were going to retire, I'd probably forget about my credit score but that's just a presumption. There is definitely some homework to do on that front because for all I know, when I get old, there are other reasons to keep the score high that I don't know about right now because I'm not looking that far ahead. We'll see what life encounters will change my perspective when I'm starting to hover around that time of my life.
2. Doing payments on the Vette is getting my credit score back up. Because I'm making payments ON TIME. That's the key, there. They have to be on time, end of discussion. Just let me miss one and the credit score will be shot to hell. For two goddamm years. Believe me, I don't like paying any interest but it's going to be a minimal amount for quite a while. More on that below.
3. Being ready to take advantage of financial opportunity is a key component here as well. There are four houses for sale in my neighborhood within sight of my driveway and any one of them would be a decent rental property.
Having a high credit score means that if I decide to pull the trigger on one of them, I can do so without a lot of haggling. In fact, since I've been with the same bank for 20+ years, never bounce checks, keep some balances going there, etc. they pretty much do what I want. Including lowering fees, interest rates, etc. The short version is, it puts me in a power position during negotiations.
It doesn't have to be a house, either, it can be any number of different opportunities which may land in my lap. On a large investment, the amount of money I can save because of the good credit score will far outstrip the paltry amount of interest I'll pay on the Vette for two years.
Originally Posted by Dirty Pussy
Rewards points are great. I have a chase freedom card and I use it LIKE cash. If I don't have the money, I don't use it. And depending on what I buy, I earn between 1% and 5%. I get that back in cash too
Good policy. I do that too. For a long time, Shell had a gas points card. In a year, I would save about $1,200 in gas. They have changed that program now but it still saves us a lot of $$. Screw your airline miles. I don't fly anyway, dammit!
Oh, and the coffee is good this morning!