Hi people, I have been reading postings on this board and I enjoy it. It seems to me that lots of people either have bad credit or blemished credit and fall victims to sub-prime lenders... But isn't it true that if ya pay balance in full every month and charge only what ya can afford, then ya would have an excellent credit in no time?
RE: why do so many people have Good point!That makes a whole lot of sense as far with just charging what you can afford,and pay it off.Why do people carry balances on their cards?Well it boils down to this,they are building their credit history in a very positive manner.They get their credit limits high as possible,and pay down on their debts as quick as possible.However there is some people who can't manage their credit at all,and they live way beyond their means when it comes to spending.These people fall to the min. payment due trap!Then their troubles begin.I have had credit for 13 years,and my goals are to build my credit lines high as possible without overextending my self too much,and in about 5 years i plan on buying a home with my well established credit.My lenders are very good to me with their interest rates,and credit line increases.I will have well over 100K in limits by the time i pay off my debt.Here is the advantage to high credit limits on my cards.Anyone knows that most CC's are unsecured right?My plans are is to purchase my home unsecured between 5.9% to 7.9% A.P.R. on my home.There is no closing costs,and other fees associated with a conventional loan.Also i am taking a short term loan of 10 years MAX instead of 15 or 30 years like most mortgages does.CC payments are higher but at the same time i will pay my home off alot faster too,well this is the end of my story with CC's.Now on back to why people have bad credit.These people most likley are un educated on being responsible with their finances,including credit.Most of these people may not have a savings account at all to guard against the unexpected.These people are trying to see how much buying power they got,and most do max out their credit cards,and then they worry about how they are going to make their payments.If they can't meet their credit obligations they ethier let their accounts charge-off,or they contact a debt consolidation program,and last they could file bankruptcy.Everyone know anyone of these will place a bunch of black marks on their credit,and they are screwed truer then blue on their credit rating.Then they need a way to rebuild their credit,thats where this message board comes in at.These people share their ideals on how to rebuild their credit,and lift others up on from their past bad credit behavior by encourging each other on how to get their credit restablished,and hope they don't get into anymore credit hell.This is the best website for people to come to for answers on credit related problems.
student loans My bad credit stems from mixups. The new judgement I have is due to surcharges which no one at the DMV told me about. I paid the back tickets and they claimed they sent letters to an old address. My student loans all defaulted while I was in my hospital residency, I applied for forbearance/deferment and the lender did not process the paperwork. They ackknowledge the mixup but will not remove it from my credit reports. They said if I had applied for it earlier, they could have fixed their own mixup faster. They are the ones who mixed up a simple form. I had 22 loans, and 11 defaulted from my undergraduate school lender so I look just like I ran up 22 credit cards and didnot pay them. But my mortgage broker said this happens alot to those of us who get a graduate education. The only other bad thing I have on my report is a Discover charge off form 1991. I was just a kid and I mess up 3 credit cards. I paid them all back, and the others are off my report. But discover kept reaging the account and did not charge me off until 1995. So now i have to wake until 2002 even though I paid it to get if off my credit report. So you see these things can happen if you are relying on other institutions to do their job fairly. I am very careful in how I happen any credit now. roni
RE: why do so many people have My credit problems came from a layoff, going to work for a different company - for slightly less money(about 5%) - then being told that everyone had to take a 20% cut in pay or close the doors about two months later. How many single(one income) people do you know can afford that, without getting into trouble? When you have no income - or limited income as a sudden change, it's difficult to pay the balance in full(even if it's not much of a balance), and pay rent, food, gas, utilities... My point is, it's not always mismanaging your money/credit that can get you into trouble. Cadman
RE: why do so many people have The whole dot bomb craze has lots of people in trouble now. Think about the etoys.com 900+ people will be laid off in a very short time. That has to make it hard to get new work in those towns Heh. Its scarey. Time to start mah own business.
I had a horrible back injury i The result was I filed for a Chap 7 B.K. in November 1998. It was discharged in Feb. 1999. I eliminated $100,000 in credit card debt and lost my home. However, California law permited me to keep all my retirement assets etc. I have recovered most of my health and now teach at a University. I am handicapped but productive and obviously repairing my credit. Most people do not know that medical bills and being off work cause over 2/3 of all B.K.'s. I am a perfect example of this.
RE: injury in 1998 Ten plus years at university on a graduate scholarship, then fellowship and suddenly a "car vs. bicycle accident." After three surgeries, 9 months of rehab, a tax bill for the scholarship and the delay of disability insurance payments, I can still smile, after getting up the courage to apply for the infrequent tradeline, only to be denied, but hey, I'm still breathing! Stay focused everyone, TommyC
Sorry to hear about your misfo You brought up a good point. I had inadequate disability insurance. It did not pay enough to keep up with bills. I now am adequately insured.
RE: why do so many people have Well, what you see here is relevant from a statistical point of view. The reason is simple, if you don't have credit problems, then you don't need this board and don't waste your time here. The people who participate to this board are people with past credit management problems or past health problems, or whatever who try to reestablish credit. There are also people like me who are just starting to build credit for the first time in their life. And I suppose there are several who follow this board out of curiosity, trying to figure out how this whole credit thing really works...
RE: why do so many people have Yes, that does make since but once you have a bad mark on your credit it stays there for seven years unless you are able to get it removed. That is why people have bad credit. I for one have negative items mostly because of student loans and I do have good credit now except for the bad marks that are still there. Once you learn how to deal with credit then you are able to repair it but it does not happen overnight.
RE: education. I think the lack of education on how to handle credit in high school and college, is the reason. People don't know the facts, and dont understand how serious they are making their life by not paying a bill. We need more education in the schools
It's not that simple. That is just like saying, Why are you overweight? Why dont you just eat smaller portions? If only life were that simple. roni
RE: why do so many people have Is it really smart to buy a house with credit cards? Is the interest deductible when you do it this way?
RE: why do so many people have If you have got an excellent credit rating,and you got very high credit lines to support the loan with,and at the same time your lender offers you very low interest offer until the balance is paid in full then the answer is yes.No this isn't tax deductable but when you factor in the fees that banks charge to grant you a mortgage,not including the down payment,if the down payment is less then 20% then the lender requires PMI to protect themselves against default on the loan could be very costly.The advantages of a CC is the is no down payment,and you can borrow 100% of the loan amount,now financing a home on CC does reqire higher payments starting out but can lowered as the principal goes down over time.Stop,and think of this buying a home on CC is smart if you can do it.Why?Lets say a person bought a home on their credit card at a low rate,and they paid 5 yrs on it,and they only had 5 more years to go before pay-off.Then all of a sudden loses a job,or some other emergency happens,and they was unable to pay, aleast they wouldn't lose the house as they would if it was a mortgage.Also if they think they was going to have too much trouble making the payments all they got to do is call their creditors and make special repayment arrangements.If the creditor refuses the payments then all they got to do is turn to CCCS,or some other DMP to cut their payments.Atleast they wouldn't be sleeping out in the streets.Also if a person pays off the loan without any trouble they will have the most powerful credit record on file.I think paying-off unsecured amount of debt looks alot better then the secured side of debt.I know there has got to be some people out there right now that are using this option as a loan for their home.This is my option in the next 5 years.
RE: why do so many people have Wouldn't you have to get cash advances to buy a home with a credit card and where do you get them for 5.9-7.9% with no transaction fees?
RE: why do so many people have I would not advice doing this, but you could buy the house with CCs, then turnaround and get a home equity line of credit to get deductable interest. One other thing to keep in mind, deductable interest is subject to proof of use of the funds. In other words, lots of interest is deductable if you can show, the funds were used for qualified purchases, i.e. investments. http://www.creditsense.com
RE: why do so many people have I don't have any credit problems. I visit this site because I like it. I want to show that credit can be a very good thing, if used properly. http://www.creditsense.com
