Bad Credit

[StevieC]

So I called the local utility for hydro (Electric) because hydro isn't included at my new apartment and I never had an account before and the lady that helped me gave some schpiel (sp?) about that I would have to put down a $200 deposit and I would get it back in a year etc. and I said well is there anyway around it? She said I could get a letter from a previous utility company I dealt with (Never have so I couldn't do this) or I could pay $22 and have a credit check done and if I had a score of 450 or higher I wouldn't need to put a deposit down.

I said ok and she put me on hold to do the check. Well she came back and said that my score was *** and that she hadn't seen a score that high ever.

She proceeded to setup my account and while we were on the phone she was friendly and talkative as was I and she jokingly asked me why I was renting instead of buying a house. I told her I own a rental property and that me renting was all I needed and cheaper in the long run because of the tax right-off's etc.

Anyways... She kept saying about how bad some peoples credit is that call, and how many times they default on their bills or are chronically late and that she was shocked at my good credit rating.

I guess because I always had good credit I took it for granted that lots of people do and that it's only a small portion of people the are the delinquents.

Guess not.

Good feeling to have good credit and be told that my word is good enough that I will pay the bill.

 

[Quattro Pete]

Yeah, especially now, when the economy is in the slump. Over the past decades, people got used to getting a ton of credit because the credit lending institutions weren't overly concerned with people with less than great credit history. So, people got huge lines of credit (upwards of $20K on each credit card they own), and they keep using it, even though their financial position may have changed due to job loss, pay cut, etc.

It has changed recently though, so now it's not as easy to get a loan if your credit history isn't that good. Anything below 600 in the US will probably make it difficult for you to get a loan, and if you do get it, your interest rate will be relatively high.

 

[Gary Allan]

Hey, it's like making good money. Everywhere you went to spend it.. someone else was there too. If you didn't know any better, you would think everyone lived that way since just about every rational income gets reduced to maintenance level sooner or later.

Your maintenance level is less marginal.

 

[meangreen01]

No way I would've paid for them to run a credit report on me. I wonder if it's even legal if your situation is similar to those im my areas in that there's only one utility to purchase gas/electric from.

Sorry to burst your bubble, but the reason she may have been chatting you up all nicey-nice may have been because she was able to sell a credit report that she'll get a commission on.

One indicator that causes my suspicion is their criteria for a down-payment, less than 450. A 450 score is incredibly bad and would bet that <10% of people are in that score category, which would make it bad business practice to subject the vast majority of customers to this fee. Something smells funny to me...

 

[StevieC]

I guess I'm a rare bread and so are my siblings and parents... We don't buy something unless we can pay for it cash. Then we use our credit for the points, not for delayed payment time other than the billing cycle period.

The only exception being a house and vehicle. Even then we make sure we are well within the clear to make the payments and keep a good buffer in case we are unemployed etc.

 

[PandaBear]

Originally Posted By: StevieC
I guess I'm a rare bread and so are my siblings and parents... We don't buy something unless we can pay for it cash. Then we use our credit for the points, not for delayed payment time other than the billing cycle period.

The only exception being a house and vehicle. Even then we make sure we are well within the clear to make the payments and keep a good buffer in case we are unemployed etc.



You are not that rare, most of the people I know are like that too, except they pay cash for vehicle and try to buy econobox instead of luxury cars or SUVs.

 

[Steve S]

Sometimes being responsible pays off !!!

 

[StevieC]

Originally Posted By: PandaBear


You are not that rare, most of the people I know are like that too, except they pay cash for vehicle and try to buy econobox instead of luxury cars or SUVs.


Fine, ruin my superiorness!

I would have paid the Santa Fe in cash but they offered 0% for 5 years so I took it and made 12% until 2008 and about 8% right now and I laugh my way to the bank.

I'm a saver...

 

[Geo_Prizm]

Originally Posted By: Steve S
Sometimes being responsible pays off !!!


It does,,to lure you into the debt swamp.

Meangreen, Canada's credit rating system and points might be different than US'.

 

[StevieC]

Our system is slightly different than yours from what we hear from Canadian TV News outlets... We have FICO scores like you do but the things that affect our credit rating is different than yours other than credit extended to us that we default or are late on. That's still the same...

They also can't do a credit check on you for employment or make you take a drug/tox-screen test for employment unless it's agreed to by the employee and it's absolutely necessary for the type of work being done.

We have great privacy laws and I'm happy to have them!

 

[bigmike]

Most people should take a finance class.

However, most never learn how to manage their money and I suspect it is correlated with them never having a long term outlook on life's decision making.

 

[Gary Allan]

Quote:
One indicator that causes my suspicion is their criteria for a down-payment, less than 450. A 450 score is incredibly bad and would bet that div>


It was simply an "assigned risk" deal. They have no experience with him and have a hard time shutting off the service once established. He could have opt'd out with a $200 deposit, which considering the numbers involved, isn't all that much. Phone and cable are paid in advance, so to speak.

btw- has anyone ever been charged a late fee on their cable? It's been well over 20 years, but I have had those charges refunded. How do you charge someone a late fee for services paid in advance??

 

[CivicFan]

Paying $22 to avoid a $200 down payment doesn't strike me as a very prudent choice unless the interest rates in Canada are 11% or more.

 

[Papa Bear]

Originally Posted By: StevieC
So I called the local utility for hydro (Electric) because hydro isn't included at my new apartment and I never had an account before and the lady that helped me gave some schpiel (sp?) about that I would have to put down a $200 deposit and I would get it back in a year etc. and I said well is there anyway around it? She said I could get a letter from a previous utility company I dealt with (Never have so I couldn't do this) or I could pay $22 and have a credit check done and if I had a score of 450 or higher I wouldn't need to put a deposit down.

I said ok and she put me on hold to do the check. Well she came back and said that my score was *** and that she hadn't seen a score that high ever.

She proceeded to setup my account and while we were on the phone she was friendly and talkative as was I and she jokingly asked me why I was renting instead of buying a house. I told her I own a rental property and that me renting was all I needed and cheaper in the long run because of the tax right-off's etc.

Anyways... She kept saying about how bad some peoples credit is that call, and how many times they default on their bills or are chronically late and that she was shocked at my good credit rating.

I guess because I always had good credit I took it for granted that lots of people do and that it's only a small portion of people the are the delinquents.

Guess not.

Good feeling to have good credit and be told that my word is good enough that I will pay the bill.

I would have paid the deposit and got it back at a later date. I wouldn't pay them for a credit check....

Ooops Civic beat me to it.

 

[The_Jeff]

When I set up electric service on my rental house the nice lady on the phone asked if it had electric heat.

"yeah" dumb me replies, wondering if it was some sort of survey.

"Okay I'll need your drivers license number" she says.

"Uh I don't plan on using electric heat, it's just... there".

They wanted more info b/c of the ability to run up a huge tab.

 

[StevieC]

Originally Posted By: CivicFan
Paying $22 to avoid a $200 down payment doesn't strike me as a very prudent choice unless the interest rates in Canada are 11% or more.
It's about cash flow and the fact that they sit on my money for a year. $22 is cheaper IMO. Plus I'm getting 12% on my investments again.

 

[StevieC]

Originally Posted By: eljefino
When I set up electric service on my rental house the nice lady on the phone asked if it had electric heat.

"yeah" dumb me replies, wondering if it was some sort of survey.

"Okay I'll need your drivers license number" she says.

"Uh I don't plan on using electric heat, it's just... there".

They wanted more info b/c of the ability to run up a huge tab.
Sneaky little buggers!

 

[Quattro Pete]

Originally Posted By: StevieC
Plus I'm getting 12% on my investments again.

Dude, you need to hook me up! What are you invested in?

 

[StevieC]

I have an investment advisor at Investors Group (Private Investment Firm - Largest in Canada). I give him all my money I don't spend and he invests it in whatever...

I have some stuff in RRSP's (401K) and some stuff in money markets and equities etc.

It's spread over a ton of funds and to be honest with you I have lost track but I have never lost money.

Does my value change, sure, but he keeps re-balancing things so if I loose value I gain units (shares) and then the value will go back up.

Before the "Crash" at the end of 2008 he knew a "Correction" was coming and pulled me into very same minimal interest bearing or minimal dividend paying things. Sure enough 3 months later the markets crashed. Then he waited till he saw the signs of recovery like they had seen in the past 100 years of history they have and put me in the markets again to ride the wave, and the wave I'm-a-ridin'.

With a company that has a 100 years of market experience and a great track record and lots of historical data it's a no brainer for its advisors in our BOOM/BUST economic setup.

Most sheeple put money it at the height of the markets and pull out at the lows because they are fearful and listen to the media when they cry the sky is falling and you want to do the exact opposite.

Find a good advisor, wine and dine him/her and make them your friends and listen to what they say which should be the opposite of the media directing the sheeple... You will make a ton of money like me

I plan to retire at 50/55 and will have a whack of cash to do so and I only started at 18! 32-38 years and I only put $2,000 away a year now

 

[dkryan]

Originally Posted By: StevieC
I have an investment advisor at Investors Group (Private Investment Firm - Largest in Canada). I give him all my money I don't spend and he invests it in whatever...


Uh, Stevie my boy, 'zactly where is "whatever" listed on the NYSE, AMEX, or whatever Canada uses for an exchange? I'd love to invest in this company/mutual fund/ETF and receive 12% annual return. I Googled "whatever" and also researched Morningstar. Alas, no joy!

Originally Posted By: StevieC
I have some stuff in RRSP's (401K) and some stuff in money markets and equities etc.

It's spread over a ton of funds and to be honest with you I have lost track but I have never lost money.


"Spread over a ton of funds?" Diversification is a good thing, but too many (aka "a ton of funds") funds and you quickly begin to lose the value in diversifying to begin with.

"...I have lost track but I have never lost money." Uh, if you've lost track, how can you say beyond a reasonable doubt you've never lost money?

I can tell you each individual stock and mutual fund I own in my portfolio, plus what indexes my 401(k) and IRA is invested in. I don't track it daily, but I've never "lost track."