DON'T GET IT

[Anonymous]

Don't misunderstand me, I know a lot of people have been having a hard time and are doing the best they can, which is all any of us can do.  Decisions made, results to live with.

I haven't filed BK, no repos, 3 installments loans soon to be paid off, but have had some late payments, no credit cards, mortgage on  time, and have above average income.  I know that the CC debt from 6 years ago isn't helping, but my score is horrible.  I need some CC but just doesn't seem right that paying cash for everything and overall debt is about half of what we make in a year.  The more debt, the better credit?  Isn't that what's wrong with the news of recent days?

[haulingthescoreup]

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@Anonymous wrote:

Don't misunderstand me, I know a lot of people have been having a hard time and are doing the best they can, which is all any of us can do.  Decisions made, results to live with.

I haven't filed BK, no repos, 3 installments loans soon to be paid off, but have had some late payments, no credit cards, mortgage on  time, and have above average income.  I know that the CC debt from 6 years ago isn't helping, but my score is horrible.  I need some CC but just doesn't seem right that paying cash for everything and overall debt is about half of what we make in a year.  The more debt, the better credit?  Isn't that what's wrong with the news of recent days?

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No, of course you don't want more debt. You just need to have more available credit. Available as in "unused."

It's like having health insurance. Having insurance doesn't mean that you are sicker than if you didn't have it; it simply means that if something happens, you have the means to take care of it.

The score formula rewards those with revolving credit who use very little of it. This demonstrates that you are responsible and in control of yourself, and that you can handle the responsibility of unused credit.

Are you with a credit union by any chance? They are great to start out with. So is Bank of America, depending upon what you have on your reports.

Again, please don't confuse debt and credit. Although they are obviously related, they are very, very different.

[Anonymous]

I have been a CU member for some time, but they've merged and hasn't been the same.  Been thinking about joining a new one that opened a branch in town recently and heard they've been working with people.  I wanted to get out CR in line as best I could before approaching them.  Possibly getting a CC for each of us too.

That and time I suppose is the best I can do.  I sure miss the days that a bank was someone that took the fact that DH worked for the same job 35 years, same address for that time, married that long, had a little slow pay while raising 3 kids, but pay our bills.

[Anonymous]

Some people miss the days of soda shops and penny candy......just have fond memories of those days and move on.