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450 Credit Score: Is It Good or Bad?

Can I get a loan with a 450 credit score? You can get a loan, but your 450 score is a bad place to be in if you’re looking for great and affordable rates or even hassle-free loan applications. 

You’re also unlikely to qualify for most mortgage products with that score and can even get higher than usual deposit payments by companies for installment-based payments.

So getting a 450 on your score is very unfavorable for you, the money lenders, and banks alike which may lead to the rejection of your personal loan application.

But don’t worry, building your score isn’t impossible. You just have to know what and how creditworthiness works and being aware of your poor creditworthiness is already a start.

What Makes a Good Credit Score?

Credit bureaus, credit-reporting agencies or here in the United States, consumer reporting agencies are agencies that research and collect individuals’ credit information.

Credit bureaus gather information such as an individual’s debt history, bill-paying habits, and an individual’s performance in their previous loan. read more

Man holding Black Card

Top 8 Most Prestigious Credit Cards and Their Perks

Credit cards from credit companies, banks, and other financial institutions are readily available to most people who want them. Many of these lenders will aggressively market them to get as many customers as possible. 

But for the world’s most exclusive credit cards, that’s not the case. Some of these credit cards can only be obtained upon invitation. Others require you to have a large spending limit annually. However, they do offer excellent perks. 

But to obtain these credit cards, you have to be quite wealthy or an excellent client. You must also spend more than the average American earns. 

The average American household earns an income of $78,500. That should give you an idea of just how much money you should be spending to qualify for such exclusive cards.

Here’s what you need to know about the most exclusive credit cards:

1. Centurion® Card from American Express, Aka the Black Card 

Man holding Black Card

The Centurion Card courtesy of American Express, aka the Amex Black Cards, is offered by American Express by invitation only. It is not a black card by Visa, but it is one of the most exclusive credit cards in the world. read more

Refinancing Again

With mortgage rates near record lows again I am looking into refinancing again. Although I had refinanced just over 13 months ago, it looks like I can save some significant money by refinancing again. Running the numbers quickly, I can go from a 30 year mortgage down to a 20 year mortgage and not pay much more in monthly payments, while saving about $45,000 in interest over the life of the loan. The breakeven point (between financing and not financing – covering the refinancing costs) for this refinancing is about a year. So it looks like a good deal for me.

Hopefully I will know next week whether it is a go or not – I am waiting on the company to get back to me with final figures and approval.

Child Identity Theft

I use Debix to help protect me and my family against identity theft. Every year about this time they do a public records scan to see if there is any evidence of misuse of our children’s social security numbers. We are willing to pay extra for this service because our three children are adopted and we know of at least four other people outside our family who know their social security numbers – and one of these people is in prison for theft and another individual is not what you would call an upstanding citizen either!

This past week I received a phone call from Debix that after performing their scan they found suspicious activity regarding my youngest daughter’s social security number. In order for them to investigate further I had to send them documents:

  • copy of child’s social security number
  • copy of birth certificate
  • copy of my driver’s license (verify my identity)
  • copy of a utility bill (verify my identity)

So I have faxed the information (people still use faxes!), and am now waiting to hear the results from their further investigation. Hopefully it is just a false positive and everything is okay. But either way we are protected and we have the Debix team on our side to do the leg work and paperwork to help clear up the matter if necessary.

So if you have children this is something to think about. My understanding from talking with knowledgeable individuals is that child identity theft is on the rise.

Refinancing Our Mortgage – Approved!

I called Wells Fargo to check on the status of our Home Mortgage Refinance – we have been approved! Just waiting now for formal notification in writing (or by email). The refinancing lowered our monthly payment by over $90 per month, but we will be paying an extra $100 on the principal every month so we can pay the loan down faster. So by refinancing (and making the extra payment which is only a little more than our current payment) we will reduced our loan length by over 4 years. And the refinancing did not cost us anything. Sweet!

If I get a raise this year (which I should find out hopefully by the end of October) I hope to take some of that raise and pay even more on the principal every month. I would love to get this paid off within 20 years (even less if possible).

Best Business Credit Cards

If you’re a small business owner like I am ( sole proprietor, LLC, or even S Corp ), then you probably need a business credit card. Nearly every bank offers one or more choices – some better than others. Just like personal credit cards, some business cards offer rewards such as cash back, with no annual fee. BFPP has a quick rundown of some of the best business credit cards around right now. If you’re not using a rewards card, you need to take a look.

High Limit Credit Cards

Nowadays, it seems easier and easier to get credit cards with astronomical limits – provided you have good credit and the income to support it. The question is, why would you want a credit card with a $20, 30, or even $40,000 limit? Certainly you wouldn’t want to charge $30,000 worth of, well, anything. That’s a debt load that can be absolutely crushing to all but the wealthiest people. I have a credit card with a $50,000 limit, and like to joke that it’s so I can buy a spare Navigator on the fly if I need to. Of course, I won’t be doing that any time soon, and I wouldn’t recommend that anyone else do it. So why the huge limit?

The key lies in your credit score. See, a large part of you credit score is determined by utilization – that is, the percentage of available credit that you use. Let’s say you charge an average of $2,000 on your card every month ( for things like food, utilities, cell phone bill, daycare, etc. ). If your credit limit is $2,000, then your utilization will be 100% – a very bad sign to creditors. Your FICO score will take a nosedive, since it looks like you are overextending yourself. You are using all of your available credit, and that’s not a good image to portray.

If your card had a $20,000 limit, and you charged the same $2,000, then you would be using just 10% of your limit. No creditor would bat an eye, and your FICO score will be as healthy as ever. So go for the high limits, just remember to use the cards responsibly – it’s not free money.

credit rating

450 Credit Score: Is It Good or Bad?

Can I get a loan with a 450 credit score? You can get a loan, but your 450 score is a bad place to be in if you’re looking for great and affordable rates or even hassle-free loan applications. 

You’re also unlikely to qualify for most mortgage products with that score and can even get higher than usual deposit payments by companies for installment-based payments.

So getting a 450 on your score is very unfavorable for you, the money lenders, and banks alike which may lead to the rejection of your personal loan application.

But don’t worry, building your score isn’t impossible. You just have to know what and how creditworthiness works and being aware of your poor creditworthiness is already a start.

What Makes a Good Credit Score?

Credit bureaus, credit-reporting agencies or here in the United States, consumer reporting agencies are agencies that research and collect individuals’ credit information.

Credit bureaus gather information such as an individual’s debt history, bill-paying habits, and an individual’s performance in their previous loan. read more

Man holding Black Card

Top 8 Most Prestigious Credit Cards and Their Perks

Credit cards from credit companies, banks, and other financial institutions are readily available to most people who want them. Many of these lenders will aggressively market them to get as many customers as possible. 

But for the world’s most exclusive credit cards, that’s not the case. Some of these credit cards can only be obtained upon invitation. Others require you to have a large spending limit annually. However, they do offer excellent perks. 

But to obtain these credit cards, you have to be quite wealthy or an excellent client. You must also spend more than the average American earns. 

The average American household earns an income of $78,500. That should give you an idea of just how much money you should be spending to qualify for such exclusive cards.

Here’s what you need to know about the most exclusive credit cards:

1. Centurion® Card from American Express, Aka the Black Card 

Man holding Black Card

The Centurion Card courtesy of American Express, aka the Amex Black Cards, is offered by American Express by invitation only. It is not a black card by Visa, but it is one of the most exclusive credit cards in the world. read more

Refinancing Again

With mortgage rates near record lows again I am looking into refinancing again. Although I had refinanced just over 13 months ago, it looks like I can save some significant money by refinancing again. Running the numbers quickly, I can go from a 30 year mortgage down to a 20 year mortgage and not pay much more in monthly payments, while saving about $45,000 in interest over the life of the loan. The breakeven point (between financing and not financing – covering the refinancing costs) for this refinancing is about a year. So it looks like a good deal for me.

Hopefully I will know next week whether it is a go or not – I am waiting on the company to get back to me with final figures and approval.

Child Identity Theft

I use Debix to help protect me and my family against identity theft. Every year about this time they do a public records scan to see if there is any evidence of misuse of our children’s social security numbers. We are willing to pay extra for this service because our three children are adopted and we know of at least four other people outside our family who know their social security numbers – and one of these people is in prison for theft and another individual is not what you would call an upstanding citizen either!

This past week I received a phone call from Debix that after performing their scan they found suspicious activity regarding my youngest daughter’s social security number. In order for them to investigate further I had to send them documents:

  • copy of child’s social security number
  • copy of birth certificate
  • copy of my driver’s license (verify my identity)
  • copy of a utility bill (verify my identity)

So I have faxed the information (people still use faxes!), and am now waiting to hear the results from their further investigation. Hopefully it is just a false positive and everything is okay. But either way we are protected and we have the Debix team on our side to do the leg work and paperwork to help clear up the matter if necessary.

So if you have children this is something to think about. My understanding from talking with knowledgeable individuals is that child identity theft is on the rise.

Refinancing Our Mortgage – Approved!

I called Wells Fargo to check on the status of our Home Mortgage Refinance – we have been approved! Just waiting now for formal notification in writing (or by email). The refinancing lowered our monthly payment by over $90 per month, but we will be paying an extra $100 on the principal every month so we can pay the loan down faster. So by refinancing (and making the extra payment which is only a little more than our current payment) we will reduced our loan length by over 4 years. And the refinancing did not cost us anything. Sweet!

If I get a raise this year (which I should find out hopefully by the end of October) I hope to take some of that raise and pay even more on the principal every month. I would love to get this paid off within 20 years (even less if possible).

Best Business Credit Cards

If you’re a small business owner like I am ( sole proprietor, LLC, or even S Corp ), then you probably need a business credit card. Nearly every bank offers one or more choices – some better than others. Just like personal credit cards, some business cards offer rewards such as cash back, with no annual fee. BFPP has a quick rundown of some of the best business credit cards around right now. If you’re not using a rewards card, you need to take a look.

High Limit Credit Cards

Nowadays, it seems easier and easier to get credit cards with astronomical limits – provided you have good credit and the income to support it. The question is, why would you want a credit card with a $20, 30, or even $40,000 limit? Certainly you wouldn’t want to charge $30,000 worth of, well, anything. That’s a debt load that can be absolutely crushing to all but the wealthiest people. I have a credit card with a $50,000 limit, and like to joke that it’s so I can buy a spare Navigator on the fly if I need to. Of course, I won’t be doing that any time soon, and I wouldn’t recommend that anyone else do it. So why the huge limit?

The key lies in your credit score. See, a large part of you credit score is determined by utilization – that is, the percentage of available credit that you use. Let’s say you charge an average of $2,000 on your card every month ( for things like food, utilities, cell phone bill, daycare, etc. ). If your credit limit is $2,000, then your utilization will be 100% – a very bad sign to creditors. Your FICO score will take a nosedive, since it looks like you are overextending yourself. You are using all of your available credit, and that’s not a good image to portray.

If your card had a $20,000 limit, and you charged the same $2,000, then you would be using just 10% of your limit. No creditor would bat an eye, and your FICO score will be as healthy as ever. So go for the high limits, just remember to use the cards responsibly – it’s not free money.

Who is
Penny Saved?

From the basics of financial management to ways to be debt-free, Penny Saved explores how to achieve financial freedom.

We cover topics such as personal finance, income streams, loans; and offer practical tips on managing your finances.

We also analyze financial products from banks, licensed money lenders, to assist you in making wiser decisions for yourself!

lady holding Free Government Phone
lady holding Free Government Phone

Who is
Penny Saved?

From the basics of financial management to ways to be debt-free, Penny Saved explores how to achieve financial freedom.

We cover topics such as personal finance, income streams, loans; and offer practical tips on managing your finances.

We also analyze financial products from banks, licensed money lenders, to assist you in making wiser decisions for yourself!

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