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Old 01-13-2018, 11:35 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,114 posts, read 3,407,695 times
Reputation: 5648

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Bottom line is if you want credit or a loan you have to play the game. StArt out small and build your credit. It's been that way for a long time. Baby steps lead to bigger steps. You want to be a pro athlete? You play pee wee, school, college, and if you are good and did all the right steps you have a shot.
You want a loan, same process but much easier.
Op however doesn't want to pay his dues like everyone else but immediately wants a loan at the best rates and terms. I understand if they don't want to play the game or don't like the process, but they shouldn't expect to get the reward if they won't play the game.
It is what it is. Millions do the process. I did it rebuilding my credit over the course of years starting with a $300 credit card. I just got a loan on a half million dollar house so it all paid off.
I agree with the poster that said they should just pay cash in the end.

 
Old 01-13-2018, 04:13 PM
 
4,857 posts, read 2,152,571 times
Reputation: 12367
I do agree with the "concept", But tell that to all the folks who have bought into the idea that people have to "pay their dues" first.

Best way to save is to not buy into the Sheep mentality. (Ohh thats just the way it is ideology).

As my boss often said...It all comes out the same at the end of the balance sheet. So decide if you want to charge 20 ppl 30$ and let Sammy Pay $40, or have each person pay in $31. Same difference. So yeah...the concept is indeed a wise one, but name one bank that has been wise to its consumers...
 
Old 01-14-2018, 03:27 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
na just BS the way the system really is. Miss ONE PAYMENT and boom your hit automaticly with lost of say 20 points. Now you have to wait another year to get that 20 points if you dont open up or close anyhing. That is the issue. Points should rise and fall just as fast as it can, not 10 years down the road over a miss payment.

Thanks NOV3. I was just a idea and like to hear other people thoughts and reasoning, somehow it became a personal attack. The game playing is my issue, never in my life assume i have to play monopoly to please a system that is already FUBAR.
 
Old 01-14-2018, 03:31 PM
 
64,681 posts, read 66,183,819 times
Reputation: 43102
Easy answer don't miss a payment. Do you like getting your pay check on time or a week late?
 
Old 01-14-2018, 03:39 PM
 
1,344 posts, read 1,234,625 times
Reputation: 9683
Institutions that loan money are not charities. The purpose of the loan is to make money by letting someone else use their money. "Helping" someone with a history of poor financial behavior does not appear anywhere in the business plan of any of the major institutions that lend money. They would not stay in business (i.e, they would not be able to continue to lend money to anyone) if they just handed out money to anyone who asked or assessed high-risk loans at the same rate as low-risk loans. It is simply a fact of life (and business and money and human nature).


There are probably nonprofit organizations that lend money to the financially challenged with the goal of "helping" them; but there is a reason they are called "nonprofit."


"Helping" a borrower with poor credit by lending him/her money without factoring in the risk is not a goal that is likely to lead to a satisfactory result for the lender.
 
Old 01-14-2018, 05:04 PM
 
2,771 posts, read 1,502,855 times
Reputation: 2173
Quote:
Originally Posted by hitpausebutton2 View Post
na just BS the way the system really is. Miss ONE PAYMENT and boom your hit automaticly with lost of say 20 points. Now you have to wait another year to get that 20 points if you dont open up or close anyhing. That is the issue. Points should rise and fall just as fast as it can, not 10 years down the road over a miss payment.

Thanks NOV3. I was just a idea and like to hear other people thoughts and reasoning, somehow it became a personal attack. The game playing is my issue, never in my life assume i have to play monopoly to please a system that is already FUBAR.
The only ‘game playing’ I see is your wacky line of reasoning stemming from you feeling like a special snowflake.

No risk, no reward.
 
Old 01-14-2018, 07:07 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,114 posts, read 3,407,695 times
Reputation: 5648
Quote:
Originally Posted by Nov3 View Post
I do agree with the "concept", But tell that to all the folks who have bought into the idea that people have to "pay their dues" first.

Best way to save is to not buy into the Sheep mentality. (Ohh thats just the way it is ideology).

As my boss often said...It all comes out the same at the end of the balance sheet. So decide if you want to charge 20 ppl 30$ and let Sammy Pay $40, or have each person pay in $31. Same difference. So yeah...the concept is indeed a wise one, but name one bank that has been wise to its consumers...
Why would you make Sammy pay more? Unless he was a bigger risk.
By your logic the sheep mentality also applies to everyone believing the world is round. I guess you consider them all mindless sheep for all believing it. You and Kyrie Irving can discuss the flat earth idea since you aren't a sheep.
The op is a higher risk and has posted his difficulties in other threads and can't understand why he can't get the lowest rate home loan let alone even get a home loan.
It's long been known if you miss a payment your credit takes a hit. So if you don't want the hit don't miss a payment. It's not that hard to understand and follow.
Then op wants the same loan terms as someone with a good track record of paying back debts, but has already proved they can't pay back debts on time.
 
Old 01-15-2018, 03:55 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by aslowdodge View Post
Why would you make Sammy pay more? Unless he was a bigger risk.
By your logic the sheep mentality also applies to everyone believing the world is round. I guess you consider them all mindless sheep for all believing it. You and Kyrie Irving can discuss the flat earth idea since you aren't a sheep.
The op is a higher risk and has posted his difficulties in other threads and can't understand why he can't get the lowest rate home loan let alone even get a home loan.
It's long been known if you miss a payment your credit takes a hit. So if you don't want the hit don't miss a payment. It's not that hard to understand and follow.
Then op wants the same loan terms as someone with a good track record of paying back debts, but has already proved they can't pay back debts on time.
First all, why the personal attack?

Second of all, my credit is base on history. I paid my bills, early but paid. Anything that requires me to pay interest on anything period gets paid off early as possible. So stop with the insults. IF somebody miss a payment due to a mailing issue or something beyond the control of the borrower, should not have a huge affect right off the bat. Who knows it could been the moron at the credit office putting the payments in by hand and didnt want to do their job at the end of the day. I can see a drop if you miss more then 2-3 payments on something but never been late prior and after the payment, could see a small hit. But you see my point is getting those points back that takes eff forever to get. FICO will drop you like a hot potato over a miss payment vs paying back on time after the fact. What i dont like is them basing nearly good chunk of your score is history. I would rather see a credit file with paid off items and paid/closed accounts then some 10 year history on a 300 dollar credit card. You want to see debt, and nothing else. Debt that we all should not be in, but we have to put it on a report system to please the business of it all. That debt is the problem. Its designed to give credit to those that really dont need credit. If you was paying %3 on a 4 year car note. Earlier you pay on it, less interest they are making. But you have the funds to pay it off 2 years early, so you do it. You get penalize for doing that because the bank or lender didnt make full interest off you. So now you only show 2 years of history on a close account. But according to your theory, you want to see 4 years on a open account when you had the option to close it. Change the status quo..
 
Old 01-15-2018, 07:36 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,114 posts, read 3,407,695 times
Reputation: 5648
Quote:
Originally Posted by hitpausebutton2 View Post
First all, why the personal attack?

Second of all, my credit is base on history. I paid my bills, early but paid. Anything that requires me to pay interest on anything period gets paid off early as possible. So stop with the insults. IF somebody miss a payment due to a mailing issue or something beyond the control of the borrower, should not have a huge affect right off the bat. Who knows it could been the moron at the credit office putting the payments in by hand and didnt want to do their job at the end of the day. I can see a drop if you miss more then 2-3 payments on something but never been late prior and after the payment, could see a small hit. But you see my point is getting those points back that takes eff forever to get. FICO will drop you like a hot potato over a miss payment vs paying back on time after the fact. What i dont like is them basing nearly good chunk of your score is history. I would rather see a credit file with paid off items and paid/closed accounts then some 10 year history on a 300 dollar credit card. You want to see debt, and nothing else. Debt that we all should not be in, but we have to put it on a report system to please the business of it all. That debt is the problem. Its designed to give credit to those that really dont need credit. If you was paying %3 on a 4 year car note. Earlier you pay on it, less interest they are making. But you have the funds to pay it off 2 years early, so you do it. You get penalize for doing that because the bank or lender didnt make full interest off you. So now you only show 2 years of history on a close account. But according to your theory, you want to see 4 years on a open account when you had the option to close it. Change the status quo..
Why do you consider it a personal attack?
Why do you feel insulted?
I am just going off what you have posted previously and I can see that you are having difficulty getting financing for a home. If you are insulted that someone will comment on your situation in a way you don't agree with, then don't post information about you or what you are trying to do. Or title your threads with the added line "Please don't respond unless you agree with me 100%".

The status quo is what it is. You can try to change it, you can complain all you want about it, but if you keep going your own way insisting they are wrong and you won't cave, getting that home will be a long ways away.
As a landlord I look at credit just like a lender. I, like the bank want to do business, but I don't want to lose money.
Warren Buffet's first rule: Never lose money.
What's worse than not earning interest on a loan? Not being paid back the loan principle never mind the interest. Then incurring costs while you have to try to collect.
What's the best way to avoid this? Hedge your bets. Pick only the best credit worthy people so you have less risk whether you are a lender or landlord.
If you want to gamble and take a bigger risk, then you need to be compensated for it financially by charging more.

If you decide you want to pay off a loan early, the lender makes less money and that is not what he is in business for. If you can't understand that lenders lend money to make money and take precautions to minimize that risk, then no one here can help you.

Honestly you should do the Dave Ramsey thing and never use credit and pay everything off. That would be the best way to give the lenders and credit scoring agencies the finger.

This is not a personal attack or insult, just the truth. If you consider this as such, I really don't know what to say to you except good luck fighting the system and cutting your nose off to spite your face.
 
Old 01-15-2018, 08:18 PM
 
2,360 posts, read 1,029,790 times
Reputation: 2071
Quote:
Originally Posted by aslowdodge View Post
Why do you consider it a personal attack?
Why do you feel insulted?
I am just going off what you have posted previously and I can see that you are having difficulty getting financing for a home. If you are insulted that someone will comment on your situation in a way you don't agree with, then don't post information about you or what you are trying to do. Or title your threads with the added line "Please don't respond unless you agree with me 100%".

The status quo is what it is. You can try to change it, you can complain all you want about it, but if you keep going your own way insisting they are wrong and you won't cave, getting that home will be a long ways away.
As a landlord I look at credit just like a lender. I, like the bank want to do business, but I don't want to lose money.
Warren Buffet's first rule: Never lose money.
What's worse than not earning interest on a loan? Not being paid back the loan principle never mind the interest. Then incurring costs while you have to try to collect.
What's the best way to avoid this? Hedge your bets. Pick only the best credit worthy people so you have less risk whether you are a lender or landlord.
If you want to gamble and take a bigger risk, then you need to be compensated for it financially by charging more.

If you decide you want to pay off a loan early, the lender makes less money and that is not what he is in business for. If you can't understand that lenders lend money to make money and take precautions to minimize that risk, then no one here can help you.

Honestly you should do the Dave Ramsey thing and never use credit and pay everything off. That would be the best way to give the lenders and credit scoring agencies the finger.

This is not a personal attack or insult, just the truth. If you consider this as such, I really don't know what to say to you except good luck fighting the system and cutting your nose off to spite your face.
I do apoligize if i come off that way.. Not way i thought this topic would go. But back on point here.. The bold i highlighted is the issue i see. Ok so you want to make interest on the loan, i get it. You want something back on your loan, plus some. As the consumer our goal is to pay things off sooner than later to keep from having to paying too much on that loan. So why are we punished for doing just that.
Got one expert that tells you to pay min to keep history and one expert that tells you to pay everything off fast as possible so your not over paying. ( interest). With that being said, for somebody that is just starting out and have no history, how are they suppose to get something when they cant even get approved by these strict terms. Cant have your cake and ice cream too.. unless your very very greedy on your process.
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