This is the problem with credit.

Well....no.

I mean, I think there is quite a bit of convolution....if not outright fraud and deception.

But, I think the BIG problem with credit is that credit, and scores in particular, have gone on to influence far more of life than originally intended.

Whether you get a job, get insurance, can rent a place to live, etc.

Essentially, you now NEED some sort of credit to function in modern society.

Now, for the people that whine about it...you don't really NEED all that much credit at all...you can have very little credit granted to you and still have a great FICO score.

But, then again no one wants to wait their whole life to buy a car, house, etc in cash....we all want it NOW.

I guess this is what pisses me off about this board. People not only wanting to fix their credit, but really whining about situations that THEY created, not wanting to pay the money back, just so they can go and borrow MORE again...

All the while squealing about how their low score is a ripoff. Well bub...if you had $50,000 cash to loan, I bet you sure wouldn't loan it to someone with a 500 FICO either...

aiki

 

the way I see it is this.

everyone now a days seems to be out to make a quick buck off of you.

so if your old negative items are gone, some try to rebuild and start over not seeking to make the same mistakes, why should they be continually punished and taken advantage of.

if they were just charging upand getting the accts removed without paying then seking to habitually do it again I can see your point.

 

Re: This is the problem with credit

I have seen very few people on this or the other boards that I frequent who have deliberately abused this system. many of us have been drawn into the "easy credit ripoffs" that are the signature of today's credit industry. And many of us found ourselves only in a little bit of trouble, which was rapidly compounded by usurious interest rates, fees, penalties, and other charges. Or we found ourselves out of work due to yet another layoff, or our 401Ks went bust, or we can't even get a minimum wage job. An economist friend of mine (who is a Principal in a major NYC firm) pointed out that the "system" overwhelmingly favors the credit grantors - every single one of us on the board could go belly-up in a chapter 7 and it would barely register in the balance sheets of the credit grantors.

we are in a society in which the middle class no longer exists. Used to be that a family could save a little every month and afford to buy a home, a car, or any of the other big purchase that many of us dream about. The costs of goods and services was geared towards a single earner family. Now, many of us barely make enough in "good" jobs (like $30 - $50K) to pay for daycare, healthcare, put food on the table and keep a car running reliably. not to mention saving for the $1.25 million it's estimated we'll need to live on when we retire and coming up with enough cash to buy a $100K home in cash. The introduction of the 30-year mortgage, 60 month car loan and other financing options put those dreams within our reach. But so much changes over 30 years, over 5 years even, and we are not a society that is good at saving for the rough times. Credit is there promising to be a lifeline (and it can be in the short term), and that is one thing that hasn't changed in this chapter of human history (did you know that Noah was chased out of his village by his creditors?)

Anyway, I just wanted to add my $.02 about the thought that this board or any other board is a place that glorifies hiding from our debts. In many cases, the creditors and CRAS are GROSSLY violating the rights of our members and a huge percentage of the unknowing public. I don't think testing the burden of proof constitutes shirking responsibilities. I haven't seen many posts from consumers who know they owe it and just want to get out of it so they can go buy a big screen tv. But even if someone has that mentality, they still have the right to proper validation and record keeping.

Poochie

 

I liked your commentary Poochie.

I agree that I haven't come across many posters who deliberately escape debts with the intent of repeating the pattern again. Most, at least IMHO, were young and dumb or had some bad luck.

I think the credit savvy, have a tremendous advantage over your average credit seeking consumer. We have the knowledge to tilt the odds in our favor. Like LB says, it is a shell game. Know how to play, and not only will you qualify for a home/car/whatever, you will get a better rate than those who seek credit repair advice from Maxine at the Evil Experian's website. Yeah, right, wait 7 years like the troll maxine says.

While most of us use credit repair to fix our past mistakes or bad luck, some will use it to do it all over again.

 

When I was growing up, it was "known by everybody" to stay away from the record and tape clubs like Columbia House, etc..., because they were designed so that you could never get out of debt with them. Well, guess what? The credit card companies must have sent reps to Columbia House for a lesson in Customer Trapping 101. The basic idea is to keep our scores as low as possible so they can "justify" charging the highest interest rates possible. Oh, and let's don't forget those delicious late fees and over-the-limit fees, which are a billion-dollar industry within themselves. Let's drive the customer's interest rate through the roof so he/she will be over the limit very quickly. While we're at it, let's sit on their payments until after the due date so we can charge an extra $35.00 a month (to be paid back with interest added, of course). What's the customer going to do about that? Nothing, since our system is designed to require an act of Congress to correct anything. Naturally, we'll hold their credit report over their heads to ensure that we get the money we so rightfully and legally deserve.

Bottom Line: Credit reporting is legalized blackmail. Nothing more, nothing less. Sure, there may be a small minority of people who abuse the system, but like in everything else, we all get punished for the actions of a few.

 

Double post! Grrr!