credit problems

[huncowboy]

Here is a novel concept. How about not taking that trip to Europe until you can afford it. Credit might get you a trip to Europe but do you really want to have that vacation following you for the next couple of years becuase you could not afford it in the first place. How about saving up for the trip and paying for it in CASH!

Minus going to to med school can you tell me why you need $100,000 for an education. If you can tell me what you need that $100,000 for in regards to an education and I can give you some dang good alternatives.

Tell me then, what is your plan? And can you tell me why debt is not the problem? Do you have any debt?

If you could comprehend you would see that mentioning Europe was a negative example not something I would put on a credit card... good example vs bad... nevermind.

100k, 50k or 20k. Was another example. Getting a MBA in accounting from an average university in FL is around 60k. We talk about debt in general not some exact numbers. If you don't have 60k it is just as far as 100k for med school. So how long does it take to save that up while flippin in BK?

I have debt, nothing major. It was worth for me to be able to change a career. Without that debt I would be rotting in an office pushing papers for over 2x the salary I get now as a CFI, and I would feel miserable for two more years. If I would have waited to save up another 20k to be able to do this debt free I would be able to start my private pilot training right around now.

Btw none of your business but since you asked my plan is to pay it off next year. But I wont wait to save $200k for ummmm 20 years to be able to buy a house if you don't mind.

What is your problem with getting debt for the right reasons? Sounds like you have missed a payment.

 

[Dangerkitty]

Btw none of your business but since you asked my plan is to pay it off next year. But I wont wait to save $200k for ummmm 20 years to be able to buy a house if you don't mind.

What is your problem with getting debt for the right reasons? Sounds like you have missed a payment.

Read my previous posts moron. I have already admitted to having a 15 year fixed rate mortgage at 5.6%. I never said that there was anything wrong with having a mortgage. I also have a car payment that will be paid off in less than 6 months.

If you also further read what I have stated I also made it clear that about 6 months ago I had my credit reviewed and I scored an 802. You dont get that kind of score with a missed payment.

Any other clever little jabs you got there Richard?

 

[dash8driver]

ok.. its time to get out the ruler already...

 

[FN FAL]

Read my previous posts moron. I have already admitted to having a 15 year fixed rate mortgage at 5.6%. I never said that there was anything wrong with having a mortgage. I also have a car payment that will be paid off in less than 6 months.

If you also further read what I have stated I also made it clear that about 6 months ago I had my credit reviewed and I scored an 802. You dont get that kind of score with a missed payment.

Any other clever little jabs you got there Richard?

I'm creeping ever so close to that light at the end of the "debt free" tunnel...and it's looking better all the time.

You're correct...don't use credit at McDonalds, don't use credit to buy clothes, gas for the car, sunglasses or vacations. You'll be compounding interest on those things long after they are gone or just memories in a photo album.

In the 80's I worked at one of the best factory jobs in town, starting pay was $36,000.00 a year. By my third year there, I had a loan on a Gold Wing, a new Celica, a brand new $59,000.00 home and the mag wheels and stereo I put on the Celica...and a loan for a home stereo system. Life was good...living the dream.

Budgeting was easy...on one payday, I paid these and on the other payday, I paid those. What was left over after paying the bills every two weeks? Barely enough money to put gas in the car so I could make it into work and just enough money to buy groceries. No kidding, I was down to having an "allowance".

The best part was, I couldn't afford to miss a payment, everything had to be paid on time. One missed payment would knock over my little financial house of cards. I remember having to make a list of every meal I was going to eat over the next two weeks. I had $40.00 bucks left after paying the bills and considering gas money...every pay period!

I made this list up, went to the grocery store and shopped with a calculator until I ran out of money. I Had to put this back, had to get the no-name brand of that, instead of name brand this. When I got done, I had enough money left over for a steak or a can of coffee...decisions, decisions. Went for the coffee...steak is good for one night and makes a great 5.00 turd, but coffee is a must have.

I know it's tough as regional pilot to make ends meet on 500.00 take home every two weeks...do the best you can and don't borrow money for things that you can eat, experience, or wear.

 

[Crizz]

With all due respect Yank you are still being duped. Studies have shown that people with Credit Cards spend on average 10-25% more than those that don't. Why? Becuase when you take out cash or you take out a debit card you feel the "pain" of giving that money away for a good or service. When you pay with a Credit Card you are just passing the pain on to another day and time.

You state that you have cards with the best rewards programs. Why do you think that these Credit Card companies have these reward programs? They don't do it out of the kindness of their hearts. Rewards programs are there for a reason. What you get for these "Rewards" you make up in increased spending.

Just my opinion. But I think you would be better off not using the cards and spending the cash instead.

I dont see how putting your grocery bill or gas or movie tickets on a card and paying off immediately is getting duped. The demographic that your logic (and your study) applies to is probably not the ones paying off their balances monthly.

 

[Crizz]

I think you have been talking to too many bankers who state you need to incur debt or get credit cards to "build" your credit score.

Like I said before history of payments is only a part of your credit score.

The bigger question is. Why are you so interested in having such a great credit score? To get a loan or are you worried about not getting that job or higher insurance rates becuase of a bad credit score. (Which you will NOT have from having no history of debt repayment or credit cards.)

Answer that and I will expound further.

You are really like talking to a marble slab.

How would I have ever qualified for a home mortgage at an extremely good rate if I would have never shown that I can make a car payment or pay my credit cards in a timely fashion?

If the mortgage was the first DEBT I EVER applied for, A) What would my credit score be, and B) How the heck is a bank going to give me a good rate if they have no idea how I am going to handle the debt.

If we really want to go down that road, then why did you take that car loan that is in a perpetual state of "almost being paid off" (like every other person out there). You are paying interest on a depreciating asset. Car loans are the worst kind of debt you can possibly have, aside from the afformentioned credit card debt for superfulous wants.

We both think the same way, but you are too darn hard headed to see it. And your intolerance for responsible debt (or obligation) and the management therein really clouds your perception of people.



Now, answer the exact question. How do you get a good credit score with the absense of any debt/repayment. Expound away.

 

[Dangerkitty]

You are really like talking to a marble slab.

How would I have ever qualified for a home mortgage at an extremely good rate if I would have never shown that I can make a car payment or pay my credit cards in a timely fashion?

If the mortgage was the first DEBT I EVER applied for, A) What would my credit score be, and B) How the heck is a bank going to give me a good rate if they have no idea how I am going to handle the debt.

If we really want to go down that road, then why did you take that car loan that is in a perpetual state of "almost being paid off" (like every other person out there). You are paying interest on a depreciating asset. Car loans are the worst kind of debt you can possibly have, aside from the afformentioned credit card debt for superfulous wants.

We both think the same way, but you are too darn hard headed to see it. And your intolerance for responsible debt (or obligation) and the management therein really clouds your perception of people.



Now, answer the exact question. How do you get a good credit score with the absense of any debt/repayment. Expound away.

Ok, first of all when you go to get a loan. Let's say you are going to get a home mortgage for $200K and you have never ever had a loan in the past.

The loan officer is going to want to see a few things. First of all they are going to want to see a current pay stub and a W-2. If you make enough money and if you have no debt ratio they will approve you for the loan at a competitive interest rate. If they do not then I suggest that you go and take your business elsewhere. (There are plenty of people and businesses out there that will trip over themselves to loan you money.) They will run your credit report to see if you have any thing that would preclude them from assuming you as a credit risk. However, since you have the amount of income to pay for the home and you have no other debts you will get the loan and at a good rate.

Remember, loan officers are in the business of loaning money. Why would they turn people (and good business) away just becuase they have never had a debt in the past when they are a perfectly good credit risk? Problem is you have fallen for the scam bankers and credit card companies like to hook you in on. They state that you HAVE to have a history of payments and debt repayment so that you can get loans in the future. That is the furthest thing from the truth.

As for the car loan goes I do things a little different from most people. I only buy USED cars that are 3-4 years old and have anywhere from 36000 to 48000 miles on them. That way the car has already depreciated anywhere from 50%-70%. Then I only buy a car that I can have paid off in no more than 18 months. The way I buy cars is that I let some other dolt pay for the depreciation. When I buy the car it has most of the depreciation taken out of it. That way I can buy a great used car and I dont take it in the shorts. I prefer going to and buying lease returns.

Have I answered your question to your liking?

 

[Dangerkitty]

I dont see how putting your grocery bill or gas or movie tickets on a card and paying off immediately is getting duped. The demographic that your logic (and your study) applies to is probably not the ones paying off their balances monthly.

It was an indepth study across all demographics. Remember, the 10%-25% was an average. Some people spend more and some people spend less. But the average does state that with a credit card and delayed "pain" most people tend to spend more than paying with cash.

 

[huncowboy]

Read my previous posts moron. I have already admitted to having a 15 year fixed rate mortgage at 5.6%. I never said that there was anything wrong with having a mortgage. I also have a car payment that will be paid off in less than 6 months.

If you also further read what I have stated I also made it clear that about 6 months ago I had my credit reviewed and I scored an 802. You dont get that kind of score with a missed payment.

Any other clever little jabs you got there Richard?

Who the f cares about your posts? You have just as much credit as anyone else here, using it the same way as anyone else here. Yet you keep your crusade about how bad debt is. What is your big point? Don't try to teach us about credit 101 moron.

 

[dingo222]

debt

I stayed at a Holiday Inn Express once..... and paid cash...no wait, i used my credit card to build credit............or was it debt???? Who the f cares. The man asked how having bad credit would look during an interview. He's not shopping for a mortgage.