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I started an earlier post about Bankruptcy and Credit came up alot so..
I decided to start a new Thread.
Without decent credit:
You pay more for auto insurance
Cant get a cellphone without tons of money upfront(forget tracphone lol)
Certain jobs will not hire you.
Might have problems getting an Apt.
Cant get a decent interest rate on anything.
I have scores in the low 600's and most of my negatives are years old!
I have had most of the problems mentioned.
Judging from Trends i see credit being used against people more in the future.
More Payday loan type places and horrible alternatives for people who..
Who dont have many options.
Credit is almost needed in todays world unless you have a high income..
And can pay cash for almost everything!
Really its the only way that a company can get a idea of how credit worthy people are. Especaily with the past experience f people fling for bankrupsy so often. This also works foir you if you have good credit;otherwise you would pay more to cover so many deadbeats.Allready pay enough as it is.
Sad thing is your score can really take a hit from things you are not aware of. Had a medical claim come to me two years after the service. I thought I was paid off (and had moved with my company). First time I heard of it was from a collections company...with their fees added in. Once I paid it off I thought that was it. Found out recently that it stays on your record for 7 years...and the collection agency did not close itr with all three credit agencies. Found this when a home loan officer told me that Transunion had my credit score over 100 point lower than experian.
I think something will have to be done to lessen the "across-the-board" impact of poor credit ratings. So many average people are having difficulties due to the poor housing market and economy. Companies are just making big money on the backs of people who have suffered from some difficulty!
In my own situation, I went from having excellent credit to poor credit when I got sick, became mired in med. bills, and lost my house. My electric company (whom I've been with for almost two years) suddenly decided to require a large deposit from new and existing customers who were low income, had poor credit, or who paid late/were disconnected frequently. I ALWAYS pay my electric bill promptly and resented the fact that the company was lumping us in with deadbeats and trying to make money off poor people!
I fought the deposit requirement and it was canceled for me. The customer service people who helped me said that when the letters about the deposit requirement went out, they began receiving lots of calls from people in sad situations and they passed it along to management. Sometimes what seems OK on paper turns out to be anything but when it's put into practice.
A whole lot more people are going to find themselves in this situation as the economy continues to go sour. So, what, are apartment complexes, insurance companies and such going to restrict their business to only those with great credit and/or price their services out of the bounds of a growing segment of the population?
I have scores in the low 600's and most of my negatives are years old!
I have had most of the problems mentioned.
Judging from Trends i see credit being used against people more in the future.
More Payday loan type places and horrible alternatives for people who..
Who dont have many options.
Credit is almost needed in todays world unless you have a high income..
And can pay cash for almost everything!
It's not an issue if you don't misuse credit, and if you don't use it to buy things you can't afford.
I think the whole credit score, find out what your credit score, it's gimmicky and dreamed up by buearu's that want to sell you something.
The more cynical and big brother type view, is that it's a stealth "tracking device" designed to follow your every move in life. Who needs chips implanted in your arm?
All you have to do is...
-Get people hooked on credit and off of cash.
-Then get you in debt
-Then get you hooked on your all important "score"
And then turn the screws on your "score".
How did anyone live before credit scores?
The idea that it monitors your "risk".....my guess is that if you looked at insurance company results 30 years ago vs today, they've gotten better in assessing risk, but they aren't so much more profitable now...compared to all the little ways they can nick you.
It also adds to the culture of fear that's hit the country in the last 5-10 years.
And then once they get you, it doesn't go back in your favor. The screws keep tightening, and they find more ways to get you.
It's been a slow drip process.
I also wonder if the increased rates you pay if you have bad credit (for cell phones, insurance, etc) goes into the CPI or inflation.
In 3-5 years, I wouldn't be suprised if the credit score mania has increased. And instead of 400-850, whatever the range is now, it's changed, and it gets tighter and tighter. Like 1-1,000. And then it slowly works its way into airline seats (you're overweight, you're too fat), amusement park admissions, who knows.
Like in the movies when a guy is stuck between two walls closing in on him. And he tries to stop it, but it just gets tighter, and he gets more closed in.
I have no idea what my credit score is. It was never an issue before but it seems to be the highlight of everyone's life these days. Maybe because it was so abused before.."Are you breathing ?" "Great..here's a 300K loan with nothing down".
I have a steady job, live below my means and the only debt I have is my mortgage.
I've never had a problem with my credit and get good rates for my auto/home insurance.
It's very hard to understand why people put themselves in an even more difficult financial situation and actually spend the money for payday loans. Rather than go through hard times for a short time, go to a payday loan and dig yourself in further debt. Not very smart. Those places take full advantage of people with no finanacial where with all and bad judgement. And those who go there just don't care enough to suffer short term and care about getting out of a bad situation long term.
I suppose writing bad checks goes into the equation when someone has bed credit as well. Writing bad checks is illegal but that's not the point. People bounce checks and then have to pay fee's. More debt. Sit down, look at your finances and have a budget. Live within your means. Credit is very important, it shows responsibility. That is why you need good credit to purchase a home.
As far as I feel about credit, credit to me is seen is merely convenience. There have been people (just regular everyday people) that have never bothered with credit and have always paid cash for everything.
What I believe society thinks is that we need credit to live, and they often put in many ads and commercials to reflect that. Not so. When you buy something on credit its just the plan to get something now rather than wait until you have saved up the cash for it. Its a very hard discipline for most people because alot aren't willing to wait to have the money to get whatever they need (or want). So they turn to credit knowing that the impulse will be satisfied right away. When spending cash its more painful to people because that's money leaving their pocket so they tend to be more cautious on how they spend. Not so with credit, as most dont give it a second thought when they swipe that card. If a person waits to save up what they need or want, then its much more satisfying to actually own the item after purchase, especially a car or appliance, and not end up being a slave to the lender with a chain tied around your neck.
I for sure refuse to let a credit score dictate and control my life. Many car dealerships know most people rely on credit to buy cars; and tend to despise those who pay cash because the dealers know they won't make anything off of them. Society wants people to think that paying cash is bad and is inconvenient, and credit is the way to go. I definitely disagree. If a person for example gets their car repo'd due to very challenging times and circumstances, then the finance company has no problem trashing your credit report for 7 years with that repo listing. Who cares?? If that person was very diligent and assertive in saving up cash for another car, then they could easily buy a better one within a few months or even a year or so, and no bad credit reporting can stop it. That feeling is priceless when the credit system is defeated that way to where a credit score says you cant, but I got it anyway, and this time no one can take it from me.
I had a finance company the other day call me to see if I was still in doing a vehicle purchase since I had already been approved for a new loan. My response to them was that I will not be financing as I will be saving the cash to buy the vehicle with. They wished me well and that ended that.
Can a person live a credit-free life? Sure they can if they really want to. My mom is doing that now and she says its great. The entire credit score and system is mostly designed to benefit the cc companies and other industries that rely on that just so they can pad their pockets even more by charging high interest rates and fees. Its all relative. You're thought of as weird and odd when you turn away from the system.
I would say NOT ENOUGH value is placed on your credit score. I have three credit cards, have had them for the last two years, have carried a balance twice and never been late on a payment. Well, my score is 735 and guess what? THE BANK WILL NOT GIVE ME A MEASLY 1,000 FOR A VACATION LOAN!
Why? because they say "I never have taken a bank loan before"
So, even though I have great credit and more than eight times the amout I was asking for in the said bank's account, have never bounced a check with them, and been a loyal customer for SEVEN YEARS, because I have never taken a loan out other than the revolving accounts (credit cards) I can't get a small loan.
So how the hell do I get a loan if no one wants to lend me money? I guess I shouldn't of paid for my car in cash, even though that was the only optional available at the time (government auction)
Even though I have great credit, I still, as a grown arse man, have to ask my father to co-sign it just so I can get a little, ITTY-BITTY 1,000 dollars.
If only they used just my credit rating, none of this would happen.
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