by: the skeptical traveler

The other day I went to the bank to open a business account.

There surprise they said they would do a credit check on me. I asked why knowing that any credit check means a hit that would affect the score itself. “For overdraft” I was told. “I do not need any overdraft” I said but the lady was adamant saying this was the bank’s policy and they would not open the account (mind you I already have a personal line of credit in good standing with them) so in the end I agreed with it as I did not want to go to other bank.

So she ran the credit check and she showed me the score (called beacon in Canada): 780. I asked for a printout but she said she could not do it but she was allowed to show me my credit check on the screen. I found out that my bank that I have the mortgage with does not report it – they would if I defaulted on the payments – but the lady told me her bank always reports the mortgages so it depends from bank to bank. Then I asked her what a very good credit score would be and she said around 850 and we got talking about credit cards and how having many credit cards doesn’t affect your score as she used to have a score in the 800′s with more than 10 credit cards over 100k limit. It is only a problem when you need a mortgage or ask for a loan.

As I already have a mortgage I might start applying for credit cards in order to get the points and the miles (I have only 2 credit cards at the moment).

 

  1. Jon said,

    OK.

  2. Miody said,

    You might want to re-read your entries before you post them.

  3. the skeptical traveler said,

    @Miody
    Did I write before that I knew my credit score? Just did a search on my blog and could not find any reference to it.

  4. robertw said,

    #1 Personally them checking your credit score as you are an existing customer with a LOC (as you mention is nonsense. The OVERDRAFT thing is a scam. I would not be surprised if they signed you up for the overdraft protection as that is a scam that banks make alot of money with. I take no lip service from a traditional bank. There are too many options out there.
    #2 Dont trust the word of some bank employee as to what makes a good credit score. Dont know what the ranges are in Canada but you are more than likely fine.
    #3 Once you hit A credit it doesnt matter if your score is a little higher or lower. Top rated credit can range some points.
    #4 Here in the US after the big bubble burst I talk to so many people who stay away from credit cards because they went bust or something similar. They tell me that before the bubble burst 4-5 yrs ago that they had a 800 credit score. Between you and me I doubt any of them had 800. Maybe they were A or B credit, but they didnt have an 800 score.
    #5 Utilization is important. Inquiries are much less important.

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