Went to have my taxes done today...

[GWguy]

Originally Posted by Baja28

Exactamundo! I continue to deposit the payment into my ING account twice a month. I will never finance another car or boat again.

There is a minor downside to that. I haven't had a car payment since 1980. Either used a credit union personal line or a secured loan, so there was never a 'car loan'.

As it turns out, this counts negatively toward your credit rating. I didn't realize this until the insurance on the bike went up, and the reason was stated as 'no car loan history'.

You actually get penalized for having the smarts to manage money.

[ItalianScallion (Premo)]

Originally Posted by GWguy

There is a minor downside to that. I haven't had a car payment since 1980. Either used a credit union personal line or a secured loan, so there was never a 'car loan'.

As it turns out, this counts negatively toward your credit rating. I didn't realize this until the insurance on the bike went up, and the reason was stated as 'no car loan history'.

You actually get penalized for having the smarts to manage money.

You're right! I asked the insurance lady at Progressive (Not Flo) why they couldn't give me the best rate and she said that I have no loans or credit card payments. I said: my insurance payments haven't ever been late have they? She said: No. I said: well there you go! My insurance payment history should suffice but of course it couldn't.

[Inkd]

Originally Posted by GWguy

There is a minor downside to that. I haven't had a car payment since 1980. Either used a credit union personal line or a secured loan, so there was never a 'car loan'.

As it turns out, this counts negatively toward your credit rating. I didn't realize this until the insurance on the bike went up, and the reason was stated as 'no car loan history'.

You actually get penalized for having the smarts to manage money.

I got a hit on my credit rating for never having a mortgage.

Never mind the fact that I have paid off 3 vehicles and several consolidation loans, never had a judgement against me for anything or had a late payment on any credit card or bill, ever.

I couldn't believe it.

All my friends told me that when I retired I needed to buy a house or I would get killed in taxes since I would have no deductions.

I didn't quite understand that. I told them if they could find me a 2 bedroom on the water for 750 a month, which is what I am renting now, I'd buy it hands down.

[ProfMoneyWise]

Originally Posted by ItalianScallion

You're right! I asked the insurance lady at Progressive (Not Flo) why they couldn't give me the best rate and she said that I have no loans or credit card payments. I said: my insurance payments haven't ever been late have they? She said: No. I said: well there you go! My insurance payment history should suffice but of course it couldn't.

Fire your insurance company. I told my State Farm Agent if my rates ever go up because I am responsible and don't borrow money we would part ways. He assured me the credit score, if used at all, is but one piece of information considered when assessing the risk of the customer. If there is an explanation for a low to no score it can be disregarded.

[ProfMoneyWise]

Originally Posted by Inkd

I got a hit on my credit rating for never having a mortgage.

Never mind the fact that I have paid off 3 vehicles and several consolidation loans, never had a judgement against me for anything or had a late payment on any credit card or bill, ever.

I couldn't believe it.

All my friends told me that when I retired I needed to buy a house or I would get killed in taxes since I would have no deductions.

I didn't quite understand that. I told them if they could find me a 2 bedroom on the water for 750 a month, which is what I am renting now, I'd buy it hands down.

There is a credit report and a credit score. The report (www.annualcreditreport.com) is what you want to be nice and clean. The score (Free FICO Credit Score + Check Your Credit Report Online | myFICO) is nothing but a "how good am I at borrowing and paying back money" point system. There are 5 pieces to the score (Free FICO Credit Score + Check Your Credit Report Online | myFICO) and none have anything to do with actually having money. In fact you could have $1M in the bank but never borrow money and have no score.

Pull one of your three reports every 4 months as a form of personal identity theft monitoring.

As for your friends I have found others always have good ideas as to what I should do with my money.

[ProfMoneyWise]

Originally Posted by GWguy

There is a minor downside to that. I haven't had a car payment since 1980. Either used a credit union personal line or a secured loan, so there was never a 'car loan'.

As it turns out, this counts negatively toward your credit rating. I didn't realize this until the insurance on the bike went up, and the reason was stated as 'no car loan history'.

You actually get penalized for having the smarts to manage money.

Do not let yourself be penalized for being smart. Find a new insurance company.

[Baja28 (Premo)]

Originally Posted by GWguy

There is a minor downside to that. I haven't had a car payment since 1980. Either used a credit union personal line or a secured loan, so there was never a 'car loan'.

As it turns out, this counts negatively toward your credit rating. I didn't realize this until the insurance on the bike went up, and the reason was stated as 'no car loan history'.

You actually get penalized for having the smarts to manage money.

Hmmmm..... I pulled my credit score last year and thought it should be higher.

I have paid off 2 mortgages, several substantial car/boat loans, have never been late on anything and my score was 783. I expected it to be over 800.

[Vince]

Originally Posted by ItalianScallion

I just found out that it is because of the Residential energy credits as Kwilla stated. I guess this stupid gov't never had these requests before...

What is a Residential Energy Credit? You mean if I put in a new Energy efficient Heat Pump last year and want a deduction, I'm going to wait?

[Chasey_Lane]

Originally Posted by Baja28

Hmmmm..... I pulled my credit score last year and thought it should be higher.

I have paid off 2 mortgages, several substantial car/boat loans, have never been late on anything and my score was 783. I expected it to be over 800.

Being responsible and paying on time are only small factors that determine your credit rating. Creditors (and credit report agencies) look at your debt to income ratio as well. Sometimes this can hurt you. Too many hard credit inquiries can hurt you too. Still, your score is very good and probably a good example of most people's credit score.

[ItalianScallion (Premo)]

Originally Posted by Vince

What is a Residential Energy Credit? You mean if I put in a new Energy efficient Heat Pump last year and want a deduction, I'm going to wait?

Yes. An REC is a monetary credit for upgrading your residence to a more energy efficient status whether it's insulation, new windows, hvac unit, etc. I had a new HVAC unit installed in early October.

My tax lady said (because of some gov't issue) she couldn't file my regular taxes until after Jan 31 but the Res Energy Credit form could not be filed until after Feb 28th. She couldn't tell me why but she alluded to something about the gov't and the tax credit form...