How is your Credit?

[Shu]

Well I thought about something the other day that floored me to write this post, but since I hardly get on, on the weekends I thought I would post it here.

I don't exactly want to know how your credit is, but I do want to offer a question out there to people.

Do you think the world would be better off today if Credit and Loans were never offered?

I certainly know that America's Economy would be a lot better off because of all the super stale loans out there, but as far as individually... I would say I would be a lot better off. First of all back 10 years ago or so applying for a credit card was so easy. I mean even someone without a job and only college bills to pay could get one. Now a days they are more strict due to the fact these creditors are not getting their money back.

As far as loans go, you have your house loans, your car loans, your bail bond loans and your medical loans. Without these things many people would not be where they were today, but honestly do you think they deserve to be where they are?

It is hard for me, because I work for a company who writes software for collateral loan companies. Basically all the major banks in the U.S. do business with us, even Fannie Mae. I know ball park figures on how many people apply for loans today, and quite frankly it is scary.

I would never deny someone of a medical loan, but honestly the amount of borrowing that people in the U.S. do is mad crazy! I honestly think if there was no credit, and no loans in the first place, we would be a lot better off. There would be less foreclosures. There would be less cars being repo'd. There would be more people able to take those much needed vacations they've always wanted due to the fact they don't have stacked debt. I mean I for one am terrible at not using my Credit Card as an emergency back up. I say that I'm going to pay the bill off, in which I only pay a little over the minimum, but it leaves me with interest up the arse!

So what do ya'll think, would the world be better off with No Credit options? Or do you think they actually help?

 

[blakstang98]

Oooo, this thread is gonna be quite interesting.

Like credit card were a few years ago, loans were just as easy get. I actually have an ex that bought a home. She actually didn't speak english all that well, and the realtor basically took advantage of that and got her to sign for an increasing interest loan. Poor girl started getting raped with interest and last I knew, was basically unable to afford her monthly mortgage payment. The real estate game in general just got so brutal.

I think that in general there should be like a "get your credit started" type program. Maybe a little class of sorts that educates people on the importance of credit. Then after the class is complete, the start off with a medium credit rating. This will be enough to make them eligible for a basic, somewhat low limit credit card. Then with this basic credit card, they can start to use it and establish a higher credit rating. Then once they reach a certain credit score, they can become eligible for loans and credit cards with higher limits.

I personally, only have 2 credit cards, 1 of them being an American Express. The only times I've ever requested a loan were for car purchases, and that was only twice. In general, I kept the numbers simple, very few bills to worry about. I was always a person to store money away in the bank as well, just in case I did get wrapped up in a tougher financial time. I know for a fact that this is something very few people do. I also pay off credit card bills entirely, so no interest piles up.

With that being said, I don't know my exact credit score, but last I saw, I had 824, which is just freaking phenominal. But I general, it hovers around the 790 range. I guess not requesting loans and having few credit cards helps a lot.

 

[Midnight Memoire]

Oh the nasty Credit game. I hate this game. My credit score is terrible. My identity was stolen when I was 19 years old. The girl actually almost succeeded at becoming me. She got my license renewed successfully (thus getting her picture put there instead of mine). She was paying some of my bills. Getting credit cards in my name... Stopped paying my bills... It was a nasty cycle. All this happened because she had stolen my wallet. I reported it to the police but oh, you know, I was 19 so they just thought it was silly.

Anyway, getting back to the topic a bit. That girl who stole my identity didn't get in any trouble, she pled insanity due to pregnancy or something of the sorts. She didn't pay me... not a cent. My credit score plummeted. The bills successfully got transfered back to me, gee, thanks. Here I am 3 years later, continuing to pay off my *cough* HER debt.

On to another story...
My Husband worked in the Foreclosure industry out in California. He worked about 16-18 hours a day. Why? They were just THAT busy. Yes... There are THAT many foreclosures. Sad, isn't it? You know... If they wouldn't give out home loans to individuals who can't pay them we wouldn't be in that predicament.

And lastly, there are those god awful Student Loans. I'm still paying on those ones and probably will be for the next 5-10 years of my life... If I'm lucky. And here I am, sitting here in this recession... unemployed.

The system ain't workin'.

I firmly believe that it is entirely too easy to get a credit card. I also firmly believe that it is ruining our society.

P.S. - This is by no means a sob-story. Just some real experience examples is all.

 

[Flagg]

My credit is pretty bad.

Credit cards are utterly evil in my opinion. They are given to people with the sole intention of banks making a profit, irregardless of that person being able to afford it. You are in the banks pocket the second you aquire a credit card.

They should be stopped.

You either have the money to afford things or you dont.

 

[Cardinal Copia]

For a 25 year old I feel like I have great credit. Last time I checked I had a 760, which blew me away. You have to be sensible with them though. Dont buy big expensive things. When I was 17 I got my 1st credit card that had a limit of $500. You know what I used it for? Filling my gas tank. THATS IT. Do little things like that and build your credit sensibly. I'd fill up my car then pay off the charge on my card once the bill came.
And always, ALWAYS pay attention to your account. The second you notice something being charged that looks fishy, report it to your credit card company and have your card frozen.

Credit cards aren't bad. You just need to be smart with them.

 

[Emerson]

Due to the way things work, we would not be able to afford a house or a car without credit. (The collective we) Because so many people want to own their own piece of land, home prices are just not affordable for someone to save up for by the time they are of child-rearing age. So instead we take a loan out so that rather than pay the money up front we pay it over time, it makes great sense. Because we require, do to whatever reason you want to give, a car for transportation in most parts of the world, you fall into the same boat. I think honest you can save up for a Car, but because of depreciation values it's not always a good idea.

Now, as someone who bought all his cars with cash and never held a CC, it was near impossible for me to get a home loan because I did not have "established credit" this is the only place where I think Credit is wrong. I could have gone the rest of my life with a CC or having to put a car on loan if this "established credit" catch did not exist. So, I guess I'm a mixed review, I see the value of it for buying a home or car, the rest of it I can do without.

-Emerson