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Location: Went around the corner & now I'm lost!!!!
1,544 posts, read 3,599,512 times
Reputation: 1243
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Months ago I used to have good credit but now due to the fact I paid off and closed many of my accounts, I now have bad credit. I really don't care at this point but how can the credit companies label you as "bad" just because they now can't make money off of the interest they would have charged us from prolonging our payment????. Who died and left in charge to say your credit is bad and what can we as consumers do about this?
I think we all should start closing these accounts and let them know they we are in charge; not them of our personal finances and make them go broke.
Damned if you do and Damned if you don't....we lose in either case; now THAT should be illegal
Months ago I used to have good credit but now due to the fact I paid off and closed many of my accounts, I now have bad credit. I really don't care at this point but how can the credit companies label you as "bad" just because they now can't make money off of the interest they would have charged us from prolonging our payment????. Who died and left in charge to say your credit is bad and what can we as consumers do about this?
I think we all should start closing these accounts and let them know they we are in charge; not them of our personal finances and make them go broke.
Damned if you do and Damned if you don't....we lose in either case; now THAT should be illegal
Yes, Credit Scores are a crock of crap.
But your credit scores aren't destroyed because you pay off credit cards and close the accounts.
A credit score is just an index meant to let creditors know the likelihood they can make money by extending you credit.
If you always pay off your balances and never get charged interest, your index will dip, since you aren't a very good source of revenue.
The problems happen when people or other agencies attempt to use your credit score in ways it was never meant to be used - eg, trying to use the score as a proxy to find out if you are "honest" or "a good person."
Your score can't reveal those things... but that won't prevent others from using it in that fashion.
Things are cahnging all the timeto more a debt to income ratio really. The credit hit you take for closing a account is only temperary. That said its hard to have a credit score with no history really. Buyt has the inductry moves to less overall credit on cards outsatnding they will be come less important overall than they have been.I would bet if you have a 800 score but a poor credit to income ratio that that will mean more in by the time credit worthyness is changed in the future. Some may even be eliminated based pure on income to want.
Credit card companies are the scum of the earth. Look: they've been so deceitful and greedy in their business dealings and policies that congress had to actually pass legislation to reel the bastards in a bit: requiring them to, among other things, give their customers at least 30-days notice before raising interest rates. When you have credit cards, there's actually very few things you can do that are good for your score, and a ton of things you can do to hurt it. Like one poster said: even paying off your cards early and keeping your "balance to credit limit ratio" too low can hurt you. (Also, something I used to do all the time: cancelling a card and paying it off after the initial low-interest teaser rate expires--that zaps your credit score too.
So screw 'em! Just get by with your debit card and cash and checks until these bastards come around. You'll see: when this current recession ends in another 8-12 months or so, the credit card companies are gonna come back to us begging for business. And if more Americans would just buck-up and get rid of their cards in protest, we could form even a stronger coaltion so as to force the card companies into catering to us, instead of the other way around. Too bad that most Americans are too lazy and apathetic to ever mount any type of meaningful boycott or grass-roots protest movement.
^ I agree with the premise that credit card companies are the sum of the earth.
But nothing is going to change. Why? Well, first of all, we have bank & credit card company CEOs running the National Treasury.
Second, too many Americans have too much credit card debt. You can't say, "scrooge you, you scumbags!" to a credit card company when you owe them thousands of dollars. In that case, THEY get to call the shots. So they do.
Location: Went around the corner & now I'm lost!!!!
1,544 posts, read 3,599,512 times
Reputation: 1243
From this point forward, they can kiss my ASSETS goodybye. I will not be getting anymore credit cards or extended credit/loans in the future. In this economy we all should be getting rid of the credit because when it boils down to it if our economy bellies up, they are going to find a way to take what you have right from under anyway if you don't give them "their " money...thieves.
Months ago I used to have good credit but now due to the fact I paid off and closed many of my accounts, I now have bad credit. I really don't care at this point but how can the credit companies label you as "bad" just because they now can't make money off of the interest they would have charged us from prolonging our payment????. Who died and left in charge to say your credit is bad and what can we as consumers do about this?
I think we all should start closing these accounts and let them know they we are in charge; not them of our personal finances and make them go broke.
Damned if you do and Damned if you don't....we lose in either case; now THAT should be illegal
I don't think you understand credit ratings. Your CC or loan companies don't have the power to lable you as "bad", and it wouldn't happen just because you paid off your loans and closed your accounts. That won't make things go from "good" to "bad".
Maybe it's because you cancelled everything and wiped out your credit history? Or maybe there is something else you aren't telling us.
From this point forward, they can kiss my ASSETS goodybye. I will not be getting anymore credit cards or extended credit/loans in the future. In this economy we all should be getting rid of the credit because when it boils down to it if our economy bellies up, they are going to find a way to take what you have right from under anyway if you don't give them "their " money...thieves.
I agree with you that the credit card companies can kiss my assets goodbye.
I have one credit card - through my local bank - that I carry for emergency purposes, and a few larger necessary purchases. For instance, last year I paid for one of our son's Wedding Rehearsal Dinner on my credit card.
The company charges me 20% interest on my card - and this during a time when prime rate is at a historic low.
So I called and asked them if they'd lower my interest rate. They simply said "No." I told them I'd make them a deal. They could lower my interest rate, or I would pay off the balance tomorrow. They simply said "No."
Keep in mind that my credit score is 780. They still said "No."
So I paid off the card the next day. Yes indeed, the thieves can kiss my assets goodbye.
Even so, what I did does not affect my credit score negatively, in the way you seem to think it does...
Location: Went around the corner & now I'm lost!!!!
1,544 posts, read 3,599,512 times
Reputation: 1243
Quote:
Originally Posted by Ceece
I don't think you understand credit ratings. Your CC or loan companies don't have the power to lable you as "bad", and it wouldn't happen just because you paid off your loans and closed your accounts. That won't make things go from "good" to "bad".
Maybe it's because you cancelled everything and wiped out your credit history? Or maybe there is something else you aren't telling us.
Yes I got credit for large items but decided to close (cancel) those credit cards and paid them off with the exception of one which I asked them to lower my credit limt to only a couple of $$. So yes I did cancel the cards... I was not going to let cards sit OPEN so someone can steal my ID and start using them...now that would have been a far bigger problem to hassle with.
So I guess the benefit of this situation is that I won't have to worry about someone stealing my identity to charge up a bill; they would no be able to get any
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Months ago I used to have good credit but now due to the fact I paid off and closed many of my accounts, I now have bad credit. I really don't care at this point but how can the credit companies label you as "bad" just because they now can't make money off of the interest they would have charged us from prolonging our payment????. Who died and left in charge to say your credit is bad and what can we as consumers do about this? 
