Yesterday I received a replacement for one of my credit cards that was about to expire. I called up the 1-800 activation phone number and much to my surprise (or dismay!) I was connected with a "live" person. She quickly confirmed a bunch of personal information... but then came the real reason why the activation was not totally computer-automated... did I need balance transfers (at a special low rate!), did I need a full credit report, etc. etc...
Well, I lied about the credit report. I answered to the affirmative that I regularly check my credit repot. The fact is I had not done it in years. So after hanging up, I headed on over to AnnualCreditReport.com and got my free report. We'll okay, I gave into curiousity and coughed up the $5.95 to get the all-important credit score.
Thankfully, everything on my report was "clean"... and my credit score, on the 400-925 scale (how did they come up with that?), was 867... higher than 88% of the population. So that was very good news.
Despite tipping into the "very good" range, the report still offered a way to improve my score. I nearly fell off my chair laughing, when I read this:
Not enough revolving debt experience: More revolving accounts, containing longer credit histories, provides more payment behavior information.
According to the report, I have been "on file" since 1986... so they should be well aware of my considerable experience in the revolving debt department! Right there in my credit report were all the potholes of my financial past... a handful of credit cards, the student loans, a car loan... the overwhelming majority of them canceled or closed. But, roughly 13 years ago, I was over $25,000 in debt.
Even under that mountain, I was not the most disciplined person (and to this day, I still would say I am not), but I buckled down and started to tackle that debt. I put everything into one mega-spreadsheet, which I think was key... seeing it all in one place and looking at it regularly. Methodically, I started paying things down (starting with those with the highest interest rates) and did do those transfers to special/low interest rates and consolidated the student loans. Fast forward to 2006 and, fearing a non-endearing moment among my W&C readers, a deep dark confession... and, ironically enough, it is something that likely would have improved my credit score...
I did not finance my MINI Cooper. While it took my breath away and my shaky hand did not produce my best penmanship, I wrote a check. But it was (and is, even today), very much a moment of personal pride - to have been able to buy something outright for nearly the same amount of what seemed like insurmountable debt nearly a decade ago.
Now, my financial environment improved on many fronts. Over the past four consecutive years, my company broke its profit "record" (a streak that will come to a screeching halt this year!)... and thanks to becoming a dual-income household in 2002, my household expenses (rent, utilities, phone, cable, etc) have come down from my days of apartment living. So that allowed me the ability to get the Cooper... but, that said, I was debt-free prior to any of the above events.
Like I said, I know this admission won't win me any fans... but hopefully it's some inspiration. Getting out of debt can be done... it certainly doesn't happen overnight (I am guessing it took me 6-7 years)... like the 12-step programs, admitting and owning it was the all-important start.
Ok... continuing the credit and Cooper theme, but bucking the fiscal responsibilty angle... I applied for a new credit card... but I just couldn't pass this up...
Scott tipped me off to this several weeks ago via this article... then, last week I got an official e-mail from MINI and figured what the heck... just like your Cooper, you can customize your very own MyMINI Visa Card!
So this what mine will look like (I assume given my credit score, they will happily issue the card)... they make it really easy for you to do... you can put in your VIN# and it will do nearly all the graphic "work" for you (of course, you can do it from "scratch" as well)... then just go to the "You-Ify It" section to add bonnet stripes, tire upgrades, or other custom features.
Like an frequent flyer card, you earn MINI Motoring Reward Points that can be used for cash back on the purchase of a MINI or other items at MINI website or dealerships. You get 1 point for every $1 spent... but double points for "motoring-related" expenses like gas, car wash, tolls, etc.
Needless to say, like casino cards, when you get around to "cashing" in you only get a small fraction of that back... 5,000 points = $50. But, just think, $2 million in charges (not including double points!) and you are well on your way to getting a "free" MINI Cooper...haha!
Now, that's not gonna happen... but who knows, maybe waaaay down the road when I am in the market for my next MINI Cooper (if this one doesn't do me in!), it will be a nice little (very little) cash kickback.
P.S. Since this turned in a MINI Cooper Chronicles sort of post, here's an interesting look/review ("Maximum Mini") of the 2006 MINI Cooper... the last of its breed, as MINI gets ready for a re-designed Cooper (and a price increase!) in 2007.
