The Credit Thread

I'm taking Consumer Econimics and Law this year (imagine that), and we've got a long-term project that involves credit. Is it good, is it bad? How do you get credit, how do you get bad credit, what kinds of credit are out there, etc. etc.?

Thinking "wow, this is a great topic that everyone should know about" I figured, why not start a conversation about credit here? What do you know about it? What are you fuzzy about? A lot of adults have credit, but have no idea what their credit rating is, or what their monthly APR is, or interest rates, or what an interest rate can tell you about who you are as a borrower to certain institutions. Things like cars and homes all rely on credit, and take a hell of a lot, so how does one build a good credit standing? How does one get rid of bad credit? What are your rights and obligations as a borrower? And so on...

Okay...maybe I'm the only one who finds this mess interesting, but the better informed anyone is about credit, the better off they are in the real world.

So? Get discussing =p

Paying your bills on time means you keep the collectors happy and you with a positive credit rating.

My basic understanding of it is to buy stuff that puts you in debt and pay it off how and when you're supposed to. My mom puts a lot of stuff on her credit card and whatnot but always pays it off on-time and has perfect credit. My dad (due to his herione addiction a few years ago) had to file bankruptcy because he had too much loans and other debts and did not pay them, his credit isn't very good right now but his wife has decent credit I think so it works out.

I don't have any credit because I've never been in debt.

the dictionary definition is as follows:
"an arrangement for deferred payment for goods and services"
and then add on the end how you end up being ripped off on some extortionate interest rate, and that sounds about right

Never file bankruptcy. Your credit is as good as dead for many, many years.

I always pay my bills on time. I just categorize it as "money you just don't have at the moment." I only buy things when I need them and when I know I can pay them back. If you keep up with at least the minimum payments, your credit will be good. If you start maxing shit out and can't pay it, I'll make sure to give you some change on the freeway.

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Originally Posted by Nomi

Never file bankruptcy. Your credit is as good as dead for many, many years.

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It's not always that easy. Bankruptcy can actually save your ass if your business tanks or you go overboard with credit. It wipes all of your debts clean but for seven years, you are not allowed to have credit. Of course, since many people started doing this they are making it even harder to file for bankruptcy. It really is an ass saver, though.

Quote:

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Originally Posted by Nomi

Never file bankruptcy. Your credit is as good as dead for many, many years.

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If you are thinking of filing bankruptcy, consider CCCS (Consumer Credit Counseling Service) or a similar debt management program instead. They can talk creditors into reducing interest, meaning lower monthly total payments.

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Originally Posted by gameoverDude

If you are thinking of filing bankruptcy, consider CCCS (Consumer Credit Counseling Service) or a similar debt management program instead. They can talk creditors into reducing interest, meaning lower monthly total payments.

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We already filed, a little while back. It did really help us out, we just can't get a credit card or anything until I'm twenty-something.

ouch.

I keep getting approved for $1000+ credit limit credit cards yet I haven't worked in a year , I'm $3000 in debt and I've had a history of missing payments on my old card.

Dosen't make sense to me.