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Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009

Re: How do we fight them !!!!????

Nothing wrong with being debt free. The one thing I have noticed is that a lot of people think "credit use" is a modern phenomenon and actually it is not.

 

A lot of posters are stating that you need "credit" and that it is generated by CC usage and in the "good old days we only had mortgages and the occasional auto loan" so no one could tell if you paid your bills.

 

Actually, that is wrong. As a young man, we had probably 10 credit accounts, that we used all the time. I specifically remember having them at Western Auto, A local furniture store, A clothing store, Pharmacy, Home Supply store (like a Lowes or Home depot).  We even had one at a local market,. (WHO DELIVERED)

 

There was always many ways to prove you paid your bills, maybe even more so then we see today. Its just that we were not obsessed with finding a "love button" for the local supermarket, to increase our grocery limit.

 

The problem as I see it, is that so many have made Credit a controlling aspect of their life, instead of them controlling it. Like a starving monster it demands being fed and wants more, until some people reach a point it devours them.

 

What I had growing up and is missing now, is the "personal aspect" of Credit. All the places I mentioned they KNEW ME and did not have to do a "soft or hard pull" to know if I was responsible, for I had already done it. Now it seems like some people just look for different bureaus to not improve their credit, but to feed the monster and beat the system.

 

Maybe if we had the old system, where actual "credit examinations" were done by lenders, instead on being done by a "number" things would be different. I see so many want to hit the "love button". Whats wrong with going into a branch of a bank, sitting down and asking them face to face for a CLI?.  OH, I forgot, we are all so busy in our lives and have so many vital things we need to do, we don't have time for that. My mistake.

 

As I said, I could not begin to tell you my credit scores, as I have never checked them. As for applying for credit, like I said, last time was over 8 years ago and that was to join a Country Club. (FRANKLY, still haven't figured out what they wanted to know)

 

I"m not sure my wife and I have the "right number or mix of credit cards or not". Not sure if the Magical credit score thinks we should higher or lower CL's.

 

All I know is it has served us well, we are happy and even during this period of financial uncertainty, I am still getting heavily solicited for credit cards, requests to RAISE my credit limits, etc. We have not seen a change in interest rates, so maybe we have done something right.

 

My best wishes that everyone reaches their personal financial goals.

 

 

 

 

Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007

Re: How do we fight them !!!!????

Here are some ways to fight them:

 

1.  Never use MC/VISA for a major store purchase if pssoible.  Go for 0% financing.  Even these days they are still offering them.  If you still need to use the MC or VISA, dont extend they payents beyond 1 year - 6 months is better.  Have a plan in case they raise the APR.  Assume the worse and factor that into your budget.

 

2.  Keep track of each CC purchase as if you are writting a check.  It is way to easy to make purchases and loose track of how much you have spent.  Look at your written budget (a must) to see how much you can charge on the CC so you can PIF next month.

 

3. Finally if you get into a bind and must use the CC for an emergency, remember family comes before APRs and FICO scores.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Frequent Contributor
cw81
Posts: 273
Registered: ‎06-30-2008

Re: How do we fight them !!!!????


DickC wrote:

Nothing wrong with being debt free. The one thing I have noticed is that a lot of people think "credit use" is a modern phenomenon and actually it is not.

 

A lot of posters are stating that you need "credit" and that it is generated by CC usage and in the "good old days we only had mortgages and the occasional auto loan" so no one could tell if you paid your bills.

 

Actually, that is wrong. As a young man, we had probably 10 credit accounts, that we used all the time. I specifically remember having them at Western Auto, A local furniture store, A clothing store, Pharmacy, Home Supply store (like a Lowes or Home depot).  We even had one at a local market,. (WHO DELIVERED)

 

There was always many ways to prove you paid your bills, maybe even more so then we see today. Its just that we were not obsessed with finding a "love button" for the local supermarket, to increase our grocery limit.

 

The problem as I see it, is that so many have made Credit a controlling aspect of their life, instead of them controlling it. Like a starving monster it demands being fed and wants more, until some people reach a point it devours them.

 

What I had growing up and is missing now, is the "personal aspect" of Credit. All the places I mentioned they KNEW ME and did not have to do a "soft or hard pull" to know if I was responsible, for I had already done it. Now it seems like some people just look for different bureaus to not improve their credit, but to feed the monster and beat the system.

 

Maybe if we had the old system, where actual "credit examinations" were done by lenders, instead on being done by a "number" things would be different. I see so many want to hit the "love button". Whats wrong with going into a branch of a bank, sitting down and asking them face to face for a CLI?.  OH, I forgot, we are all so busy in our lives and have so many vital things we need to do, we don't have time for that. My mistake.

 

As I said, I could not begin to tell you my credit scores, as I have never checked them. As for applying for credit, like I said, last time was over 8 years ago and that was to join a Country Club. (FRANKLY, still haven't figured out what they wanted to know)

 

I"m not sure my wife and I have the "right number or mix of credit cards or not". Not sure if the Magical credit score thinks we should higher or lower CL's.

 

All I know is it has served us well, we are happy and even during this period of financial uncertainty, I am still getting heavily solicited for credit cards, requests to RAISE my credit limits, etc. We have not seen a change in interest rates, so maybe we have done something right.

 

My best wishes that everyone reaches their personal financial goals.

 

 

 

 


 

DickC  I  agree with most of your points  but  I will  play devil's  adovcate here  . True  the system  as it is  has become impersonal but you have to consider the sheer amount of  credit that has been made available  to consumers in the name of capitalism/consumerism. It is almost impossible for them to review every application without a computerized system hence the need for numbers to score or grade people.  The  financial institutions  with their appetite for profits  created this monster so we have to play the game  to keep up. Its their rules  and so most consumers are at a disadvantage because not all of us  understand the rules and also  because they can change the rules at any time and there is no recourse.

  Another  reason I might not  want to go back to the way the system  run in the past  is  bias,  be it racial , cultural  or  socio-economic . There was time  when you wouldn't be extended credit because you didn't fit or know the right people so certain demographics of people were  left out. The way the system works right now it those biases can be removed.

 

A lot of  our ills today   are  result of  unbridled  capitalism or  consumerism   which i believe go hand in hand.Let me state I am not against  capitalism  but when it goes unchecked  we have these collosal meltdowns and everyone  gets burned.  As in everything there has to be a balance  and the 64 million dollar question is where do we draw the line or  lines.

New Visitor
freemiminow
Posts: 1
Registered: ‎06-27-2009

Re: How do we fight them !!!!????

wehave to put pressure on our legislators or something...this is getting so out of hand.....we are good customers and they are closing our lines of credit to make it look like we are maxed out and poor credit risks  plus these interest rates of 24.99% 29.99% is loan sharking and the governments continues to allow this?  I'm not blaming anyone else for making my debt but i try in good faith to make a payment and 90% goes to interest and i'm getting now where......why can't we get into our 401k to pay off some of this mad debt without penalty??????
Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: How do we fight them !!!!????


freemiminow wrote:
wehave to put pressure on our legislators or something...this is getting so out of hand.....we are good customers and they are closing our lines of credit to make it look like we are maxed out and poor credit risks  plus these interest rates of 24.99% 29.99% is loan sharking and the governments continues to allow this?  I'm not blaming anyone else for making my debt but i try in good faith to make a payment and 90% goes to interest and i'm getting now where......why can't we get into our 401k to pay off some of this mad debt without penalty??????

 

I am sorry but in the 1970s when credit cards took off in the national consciousness that was the standard interest rates back then.

 

If you are only able to make minimum paments you need to look at your budgeting and see where you can take extra money and pay more.


You need to consider calling the credit card company and closing your account and taking a lower interest rate.

 

You seem to want your cake and to be able to eat it too. You want high CLs and low interest rates forever and sorry thats not the paperwork you signed up for.

 

 

 

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,
Regular Contributor
carlos1102
Posts: 130
Registered: ‎03-25-2008

Re: How do we fight them !!!!????

The problem is that we need a credit card or loan to have good credit. If you don,t have a credit card or loan you will have a very low score or non at all. And is no fair that if I want to finance a home first I have to get credit cards and loans a high APRs and fees. I really think that the government have to step in to control all this mafia.  I think every body should star with a good fico . Not asking for credit means you are no in financial distress, means your are not looking for free money. On the other hand if you default on your credit you should be reported until you pay all your balance. Not the 7 year deal.  if you pay that default account in 1 year is not fair to have bad credit for 6 years more, you are showing that you are pay your obligations. It is also not fair that somebody seeks credit with no intent to pay it back and 7 seven years later start all over.
Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009

Re: How do we fight them !!!!????


carlos1102 wrote:
The problem is that we need a credit card or loan to have good credit. If you don,t have a credit card or loan you will have a very low score or non at all. And is no fair that if I want to finance a home first I have to get credit cards and loans a high APRs and fees. I really think that the government have to step in to control all this mafia.  I think every body should star with a good fico . Not asking for credit means you are no in financial distress, means your are not looking for free money. On the other hand if you default on your credit you should be reported until you pay all your balance. Not the 7 year deal.  if you pay that default account in 1 year is not fair to have bad credit for 6 years more, you are showing that you are pay your obligations. It is also not fair that somebody seeks credit with no intent to pay it back and 7 seven years later start all over.

Extremely incorrect.
A credit card with a 29.9% is the same as a Credit Card with a 7.9% rate if you pay in full each month. So yes you can have a credit card with credit history and not be disadvantaged by the interest rate.

 

Only someone who charges more then they can afford and pay is held hostage.

 

So yeah the blame goes back to the user.

 

 

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,
Frequent Contributor
hobojon
Posts: 261
Registered: ‎01-20-2009

Re: How do we fight them !!!!????

You are going to pay for the cost of credit even if you don't use credit. The price of most items reflects the anticipation of the merchant paying the transaction/merchant fee charged when a credit card is used. All I can do is PIF, use the float and rewards cards to my advantage and take advantage of 0% no/low fee BT offers by investing the money in an interest bearing account.
Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: How do we fight them !!!!????

What you do not take into consideration is that time has changed. Then you have never been asked how many hard inq's you have or what is your util or what is your credit to debt ratio and so forth. So there is another time and other rules. You can lament old times as much as you you wish but old times are not going come back. While, I admire your phylosophy how to manage credit, but what about your kids. Can they do the same?

Can they, being out of college with FICO 0 and 15-20 inq's, get 2-3 average cards with sufficient CL and forget about credit cards, credit history and FICO score? Doubt it.

 

Credit is a tool, and if handled responsibly, it might help greatly. But main point is to remember that it is a tool, sevant, but not a master. Person creates and rules his/hers credit.

 

There is nothing wrong with high CL. Why not to have high CL as a backup or in case of or just to satisfy ego. Available credit is not debt. And yes, I walked into my bank and asked for CLI on my credit card and was told, I quote: "We do not handle it, please call the number on the back of your card".

 

With all due respect sir, but what you describe is not going to work for people who just started building their credit.

 

 No offense meant.

 


DickC wrote:

Nothing wrong with being debt free. The one thing I have noticed is that a lot of people think "credit use" is a modern phenomenon and actually it is not.

 

A lot of posters are stating that you need "credit" and that it is generated by CC usage and in the "good old days we only had mortgages and the occasional auto loan" so no one could tell if you paid your bills.

 

Actually, that is wrong. As a young man, we had probably 10 credit accounts, that we used all the time. I specifically remember having them at Western Auto, A local furniture store, A clothing store, Pharmacy, Home Supply store (like a Lowes or Home depot).  We even had one at a local market,. (WHO DELIVERED)

 

There was always many ways to prove you paid your bills, maybe even more so then we see today. Its just that we were not obsessed with finding a "love button" for the local supermarket, to increase our grocery limit.

 

The problem as I see it, is that so many have made Credit a controlling aspect of their life, instead of them controlling it. Like a starving monster it demands being fed and wants more, until some people reach a point it devours them.

 

What I had growing up and is missing now, is the "personal aspect" of Credit. All the places I mentioned they KNEW ME and did not have to do a "soft or hard pull" to know if I was responsible, for I had already done it. Now it seems like some people just look for different bureaus to not improve their credit, but to feed the monster and beat the system.

 

Maybe if we had the old system, where actual "credit examinations" were done by lenders, instead on being done by a "number" things would be different. I see so many want to hit the "love button". Whats wrong with going into a branch of a bank, sitting down and asking them face to face for a CLI?.  OH, I forgot, we are all so busy in our lives and have so many vital things we need to do, we don't have time for that. My mistake.

 

As I said, I could not begin to tell you my credit scores, as I have never checked them. As for applying for credit, like I said, last time was over 8 years ago and that was to join a Country Club. (FRANKLY, still haven't figured out what they wanted to know)

 

I"m not sure my wife and I have the "right number or mix of credit cards or not". Not sure if the Magical credit score thinks we should higher or lower CL's.

 

All I know is it has served us well, we are happy and even during this period of financial uncertainty, I am still getting heavily solicited for credit cards, requests to RAISE my credit limits, etc. We have not seen a change in interest rates, so maybe we have done something right.

 

My best wishes that everyone reaches their personal financial goals.

 

 

 

 


 

 

IN VINO VERITAS.
Frequent Contributor
hobojon
Posts: 261
Registered: ‎01-20-2009

Re: How do we fight them !!!!????

If anything credit is easier now than in the old days. Before fico I couldn't add my child as an AU to half a dozen 20 year old amex accounts and give him an instant 780 credit score.

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