topic Re: Possible of recession & Fico 10. in General Credit Topics

Possible of recession & Fico 10.

Anonymous — Tue, 24 Mar 2020 13:37:48 GMT

Hello... What does everyone think if there is going to be a recession? How bad will it get? How should people plan for it? Lastly, How will this effect the pending FICO 10 & 10T?

Re: Possible of recession & Fico 10.

Anonymous — Tue, 24 Mar 2020 14:11:06 GMT

I'm not up to speed on Fico 10, but this is already a major recession IMO. I expect it to be worse than 2008.

I ditched my city apartment, moved in with my in-laws in the burbs, cut myself down to extreme bare bones spending, and am saving every dollar that I can.

I typically fully utilize CC grace periods, but I have some new CC relationships with modest limits that I'd been using as my daily drivers and I went ahead and paid those off before the statement cut so high util balances don't report.

I'm making sure my credit profile shows no signs of financial distress at any time lenders potentially decide to take a peak.

I was in fact heading towards financial distress in 2008 and my lenders all saw it, took AA, slashed limits, raised my interest rates to 29.9% and I was in deep deep trouble. Not going to happen this time!

I'll buy my first property when this all bottoms out.

Re: Possible of recession & Fico 10.

AverageJoesCredit — Tue, 24 Mar 2020 14:26:03 GMT

My need to find a sugamomma is even more important now.

Re: Possible of recession & Fico 10.

Jnbmom — Tue, 24 Mar 2020 14:53:51 GMT

There are so many more important things to think about then a FICO 10 score 🥺

Re: Possible of recession & Fico 10.

sccredit — Tue, 24 Mar 2020 16:52:12 GMT

As Steeler said we are in a recession. I know technically that doesn't apply until July (2 consecutive quarters) but it is here. It's only going to get worse. It will eventually get better but it is going to take some time. The damage to the economy over the past couple weeks is irreversible in the short term and the longer this goes the longer the recovery will take.

Re: Possible of recession & Fico 10.

M_Smart007 — Tue, 24 Mar 2020 17:25:07 GMT

@Jnbmom wrote:
There are so many more important things to think about then a FICO 10 score 🥺

+Million

Re: Possible of recession & Fico 10.

Anonymous — Tue, 24 Mar 2020 17:28:47 GMT

@AverageJoesCredit wrote:
My need to find a sugamomma is even more important now.

You and me both.

Re: Possible of recession & Fico 10.

Iusedtolurk — Tue, 24 Mar 2020 20:23:33 GMT

@Anonymous wrote:
Hello... What does everyone think if there is going to be a recession? How bad will it get? How should people plan for it? Lastly, How will this effect the pending FICO 10 & 10T?

Hello... What does everyone think if there is going to be a recession?

Oh most definitely.

How bad will it get?

Historically Bad.

How should people plan for it?

Cut out all unnessary expenditures, cut down on spending, practice safe habits, buckle down and ride it out, as with any major crisis it will eventually be over and we will be back on the road to recovery.

Lastly, How will this effect the pending FICO 10 & 10T?

Probably a profile specific outcome for all concerned.

Good luck to everyone during this pandemic. Be safe and make sure your loved ones are safe.

We can always rebuild credit but we can't rebuild lost lives.

Re: Possible of recession & Fico 10.

mrfufoppss — Wed, 25 Mar 2020 00:40:50 GMT

looking at the recent 401k balance go south i am worried about the economy..as far as fico 10 im not worried about point lost or point gained..i was just approved for a small emergency loan knowing fico 10 will Penalize me for it...BUT one thing i have learned so Far with my Credit journey Is (Banks/CU) dont care about your score more than they care about relationships and HOW WELL YOU PAY YOUR DEBT...I still get denied by certain banks with 750 plus fico scores because of History mainly..yet a person with a 690 fico would get approved for same card...as far as fico 10 goes i am going to focus on Payhistory with my Current Creditors than worry about my Score being High

Re: Possible of recession & Fico 10.

blindambition — Wed, 25 Mar 2020 01:25:54 GMT

The downturn will hurt everyone!! How much will depend on location. FICO 10 doesn't have me worried, who knows who will and won't adopt it.

Re: Possible of recession & Fico 10.

CA4Closure — Wed, 25 Mar 2020 01:59:44 GMT

People stop being a fatalist. I happen to be doing well in the stock market and my 401k is doing fantastically. Right now my rental and commercial income is doing good. No evictions and Reserves are great.

We all know there will be a RESET for certain states like California whose real estate market is crazy high. This is because of over regulation. If you live in California, you will be the one in a financial crisis if you did not save for a rainy day.

In the business world, companies are investing in manufacturing in the States but states like California won't see it because of the over regulations. Texas, Tennessee, Kentucky and states that do not over regulate will reap these rewards. If Trump is re-elected the recession will be mild compared to the last recession.

The currect financial mess is due to the Corona Virus and China's inability to ship product. But companies are switching to other manufacturing countries like Vietnam, Dominican Republic, India and Mexico.

Re: Possible of recession & Fico 10.

Anonymous — Wed, 25 Mar 2020 08:56:40 GMT

@CA4Closure wrote:
People stop being a fatalist. I happen to be doing well in the stock market and my 401k is doing fantastically. Right now my rental and commercial income is doing good. No evictions and Reserves are great.

We all know there will be a RESET for certain states like California whose real estate market is crazy high. This is because of over regulation. If you live in California, you will be the one in a financial crisis if you did not save for a rainy day.

In the business world, companies are investing in manufacturing in the States but states like California won't see it because of the over regulations. Texas, Tennessee, Kentucky and states that do not over regulate will reap these rewards. If Trump is re-elected the recession will be mild compared to the last recession.

The currect financial mess is due to the Corona Virus and China's inability to ship product. But companies are switching to other manufacturing countries like Vietnam, Dominican Republic, India and Mexico.

We view things VERY differently.

I see the mess as only partially happening now. The real one is going to come when the people that have been out of work for two weeks can't pay their rent *next* month and the month after that at.

There are too many restaurant, service industry, travel and retail employees out of work right now. They make up a huge portion of the economy, and they're also the folks least likely to have emergency funds.

Everyone's real estate market got crazy high (relative to their particular areas, of course) I don't think any area is safe with the number of people missing wages right now.

Re: Possible of recession & Fico 10.

wa3more — Wed, 25 Mar 2020 12:49:19 GMT

I agree this will be ugly. Looks like mortgage applications are down sharply.

lets see what the unemployment claims will be tomorrow

this stimulus passed will not help the little guy or small business owner. A waste, in typical government fashion

Re: Possible of recession & Fico 10.

Anonymous — Wed, 25 Mar 2020 12:55:15 GMT

@wa3more wrote:
I agree this will be ugly. Looks like mortgage applications are down sharply.

lets see what the unemployment claims will be tomorrow

this stimulus passed will not help the little guy or small business owner. A waste, in typical government fashion

I probably said this in another thread, but my niece was supposed to close on a place last week and I told her to run from the deal and away from the $3k she had paid in deposits/inspections/etc., and to an apartment complex to sign a 7 or 12 month lease.

I'd hate to see the girl instantly underwater on her first home. Saw it with basically all of my friends that bought their first places at the height of the pre-2008 market. They mostly voluntarily foreclosed or short sold.

Re: Possible of recession & Fico 10.

wa3more — Wed, 25 Mar 2020 15:05:29 GMT

Steeler,

yes I read in another thread. It was sound advice, best to walk away

Re: Possible of recession & Fico 10.

iced — Wed, 25 Mar 2020 17:23:51 GMT

@Anonymous wrote:
@CA4Closure wrote:
People stop being a fatalist. I happen to be doing well in the stock market and my 401k is doing fantastically. Right now my rental and commercial income is doing good. No evictions and Reserves are great.

We all know there will be a RESET for certain states like California whose real estate market is crazy high. This is because of over regulation. If you live in California, you will be the one in a financial crisis if you did not save for a rainy day.

In the business world, companies are investing in manufacturing in the States but states like California won't see it because of the over regulations. Texas, Tennessee, Kentucky and states that do not over regulate will reap these rewards. If Trump is re-elected the recession will be mild compared to the last recession.

The currect financial mess is due to the Corona Virus and China's inability to ship product. But companies are switching to other manufacturing countries like Vietnam, Dominican Republic, India and Mexico.
We view things VERY differently.

I see the mess as only partially happening now. The real one is going to come when the people that have been out of work for two weeks can't pay their rent *next* month and the month after that at.

There are too many restaurant, service industry, travel and retail employees out of work right now. They make up a huge portion of the economy, and they're also the folks least likely to have emergency funds.

Everyone's real estate market got crazy high (relative to their particular areas, of course) I don't think any area is safe with the number of people missing wages right now.

This isn't going to hurt everyone and some small pockets of real estate are quite safe. It's hitting a pause button on sales, but those will pick right back up as soon as things start to reopen. Those neighborhoods will not see significant value reductions, demand reductions, or difficulty selling. These neighborhoods are also areas with an outsized concentration of residents in tech, biotech, or medicine (fields that will ultimately benefit from the pandemic), are already gentrified to the point the people who work the jobs at risk now were long pushed out to other neighborhoods, and will continue to be ivory towers.

Of course, other parts of the country are about to become an all-you-can-buy foreclosure buffet.

The pandemic will cause a recession for about 85% of the working population and an economic boom for the other 15%. Those on the boom side of things are still doing fine and will do fine throughout the recession while the other 85% fight for scraps. At the end of the pandemic, that 15% will be even further ahead of the rest than they already were, making the existing income inequality gap even larger.

Re: Possible of recession & Fico 10.

Anonymous — Wed, 25 Mar 2020 17:32:38 GMT

@iced wrote:
@Anonymous wrote:
@CA4Closure wrote:
People stop being a fatalist. I happen to be doing well in the stock market and my 401k is doing fantastically. Right now my rental and commercial income is doing good. No evictions and Reserves are great.

We all know there will be a RESET for certain states like California whose real estate market is crazy high. This is because of over regulation. If you live in California, you will be the one in a financial crisis if you did not save for a rainy day.

In the business world, companies are investing in manufacturing in the States but states like California won't see it because of the over regulations. Texas, Tennessee, Kentucky and states that do not over regulate will reap these rewards. If Trump is re-elected the recession will be mild compared to the last recession.

The currect financial mess is due to the Corona Virus and China's inability to ship product. But companies are switching to other manufacturing countries like Vietnam, Dominican Republic, India and Mexico.
We view things VERY differently.

I see the mess as only partially happening now. The real one is going to come when the people that have been out of work for two weeks can't pay their rent *next* month and the month after that at.

There are too many restaurant, service industry, travel and retail employees out of work right now. They make up a huge portion of the economy, and they're also the folks least likely to have emergency funds.

Everyone's real estate market got crazy high (relative to their particular areas, of course) I don't think any area is safe with the number of people missing wages right now.
This isn't going to hurt everyone and some small pockets of real estate are quite safe. It's hitting a pause button on sales, but those will pick right back up as soon as things start to reopen. Those neighborhoods will not see significant value reductions, demand reductions, or difficulty selling. These neighborhoods are also areas with an outsized concentration of residents in tech, biotech, or medicine (fields that will ultimately benefit from the pandemic), are already gentrified to the point the people who work the jobs at risk now were long pushed out to other neighborhoods, and will continue to be ivory towers.

Of course, other parts of the country are about to become an all-you-can-buy foreclosure buffet.

The pandemic will cause a recession for about 85% of the working population and an economic boom for the other 15%. Those on the boom side of things are still doing fine and will do fine throughout the recession while the other 85% fight for scraps. At the end of the pandemic, that 15% will be even further ahead of the rest than they already were, making the existing income inequality gap even larger.

This thought crossed my mind as well. People owning homes in Manhattan or San Francisco likely aren't working in the industries that will suffer the most, anyhow.

I do think there will be some effects felt in outlying areas that have had very heavy speculation in recent years. I lived in Jersey City for a spell and there are THOUSANDS of "luxury" apartments being built right now. I think that is going to pose problems when they are all completed and hit a suffering market at the same time.

Re: Possible of recession & Fico 10.

iced — Wed, 25 Mar 2020 17:40:40 GMT

@Anonymous wrote:
This thought crossed my mind as well. People owning homes in Manhattan or San Francisco likely aren't working in the industries that will suffer the most, anyhow.

I do think there will be some effects felt in outlying areas that have had very heavy speculation in recent years. I lived in Jersey City for a spell and there are THOUSANDS of "luxury" apartments being built right now. I think that is going to pose problems when they are all completed and hit a suffering market at the same time.

NYC already had a problem with vacancy in "luxury" condos because the greedy developers overbuilt to try to land the influx of foreign whale investors wanting pads in Midtown or other hotspots. This won't hurt the residents but it will bring more pain to the developers who gambled and lost.

Re: Possible of recession & Fico 10.

FireMedic1 — Wed, 25 Mar 2020 20:21:47 GMT

This country has bounced back so many times. Its only been a couple months. Summer is coming and this thing will die out. No virus likes heat. This virus swells with humidity and dies out. This isnt 2008 folks.

Re: Possible of recession & Fico 10.

FireMedic1 — Wed, 25 Mar 2020 20:22:34 GMT

@Jnbmom wrote:
There are so many more important things to think about then a FICO 10 score 🥺