Wednesday, January 25, 2017

The Fee Fiasco Update

As the sands of time goes, so are the days of our lives.........................Well the husband, God bless him, went to the bank yesterday and sure enough the fee was because we don't owe the bank a cent nor do we have a large sum in savings.  He spoke to someone and they suggested that we change to a different type of banking package.   As long as we have an ACH deposit of at least $500.00 once a month, the fee will be waived.  This will be no problem whatsoever due to his ACH is larger than that.


You know this is really sad because there are some folks out there who won't meet these guidelines and will be eaten alive with fees.  


I can only imagine how paying off our mortgage will effect my credit score.  As I read about it, our credit score is actually a debt score.  It shows we have debt and how we pay it back.  I once heard DAve Ramsey say that he doesn't have a credit score because he doesn't have debt.


For you guys out there who are debt free-how has your credit score or FICO been affected?



2 comments:

  1. I am debt free, beyond some medical debt, which is not reported to the credit bureaus. As long as you make continuous, on time payments to things like utilities, credit cards (visa as well as store cards), you still have credit and a credit history. One's debt to credit is also a factor. I have a really high line of credit on my credit card, which I pay off in full, monthly. This shows that I can handle credit, am responsible in repaying in a timely manner. HTH

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  2. Hello Lee Ann,

    I think I commented on one of your previous posts about how our family lived debt-free for 15 years.
    Prior to marriage, I'd never had any debt. I was one of those few people who had enough discipline to pinch every penny until I could eventually pay cash for my house, car, and anything else I needed or wanted. Thus, I did not have a credit score, which as far as creditors were concerned, was worse than a BAD credit score. I'm still trying to figure out how that makes any sense ... Any way, once we paid off all Mr.B's pre-marriage debt, we did keep one credit card with a modest limit. We have always been diligent about charging only small amounts on it and paying it off, in full, each and every month. By paying off pre-marriage balance(s) and then continuing to pay any monthly purchases off each month, his credit score skyrocketed. The time came when we needed another vehicle. Although we had the cash to pay for the auto outright, we decided to help maintain that high credit score a little by financing the auto with a no-penalty loan. We made monthly payments for one year and then paid the balance off with the cash money we had already set aside for the purchase.
    Finally, when I was 45 years old, we decided I needed to build some credit history of my own so, I got my first, and only, credit card with a very, very low limit. I charge one tank of fuel on that card each month and pay it off as soon as the bill arrives in the mail. Consequently, my credit score, like Mr.B's is very high.
    Aside from our current mortgage, we never purchase anything on credit that we do not have cash on hand to pay in full. Now that y'all are mortgage free, I hope y'all will quickly find yourselves in a financial place where you too can have cash on hand for anything you purchase ... even if you choose to use a credit card or finance for credit building purposes.
    I know this whole credit score, bank penalties is frustrating for someone like yourself who has been responsible and paid off debt. But, WoW! what a good frustration! I would estimate that nearly 90% of Americans will never see a day when they are living debt free.

    Blessings,
    Mrs.B

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