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Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Credit Line increase


creditwherecreditisdue wrote:
Everyone's goal should be to rid themselves of revolving debt ASAP!

 

I would agree, but I would say rid of "debt" and not just revolving.  Life is much simpler when you own your autos, have not CC debt (balances).  Own your home and life is really simple.  Just gotta pay the expenses of living at that point.

 

I know there were lots of financial gurus telling people they were "stupid" if they paid off their mortgages, that they needed keep that "cheap" money in the loan and invest their discretionary cash.  Now that investments have tanked I think there are a lot of people who lost or struggle with their homes in the current economic climate wish they had invested in their home.

 

It used to be the American Dream was the home, white picket fence, a car (maybe two) and a nice, simple life with your family.  Now it appears to have been turbo charged to extra big homes, fancy cars, toys galore (on credit) and lots of discretionary cash to play with.  The problem:  This "new" dream was sold on installement and revolving credit plans that turned the dream into more of a nightmare.

 

So rather than investing in their home and its value, people mortgaged to the max, then counted on forever increasing value and refi's to pull "equity" out like an ATM to continually pay the cost of this "new" dream.  That was fueled by the speculative side of real estate.  Now reality, plus heavy penalties kicks in and the ATM is closed and the NSF is the lifestyle.....turns out it was a bait and switch.

 

Hopefully there will be a lesson learned in general about this whole mess, easy money, value for really nothing and the supposed "new" dream is seen for what it is.

 

(steps off soapbox, suddenly aware of the rant and long winded nature of post :smileysurprised: )

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Credit Line increase

[ Edited ]

All well and good, but...

 

I would not want someone to read that post and think that a parallel effort is a good idea. Revolving debt elimination must come first and remain above all else! I don't recall anyone having their mortgage RJ'ed. Increased, yes, if it was an ARM, and then there are limits. BTW - anyone left with an ARM is sitting on a time bomb. When all this governmental overspending is financed interest rates will be going up!

Message Edited by creditwherecreditisdue on 07-19-2009 03:45 PM
Established Member
Posts: 122
Registered: ‎04-27-2007
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Re: Credit Line increase

Revolving credit is great, if the limit is limited and the interest rate is not killing all of us.  I mean seriously, it's ok for these cc companies making a profit, but billions of dollars every year because of their fees and interest rates?  That should be against the law and change, which I guess will happen.  Right now I'm ready to cancel all but one card and wait a few years to see how the new regulations are handled, and apply for another one if things are regulated correctly and legally.  If we all did that, maybe the cc companies would change their ways.  Of course that will Never happen, but would be nice.  It's like taking guns away from everyone..won't happen! 
Valued Contributor
usmc58555
Posts: 1,668
Registered: ‎02-18-2009
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Re: Credit Line increase


dee wrote:
Revolving credit is great, if the limit is limited and the interest rate is not killing all of us.  I mean seriously, it's ok for these cc companies making a profit, but billions of dollars every year because of their fees and interest rates?  That should be against the law and change, which I guess will happen.  Right now I'm ready to cancel all but one card and wait a few years to see how the new regulations are handled, and apply for another one if things are regulated correctly and legally.  If we all did that, maybe the cc companies would change their ways.  Of course that will Never happen, but would be nice.  It's like taking guns away from everyone..won't happen! 

 

I am really confused.

 

it's ok for these cc companies making a profit, but billions of dollars every year because of their fees and interest rates?


yes. Its called capitalism. I do not see anyone complaining when they pay $2.89 for a coke at Mcdonalds that cost the comapny 18 cents.

How about insurance companies that make Bllions of Dollars a year from people that don't get into accidents?

Pharmacy companies that make Billions ofnecessity meds, or that refuse to explore medications for illnesses that not enough people have so they will not be a profitable research line. 


how else should credit card companies make money without fees and interest rates?

You are upset for companies excercising the terms that people are agreeing to when they initiate the relationship. Maybe the USMC just changed my thinking cause we always said it stood for yUo Signed the M""ing Contract when people got upset.

You may find a relationship with a credit union more acceptable to your world view.

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Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Credit Line increase


creditwherecreditisdue wrote:

All well and good, but...

 

I would not want someone to read that post and think that a parallel effort is a good idea. Revolving debt elimination must come first and remain above all else! I don't recall anyone having their mortgage RJ'ed. Increased, yes, if it was an ARM, and then there are limits. BTW - anyone left with an ARM is sitting on a time bomb. When all this governmental overspending is financed interest rates will be going up!

Message Edited by creditwherecreditisdue on 07-19-2009 03:45 PM

 

Obviously unless one had unlimited resources an order of priority would have to be executed toward the goal of debt free.  And I agree that revolving debt would be at the top of the list, especially since most CC debt does not usually represent real assets or value, but liability.

 

My previous post was merely talking about how many people "eliminate" revolving debt by "rolling" or refinancing into their installement debt, such as a mortgage, and therefore jeopardizing their home and security.  Once can live without a CC, but probably would like to have a home.

 

I would just like to see more emphasis on "collecting interest" than in paying "reasonable rates" of interest.  And also that the proliferation of CC's and revolving debt is part and parcel with the "new" dream I spoke of.

 

I was in no way arguing your post.  I whole hearedly agree.  I was merely adding in, that once one is in a CC debt free position, that the "snowball" plan can continue and begin to include the installement debts as well.

 

:smileyhappy:

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Credit Line increase

[ Edited ]

dee wrote:
Revolving credit is great, if the limit is limited and the interest rate is not killing all of us.  I mean seriously, it's ok for these cc companies making a profit, but billions of dollars every year because of their fees and interest rates?  That should be against the law and change, which I guess will happen.  Right now I'm ready to cancel all but one card and wait a few years to see how the new regulations are handled, and apply for another one if things are regulated correctly and legally.  If we all did that, maybe the cc companies would change their ways.  Of course that will Never happen, but would be nice.  It's like taking guns away from everyone..won't happen! 

 

At the level of US debt (people, not government) the total fees and interest would have to be billions just due to shear volume of debt that we take on.

 

If you make it illegal to charge fees or interest (or significantly limit it by legislation) there will be substantially less available.  Nobody forces us to use CC.  While it can help FICO and make life more convenient, the truth is there are many people who live a cash lifestyle and do well by it.

 

The real problem with making profit illegal is this:  Where do they stop.  Just as USMC said, after CCC's then they target pharmaceuticals, insurance, energy.  What this all spells is communism, in which there is a belief that nobody should do for profit, but for the good of all.  To each according to his/her needs, from each according to their ability.  And this is a great idea, but the problem is it never provides an incentive for each to produce according to their ability, only to take according to their needs plus some.

 

The real way to make reforms is for consumers to choose more wisely.  To refrain from credit when the credit is not a good deal.  To use moderation and frugality when it comes to borrowing.  Then those whom are considered predatory lenders have no prey to pursue.

 

And not sure about the gun comment, but I sure hope not....I have many and have no plans to get rid of them. :smileyhappy:

Message Edited by txjohn on 07-19-2009 01:13 PM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Contributor
JoeBJay20
Posts: 795
Registered: ‎04-13-2009
0

Re: Credit Line increase


dee wrote:
Revolving credit is great, if the limit is limited and the interest rate is not killing all of us.  I mean seriously, it's ok for these cc companies making a profit, but billions of dollars every year because of their fees and interest rates?  That should be against the law and change, which I guess will happen.  Right now I'm ready to cancel all but one card and wait a few years to see how the new regulations are handled, and apply for another one if things are regulated correctly and legally.  If we all did that, maybe the cc companies would change their ways.  Of course that will Never happen, but would be nice.  It's like taking guns away from everyone..won't happen! 

I'm also confused, why does the limit need to be limited? It's true that some people can't manage a certain level of credit, and those people should govern themselves accordingly, but that doesn't need to apply to those who can manage large amounts of credit.  In fact, having access to large amounts of credit allows people to weather AA by CC issuers.  At the end of the day, regardless of limits and interest rates, any person that is charging more than they can pay off immediately is inviting disaster.  

Valued Contributor
usmc58555
Posts: 1,668
Registered: ‎02-18-2009
0

Re: Credit Line increase


txjohn wrote:

 

The real way to make reforms is for consumers to choose more wisely.  To refrain from credit when the credit is not a good deal.  To use moderation and frugality when it comes to borrowing.  Then those whom are considered predatory lenders have no prey to pursue.

 

 

Message Edited by txjohn on 07-19-2009 01:13 PM

Confidence tricksters often rely on the greed and dishonesty of the mark, who may attempt to out-cheat the con artist, only to discover that he or she has been manipulated into losing from the very beginning. This is such a general principle in confidence tricks that there is a saying among con men that "you can't cheat an honest man."[

 

I blame ignorance on the part of the consumers. That and greed have caused more of the problems then anything else discussed in these forums. (Well that an co-signing for people on car loans.)

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: Credit Line increase

WOW!  I sure got pounced on that comment.  I do think limits are good for people who do not know their own limit, and yes, it's stupidity on most consumers to get into deep debt and then have no idea how to get out of it.  Actually, CC companies make trillions!  peace out!
Moderator Emeritus
MarineVietVet
Posts: 14,559
Registered: ‎07-14-2009
0

Re: Credit Line increase

Hey usmc 58555!!!

 

When were you in the Corps? I enlisted in 6/69.

 

Semper Fi!


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