@dollar_bill wrote:
@Kostya1992 wrote:More like smart people who build up their credit, take out a bunch of loans and credit cards with high limits, and then cash out big time and BK7 everything off. I know people who do this and are very successful, not that'd I'd do that
- too young.
I don't know if smart is the word I would use to describe the above behavior. To do something like that on purpose is simply theft, and I for one would hope the rules of BK make it more difficult to obtain the BK. Especially where large amount of $$$ are concerned.
If any of my friends did this I would probably not associate with them.
You don't need credit to be financially healthy, many people get by without credit just fine.
The real theft here are banks buying insurance on everything and carelessly issuing credit cards/loans to subpar borrowers.
Also, if I want to buy a home for 300k and want to take out a loan for it, given that I have the best possible credit profile, how much will I end up paying?
@avv7c0 wrote:
I didn't realize I was in such a minority here. My TCL is about 40% of my income. 70k of 175k. Can't fathom ever spending 70k on CCs, so I guess I haven't really considered trying for more.
How the hell does one make 175k a year? Are you some oil executive or something?
@Kostya1992 wrote:
@avv7c0 wrote:
I didn't realize I was in such a minority here. My TCL is about 40% of my income. 70k of 175k. Can't fathom ever spending 70k on CCs, so I guess I haven't really considered trying for more.How the hell does one make 175k a year? Are you some oil executive or something?
There are parts of this country where $175K barely allows for much of a cushion at all raising a family. Even $113K HHI is a little bit of a squeeze sometimes in DFW metro. 
@coKostya1992 wrote:
@dollar_bill wrote:
@Kostya1992 wrote:More like smart people who build up their credit, take out a bunch of loans and credit cards with high limits, and then cash out big time and BK7 everything off. I know people who do this and are very successful, not that'd I'd do that
I don't know if smart is the word I would use to describe the above behavior. To do something like that on purpose is simply theft, and I for one would hope the rules of BK make it more difficult to obtain the BK. Especially where large amount of $$$ are concerned.
If any of my friends did this I would probably not associate with them.
You don't need credit to be financially healthy, many people get by without credit just fine.
The real theft here are banks buying insurance on everything and carelessly issuing credit cards/loans to subpar borrowers.
Also, if I want to buy a home for 300k and want to take out a loan for it, given that I have the best possible credit profile, how much will I end up paying?
I have a problem with your entire statement. Any individual, who makes a deliberate charge on a card knowing they have no intention of paying it back is guilty of theft IMO. The banks are certainly not saints, but that doesn't give the rest of us a license to make charges we have no intention of paying back. Everyone is accountable for their actions, a premise that has lost some of it's luster in our current society.
What's your point on a mortgage? You'll pay a lot of interest on a 30 year fixed rate unless you pay extra every month. Are the banks stealing?
I think you have been misguided if you truly believe that it's ok to charge up and file BK, then claim the banks are the real criminals.