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Cash probably is the safest protection against identity theft.

People who choose to not use credit are fundamentally punished.

I know a couple of people, personally, who are for lack of better word, credit addicts. They realized this and stopped using credit cards (they still have mortgages and or car payments). Yet the lack of revolving credit is a 'mark' against them.

This is, essentially, punishing them for being responsible.

A lack of credit should not automatically constitute a negative mark against a person.

Also, you can work all your life, have an excellent a credit rating and get sick and be treated like a dead beat debtor. I just got off the phone being treated badly because of my medical debt. ALL those years of being responsible don't count.

Another problem was the death of usury laws when credit card companies were allowed to incorporate in states that allowed terms and interest rates that were abusive and could cross state lines with those credit offerings.

Don't get me wrong please, credit is useful and needed and helps the economy chug along. Some new laws have been passed to alleviate some of the problems. However, make no mistake it's a system with a very ugly under belly which can and does cause otherwise responsible people a lot of problems as well. This aspect should be acknowledged.
 

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Discussion Starter #42
Cash probably is the safest protection against identity theft.

People who choose to not use credit are fundamentally punished.

I know a couple of people, personally, who are for lack of better word, credit addicts. They realized this and stopped using credit cards (they still have mortgages and or car payments). Yet the lack of revolving credit is a 'mark' against them.

This is, essentially, punishing them for being responsible.

A lack of credit should not automatically constitute a negative mark against a person.

Also, you can work all your life, have an excellent a credit rating and get sick and be treated like a dead beat debtor. I just got off the phone being treated badly because of my medical debt. ALL those years of being responsible don't count.

Another problem was the death of usury laws when credit card companies were allowed to incorporate in states that allowed terms and interest rates that were abusive and could cross state lines with those credit offerings.

Don't get me wrong please, credit is useful and needed and helps the economy chug along. Some new laws have been passed to alleviate some of the problems. However, make no mistake it's a system with a very ugly under belly which can and does cause otherwise responsible people a lot of problems as well. This aspect should be acknowledged.
Give me their # Gwen...I'm feeling feisty today let me get 'em for you lol jk (a little bit).
 

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Hehehe something tells me you can be formidable when you want to! :D :thumbup:

But...don't worry, I have my ways. They are local and I may just march my bald little head down there, no make up, PICC line hanging out and they will have to take a cash payment directly from my hand.

It probably won't make a hill of beans difference in the short run, but I'll not suffer silently, the greed shall work in my favor.

Karma.


Oooooohhhhhhmmmmm. ;)






Give me their # Gwen...I'm feeling feisty today let me get 'em for you lol jk (a little bit).
 

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Another part of the lack of credit equation is too many inquires. You may have been turned down today because you have no open cards and you have a recent inquiry (the credit union)

What about a home equity loan? If you own the house outright, it shouldn't be any problem getting a credit union to give you a $1000 loan with your house as back up.

DO NOT ASK your boss to use your corporate card. You could ask for an advance and explain it's because your truck needs work. Hmm employee can't work if their transportation is broken. I'd lend it to you if I needed you to come to my office every day.
 

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Discussion Starter #45
Another part of the lack of credit equation is too many inquires. You may have been turned down today because you have no open cards and you have a recent inquiry (the credit union)

What about a home equity loan? If you own the house outright, it shouldn't be any problem getting a credit union to give you a $1000 loan with your house as back up.

DO NOT ASK your boss to use your corporate card. You could ask for an advance and explain it's because your truck needs work. Hmm employee can't work if their transportation is broken. I'd lend it to you if I needed you to come to my office every day.
Well thank you Sun! Thankfully it worked out and got a really nice used set with the rims for $215.00. That way I am safe with no flat tires until these holidays are OVER! As far as a home equity loan, we are thinking about this but want to do more research first. I can't get approved at a credit union because my credit score is off by 5 points (grr!). But I am sure there are other avenues I can travel on this.
 

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So, a teeny bit irked today. I have a Chevy Silverado 1500 w/ the Z71 tow package on it. Started noticing that my tires are going flat repeatedly, especially at night when the temps drop. My credit score isn't GREAT, but I've seen worse. Wasn't planning on new tires until the end of the month, but that's looking to not be an option at this point. So, I figured, well maybe I can finance or partially finance the tires (looking at about $800 in tires). So I was denied which bugs me. I make just a bit under $4,000 a month before taxes. The only debt I have is student loans and some random medical bills. My total debt is approximately $10,000 if that. Never had CC's, and I literally OWN my own home without a mortgage. I just find it so dumb that I cannot even get financing for a small amount of money. I had planned on just making a straight up cash payment on all of it, but I am just getting to the point where my new job is helping me out of the red. Nothing I can do I guess. My husband and I have a very small family, so no chance of anyone helping us out (both our moms have a lot of debt from divorces). Oh well, maybe Santa will bring me some LOL. It's okay though, I will just probably get some used ones to hold me over until next month. Thank you for all listening to me cry babying lol :)

sounds more like a rim leak to me, if the tires are still good go to your local auto parts store and buy "slime" and follow the directions, my GF Focus with the alloy rims started leaking, all 4 of them, so rather than buy new rims, we put this stuff in and it works
 

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Discussion Starter #47
sounds more like a rim leak to me, if the tires are still good go to your local auto parts store and buy "slime" and follow the directions, my GF Focus with the alloy rims started leaking, all 4 of them, so rather than buy new rims, we put this stuff in and it works
You are totally right Ken one of them was a really bad rim leak. It was cracked pretty bad and the others weren't looking so hot either. But I just got new rims. My husband's friends only charged us $215 for all 4 tires and rims and he took our old crappy ones as a trade.
 

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Cash probably is the safest protection against identity theft.

People who choose to not use credit are fundamentally punished.

I know a couple of people, personally, who are for lack of better word, credit addicts. They realized this and stopped using credit cards (they still have mortgages and or car payments). Yet the lack of revolving credit is a 'mark' against them.

This is, essentially, punishing them for being responsible.

A lack of credit should not automatically constitute a negative mark against a person.

Also, you can work all your life, have an excellent a credit rating and get sick and be treated like a dead beat debtor. I just got off the phone being treated badly because of my medical debt. ALL those years of being responsible don't count.

Another problem was the death of usury laws when credit card companies were allowed to incorporate in states that allowed terms and interest rates that were abusive and could cross state lines with those credit offerings.

Don't get me wrong please, credit is useful and needed and helps the economy chug along. Some new laws have been passed to alleviate some of the problems. However, make no mistake it's a system with a very ugly under belly which can and does cause otherwise responsible people a lot of problems as well. This aspect should be acknowledged.
Your right, and sorry to hear of your medical bills.

However, again if you keep your self in check (and it can be hard to do so) it CAN be extremely beneficial.

I carry no cash most of the time..or very little

If I lost my wallet today, my biggest concern would be that I still carry my debit card just in case...all my credit cards would be easy to deal with but my checking account would take a while to recover (been there)...not to mention they are actually taking my money that I need to pay bills that don't take credit cards (Mortgage, car payment...the really important / big ticket items)

Oh and yeah what little cash I had would definitely be gone.


Basically i'm saying there isn't a reason to avoid it like the plague, even if you don't really have interest in using it all the time you should try and maintain a decent credit profile.

It's all just a game anyway, I monitor my FICO score monthly and I have made my score jump by as much as 50 points in a single month. It's just all a stupid set of rules you can learn to play within.
 

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Understood, as I said above credit is beneficial and helps keep the economy chugging along. Just to be clear I don't view it as a monolithic good or bad thing.

However, the trends in consumer credit have been tending to abusive and predatory.

In bold, that is the problem, it shouldn't be a game. Some people aren't financially savvy enough and/or are too busy working, raising a family and living life to try to unravel an increasingly deceptive system.

As I said it has gotten a bit better of late.

Thank you for your kind words about my situation, many, many others struggle with it....but that's a crusade for another day! ;). :)

Your right, and sorry to hear of your medical bills.

However, again if you keep your self in check (and it can be hard to do so) it CAN be extremely beneficial.

I carry no cash most of the time..or very little

If I lost my wallet today, my biggest concern would be that I still carry my debit card just in case...all my credit cards would be easy to deal with but my checking account would take a while to recover (been there)...not to mention they are actually taking my money that I need to pay bills that don't take credit cards (Mortgage, car payment...the really important / big ticket items)

Oh and yeah what little cash I had would definitely be gone.


Basically i'm saying there isn't a reason to avoid it like the plague, even if you don't really have interest in using it all the time you should try and maintain a decent credit profile.

It's all just a game anyway, I monitor my FICO score monthly and I have made my score jump by as much as 50 points in a single month. It's just all a stupid set of rules you can learn to play within.
 

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Well thank you Sun! Thankfully it worked out and got a really nice used set with the rims for $215.00. That way I am safe with no flat tires until these holidays are OVER! As far as a home equity loan, we are thinking about this but want to do more research first. I can't get approved at a credit union because my credit score is off by 5 points (grr!). But I am sure there are other avenues I can travel on this.
The problem with a home equity loan is that you have to have insurance on your home. A lot of people drop the insurance when their mortgage is paid off but in order to use your home as collateral on any loan it requires insurance.
 

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Discussion Starter #51
The problem with a home equity loan is that you have to have insurance on your home. A lot of people drop the insurance when their mortgage is paid off but in order to use your home as collateral on any loan it requires insurance.
I have insurance anyways. I am not sure why anyone would choose not to continue to carry home owner's insurance. You'll end up with no house if let's say there's a fire lol. BTW, inquired about a home equity loan and was still turned down due to credit score. Not worried about it at this moment, but I still think it's a sham. I think there's something fundamentally wrong about if you don't use your credit, then it affects your scores. So, if I have debt, then I am able to get more debt? Oh well, it is what it is. I'm not stressing about it....
 

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it's all the bums that took out mortaguages they couldn't afford and crashed the housing market. i have no debt, no credit and nothing in collections and i keep getting denied for any credit card. i was able to get $10,000 for my used sentra through a auto financing company but they don't report the credit or on time payments. i've been struggling and overdrafing my bank account every month the past year just to pay rent which was killing me in overdraft fees. a complete downward spiral. just moved into a $200 cheaper place and everything is working out now with a little extra. thinking about getting a secure credit card that converts to regular after a year.
 

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I have insurance anyways. I am not sure why anyone would choose not to continue to carry home owner's insurance. You'll end up with no house if let's say there's a fire lol. BTW, inquired about a home equity loan and was still turned down due to credit score. Not worried about it at this moment, but I still think it's a sham. I think there's something fundamentally wrong about if you don't use your credit, then it affects your scores. So, if I have debt, then I am able to get more debt? Oh well, it is what it is. I'm not stressing about it....
It really makes no sense when they dun your credit for closing a credit card. They did that to me because I decided I had too many credit cards and only needed two- one main one and an extra for emergencies. My credit dropped more than a few points for closing the accounts. In Florida many people drop their insurance after the mortgage is paid off because the $8000 plus per year for insurance is too steep to pay and we have to have three separate policies - you can't get just one because they all require you have all three coverages (wind, flood, and fire). Every time there is a hurricane that hits somewhere else, they raise our windstorm and flood rates. I guess that is the fee you have to pay for living on an island only 4 feet above mean sea level. I have never had a claim and my insurance is easily triple what it was when we bought our house in '86. Only a few more years to pay it off - hooray. We also have a home equity line of credit so I'll have to keep the insurance as long as we keep that line open.
 

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On insurance - make sure the home equity loan does not require MORTGAGE insurance (which is different from homeowners insurance/hazard insurance). That's the one you don't want to have to carry because it is just $ out the window and the beneficiary is the lender.

On building credit - you might start with one of those prepaid credit cards (they are designed for building credit.) Kinda frustrating because they use your money and you get charged for it....

Other things to know: Your score might take a hit if you have multiple inquiries in a short period of time. You want to have any balance on your cc's quite low for the few months before you apply for a major loan (or any if your score has been low enough that you were denied credit recently.) And unfortunately, your insurance company may raise your rates for house and car insurance if your score doesn't make them happy or if they see something on it they don't like. [Like I took out a small loan to finance the truck I bought which I insured with them, opened a cc which I paid off every month with my cu (which earns me points and saves me money over the other ccs) - I was unhappy.] (BTW may credit score ranks as excellent so that was all the more a "irritation")

BTW the recent mortgage fiasco wasn't "all the bums" it was the credit industry offering people things like interest only or no down payment loans when the people did not have adequate funds to meet the obligation long term or had some catastrophy catch them during the recent economic mess - such as loosing a long held job, their self employeed income getting caught in the general depression, etc. So let's not call these people who got hit with catastrophies and/or suckered in to "good deals" bums.
 

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Discussion Starter #55
On insurance - make sure the home equity loan does not require MORTGAGE insurance (which is different from homeowners insurance/hazard insurance). That's the one you don't want to have to carry because it is just $ out the window and the beneficiary is the lender.

On building credit - you might start with one of those prepaid credit cards (they are designed for building credit.) Kinda frustrating because they use your money and you get charged for it....

Other things to know: Your score might take a hit if you have multiple inquiries in a short period of time. You want to have any balance on your cc's quite low for the few months before you apply for a major loan (or any if your score has been low enough that you were denied credit recently.) And unfortunately, your insurance company may raise your rates for house and car insurance if your score doesn't make them happy or if they see something on it they don't like. [Like I took out a small loan to finance the truck I bought which I insured with them, opened a cc which I paid off every month with my cu (which earns me points and saves me money over the other ccs) - I was unhappy.] (BTW may credit score ranks as excellent so that was all the more a "irritation")

BTW the recent mortgage fiasco wasn't "all the bums" it was the credit industry offering people things like interest only or no down payment loans when the people did not have adequate funds to meet the obligation long term or had some catastrophy catch them during the recent economic mess - such as loosing a long held job, their self employeed income getting caught in the general depression, etc. So let's not call these people who got hit with catastrophies and/or suckered in to "good deals" bums.
I do not have a mortgage payment, my house is already paid off. I paid $24,500 for my house in a cash payment...Not sure if this makes any difference.
 

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BTW the recent mortgage fiasco wasn't "all the bums" it was the credit industry offering people things like interest only or no down payment loans when the people did not have adequate funds to meet the obligation long term or had some catastrophy catch them during the recent economic mess - such as loosing a long held job, their self employeed income getting caught in the general depression, etc. So let's not call these people who got hit with catastrophies and/or suckered in to "good deals" bums.
no no no. you can't put all the blame on the banks. if people didn't have adequate funds they shouldn't have signed. paying interest only is the most retarded thing i ever heard of, why would anybody do that? my car finance company is happy to give me a deferment where i have to only pay the interest. i had to do it twice in hard times. to do that every month doesn't make any sense. it's like selling your soul to the devil.

sure there are catostrophies in people's lives but not that many people at the same time. the banks did sucker people but mayby they should've thought long term, maybe sat down with a financial advisor before signing something they wouldn't be able to afford. banks are always going to be evil, that's why you have to think about what you are signing.

i give it a 50/50 blame.
 

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no no no. you can't put all the blame on the banks. if people didn't have adequate funds they shouldn't have signed. paying interest only is the most retarded thing i ever heard of, why would anybody do that? my car finance company is happy to give me a deferment where i have to only pay the interest. i had to do it twice in hard times. to do that every month doesn't make any sense. it's like selling your soul to the devil.

sure there are catostrophies in people's lives but not that many people at the same time. the banks did sucker people but mayby they should've thought long term, maybe sat down with a financial advisor before signing something they wouldn't be able to afford. banks are always going to be evil, that's why you have to think about what you are signing.

i give it a 50/50 blame.
I think a lot of what happened was people buying during the housing boom when they had income, then the loss of jobs and loss of value in the homes screwed them up. Those payments must have been sky high. I just found out my elderly neighbors are in foreclosure because he spent all their savings on gold when the dollar was high. Now he hasn't paid a mortgage payment in 18 months or renewed his insurance. They are about to lose their home because he made an unwise investment at a bad time. He told me his mortgage was $5000 per month. Who can even afford that? My mortgage which is almost done is only $440 per month and we originally borrowed $82,000. Our total purchase price was $105,000. I can't imagine the people that bought when the real estate prices for our house were up to $950,000. How do you even come up with the 20% down payment plus closing costs with a rate like that. There were a lot of "sucker" loans at the time also because people took out second mortgages just because they were offered thinking they could sell out and pay the mortgage and now the houses aren't worth as much.
 

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while paying off a mortguage the loss of house value shouldn't make any difference. if you borrowed for a $300,000 house and in 4 years it's only worth $125,000 you still owe the 300. values will rise again. might take 10 years, who knows. but on a 30 year it really doesn't make a difference.

too many people bought with crappy terms when the home values were over inflated. worst time to buy. a lot of people have their car repossessed also. you can't put the blame solely on the lender. the individual that signed the papers should have thought long term.
 

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my brother got hit real hard. got married and bought a $300,000 house. nothing special for northeast NJ. just a regular house. paid $50,000 out of pocket for a second floor put on. now the house is worth $400,000. city tax assessors came right away to raise the property tax due to increased value. housing burst happened and house with addition was only worth $200,000. tax assessor never came back to lower to tax when the value dropped. taxes stayed at $9,000 a year. my brother marries every girlfriend and as always they got divorced and they both walked away with a short sale. he must've lost over $100,000 out of pocket 'cause he's retarded. best part yet is less week after losing the house and his wife he was engages again. after that marraige lasted a year he got married again to a nice lady and they want to move to georgia. i love my brother but these are the type of people that have no business signing on a 30 year.
 

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while paying off a mortguage the loss of house value shouldn't make any difference. if you borrowed for a $300,000 house and in 4 years it's only worth $125,000 you still owe the 300. values will rise again. might take 10 years, who knows. but on a 30 year it really doesn't make a difference.

too many people bought with crappy terms when the home values were over inflated. worst time to buy. a lot of people have their car repossessed also. you can't put the blame solely on the lender. the individual that signed the papers should have thought long term.
The loss of house value prevents them from refinancing to the value they owe. A lot of people got their original mortgage planning to pay some down on it, then refinance when the interest rates are more favorable. If they planned to do that they got caught in the bubble and now owe more than the house is worth. These are usually people that never planned to keep the house the whole 30 years any how. Yes, they should have planned ahead and not counted on the value staying the same but not everyone was a good planner. We have been lucky enough that our home value went up, then down but still is worth more than we paid for it so many years ago.
 
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