The Credit Thread

[gamevet]

Even if you don't have credit cards or loans, having a job that you've been at, for more than a couple of years, is a big plus. A lender knows that you have a reliable source of income. When I applied for a loan for my home, having 12 years with my current place of employment, was a big factor in getting approved.

[OmegaFlareX]

My current landlord ran a credit check on me when we applied for the place I'm living now, and she said I don't have much credit, but what's there is good. The interest rate on my card is a bit above average (13.9%), so I try to get it paid off as fast as I can. Those interest charges really add up. Once I get it down to zero (I'm praying I don't have any major car repairs soon), I'm gonna call them and get them to lower it. It worked once before, 'cause I started out with 19%.

[TobalRox]

While having no steady income (ie no job, but had money saved in the bank and sold stuff on ebay), I was still offered credit cards left and right, and I figured I should sign up for one just to get started building credit. It had a 13.9% interest rate, so I made sure to charge little and pay it off right away. This worked for a while, and they just kept raising my credit line. After having it for close to a year (and getting a job), I started having more on there than I could pay, but we're talking $100-200 a month I didn't pay, instead of massive debt. It eventually all would get paid for again, so of course they kept raising my limit. One month they raised it and I didn't realize it, so when I saw my "credit available" I spent the $500 extra thinking I wasn't owing as much, but that was my own fault. I currently owe like $600, but I called a couple months back and got my interest lowered to 9.9%. It's debt, but I always pay way more than the $15 minimum, so they stay happy with me and keep raising my limit. I started with a $500 limit and now I have $3000. Also, along the line I got another credit card that I don't use and just hold. That's a good way to build credit too, just having a card and not using it. I put $200 on it before, paid it off, and now it just sits there to hopefully give me a better rating.

[Calliander]

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.

The reason they're sending you those cards is BECAUSE of your debt. Hehe.

My FICO is low. I'm embarassed of the actual number, but let's say it's below 700. Number one, my past is fully of fiscal irresponsibility. Number two, I don't own any investments. Number three, no house so no mortgage to refi.

This is a good topic, though, and I was thinking of making a similar thread because of some radio ads I hear.

I hear these commercials where X Company will give you a home loan with a low rate even if you have bad credit. One company has a tagline like, "You shouldn't have to pay a lot for a loan just because you have bad credit."

Now, in my case, the biggest part of my low score is because of the poor money management I had in the past. In addition, when my roommate suddenly left, I got stuck with the rent and consequently ended up being late with all of my other bills including repaying a loan I stupidly took out to move to California.

Should I decide to buy a home (you know, if I go crazy and decide, "Hey, homes are worth what you pay for them in California!") do any of you agree with that company's statement? Even though in probably 99% of all bad credit cases it's the fault of the person with bad credit, they shouldn't have to pay a lot for a loan? I took out the loan to move. I picked the shoddy roommate. I relied on him to find a replacment (he didn't) instead of doing it myself. Do I really deserve a loan with a low rate? I think a lot of "bad credit" cases are full of even stupider choices than my own, too.

What do you folks think? These are just my perceptions, remember.

EDIT: Reading through this thread, I'm really happy that I never signed up for one of those 13.9% cards. Hehe. My only credit card ever, my Discover card, has somewhere between 5.5 and 7.5 and Discover isn't taken everywhere.