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My Biggest Financial Regret [Edit: Wrong]

Established Contributor

My Biggest Financial Regret [Edit: Wrong]

Edit: Actually, after reconsideration with the reminders (input) from MyFico'ers, this is no longer a regret.

A PLOC can be a more convenient and long-lasting source of funding as opposed to a single personal loan. As a borrower repays PLOC borrowed funds, they are able to tap into their PLOC over and over again--unlike a loan, where a borrower would have to apply and re-apply for new loans. Many lenders require consumer's to have a healthy credit profile.

As credit builders and rebuilders, we all have regrettable decisions. My biggest consumer financial regret is never having secured a PLOC. I have both a very lengthy credit history and AAOA. I don't have a desire now for new credit accounts or unnecessary credit inquiries. I wish I had applied for a PLOC or HELOC long ago.

There are many who fixate on acquiring loans solely for the purpose of a loan-duration credit score increase. If one's credit profile suports it, I strongly encourage others to consider including a PLOC or HELOC as part of their credit profile. PLOC interest rates are often higher than that of a Home Equity Line of Credit (HELOC) and often lower than credit card accounts. One never knows when they may encounter emergency expenses or large purchase expenses that would best be served by borrowing against a funding source more beneficial than major credit cards or personal loans.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 1 of 13
12 REPLIES
Community Leader
Super Contributor

Re: My Biggest Financial Regret

Biggest regret? You are in a great position to rectify that by getting one and at what cost, a hp? Dont think it would be the end of your credit life to sacrifice a hp for something that obviously would be a great addition to your profile. One and done lol. Not many have to chance to rectify regrets but from reading your post and profile, you are. My recommendation , though it means little, is to go for your plocSmiley Wink
Message 2 of 13
Established Contributor

Re: My Biggest Financial Regret

Ugh! I recently had a dream that I did apply for a PLOC. Wouldn't it be nice if we could pc a CC to a PLOC?

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 3 of 13
Super Contributor

Re: My Biggest Financial Regret

Other than interest rate, what's the difference?

 

You CAN use a credit card to handle some cash flow emergency and pay it back as able.  A PLOC (and a HELOC I discovered...) BOTH affect your overall utilization just like a credit card.

 

If you want one, go get one.  If you've got plenty of credit cards available, I don't think that it will help you much.

 

 


Last inquiry 15 January 19. Going for Gold!

Zero percent financing is where the devil lives...



Message 4 of 13
Regular Contributor

Re: My Biggest Financial Regret

PLOC’s require one to pay interest to a bank.  That in itself is contrary to what someone should be doing.  Credit cards provide for 0% promotions which I have never seen on a PLOC.  No one should be paying interest rates to banks.  Use 0% credit card offers sparingly and when needed and then pay in full and generate real income.  If you need to borrow from a bank and pay interest to them, whether for a mortgage, car loan, business loan and the like, you are doing it all wrong.  All the money should be working directly for you!

Message 5 of 13
Valued Contributor

Re: My Biggest Financial Regret


@adamj023 wrote:

PLOC’s require one to pay interest to a bank.  That in itself is contrary to what someone should be doing.  Credit cards provide for 0% promotions which I have never seen on a PLOC.  No one should be paying interest rates to banks.  Use 0% credit card offers sparingly and when needed and then pay in full and generate real income.  If you need to borrow from a bank and pay interest to them, whether for a mortgage, car loan, business loan and the like, you are doing it all wrong.  All the money should be working directly for you!


I tend to agree. Unless I can finance it for less than I'm earning on interest, pay cash/pay in full. If someone can't cover an emergency expense, take that as a warning that their savings are insufficient and they should be tightening the budget belt to grow their savings. Same philosophy goes for larger purchases (cars, homes), though I also understand a majority of people do not have enough saved to pay cash for a home. Even then, they should borrow as little as possible.

 

Message 6 of 13
Regular Contributor

Re: My Biggest Financial Regret

I have over 800 credit scores, many years of credit with large paybacks.  My credit is only based on credit cards, ie revolving credit not installment loans.  I would pay in full for everything, even charge the most expensive purchases in possible and pay in full for rewards points.  I know some auto makers can offer 0% financing but I would rather charge as much as possible through finding a dealer from American Express and a few do indeed allow for such.  I would not take out any accounts charging interest and I have no regrets about not having a mortgage, installment loan or a PLOC and so on and so forth.  I look at banks as transactional accounts that link end user, myself to the Federal Reserve System to exchange money between parties.  I don’t even see the highest paying interest bearing account yields as a favorable product but it is risk free so it serves a purpose.  Obviously the banks make a lot of money on loan based products and will continue to do so without my usage.

Message 7 of 13
Established Contributor

Re: My Biggest Financial Regret

Hm!!! What was I thinking? Interest? I don't pay interest on anything. That said, I agree with your responses. Nothing like MyFico'ers to snap me back to reality. I don't need to get new cards with the O% promo. I just remembered that years ago I requested and was approved 0% on an existing card. I can't remember which card it was.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 8 of 13
Senior Contributor

Re: My Biggest Financial Regret

My biggest financial regret? Not investing more money and buying property when I was younger so I could retire in my mid-40s.






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Message 9 of 13
Established Contributor

Re: My Biggest Financial Regret


@Brian_Earl_Spilner wrote:

My biggest financial regret? Not investing more money and buying property when I was younger so I could retire in my mid-40s.


^^^Shared sentiment


Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 10 of 13