Credit Rating

[Celadus]

Anyone know how harmful not turning a movie in for 80 days is to your credit? They said it goes on your credit after 60 days. I completely forgot about it. I have pretty good credit other than that. I checked last week and it was 723. I'm looking to get into real estate investing on the side eventually. I can't imagine it'll hurt me too bad but credit rating is a mystery to me.

Thanks
Celadus

 

[aftershock]

I think you're getting paranoid.

I only went down slightly when I missed two months of credit card payments.

You're not going to get refused real estate investing because you forgot to take Mean Girls back on time.

 

[Shiftkey]

If you pay the late fees you should be able to negociate having it removed from your record. Companies are out to make money, not ruin your credit.

 

[dannowillbookem]

but christ eighty days?

how do you forget about a movie for just short of three months? and what the hell is the late fees on that?

 

[Skel]

I did that before. It wont hurt your credit rating as long as you go pay the store

And by the way I just flat out lied. I argued with the manager of the store telling her i returned the movie and made a big stink over it. She finally caved in and i paid nothing.

 

[Latinoman]

ALWAYS take your credit serious. I have over 800...my ex- also had over 800.

 

[JC9]

Depends how the company you rented the movie from handles it, but if they put it as a collection it won't impact your credit to much.

It may lower your score, but not by much.

Real estate investing isn't that much about your credit score anyways, unless your trying to qualify for a very stringent loan program or government backed loan.

 

[ntssv]

ALWAYS take your credit serious. I have over 800...my ex- also had over 800.

Apparently you do take it seriously. Very,very few people have a score over 800.

Good credit is a powerful tool when used correctly.

 

[Bible_Belt]

The store has the right to report the debt to a collection agency, and then it would hit your credit report. I don't know of video stores doing this, but your very good credit score is not worth risking over a movie. If they report to collection and it goes on your credit, you will have to pay it off anyway before you can get a mortgage loan.

 

[STR8UP]

Real estate investing isn't that much about your credit score anyways, unless your trying to qualify for a very stringent loan program or government backed loan.

I don't know where you come from but around here credit is VERY important to real estate investing. It isn't that you can't invest with little or bad credit, but a high score makes it MUCH easier and cheaper.

 

[STR8UP]

I think you're getting paranoid.

I only went down slightly when I missed two months of credit card payments.

If your credit score wasn't that high to begin with it is possible that it might not have as much of an impact, but one of my mortgage loans was mistakenly reported as being only slightly late and it dropped my score 60 points overnight.

There is nothing worse for your credit score than not making your payments.

 

[aftershock]

It was 900! Went down to high 800's.

Gonna be crap now because I've just been making minimum payments on my credit card. Oh well, plenty of time to be responsible later in life!

 

[JC9]

I don't know where you come from but around here credit is VERY important to real estate investing. It isn't that you can't invest with little or bad credit, but a high score makes it MUCH easier and cheaper.

What I meant is that the credit score itself isn't the biggest factor when a lender considers wether or not to fund a loan or which program to try and qualify the loan as.

Purpose of the property (home, rental, investment property), your assets, and your debt to income ratio are much bigger factors in the lending process.

You're better off paying off a credit car or car loan to drop your fixed expenses, or put money aside for a bigger down payment than stressing a small drop in your score.

That's not to say credit isn't a factor but a drop of say 30 points for a late movie, which is a pretty big drop, isn't likely to disqualify you for any good programs or mess with your interest rate. Whereas having 2 cars your currently paying off would.

The only time credit is a huge issue is with specific loan programs that require 750+ or 800+, etc. Which ussually only happens with government loans or specific fannie mae or freddy mac programs.