Posted on 12/13/2008 9:41:29 AM PST by RKBA Democrat
“That really irritates me. While I understand the math behind this reasoning, I still think it is wrong to label someone as being an irresponsible borrower because they borrow within their means.”
Responsibility has little to do with it. Your FICO score only measures your willingness to pay debt owed. People who have no debt will (over time) see their FICO score go down to zero.
Don’t you just love the way these guys work? (/s)
That makes sense.
Grocery stores place many of the highest margin items at the checkout lane, to entice shoppers to make impulse pruchases that net the store their greatest profit percentage.
Banks get their highest profits on extra fees and over-credit interest rates, and they put them on on their equivalent of the checkout lane.
That’s not too much of a stretch, is it?
That's a mistaken assumption. Of course considering these companies were giving high credit lines to people who were nowhere near close to being able to afford them, it can also be said these companies are run by people with no brains either.
Not everyone who has CC debt is a bad financial manager;
Completely agree. I'm working my way through paying down some needed house repairs and medical bills myself.
And just like the loan sharks they fact they charge so much interest shows they are loaning to credit risks
House prices are down in my subdivision, although still higher on this model than what we paid for it. And turnover is *very* slow.
I don’t want to refinance because the upfront costs add to the loan balance, unless we throw in cash I’d rather use elsewhere. I’m always concerned that we’re going to have to move suddenly, especially because we’ve been in this house longer than I’ve ever lived in a house my entire life. Bad enough to move with all the pets, without having to overprice the house!
......If these companies were run by people with souls, they would give 3-4 months notice .....
That is a ridiculous comment from one who obviously knows nothing about business. In mandates a perfect vision of the future and absolute certainty of the vision.
Business is business. They hung on till the credit ran out. There is the message that the line was withdrawn, but the truth is that it was likely drawn down to nothing.
If the workers had a brain, they would have bailed 3 months ago.
Well, I KNOW that. ; ) I'm a red head who makes Korean food videos on youtube. I've learn to except my quirks. Hehehe!
Back on topic, when I read that the average American carries $9000 in credit card debt, I nearly had a heart attack. The Korean gov't is worried about the fact the average Korean carries about $750 in debt on their credit cards. The Korean gov't has no idea of how lucky they are that Koreans aren't as debt driven as Americans.
My credit limits have been going up as well, but I’ve taken steps lately to kick my up credit rating, such as refinancing higher-interest debt to zero interest cards (makes it look like I’ve paid off big debts) and getting a couple of 30 day past-dues eliminated off my credit report. I’ve asked a couple of lenders for higher credit limits, which they’ve granted almost immediately. That makes my actual debt to total possible debt look very good, and I’d be pretty surprised at this point if any of my creditors tried to cut back my limits.
I haven't received any notices and don't really expect to - I only use one credit card as a convenience for groceries/gas/dinners, etc., and always pay it off each month. I'll make a guess that those who use their cards to overextend themselves will end up being forced to wait until they can pay for things due to lower credit limits.
We use our credit card to buy Christmas gifts; my wife gets paid a couple of bonuses at the end of the year that will erase that, though. Credit cards can be helpful but they are extraordinarily dangerous to one’s financial well-being if misused.
the limit is only reduced on those that shouldn’t have a credit card to start with.
My bank keeps pleading with me to take one of their cards with a $30k limit without even making out an application.
They know that I already have one, MBNA, now BofA with that limit.
I have no idea what my “score” is. I never apply for loans or credit. I have one credit card that I use quite a bit, mainly for business expenses, sometimes two or three thousand dollars a month. But I always pay it off completely at the end of the month. My credit score is probably terrible.
As an aside, I saw a questionable charge on my VISA statement for a card that I have through my credit union and there isn’t a 24/7 customer service contact number on the statement anymore. The toll free number is for the credit union. Of course, it is now after hours and I will have to call back on Monday. Did VISA trim back their customer service staff? If so, it’s not very helpful.
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We use the credit card to buy stuff online (for fraud protection) and pay it off promptly. We don’t carry over a balance.
My FICO score is well above 700 even though we are quite frugal when it comes to credit. (Both cars now paid off, student loan paid off, no balances on credit cards and the mortgage is our only real debt.)
I've never understood how current credit card practices are anything but criminal. They deliberately raise the APRs on those least able to afford it, and do their best to keep people enslaved and will only let up if they think you might default entirely. Of all the industries currently suffering in the economic crisis, I wish the worst of it upon the credit card industry.
Got to use them now and then. Charge a meal or something you need to buy and pay off at the end of the month.
For those of you paying off cards, keep at least two accounts open. Need credit history to borrow at lower rates.
This is the guy who literally wrote the book.
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