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-   -   Cash/Check/Credit/Debit (http://cellar.org/showthread.php?t=20425)

Aliantha 06-08-2009 10:32 PM

nope...it gets used by people less crass than me over here too. :)

Juniper 06-08-2009 10:44 PM

I have a really simple plan for improving/maintaining my good credit rating.

I pay my bills on time. :)

Seriously, I am a simple gal - I figure, if you have to play games to get a good credit score, I don't want to play. How hard can it be? Buy stuff, sometimes on credit - I like the "x months same as cash" deals; this is a good way to build credit without paying interest.

We do that a lot but generally only one loan at a time. We're going to have two of those going soon, 'cause we NEED a new a/c installed! But both are due to be paid off soon, it's not going to be a big problem.

if I carry a credit card balance, it's for a really good reason - a short, short term loan vs. unplanned spending. Therefore I know it'll get paid off in 3-4 months. If I need a loan longer than that, I get a home equity loan.

Sometimes I mess up and pay a bill late, but generally all that gets me is a late fee. I think you have to be >30 days late before it affects your credit rating.

monster 06-08-2009 10:51 PM

you sound like a gal with a decent rating.....

Aliantha 06-08-2009 10:56 PM

I don't know what it's like over there, but you basically have to not pay a monthly bill for at least 3 months in a row before it's even close to going on your rating (in general).

Undertoad 06-08-2009 10:57 PM

LJ will know as he reviews credit histories every day

Juniper 06-08-2009 11:05 PM

Well, I tell ya...never once in my life have I had a problem getting a loan or a credit card. We've bought houses three times, gotten five car loans, refinanced mortgages twice, gotten three home equity loans, and bought many appliances, carpets, and electronics "x months same as cash."

The only problem I have with loans is applying in my own name, because I am self-employed. And I still think I could, I just don't choose to because it can get complicated -- their systems just aren't set up for those who tend to get paid $5000 one month and $500 the next. :) So I just let hubby do it.

The whole credit score game is really simple. All you have to do is buy stuff using the appropriate form of credit (meaning, don't use a credit card for something you could get a home equity loan for) and pay it off on time. Take out credit cards wisely, with a purpose in mind, and be disciplined enough to use them for that purpose. Resist temptation to fiddle with your accounts any more than need be--the length of time you have an open account in good standing counts for more than almost anything else.

The whole deal with the credit card limits is to keep them at a reasonable ratio to your income level - and it's fine to leave the balances at zero. Too little open credit means you might not know how to use credit wisely - they don't know if you've only got a $500 credit card limit by choice or because the banks don't trust you enough to give you more. Too much open credit means you could conceivably go out tomorrow and max it all out, even if it's currently at zero.

There's no game to it, really. Just behave sanely and make your payments, keep it up over time, and you'll be fine.

lumberjim 06-08-2009 11:07 PM

this is actually an area that I have experience in. REAL actual non made up experience.

Your credit score is a constantly changing thing. The information that effects it is typically posted once per month by each reporting creditor......at varying times. It has many factors. One of those factors is availability of revolving credit(credit cards). If you have a $20,000 credit limit on your Visa and have $2000 balance, this will HELP your credit score. you have 90% available revolving. If you have a $19,000 balance, you're more of a risk and your score will plummet.....even if you always make that payment on time. NOW>>>>here's the worst part<<< if your score is low, and the CC companies check periodically.... the CC company may be able(based on your card holder agreement) to RAISE YOUR RATE! talk about fucking you long and hard.

But monster.....just so you know....available credit is a good thing. having had High credit (meaning having had a large balance reported to the bureau at one time) and currently having a low or zero balance is a positive thing. You could have a $15k limit on a card, but if the highest balance ever reported was $3k.....a human credit analyst will only count is as $3k worth of experience.

As for car buying power......you can slip thru automatic approval programs with all revolving credit history...if you have a high score, and long enough time in the bureau...and adequate income to afford the projected payment...but when an analyst looks at the file, they like to see previous Installment credit (car payments, mortgages, fixed payment loans) that are at least 50% of the applied for amount.

monster 06-08-2009 11:46 PM

Quote:

Originally Posted by lumberjim (Post 572000)
this is actually an area that I have experience in. REAL actual non made up experience.

snip

But monster.....just so you know....available credit is a good thing. having had High credit (meaning having had a large balance reported to the bureau at one time) and currently having a low or zero balance is a positive thing. You could have a $15k limit on a card, but if the highest balance ever reported was $3k.....a human credit analyst will only count is as $3k worth of experience.

large balance cleared is way different from retaining small balance.

and yes, nice when you get to deal with humans.

may be a sahm now, but I've sold credit cards, cancelled credit cards and approved them n my murky past... as well as having awesome credit now ;) that's sort of like not made up experience too, just so's you know and all.....

monster 06-08-2009 11:50 PM

Quote:

Originally Posted by Undertoad (Post 571997)
LJ will know as he reviews credit histories every day

right. and none of the rest of us can possibly know what we're talking about. Tell me, does he never approve loans that people default on?

lumberjim 06-08-2009 11:53 PM

yeah....I'm just saying that I know of what I speak. Not that you don't. retaining a small balance is relatively irrelevant. pattern of payments made on time, and available credit on an account that has been at a high point at some time is a helpful formula.

also....when you said that taking credit advice from people that have bad credit steams you.....that's kind of like not taking advice from a doctor that's been sick.

Some times, people have to make choices about what bills they can pay.......credit ratings can suffer as a result. It doesn't mean they don't understand how it all works.

monster 06-08-2009 11:57 PM

Quote:

Originally Posted by lumberjim (Post 572015)
also....when you said that taking credit advice from people that have bad credit ....that's kind of like not taking advice from a doctor that's been sick.


hmm well I'd take advice from a doctor who was better, but not one who'd been perpetually sick and was stillcoughing and spluttering. Better analogy for what I said, I think you'll find.

lumberjim 06-08-2009 11:58 PM

whatever.

Aliantha 06-09-2009 12:00 AM

Why don't you both say you know what you're talking about, but from different perspectives? ;)

monster 06-09-2009 12:03 AM

Quote:

Originally Posted by lumberjim (Post 572015)
Some times, people have to make choices about what bills they can pay.......credit ratings can suffer as a result. It doesn't mean they don't understand how it all works.

sometimes. But usually poor understanding of their situation or poor financial choices is what got them there in the first place, so for all of the people out there wanting to offer advice, they wouldn't be the highest on my list.

monster 06-09-2009 12:04 AM

Quote:

Originally Posted by lumberjim (Post 572018)
whatever.

Anytime, fresh....

Aliantha 06-09-2009 12:05 AM

It has been said that those who choose to study psychology/psychiatry are in need of the most help themselves. If we assume this is a fact, then it forms the same conclusion as people with bad credit history being able to give good advice.

I think the first thing they'd say is, "Pay your bills on time idiot". lol

ZenGum 06-09-2009 03:05 AM

... or, live within your means.


If you are bleeding, look for a man with scars.

Shawnee123 06-09-2009 07:40 AM

lumberjim, I'm glad you chimed in because I have a question for you.

I have my eye on a car, and went so far as to fill out the online credit application for the dealership. Having had financial problems in the past, I hoped that my current income would play into it. I've heard nothing back from them. Another dealership, for which I did NOT fill out a credit application, emails me all the time.

I wonder if it's just slackage on the part of the first dealer, or if there is a problem. Do they tend to even look at those things as more than a way to start contacting you, if it's your first contact?

What do you suggest I do? They want to sell a car, right? The car is well within my price range, and payments would be no problem, but if they won't finance me I don't know what other options I have.

Any help would, um, help. :)

monster 06-09-2009 07:48 AM

Quote:

Originally Posted by ZenGum (Post 572042)
... or, live within your means.


If you are bleeding, look for a man with scars.

Absolutely. But not one who's still bleeding or has crusty pus-filled scabs ;)

----------------

yay shawnee, you bring the thread some purpose!

Shawnee123 06-09-2009 07:50 AM

Quote:

Absolutely. But not one who's still bleeding or has crusty pus-filled scabs
I'll take the doctor who was not sick, but who healed the man with all the scars. ;)

Stormieweather 06-09-2009 08:07 AM

Quote:

Originally Posted by Aliantha (Post 572023)
It has been said that those who choose to study psychology/psychiatry are in need of the most help themselves. If we assume this is a fact, then it forms the same conclusion as people with bad credit history being able to give good advice.

I think the first thing they'd say is, "Pay your bills on time idiot". lol

And definately don't be an idiot and get a divorce or laid off, or god forbid, both within a short time of each other. You may as well just go catch the short bus.

Shawnee123 06-09-2009 08:23 AM

True, Stormie...life throws you that kind of crap sometimes, can't we be more than just numbers?

I just thought of a new industry that should take off: Psychology Lending. They'll look at your credit ratings, sure, but they'll also sit down and talk to you and ask you things like "Now, WHY would you just sign the house over in the divorce because it was easier on you emotionally?" and gauge your current situation and ability to have your shit together.

I say this jokingly but it's not a bad idea. :)

classicman 06-09-2009 08:35 AM

Quote:

Originally Posted by Stormieweather (Post 572075)
And definitely don't be an idiot and get a divorce or laid off, or god forbid, both within a short time of each other. You may as well just go catch the short bus.

Eh proof of that one! The divorce hurt a lot, not only emotionally, but also financially when you find all that your ex was hiding from you. OH, and that she is still trying to get loans and such in your name. That'll hurt your credit rating - A LOT.
But letting the creditors know what happened and making regular payments can help improve your score.

Then after a couple year you can talk to your buddy and he'll find you the car of your dreams AND tell you the best way to get the loan.... People like that make a big difference in MY world. They are overwhelmingly outnumbered by assholes who are just out to make a buck.
(Thanks again Jim, I still love my car)

ZenGum 06-09-2009 08:41 AM

Quote:

Originally Posted by monster (Post 572067)
Absolutely. But not one who's still bleeding or has crusty pus-filled scabs ;)

:lol:

Quote:

Originally Posted by Shawnee123 (Post 572069)
I'll take the doctor who was not sick, but who healed the man with all the scars. ;)

Depends. What if he went to the doctor with mild dandruff?

Shawnee123 06-09-2009 08:46 AM

Quote:

Originally Posted by ZenGum (Post 572085)



Depends. What if he went to the doctor with mild dandruff?

There, again, you're supposed to be smart enough to avoid the scalpel-wielding doctor with the crazed look in his eyes and the maniacal laugh. But that's just me (no, the scalpel-wielding doctor is not me.)

Pie 06-09-2009 09:04 AM

60% of bankruptcies are tied to medical bills. It seems unfair to blame people for their lack of 'living within their means' when the evidence points to a much larger issue.

monster 06-09-2009 09:38 AM

Fair point there.

Perhaps they should just die within their means? (joke :rolleyes:)

lumberjim 06-09-2009 10:40 AM

Quote:

Originally Posted by Shawnee123 (Post 572064)
lumberjim, I'm glad you chimed in because I have a question for you.

I have my eye on a car, and went so far as to fill out the online credit application for the dealership. Having had financial problems in the past, I hoped that my current income would play into it. I've heard nothing back from them. Another dealership, for which I did NOT fill out a credit application, emails me all the time.

I wonder if it's just slackage on the part of the first dealer, or if there is a problem. Do they tend to even look at those things as more than a way to start contacting you, if it's your first contact?

What do you suggest I do? They want to sell a car, right? The car is well within my price range, and payments would be no problem, but if they won't finance me I don't know what other options I have.

Any help would, um, help. :)

PMing you

classicman 06-09-2009 10:46 AM

from Pie's link:
Quote:

"92 percent of these medical debtors had medical debts over $5,000, or 10 percent of pretax family income," the researchers wrote.
that means their GROSS annual income was $50,000 or LESS. That is not a large number.
Many of them were virtually treating them as ATM's. Many were taking out home equity loans and living off the increase in their home's value. That ride ended rather abruptly. Living beyond their means created the situation, their unfortunate medical expenses just pushed them over the edge.
Also, most of them already had insurance. Therefore, insuring additional people who don't have any currently is not going to change this specific issue.
Quote:

“The traditional reasons for bankruptcy — illness, divorce and job loss — haven’t gone away,” said Deborah K. Thorne, an assistant professor of sociology at Ohio University whose expertise is in consumer debt and bankruptcy. “With houses no longer A.T.M.’s for paying bills, that escape route is gone.”
It is a three pronged problem.
Illness is a part of it, it always has been, but job loss and divorce rates are at all time highs. They are the real culprits in my opinion, not the health insurance situation. Too many lived for too long on credit and now its time to pay for it - they are. The medical situation is more of an excuse for poor money management than anything else.

Shawnee123 06-09-2009 10:48 AM

Thanks jim! :)

Aliantha 06-09-2009 05:07 PM

I'm assuming that figure about bankruptcies is only US? I highly doubt that'd be the case here, thanks to our public health system. ;)

ZenGum 06-10-2009 06:04 AM

:lol: Ali you naughty little shit-stirrer. Next thing we know you'll be suggesting another safari or something.

classicman 06-10-2009 08:04 AM

Quote:

"It may sound boring" says Leroy, "but you can't get away from the fact that if you borrow you will eventually have to pay it all back - plus some!"

"The old wisdom that you need to set something aside for the rainy days whilst the going is good seems to have been forgotten by people, too many of whom have been relying on increasing asset prices, such as their homes, to get them out of trouble. "

Shawnee123 06-10-2009 08:31 AM

Thanks to lumberjim's guidance and advice, I've made actual contact with the dealership and am working on the process.

I would have just given up.

Thanks jim!

monster 06-10-2009 11:46 AM

Awesome.

Sundae 06-10-2009 12:13 PM

FTR - this week I have acquired a Pay As You Go credit card.
I researched it thoroughly before committing (although in fact I am not committed, if I leave the balance at £0 for 6 months it is cancelled).
There are no monthly or annual fees either.

It just means when (I mean IF) an internet bargain comes along, I don't have to borrow someone else's card. And if I keep £10 on the card I don't have to worry about it being cancelled.

It's not credit, but it has the benefit of credit without the risk. Yes it costs more (in top up fees and per transaction fees) but they are all up front and no danger of l'il Miss Irresponsible racking up debts.

Shawnee123 06-10-2009 12:15 PM

Those are a good idea, and very handy when you need a credit card. Good move, SG!

Aliantha 06-10-2009 06:33 PM

Quote:

Originally Posted by ZenGum (Post 572374)
:lol: Ali you naughty little shit-stirrer. Next thing we know you'll be suggesting another safari or something.


OK ok...I was having a jab, but I definitely wont be going so far as to suggest another safari. lol Doomed...doomed I tell ya! ;)

Gravdigr 06-19-2009 11:47 AM

What's this cash thing I keep hearing about?


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