Fed may change credit card rules

[WoodysGirl]

By CARSON WALKER Associated Press

Dec. 12, 2008, 10:09PM

SIOUX FALLS, S.D. *— Credit card companies could no longer boost interest rates on existing account balances if the Federal Reserve adopts new rules as written at a meeting set for Thursday.

But as proposed, the changes also could make it more difficult for millions of people with bad credit to get what’s referred to as a subprime card.

The rules were proposed in May and drew more than 65,000 public comments.

“That’s the highest number we’ve ever received,” said Susan Stawick, a Federal Reserve Board spokeswoman.

Among them: a letter from a single mother of three in Florida who wrote she paid her bill on time but her interest rate shot up from 7.9 to 29.99 percent.

“I would have been better off going to a loan shark. I think their rates are more reasonable,” she wrote.

The changes under consideration would ban that practice and others considered by some to be unfair.

“The proposed rules are intended to establish a new baseline for fairness in how credit card plans operate,” Federal Reserve Chairman Ben Bernanke said in May. “Consumers relying on credit cards should be better able to predict how their decisions and actions will affect their costs.”

South Dakota eliminated the interest rate cap on cards almost 30 years ago and has thrived from the industry that employs as many as 20,000.

The proposed limits on subprime cards could cost the state of 788,000 people from 3,000 to 5,000 jobs, said Gov. Mike Rounds.

“In essence it would shut down the low-limit credit card business across the United States,” the Republican said.

Prime credit card companies generally could adapt to the five other proposed rule changes, but there’s not a business model that would work for dealing with the changes to subprime cards, he said.

Rounds said he’s still urging the Fed to reconsider.

Travis Plunkett of the Consumer Federation of America said the public comments, most of which are posted on the Fed’s Web site, show deep frustration.

“A good share of these comments weren’t generated by people like me. They were spontaneous from consumers who feel they’ve been treated unfairly by their credit card companies and are literally begging the Fed for help,” he said.

http://www.chron.com/disp/story.mpl/headline/biz/6162561.html

[CowboyPrincess]

The best credit card is no credit card...

Cash on the barrel head.

Credit cards are a symbol of what is wrong now.. People living beyond their means. Just like the housing loans, people use credit cards to pay for things over time that they couldn't afford otherwise.

No credit cards, no debt, and I sleep well at night on my fully paid bed and enjoy my fully paid car on trips that I pay cash for...

Thanks Dave Ramsey. :D

[ThaBigP]

Yeah, the very phrase "subprime card" should set off the siren and rotating red light in anybody's head...:cool:

[theogt]

Yeah, the very phrase "subprime card" should set off the siren and rotating red light in anybody's head...:cool:No kidding. Some times it's painfully obvious that certain people need to be protected from themselves.

[ethiostar]

No kidding. Some times it's painfully obvious that certain people need to be protected from themselves.

Some people are really clueless when it comes to this kind of stuff. I wish we can educate the public a little more on this crap. Maybe even in high school.

[CowboyPrincess]

Some people are really clueless when it comes to this kind of stuff. I wish we can educate the public a little more on this crap. Maybe even in high school.

My son told me the other day that they are learning Dave Ramsey in economics. They are using it as a model of how to manage money and not create debt. Whether you like Dave Ramsey or not, I think it's very wise of the school to take some type of role in helping students in high school manage money before leaving for college. I was very impressed

[ethiostar]

My son told me the other day that they are learning Dave Ramsey in economics. They are using it as a model of how to manage money and not create debt. Whether you like Dave Ramsey or not, I think it's very wise of the school to take some type of role in helping students in high school manage money before leaving for college. I was very impressed

I agree 100%

[BrAinPaiNt]

The best credit card is no credit card...

Cash on the barrel head.

Credit cards are a symbol of what is wrong now.. People living beyond their means. Just like the housing loans, people use credit cards to pay for things over time that they couldn't afford otherwise.

No credit cards, no debt, and I sleep well at night on my fully paid bed and enjoy my fully paid car on trips that I pay cash for...

Thanks Dave Ramsey. :D

You had me at hello. Could not agree more.

[CowboyPrincess]

You had me at hello. Could not agree more.

I'm getting very scared... I'm in 100% agreement with a perv :eek:

someone hand me some kool aid and almond cookies ... quick!

:D

[burmafrd]

When I went to high school the economics class also taught us how to work a checkbook and balance a monthly budget. Of course that was back in the 70's before such classes were considered less important then minority studies and the like.

[ninja]

I hardly ever use my credit card anymore. I now use my debit card. Debit cards are the future, credit cards the past. I have always paid my credit cards off every month and have never paid any interest in 24 years. 22% Interest is just insane. Greedy jerks those credit card companies.

My philosophy was simple, "if you don't have the money to pay cash, you don't buy it." First save, then buy.

I had debt only 3 times in my life: college loans(10 yr loan paid off in 4 years, 1st car loan, and first house). I hated debt and every cent left over went to debt reduction. I just can't relax with a cloud of debt hanging over me. I don't know how others can stomach debt.

Dump the credit card stock if you have any because I don't see much future in that business. Debit cards will be the norm.

[BrAinPaiNt]

I'm getting very scared... I'm in 100% agreement with a perv :eek:

someone hand me some kool aid and almond cookies ... quick!

:D

We can call up Dr. Drew and see if we qualify for the next celebrity rehab show.:laugh1:

[ethiostar]

When I went to high school the economics class also taught us how to work a checkbook and balance a monthly budget. Of course that was back in the 70's before such classes were considered less important then minority studies and the like.

First, you said you were taught how to balance a checkbook in Economics class, then you blame it on minority studies?

1. what the hell are minority studies? I don't remember taking any classes on minorities. Can you please enlighten us what they are?


2. Did they replace required courses on economics?

[theogt]

It's a poor financial decision to NOT have and use credit cards regularly.

[burmafrd]

yes ethiostar the high school I attended replaced the Basic Economics course with Minority Studies in 1988. They no longer offer any economics courses.
I thought I was quite clear there but apparently some people miss the obvious.

[ethiostar]

yes ethiostar the high school I attended replaced the Basic Economics course with Minority Studies in 1988. They no longer offer any economics courses.
I thought I was quite clear there but apparently some people miss the obvious.

what school did you go to?

[sacase]

It's a poor financial decision to NOT have and use credit cards regularly.

QFT. If you want to maximize youre credit rating you should have about 4. 2 major cards, a gas card and a store card. You should use them and keep a small balance that you pay on. It shows you know how to manage your debt.

Credit cards are not going anywhere, they have their uses, especially in business.

[CowboyPrincess]

We can call up Dr. Drew and see if we qualify for the next celebrity rehab show.:laugh1:

Only if you are the one that bunks with Jeff Conaway

[CowboyPrincess]

QFT. If you want to maximize youre credit rating you should have about 4. 2 major cards, a gas card and a store card. You should use them and keep a small balance that you pay on. It shows you know how to manage your debt.

Credit cards are not going anywhere, they have their uses, especially in business.

Momma says credit cards are the debil

http://images.smarter.com/blogs/waterboy.jpg

[Phrozen Phil]

It's a poor financial decision to NOT have and use credit cards regularly.

Agreed, but it's how you use the card that makes the difference. Making minimum payments on a credit card just boosts the cost of your spending by 20% or more. Some discipline in spending is what's needed.

[burmafrd]

Davenport West. Its one of the largest High Schools in Iowa. Was a pretty good school when I went there in the late 70's. But they fell prey to the PC crowd.

[burmafrd]

Credit cards are deadly. You really have to discipline yourself or you can get in real deep real fast. And it did not help that the companies inundated people with offers for years. At one time I was getting 5-6 offers of NEW credit cards a month.

[ninja]

It's a poor financial decision to NOT have and use credit cards regularly.

Yeah, poor financial decision for the credit card companies.

I really don't know what you are talking about. Sure, use the card but it has to be paid off every month.

There is no "good" credit card debt.

[BrAinPaiNt]

It's a poor financial decision to NOT have and use credit cards regularly.

It's not a poor decision if you don't have much to begin with and by getting rid of the debt and cards you are better off financially.

Now it is probably different if you have money or are in business and such.

In my case it was the best thing ever to pay them off, tear them up and refuse to get another even though I get application after application in the mail.

I have one card now, a gas card and I have not used it in over a year so I don't even know if it is still good or not.

However instead of putting that money towards credit cards I now put it in the bank and when I do need money for something I can have a little savings built up instead of just grabbing a card.

So poor financial decision to not have it does not fit all and especially in my case.

I don't care about my credit score as I have no plans for a big buy any time soon but even if I do I know I can get a small loan if need be at our bank.

[BrAinPaiNt]

Yeah, poor financial decision for the credit card companies.

I really don't know what you are talking about. Sure, use the card but it has to be paid off every month.

There is no "good" credit card debt.

We may actually agree on something a tad...quick someone call the underwear patrol.:D ;)

[burmafrd]

Don't get your panties in a twist, brain; one out of a thousand is nothing to worry about.

[theogt]

It's a poor financial decision because to have the best credit score (and hence, best interest rates on mortgages, car notes, etc.) you need to have multiple credit cards from multiple companies (visa, discover, etc.).

Also, you should pay all of your expenses with a credit card instead of a debit card in order to rack up the points.

Whether or not it's a good decision to keep a balance on your cards depends entirely on your interest rate.

[ThaBigP]

It's a poor financial decision to NOT have and use credit cards regularly.

I think this is where the concept of...*parenting*...would be a good idea. There's nothing better than a hand of wisdom guiding a young person into financial adulthood by helping them to manage at the very least one card with a low credit limit. Get them used to the idea of paying bills on time. Also, and this is important, get them to understand the power of compound interest...and how it can work either for them or against them...

But failing that, we have the internet, TV, and the Xbox 360 to raise kids... and all of those scream "buy buy BUY! Put it on credit so you can get it!".

:cool:

[ethiostar]

I think this is where the concept of...*parenting*...would be a good idea. There's nothing better than a hand of wisdom guiding a young person into financial adulthood by helping them to manage at the very least one card with a low credit limit. Get them used to the idea of paying bills on time. Also, and this is important, get them to understand the power of compound interest...and how it can work either for them or against them...

But failing that, we have the internet, TV, and the Xbox 360 to raise kids... and all of those scream "buy buy BUY! Put it on credit so you can get it!".

:cool:

:hammer:

[Maikeru-sama]

There is absolutely nothing wrong with Credit Cards.

The problem is that people view Credit Cards as an extension of their wallet and make poor decisions with them.

The rule of thumb should be to use Credit Cards as if they are Debit Cards. If you don't have the money in the bank, don't buy it.

As someone else stated, not using Credit Cards is a serious excercise in financial judgement.

The Big 3 Credit Bureaus and the Credit Card Companies make the rules and one of their rules is that Bad Credit is just as bad as no credit.

Also, it should be totally illegal for a company to raise your interest rate from 7.9% to 29.99%, that is an increase of almost 280%, which is total BS.

[MetalHead]

It's a poor financial decision to NOT have and use credit cards regularly.

Go tell Dave Ramsey that one...

[MetalHead]

It's a poor financial decision because to have the best credit score (and hence, best interest rates on mortgages, car notes, etc.) you need to have multiple credit cards from multiple companies (visa, discover, etc.).

Also, you should pay all of your expenses with a credit card instead of a debit card in order to rack up the points.

Whether or not it's a good decision to keep a balance on your cards depends entirely on your interest rate.

You can't be serious...

[Maikeru-sama]

Credit cards are deadly. You really have to discipline yourself or you can get in real deep real fast. And it did not help that the companies inundated people with offers for years. At one time I was getting 5-6 offers of NEW credit cards a month.

I agree with burm.

I was very happy when the Government institued a Web Site where you could block Credit Card Companies from offering you Credit Cards unsolicited.

I could see how it could be very tempting to scoop up every offer made, especially during times when money is tight.

I have 2 Credit Cards, a bank card and an American Express. I use those cards like Debit Cards, if the money is not in the bank, then I will not put an item on those Credit Cards.

Also, those cards have no annual fees, so the Credit Card Companies don't make a dime off of me because I always pay my balance off at a certain time before interest hits.

The FICO algorithmn is shrouded in mystery but a book I read with individuals with inside information stated that one of the many criteria for obtaining that very elusive 800+ score is to have 2-3 revolving accounts that are 10-15 years old.

[Maikeru-sama]

You can't be serious...

Yes, Theo is serious and he happens to be correct.

You either play the game or the game is going to play you.

[theogt]

You can't be serious...Let me rephrase. It's a poor financial decision, unless you don't have the intelligence and self control to manage your credit cards.

[iceberg]

Yes, Theo is serious and he happens to be correct.

You either play the game or the game is going to play you.

very good way of putting it. but all said and done, i would agree their ability to triple the interest rate at any time needs to stop.

[Maikeru-sama]

very good way of putting it. but all said and done, i would agree their ability to triple the interest rate at any time needs to stop.

Yep, remember Credit Cards don't kill people financially, people do :D .

[BrAinPaiNt]

It's a poor financial decision because to have the best credit score (and hence, best interest rates on mortgages, car notes, etc.) you need to have multiple credit cards from multiple companies (visa, discover, etc.).

Also, you should pay all of your expenses with a credit card instead of a debit card in order to rack up the points.

Whether or not it's a good decision to keep a balance on your cards depends entirely on your interest rate.

And if you do your finances well enough you don't need to have mortgage or mortgages in some peoples cases or a car note.

If the only reason you should have and use credit cards is to have a good credit score to get yourself in debt with a loan from a bank...maybe you should reconsider why you are always borrowing money on credit.

However as I said earlier that is different if you have a business of some sort.

But if you have established a good rapport and history with your local bank over the years you can still get a loan without having to use credit cards on a regular basis.

[Maikeru-sama]

The only problem with that brain is that lots of industries unrelated to the mortgage are using credit scores such as insurance and apartment complexes, just to name a few. Employers are using it too.

[MetalHead]

Let me rephrase. It's a poor financial decision, unless you don't have the intelligence and self control to manage your credit cards.

Is it smart to borrow money at 20% interest?
FICO score only indicates that you like debt.
Listen to Dave Ramsey...monday to friday 1pm to 4 pm Central time.
You have a lot to learn...he will teach you.

[theogt]

And if you do your finances well enough you don't need to have mortgage or mortgages in some peoples cases or a car note.

If the only reason you should have and use credit cards is to have a good credit score to get yourself in debt with a loan from a bank...maybe you should reconsider why you are always borrowing money on credit.

However as I said earlier that is different if you have a business of some sort.

But if you have established a good rapport and history with your local bank over the years you can still get a loan without having to use credit cards on a regular basis.Yes, if you have the cash to pay for a house, then I think you're doing well financially. LOL. Unless you're buying a shack.

People think debt is inherently a bad thing. It's not. Debt can be an extremely useful too financially, and if you don't use it or know how to use it, you're most likely worse off than you would be if you did.

[theogt]

Is it smart to borrow money at 20% interest?Typically no it's not. But it always depends on what kind of return you're getting on the use of your money.

FICO score only indicates that you like debt.This doesn't even make sense.

Listen to Dave Ramsey...monday to friday 1pm to 4 pm Central time.
You have a lot to learn...he will teach you.No, that's okay. I'm financially sound. My guess is this is one of those guys that is teaching to the lowest common denominator, which makes sense. If you're not sophisticated enough to handle debt, then avoiding it altogether is probably the best practice.

[MetalHead]

Typically no it's not. But it always depends on what kind of return you're getting on the use of your money.

This doesn't even make sense.

No, that's okay. I'm financially sound. My guess is this is one of those guys that is teaching to the lowest common denominator, which makes sense. If you're not sophisticated enough to handle debt, then avoiding it altogether is probably the best practice.


Spoken like an individual who clearly thinks he is better than everybody else.
Got humility?

[Rack Bauer]

QFT. If you want to maximize youre credit rating you should have about 4. 2 major cards, a gas card and a store card. You should use them and keep a small balance that you pay on. It shows you know how to manage your debt.

Credit cards are not going anywhere, they have their uses, especially in business.

Agreed.

I was able to increase my credit score from 529 back in 2005 to 750 6 months ago (it has since dropped about 60 points due to someone else's screw up).

I currently only owe money on my Sears card though. I just paid off my home depot card.

What's bad is to purchase something NOT using a credit card that has one of those "No payments for the first 6 months" deals. I bought a sofa-bed sometime back with no payments for 6 months, put the reminder on my phone of when to pay it... but my phone broke, and I completely forgot about it. Of course, with my luck, Lack's never sent me a bill or any kind of reminder of when my bill was due. I checked my credit score one day and saw that it had dropped 80 points. I tried to talk to Lack's about it and see if they'd "Fix" it but they wouldn't help me out.


My score is still 670+ so it's still good, but I was wanting to buy a house soon so this will hurt me.

[Rack Bauer]

If you're not sophisticated enough to handle debt, then avoiding it altogether is probably the best practice.

Owned.

[arglebargle]

The finance industry has a system of rating your credit based on you using their services and getting into debt. So that they can charge you interest. Mighty conveniant.

It's their system, so of course it favors your use of it. You could have handled your business so as to never get in debt, and they don't like it. What a surprise! They make no money off you that way.

Certainly the industry was happy, at one point, to hand out cards to anyone and their dog, regardless of your background. (Actually had an co-worker who got a credit card promo for his dog. Don't know what database that came off of.)

It's an industry trick. It being useful for some doesn't make it any less of one.

[BrAinPaiNt]

Yes, if you have the cash to pay for a house, then I think you're doing well financially. LOL. Unless you're buying a shack.

People think debt is inherently a bad thing. It's not. Debt can be an extremely useful too financially, and if you don't use it or know how to use it, you're most likely worse off than you would be if you did.

What's wrong with getting a regular bank loan. As I stated if you have done business with banks over the years they will give you a loan without the credit cards.

Furthermore if you would have read my original post you would have seen I was talking about the poorer person as opposed to someone that is already loaded and does not have to worry about trying to find money to pay cards off.

Geez.

It's humorous that people push credit cards and how good they are for you when the credit industry sets up those standards to get you to use their services in the first place.

Almost reminds me of coal miners getting paid script back in the day.

Never thought we would have so many conservative people talking about borrowing money instead of paying for some things up front and those paying for things up front get punished. Kind of reminds me of the complaints of higher taxes being a punishment for making more money and being responsible.

[theogt]

What's wrong with getting a regular bank loan. As I stated if you have done business with banks over the years they will give you a loan without the credit cards.

Furthermore if you would have read my original post you would have seen I was talking about the poorer person as opposed to someone that is already loaded and does not have to worry about trying to find money to pay cards off.

Geez.

It's humorous that people push credit cards and how good they are for you when the credit industry sets up those standards to get you to use their services in the first place.

Almost reminds me of coal miners getting paid script back in the day.

Never thought we would have so many conservative people talking about borrowing money instead of paying for some things up front and those paying for things up front get punished. Kind of reminds me of the complaints of higher taxes being a punishment for making more money and being responsible.There's no functional difference between a "regular bank loan" and a credit card. Find the cheapest financing and go with it.

[BrAinPaiNt]

There's no functional difference between a "regular bank loan" and a credit card. Find the cheapest financing and go with it.

Sure there is. You know the person at the bank and if you have a problem with a situation you can go down and talk with them one on one.

Can not do that on a credit card.

Furthermore you usually have an active checking and savings account in the bank you get a loan from so they have other interests in you and you them.

Another thing is a bank does not send you loads and loads of mail trying you to get their services nor do they go to college campuses asking kids to take out loans knowing they will have trouble paying it off and a whole host of other ethical issues.

Nor if you have the money to pay off the loan will someone on the other end tell you that you can not or try to convince you that you can not (yes that has happened to me over the phone with a credit card company and they got an ear full and changed their minds).

Nor does a bank try to keep charging finance fees after you paid off the debt with lines like...oh we missed this finance fee so you have to pay it and so on.

Credit cards for the most part hurt the lower economic class much more than it helps. Not everyone can get a loan from a bank, about everyone can get a credit card.

[sacase]

What's wrong with getting a regular bank loan. As I stated if you have done business with banks over the years they will give you a loan without the credit cards.

Furthermore if you would have read my original post you would have seen I was talking about the poorer person as opposed to someone that is already loaded and does not have to worry about trying to find money to pay cards off.

Geez.

It's humorous that people push credit cards and how good they are for you when the credit industry sets up those standards to get you to use their services in the first place.

Almost reminds me of coal miners getting paid script back in the day.

Never thought we would have so many conservative people talking about borrowing money instead of paying for some things up front and those paying for things up front get punished. Kind of reminds me of the complaints of higher taxes being a punishment for making more money and being responsible.

Even if you are poor it is still a good idea to have a few. If you want the max credit rating possible you need to have them. Yeah, I agree but it is basically a scam, that to get the max credit rating you have to have them and USE them. However, from their point of view it is how you manage your debt that they are most interested. Paying the card off every month is not managing your debt. Personally, If I am making a big purchase, I put it on my credit card. I get my points and I pay 95% of it off. I carry the balance and pay the rest off later. I can pay all my cards off at anytime if I need to. Its all about debt management.

[theogt]

Sure there is. You know the person at the bank and if you have a problem with a situation you can go down and talk with them one on one.

Can not do that on a credit card.

Furthermore you usually have an active checking and savings account in the bank you get a loan from so they have other interests in you and you them.

Another thing is a bank does not send you loads and loads of mail trying you to get their services nor do they go to college campuses asking kids to take out loans knowing they will have trouble paying it off and a whole host of other ethical issues.

Nor if you have the money to pay off the loan will someone on the other end tell you that you can not or try to convince you that you can not (yes that has happened to me over the phone with a credit card company and they got an ear full and changed their minds).

Nor does a bank try to keep charging finance fees after you paid off the debt with lines like...oh we missed this finance fee so you have to pay it and so on.

Credit cards for the most part hurt the lower economic class much more than it helps. Not everyone can get a loan from a bank, about everyone can get a credit card.Again, I said you go with the cheaper financing. If the bank loan happens to be cheaper, then go with it. If not, then don't.

[CowboyPrincess]

No, that's okay. I'm financially sound. My guess is this is one of those guys that is teaching to the lowest common denominator, which makes sense. If you're not sophisticated enough to handle debt, then avoiding it altogether is probably the best practice.

Wow! Talking about sticking your nose up in the air towards others. Must be hard to tolerate us simple minded people from your perch.

One of the definitions of sophisticated is ` : deprived of native or original simplicity -

That being the case, I would much rather be capable of being simplistic when it comes to managing my finances. I don't need to rack up a lot of debt and thumb my nose at people to feel good. I'm proud of the fact that I know how to live simple. When this economy starts hitting everyone hard, I know that I will not have to worry about how to get by. With years of practice and studying techniques like Dave Ramseys, I will do better than most. I won't have to worry about foreclosure, repossession, or where to cut corners. I have lived with loads of money and I have lived without it and being debt free is a good place to be in this economy. No stress, no ulcers, no sleepless nights and no meds to deal with the stress. I'm a poor debt free person that is slowly but steadily building up a solid retirement without the assistance of credit cards. I've paid my debts and now my money is MY money and not an assessment payment for borrowing

Pretty soon everyone is going to have to learn to live within their means one way or the other.

When the "Sophisticated Jone's" start losing money or financed material objects and can't cope with being common, us lowest common denominators will be coping just fine with financial freedom


Sorry.. I've got a bad cold so I am a bit sensitive to being called "low" and unsophisticated because I use Dave Ramsey and refuse to put myself in debt. As I see it... we are the smart ones

[JBond]

The best credit card is no credit card...

Cash on the barrel head.

Credit cards are a symbol of what is wrong now.. People living beyond their means. Just like the housing loans, people use credit cards to pay for things over time that they couldn't afford otherwise.

No credit cards, no debt, and I sleep well at night on my fully paid bed and enjoy my fully paid car on trips that I pay cash for...

Thanks Dave Ramsey. :D

If I can not pay for for it, I do not buy it.

[arglebargle]

Even if you are poor it is still a good idea to have a few. If you want the max credit rating possible you need to have them. Yeah, I agree but it is basically a scam, that to get the max credit rating you have to have them and USE them. However, from their point of view it is how you manage your debt that they are most interested. Paying the card off every month is not managing your debt. Personally, If I am making a big purchase, I put it on my credit card. I get my points and I pay 95% of it off. I carry the balance and pay the rest off later. I can pay all my cards off at anytime if I need to. Its all about debt management.

That's the essence of the scam. Because it is obvious to everyone that the difference between paying off 95% and 100% is next to nothing. Yet you get a higher credit rating.

I am certainly not arguing that it doesn't work that way. Just that it's one of those Catch 22 things...

[Maikeru-sama]

It's odd that people think that everyone with Credit Cards are just drowing in Debt.

I have 2 Credit Cards, very little debt (student loan) and and I sleep well at night on my fully paid bed and enjoy my fully paid car that I borrowed money to buy and paid it off in 1.5 years (as opposed to 5 years) and now my FICO score is 781.

Thanks FICO Score!

Again, People kill themselves financially, not Credit Cards.

[BrAinPaiNt]

It's odd that people think that everyone with Credit Cards are just drowing in Debt.

I have 2 Credit Cards, very little debt (student loan) and and I sleep well at night on my fully paid bed and enjoy my fully paid car that I borrowed money to buy and paid it off in 1.5 years (as opposed to 5 years) and now my FICO score is 781.

Thanks FICO Score!

Again, People kill themselves financially, not Credit Cards.

No what kills me is people who think you need such a great credit score and basically are paying to get it. That's really what you are doing, you are paying the credit card companies interest money just so you can have a good credit score.

I don't get it, but that is just me.

I prefer to pay for things up front and be done with it now. I found that credit cards were a crutch and just made it easier to buy things that you could have gotten if you would have just saved up a little and cheaper since by saving you would not have to pay interest.

[sacase]

No what kills me is people who think you need such a great credit score and basically are paying to get it. That's really what you are doing, you are paying the credit card companies interest money just so you can have a good credit score.

I don't get it, but that is just me.

I prefer to pay for things up front and be done with it now. I found that credit cards were a crutch and just made it easier to buy things that you could have gotten if you would have just saved up a little and cheaper since by saving you would not have to pay interest.

I agree that it is a scam, but if you want the best interest rates from the banks for home and car loans, then you have to play their game.

[theogt]

No what kills me is people who think you need such a great credit score and basically are paying to get it. That's really what you are doing, you are paying the credit card companies interest money just so you can have a good credit score.

I don't get it, but that is just me.

I prefer to pay for things up front and be done with it now. I found that credit cards were a crutch and just made it easier to buy things that you could have gotten if you would have just saved up a little and cheaper since by saving you would not have to pay interest.If you pay off your credit cards every month, you don't pay interest.

[CowboyPrincess]

It's odd that people think that everyone with Credit Cards are just drowing in Debt.

I have 2 Credit Cards, very little debt (student loan) and and I sleep well at night on my fully paid bed and enjoy my fully paid car that I borrowed money to buy and paid it off in 1.5 years (as opposed to 5 years) and now my FICO score is 781.

Thanks FICO Score!

Again, People kill themselves financially, not Credit Cards.

Know what gets me... You. You start a thread asking for people to forgive you for acting a certain way with people and then you find a post that wasn't even address to you and mock it and that person. I didn't fart in your oatmeal and I treat you and your post with respect, why not return the favor

[theogt]

Know what gets me... You. You start a threat asking for people to forgive you for acting a certain way with people and then you find a post that wasn't even address to you and mock it and that person. I didn't fart in your oatmeal and I treat you and your post with respect, why not return the favorI think you took two posts that weren't at all directed at you and took them personally. Chill out. No one thinks poorly of you. I apologize if anything I said offended you, as it wasn't intended to do so.

[Maikeru-sama]

Know what gets me... You. You start a threat asking for people to forgive you for acting a certain way with people and then you find a post that wasn't even address to you and mock it and that person. I didn't fart in your oatmeal and I treat you and your post with respect, why not return the favor

No, I made a post apologizing to the Moderators, it had nothing to do with how I am with certain people.

Furthermore, I wasn't trying to disrespect you and I apologize if you took it that way.

[CowboyPrincess]

I think you took two posts that weren't at all directed at you and took them personally. Chill out. No one thinks poorly of you. I apologize if anything I said offended you, as it wasn't intended to do so.

I was PM'd multiple times about both of your remarks because they involved my comments on using Dave Ramsey and Mak post WAS a direct mock of my post.. Look at mine and then look at theirs and tell me it wasn't

[Maikeru-sama]

No what kills me is people who think you need such a great credit score and basically are paying to get it. That's really what you are doing, you are paying the credit card companies interest money just so you can have a good credit score.


My Bank of America and American Express Card have no fees attach to them. If I pay the Credit Cards off by a certain date, the Credit Card Companies make no money. I always pay my Credit Cards off on a certain date (to make sure usage is reported), the Credit Card companies make no money off of me, my FICO/Credit Score continues to rise and I am actually saving money for myself because so many institutions are using FICO/Credit Scores these days in order to charge you more money.



I prefer to pay for things up front and be done with it now. I found that credit cards were a crutch and just made it easier to buy things that you could have gotten if you would have just saved up a little and cheaper since by saving you would not have to pay interest.

I do too. However, the Government, The Credit Card Companies and the Credit Bureaus have set up a system albeit an unfair one so I am force to play the game but I am playing it to my advantage and not theirs.

If the Game didn't state that No Credit = Bad Credit, I could see why someone wouldn't use a Credit Card but since the game has declared this, I think it is somewhat foolish not to participate.

In the last few months, my Insurance Company, the apartment I just moved into, the Mortgage Company I may get my Home loan through, the new Electric Company I had to go with ALL ran my Credit and looked at my Credit Scores. Under the current system, I would have been up craps creek with those companies if I had no credit and that is why I choose to play the game.

Funny, the Big 3 are trying to come up with a new system and I read that if you have A credit under the current one, you may have B credit under the new one. The Big 3 claim the new system will have more accurate reporting but it really is all about getting more people out of the top credit brackets because that translates to more money for them and their clients.

[CowboyPrincess]

No, I made a post apologizing to the Moderators, it had nothing to do with how I am with certain people.

Furthermore, I wasn't trying to disrespect you and I apologize if you took it that way.

I wasn't the only one that took your remarks that way... I got a few PM's on your remarks being taken the same way by others

[Maikeru-sama]

I wasn't the only one that took your remarks that way... I got a few PM's on your remarks being taken the same way by others

That's fine and I am sure those people that PM'ed you don't like me either (I bet I can name the ones who PM'ed you).

As I stated, I wasn't trying to disrespect you, I would be more direct if I was trying too.

But hey, I apologized and it will not happen again.

[CowboyPrincess]

That's fine and I am sure those people that PM'ed you don't like me either (I bet I can name the ones who PM'ed you).

As I stated, I wasn't trying to disrespect you, I would be more direct if I was trying too.

But hey, I apologized and it will not happen again.

i accept but please don't assume i don't like you. your political opinions don't sway what i think of you as a person. i respect all people that have the strength to state their opinion even if it may not be a popular opinion.

[theogt]

I was PM'd multiple times about both of your remarks because they involved my comments on using Dave Ramsey and Mak post WAS a direct mock of my post.. Look at mine and then look at theirs and tell me it wasn'tSomone PM'd you about my post?

What is this? 3rd grade? Or the ESPN newsroom?

[WoodysGirl]

i accept but please don't assume i don't like you. your political opinions don't sway what i think of you as a person. i respect all people that have the strength to state their opinion even if it may not be a popular opinion.Not to speak for Mike, but I think he's referring to those that PM'd you, not you personally.

[Sasquatch]

:rolleyes:

[bobtheflob]

I buy almost everything on my credit card and pay it off in full every month. It's basically a debit card to me. I had zero credit history 3 years ago coming out of college, but just by buying things with my credit card i've managed to get a good credit score in the mid 700's. I might not have the highest score possible, but it's certainly good enought to get approved for any loans I need (I just took out an auto loan).

I've just never understood the whole debt problems thing. Unless it's for a big purchase like a car or house or student loans, my rule is just to never spend money that I don't have.

[DaBoys4Life]

The best credit card is no credit card...

Cash on the barrel head.

Credit cards are a symbol of what is wrong now.. People living beyond their means. Just like the housing loans, people use credit cards to pay for things over time that they couldn't afford otherwise.

No credit cards, no debt, and I sleep well at night on my fully paid bed and enjoy my fully paid car on trips that I pay cash for...

Thanks Dave Ramsey. :D

I'd rather have a debit card if anything....people are robbing people nowadays so you can't keep cash on you people do try to live outside of the means which is part of the problem.

[burmafrd]

I have been there. One of the reasons I took this assignment was the oppurtunity to pay off my debts, of which Credit Cards were a large part of it.
In 9 months I paid off debts that I had racked up over the last 5-7 years.
By the time I leave I will be totally debt free with the exception of my new truck loan. There was a time a year or so ago that I was finding it difficult to pay the minimums. Now I have no regrets what I did with all that money- I bought things I wanted and did things I wanted and had a good time.
I will have 4 regular cards plus a Walmart card when I get back to the states with around $44,000 in credit on them. And they will all have 0 balances. AND I intend to keep them that way. I will just keep them for a possible collapse: in the days and weeks before the system collapses, I would be able to buy a lot of food, supplies, etc to be able to hunker down for a year or two.

[ninja]

And if you do your finances well enough you don't need to have mortgage or mortgages in some peoples cases or a car note.

If the only reason you should have and use credit cards is to have a good credit score to get yourself in debt with a loan from a bank...maybe you should reconsider why you are always borrowing money on credit.

However as I said earlier that is different if you have a business of some sort.

But if you have established a good rapport and history with your local bank over the years you can still get a loan without having to use credit cards on a regular basis.

For the first time ever(I think), I'm agreeing with Brain. I like Brain's "fiscally Conservative" thinking here.

[ninja]

If you want a good credit score do these things:
1)Have cash in the bank. The more the better.
2)Pay your bills on time
3)Pay off all credit cards every month. Do not pay interest ever!
4)Have stocks and bond funds.

If you do these things, I guarantee you will have excellent credit and be able to get a loan for a reasonable house.