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??