FYI when using Yamaha Finance
 

We bought a new 2020 Yamaha last year at The Villages Golf car Store. We were offered 3 year 0% financing if we wanted. I figured what the hey no interest to pay so leave our money in the bank. What happened was they issued us a Yamaha credit card with just enough credit to buy the cart. Low and behold my credit score went down 10 points because I now have a credit card charged to the limit. Even though we have no other debt and money in the bank. I paid it off immediately and closed the card. Live and learn!

This is not uncommon. Happen to wife about 3 years ago when purchasing furniture.

I don't get it. First of all, 10 points is almost nothing. How do you know it was the new card that caused your score to go down? Credit scoring is top secret, and often not logical. Did your score go up when you paid off the card? Do you need to make monthly payments on the card? If not, why would they issue you a credit card that you cannot buy anything with?

I suspect you did not read the fine print.

Unless you are actively shopping for a mortgage, once retired with or without a mortgage, your credit score is meaningless. . . and if you own your forever home, your credit score still meaningless.

finance guy

Insurance companies care.

I think the insurance company checks your credit score. If you score is low, your rates go up.

Never could understand a logical reason for that.

It makes perfect sense to me. People with a high credit score are more responsible with debt and that translates to other areas of responsibility, including how well they take care of their property. Also, they are less likely to file an insurance claim, which could cause their insurance rates to increase.

But if it only changes by 10 points does not really matter.

Not true, you get discounts on things like homeowners and auto insurance with a good credit score.

I would agree that 10 points is nothing and would also bounce back in a month if not weeks. Mine bounces around 20 or so points every week but when your credit score is pulled for something it is usually 50 or more points than reported.

Statistically, there is a correlation between insurance risk & credit risk.

:boom:

My credit ratings are locked out so what can be the effect on this??

A good credit score is 690 in the insurance companies eyes. The longer you do not have a mortgage account or car payment the harder it is to have a high score. Haven’t had either for 20 years and it effects my score

Personal lines insurance (home/auto) use Insurance score, no longer your credit score.

Wrong
 

Your credit scores aren't locked out. If you mean you have a freeze that means no one can see them or alter them on the outside. However your credit scores still change and are affected by your monthly activities just like anyone else's. You can't freeze them in position lol 😂😂😂

Credit score drop
 

I have great credit. It was 833 and I bought a new car with 6 year financing. After I paid it off in 18 months my score dropped 10 points. I paid it off too fast according the the credit bureau. What’s up with that?

Interesting. My credit score is 833 out of 850 and I haven't had any debt in 20 years.

I have never had a car payment, and I haven't had a mortgage in more than 40 years, but my credit score is over 800.

Did you actually hear that from a credit bureau? If not, it would just be speculation. I didn't think they ever shared information about how they calculate the scores.

I got a call from a scammer that their was a warrant for my arrest
 

This number was left on my answering machine stating if I did not call the number by 5PM the next day the US Marshall would come to my home and arrest me. I never did call it was a scam. I still have the message on my answering machine for proof of this call

credit scores go up and down, whether you charge something or not.

Making sense has nothing to do with it. Insurance is actuarial. If claims from those with low scores are more, rates for them go up. That's all therecjs to it.

Not true for us. My score is upper 783 and have always carried a mortgage, car payment, and credit card debit. It’s your handling of debt they watch.

It makes perfect sense, too much to explain here, but I’m sure that is right on target

Credit scores are the biggest scams out there. I know 2 different people with scores in the 800’s. They both have little to nothing; neither work, so their income is minimal, and they have been in this position for many years. My credit score is in the 700’s and I literally help support one of these people.
Not sure who invented the credit score, or what it’s real purpose is suppose to be.

:boom:

The two have never been late like you. :1rotfl:

Purpose...........consistency.

Use Google & educate yourself.

We bought the cart with the card and of course there were monthly payments on the card. They issue the card hoping you will use it for service, parts or another cart after you pay the balance down and pay interest. The only item on the list provided by experian explaining a drop in credit score that applied to us was credit card charged to limit

Your score would’ve come up in 3 months of timely payments and been back to normal in 6 months and you could’ve let your money work for you.

You probably have a score of 800 or more anyway so really 10 points makes no difference at all in the way creditors look at you.

In automotive finance 10 years believe me I could get people with low to mid 500 scores financed and with a little cash down I could get 450 and up done.

Cash 💵 is king

Good deal!
 

I was offered the same deal almost 3 years ago; I have 4 payments left and it will be paid in full. It was tied to a credit card which I never used.
Each time you generate a new credit check your score may change but usually will recover. Credit score remains excellent and I have benefited from the 0 interest offer.

Bad credit can increase the cost of insurance.

I disagree! They sure checked our credit score when purchasing a new car and furniture.

I thought a really good credit score is 650-700. I don't understand what difference 640-690 would make?

Trivial complaint. I’m more worried about not getting junk mail from the post office and Amazon packages arriving on time

Personally - I would never do anything differently for a 10 point drop in credit score. The standard deviation (variance) on credit scores is significantly more than 10 points - so it cost you absolutely nothing for variances generally within 35 points unless you are below 720. However, the % percent interest is like making an extra 5% free money. So - right decision for you - but - hope others considering this will NOT turn down no interest rate credit in this same situation.