How many people actually care about their credit?

[thom02099]

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@MrCrabs wrote:

Just had an interesting conversation with a co-worker who was talking to me about not wanting to pay his cellphone bill anymore, I had mentioned he shouldn't do that because it will hurt his credit and he said basically "I don't care about my credit". Basically had a living for today and not tomorrow attitude, which got me wondering if people in general don't care until it's time to get a house or a car, etc. Seems a lot of people don't really care until they need it, which I was one of those people so I know life can get in the way and current bills and situations can occupy more of your time.

How do you feel? Do you think the majority of people don't really work on or care about their credit?

Mod's: I guess this is just a general credit question but not sure if it belongs here or smorgasboard so feel free to move it if need be.

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Folks who frequent message forums such as this one (and others) care.  That's why we/they are on them. 

Unfortunately, we are a minority.  The vast majority of folks don't know the full effects of good and bad credit, until it's too late.  Then they search for answers and find forums such as this one.

I firmly believe it is up to each of us to education our own families to the advantages of good credit and the consequences of adverse credit.  It's interesting, with my two kiddos, ages 21 and 25, their interest in credit.   They are both AU on several of my cards.   My younger child, my daughter, is into managing her credit, has a car loan, a Discover card and student loan, and has been very judicious in the use of the cards on which she's an AU.  My son,however, is not the least bit interested in anything related to credit, even though he's also an AU on my accounts;he's rarely used them and has asked me if he could, when he did.  He doesn't have any loans outstanding, nor any credit cards, though he gets mailings all the time, for card offers.  He also lives at home, and I've told him repeatedly that he needs credit in order to get an apartment of his own (hint, hint!), and without good credit, he's likely to be denied. 

[djgchicago2010]

"They'll care when they're paying high interest rates on a car and you're rolling around at 0% APR "

I have the plenty of friends who also just don't seem to care. This is how I'm going to explain the importance to them now.

[MrCrabs]

I should have specified that those of us here and on other credit forums are excluded, we're definitely more focused on our credit. I just meant the general public who is less likely to visit such forums as this one. I don't think anyone I work with really knows what's on their CR or score or really seem to care which is sad. I used to be one of those people up until recently so I know how bad some are going to have it later in life.

[Focused10]

I think in general, people have neve rbeen taught about credit and learn by default (buying their first car, house, etc.) A lot of us learn the importance of it once it's gone and tanked (bankruptcy, tax liens, etc.) I think it's best that we teach our children the importance of credit when they are able to obtain it. If we don't, someone will teach them and won't share the ins and outs, such as this forum, that we have used to help us in our journey. I'm determined to teach my girls before they are bobbarded with crazy offers. They will definitely make educated decisions and not be forced to settle.

[MrCrabs]

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@djgchicago2010 wrote:

"They'll care when they're paying high interest rates on a car and you're rolling around at 0% APR "

I have the plenty of friends who also just don't seem to care. This is how I'm going to explain the importance to them now.

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Yeah it'll affect you horribly with a bad score I pay about 10% interest on my loan and so far roughly $1,000 has gone to principal and something like $3,000 has gone to interest Luckily I am able to make principal only deposits through my checking account to the loan which is what I am doing now and this is through a CU, A bank would probably charge me a lot more interest. I have never missed a payment and I have paid for over a year and a half and that made no difference when I tried to refinance and got denied, so credit is very important for people to understand.

[MrCrabs]

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@Focused10 wrote:

I think in general, people have neve rbeen taught about credit and learn by default (buying their first car, house, etc.) A lot of us learn the importance of it once it's gone and tanked (bankruptcy, tax liens, etc.) I think it's best that we teach our children the importance of credit when they are able to obtain it. If we don't, someone will teach them and won't share the ins and outs, such as this forum, that we have used to help us in our journey. I'm determined to teach my girls before they are bobbarded with crazy offers. They will definitely make educated decisions and not be forced to settle.

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Unfortunetly I don't think any finance skills are taught at schools period(saving, investing, credit, etc) so unless the parents are educated on finances such as yourself, a lot kids go into the world unprepared and end up with difficulty later.

[iv]

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@MrCrabs wrote:

Unfortunetly I don't think any finance skills are taught at schools period(saving, investing, credit, etc) so unless the parents are educated on finances such as yourself, a lot kids go into the world unprepared and end up with difficulty later.

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We actually added a personal finance class as a HS graduation requirement a few years ago...  doesn't mean the students always pay attention, but at least it's presented to them.

[Revelate]

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@iv wrote:

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@MrCrabs wrote:

Unfortunetly I don't think any finance skills are taught at schools period(saving, investing, credit, etc) so unless the parents are educated on finances such as yourself, a lot kids go into the world unprepared and end up with difficulty later.

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We actually added a personal finance class as a HS graduation requirement a few years ago...  doesn't mean the students always pay attention, but at least it's presented to them.

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Heh Home Ec for the new millenium!  Actually not a terrible idea honestly.

As for the question, ugh tough one.  Just pure SWAG:

1) People who really care: 1%

2) People who are aware and aren't screwing up (much) so don't really care: 30%

3) People who figure the one or two lates ain't a big deal: 25%

4) People who actively are avoiding all things credit related 15%

@5) People who couldn't give a @(*$, 29%

It'd be an interesting survey question and I suspect it does fall along age lines: I know I didn't really care (bucket #3, thin file) until I realized I couldn't pay cash for a house out here in S. Cali, and wanted to get a house within 2 years (at that point) so started establishing credit.

[vanillabean]

Sometimes people just need a slap in the face to focus. I once spent ten years of rational reasoning to persuade someone to wear a seat belt when driving. It didn’t work. The scare of a $50 ticket for not wearing it worked. People need to be ready to listen first, otherwise you might as well be talking to a doorknob.

That’s not to say it's their fault. I recently read an article, which started out by saying that "The 401k does a woeful job in replacing a pension.” Again not necessarily their fault. People can’t be experts at everything, including dopamine and impulse control; will power goes only so far.

[Vitte]

Haha, where I work I see co-workers with dealership stickers on the back of their car, and I noticed some of theme are from local Buy-Here-Pay-Here car lots; these places charge fairly high interest rates on top of a car that was probably overpriced.

Do they care about their credit? Maybe, but not enough to sweat and bleed over it (pay cash for a private party car instead). 

It gets even worse when it comes to retirement savings... but that's another topic.