FYI when using Yamaha Finance

[fixit6404]

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!

[justjim]

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

[retiredguy123]

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!
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?

[Stu from NYC]

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!

I suspect you did not read the fine print.

[CoachKandSportsguy]

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

[dewilson58]

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.

[starflyte1]

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

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

[I'm Popeye!]

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.

[retiredguy123]

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.

[Stu from NYC]

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

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

[tophcfa]

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

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

[Garywt]

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.

[dewilson58]

Never could understand a logical reason for that.

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

[dewilson58]

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

:boom:

[airdale2]

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

[Dlbonivich]

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

[Kegarn]

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

[Hiltongrizz11]

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

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 😂😂😂

[noslices1]

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 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?

[christine J Toft]

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

[retiredguy123]

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
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.

[retiredguy123]

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?
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.

[joelfmi]

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

[Billy1]

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

[Notsocrates]

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.

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.

[Ptmckiou]

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

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.

[debb3c]

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

[dlk1019]

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.

[dewilson58]

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.

:boom:

[dewilson58]

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.

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

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

[dewilson58]

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.

Use Google & educate yourself.

[fixit6404]

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

[Lil GTO]

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.


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!

[SacDQ]

Cash 💵 is king

[BeverlyP]

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.

[Indydealmaker]

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

Bad credit can increase the cost of insurance.

[Cheese]

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

[Oneiric]

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

[Dana1963]

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

[ProfessorDave]

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.

[aallbrand]

if your score is high 10 points is nothing other then a blow to your ego.

[CoachKandSportsguy]

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?

A credit score handles how well you handle debt. The basis of measurement is paying bills and debt balances. So if you have debt and you pay on time and don't exceed certain thresholds of debt to income ratio, you get a certain score. however, if you don't have debt, its much harder to measure your ability to handle debt. However, a 10 point drop from 833 is a meaningless number. . .

I will go back and maintain, if you dont' have debt, as many don't have debt in the villages, a 10 point drop is meaningless, and yes, there is a correlation to insurance, but the correlation is stronger when you are the lower end of the credit range, than at the top portion of the range, if they use debt as an insurance score.

And I would also maintain that the age of your house, the roof and the construction materials have a MUCH LARGER impact on your insurance than most credit ratings here in the villages, even with a 10 point drop.

Of course if you have a bad credit score, you will get charged more but the example and the discussion is not around people not paying bills and defaulting on loans, as the OP, original poster had stated and had a mahvelous score, and I am generalizing about most villagers who are retired and don't participate in the local crime section of the villages dash news :duck:

finance guy

[dewilson58]

if your score is high 10 points is nothing other then a blow to your ego.

With a fragile ego 10 points scare me.

[noslices1]

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.

No mortgage for the last 11 years, or car payments until I bought in 2018, pay everything with credit cards which are paid off every month and had been 832-833 for over 3 years, occasionally up or down one or two points. Didn’t change when I bought the car and had a $16,000.00 loan, but as soon as I made the last payment, the score dropped to 823. So you can speculate why that happened all you want.

[stebooo]

I just did the same for some big dental work. Ended up with cc and score dropped about 15.. the only comment is there is a cut off for best interest rates etc. That move dropped me below

[firewalkerb3]

I’m looking at buying a golf cart. If they finance with 0% interest for 36 months I’m in. If the card is a hard hit and showing over 33% of the total card worth on that card, then yes your going to take a credit hit. 10 points would not last long at any point as long as payments are made on time.