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I know plenty of young, single mothers - making $10 an hour - who budget their checks down to the penny. There is no extra money. There is no money to save. How do i know this? Because I volunteer for a program that helps these girl open checking and savings accounts and establish and maintain credit. I see people everyday who work at 40 hours a week and when they get their paycheck it's gone before they cash it. These girls aren't out buying Gucci bags and Prada earrings, they're buying pampers.
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Two dozen cloth diapers will save you several thousand dollars and are much better for the environment.
i actually think the credit system is extremely fair, if you want to see unfair look at auto insurance, where they can discriminate on basically anything they want apart from sex race or religion. its not right that someone can be driving for years is penalised because of job or marital status, speeding tickets is relating to driving so by all means peanlise that
i actually think the credit system is extremely fair, if you want to see unfair look at auto insurance, where they can discriminate on basically anything they want apart from sex race or religion. its not right that someone can be driving for years is penalised because of job or marital status, speeding tickets is relating to driving so by all means peanlise that
They do discriminate on sex. Men have higher insurance.
I can tell you all that there is at least one mistake on every single credit report that cost you thousands of dollars over time.
Many creditors report false and misleading information on purpose to cause you to have a lower score. Tons of people never check their credit report to even know what is on it.
Original creditors. collectors, junk debt buyers and lawyers can report something that is inaccurate as they want until you catch them. They are banking on you not knowing it is there until you need it.
There a numerous collection agencies that have paid multi million dollar lawsuits to people for screwing them over and reporting false information on the reports.
Everyone... Please check your credit report. You can obtain a free report from the big 3 once per year and there are sites that you can monitor your credit reports daily, weekly or monthly and you will get alerts for any changes that may occur.
By they way, the big 3 ( Experian, Trans Union and Equifax ) work against you and for the bankers and lending companies, they allow them to put erroneous information on your report with no questions asked and have to fight them like heck to get it changed or removed.
What they dont know is that well informed consumers are taking charge and forcing them to correct erroneous information. I know of many who have been paid thousands of dollars for the wrongful information they place on reports.
Drop the internet and use the public library. (I saved you 50 bucks a month)
I've used the bus system in Orlando and if you trace your routes just right, you can save on gas here and there. Don't give up the car but use it less (Probably saved you another 50 bucks right there)
When you're lease is up, rent a room for $400 a month instead of an apartment. If you must have an apartment- try finding something cheaper. Look into housing assistance.
Off the top of my head, I think I saved you about $6,000.
1st off I have said it more than once there is nothing wrong with my finances so I don't why you're trying to save me money. I told myself not to come back to this thread because most of the comments here seem to be pointless, but I wanted to show my co-workers some of the things you all were saying to see how people I work with on a daily basis felt about this topic.
I am so glad I came back so I could respond to yet ANOTHER useless suggestion.
And this has to be the best suggestion of them all. Give up my apartment and move into a room with my 2 year old son. And if that doesn't work - get housing assistance I don't think that suggestion evens warrants a response.
Thanks so much for the laugh. I'm not sure how this thread took the turn to help me save money and balance my finances, but let me reassure you all that I do not require no desire financially planning from any one on this board.
I was really speaking up for the women that I work for. People who work, don't live extravagantly and are still struggling. I never said that people should run out and get things on credit knowing they don't have the money to pay for it, nor was I saying that people with low credit scores should be forgiven and allowed to start all over again.
My position from the very beginning of this has been "the credit system is unforgivable". You all are sitting here saying "oh well you should have an emergency plan" and blah blah blah blah blah. That was never my point. I'm saying okay i'm 18 years old, a college student and I have a part-time job. I get all these credit card offers in the mail so I take them all because I'm stupid, I don't know any better, I'm young, I think it's a good idea, it's Tuesday, for whatever reason I take all these cards.
And then I get in over my head, everything is charged off and closed. So now I start paying them off. So fast forward 4 years and now i'm a college graduate looking for a job and they pull my credit and they see those charged off accounts. Now before you say "oh but they're 4 years old and you've been paying on them or paid them off" whenever a collection agency buys an account it starts all over and BOTH accounts appear on your credit...is this legal, is this the way it's supposed to be? I don't know but that's what happens. And even if I'm paying $100 a month on a $1500 balance - they can sell this account at anytime and collection accounts go on your credit within 30 days unless you pay them in full.
So now I'm trying to get a job but they turn me down due to credit issues because I'm a risk. For something that I did 4 years ago and have since learned better.
If I'm trying to rent an apartment and the last complex I lived in says I never paid my rent late and my credit report shows that my electric bill was never late then what difference does it make that my Visa account was charged off. Okay, don't give me another Visa.
I know I'm being extreme because most complexes are more concerned with skips and evictions but I was just trying to give an example of things I help the women at work contend with. Yes, they made mistakes. Yes, those mistakes were entirely their faults. Yes, they should be held accountable for those mistakes. But now that they are trying to recover from those mistakes, the credit system is not allowing them to move forward.
I helped one girl pay off everything on her credit and when she went to get a car 6 months later they wanted her to pay $360 a month because that was the interest rate she received based on her credit history. So she took the money she saved for her down payment and brought a used car. If she's such a risk why would you raise the interest rate and make the payment so high? By the time she finished paying for that car she would have paid for more than double the price. No big deal, but that completely baffled me.
Maybe it's because I'm young or maybe I'm just silly but I think credit should be looked at case-by-case and assisted by the report not based on it entirely.
Last edited by nat_at772; 02-03-2008 at 02:51 PM..
whenever a collection agency buys an account it starts all over and BOTH accounts appear on your credit...
Both accounts may appear but the collection account does not "start all over". The collection must be removed from your credit within 7 years of the original default. If they fail to remove it you can (for free) dispute it with the credit reporting agencies and if the collection agency cannot show that the collection is from a new default then it most be removed. Anyhow, collection agencies can be a bit nasty and they take advantage of people's ignorance. But the credit system and the laws are on the consumers side and a simple dispute filed online is usually enough to get illegal activity from the collection agencies removed (The burden of proof is on the agencies not the consumer). I do not quite understand how you help people with credit without knowing about the Fair Credit Reporting Act and how to apply it.
Quote:
f she's such a risk why would you raise the interest rate and make the payment so high?
You're not thinking about this from the correct perspective. Someone (an investor buying debt securites, a bank etc) is fronting the money for the loan. Now, they have a variety of things they can do with the money each of which has different amounts of risk associate with it. Undoubtedly loaning money to people with bad credit has more risk associated with it than folks with good credit. So, even that why would you expect the rates to be similar? The investor, bank etc always has the choice to do something else with the money. If the risk on the auto loan is high but the potential yield is only 7%, why bother? You could at the very least put the money into the stock market and get much better potential (and even likely) yields.
I do not quite understand how you help people with credit without knowing about the Fair Credit Reporting Act and how to apply it. .
Well I guess it's a good thing you don't sign my paycheck isn't it.
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Originally Posted by Humanoid
You're not thinking about this from the correct perspective. Someone (an investor buying debt securites, a bank etc) is fronting the money for the loan. Now, they have a variety of things they can do with the money each of which has different amounts of risk associate with it. Undoubtedly loaning money to people with bad credit has more risk associated with it than folks with good credit. So, even that why would you expect the rates to be similar? The investor, bank etc always has the choice to do something else with the money. If the risk on the auto loan is high but the potential yield is only 7%, why bother? You could at the very least put the money into the stock market and get much better potential (and even likely) yields.
So there is nothing baffling about it.
Did I say similar rates? I'm not stupid. I wasn't thinking 7% but they offered her 22.5 percent or something like that. It was only a $8,000 car. It just seems to me that by making the price so high, you're pretty much guarenteeing you won't be getting paid. I got my car from a Infiniti dealership & after they told me what I qualified for they actually had a guy sit with me and go over my income/bills and recommend what I actually get. Even though I qualified for a new car the payments would have been like $250 but they helped me find a nice car and my payments were only $165.
My dad was shocked by that but it made sense to me.
Oh well, I guess there really is no such thing as civil disagreements any more because obviously everything I think is wrong. Hopefully by the time I'm as old as some of you I'll have a complete understanding of everything financial and the world and I won't be so critical of others.
If you do not know the FDCRA or the FCRA top to bottom you wont know what to look for.
There is no such thing as a perfect credit report.
Dont confuse a good credit report with a CORRECT credit report.
FTC has already reported that 99.0% of all credit report have inaccuracies on them.
I have seen more then 300 credit reports in the past year and not one of them was 100% totally accurate. Even the best has a wrong street number, wrong zip code, wrong middle initial, wrong type of account.
If you know you credit report is perfect in every single way then why not jump in and help someone get their corrected?
If you do not know the FDCRA or the FCRA top to bottom you wont know what to look for.
There is no such thing as a perfect credit report.
Dont confuse a good credit report with a CORRECT credit report.
FTC has already reported that 99.0% of all credit report have inaccuracies on them.
I have seen more then 300 credit reports in the past year and not one of them was 100% totally accurate. Even the best has a wrong street number, wrong zip code, wrong middle initial, wrong type of account.
If you know you credit report is perfect in every single way then why not jump in and help someone get their corrected?
The wrong street, middle initail, employment etc. is caused by human input error by people pulling your credit. Does this cost people thousands over time?? No.
With respect to my credit report, it has the correct accounts for me over time, correct lates, open dates, closed dates, correct balances owed...
I think credit reports for the most part are accurate and do a good overall job of scoring. Obviously there is no way to make it a perfect system. Some typo or small error(s) are not going to have a major impact if any on your score and will not cost a cosumer big bucks.
I have found that paying your bills on time, keeping your revolving debt less than maxed and not opening new accounts constantly is an easy ticket to a good score.
Oh, and I work with credit reports every day as well as a mortgage loan officer. Some credit reports are deal killers and therefore cost me money, yet I still stand by the reports. I would say 95%+ of the reports I look at are basically accurate, reporting correctly and have a proper score.
What do you do....credit counseling (aka we will see how we can get some of this bad stuff off your credit because your collectors did not do something exactly as they were supposed to after the consumer did not pay their bills on time)?
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And if that doesn't work - get housing assistance 
