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   Hey, ladies, Ric Romero has some hot tips to help you bounce back from bankruptcy: "Most of all, you'll need a little patience. Most lenders look at a two-year credit history before saying yes to big financing, like a house or car"

02 Dec 2012 05:00 PM   |   2346 clicks   |   ABC Local
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dustman81    [TotalFark]  
talesuntangled.files.wordpress.com

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.

02 Dec 2012 04:45 PM
Reply
DoctorCal     
cdnet.myxer.com

First, get a million dollars.

02 Dec 2012 05:04 PM
Reply
CruJones     
I'm having a hard time feeling sorry for the woman with two mortgages and kids in private school.

02 Dec 2012 05:08 PM
Reply
Fark Rye For Many Whores     
Hey, ladies, Ric Romero has some hot tips to help you bounce back from bankruptcy:
daphnecaruanagalizia.com

02 Dec 2012 05:08 PM
Reply
CruJones     

dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.


You shouldn't need a book/cult to realize that you don't need credit if you pay cash for everything.

02 Dec 2012 05:09 PM
Reply
Fark Rye For Many Whores     

Fark Rye For Many Whores: Hey, ladies, Ric Romero has some hot tips to help you bounce back from bankruptcy:
[daphnecaruanagalizia.com image 314x313]


Oh shiat haha, now I RTA and it really is Ric Romero.

02 Dec 2012 05:09 PM
Reply
Overlord44     

dustman81: why the FICO score is a scam


Care to give the bullet point or two version of that?

02 Dec 2012 05:14 PM
Reply
cig-mkr     
Find a wealthy husband?

02 Dec 2012 05:17 PM
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GORDON     

CruJones: I'm having a hard time feeling sorry for the woman with two mortgages and kids in private school.


Yeah, she's totally typical.

02 Dec 2012 05:18 PM
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uncleacid     
Tits for women would be redundant

02 Dec 2012 05:20 PM
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Harry_Seldon     

CruJones: Get a 15-year, fixed rate and put down as much as you can.


That really isn't feasible for a lot of people in higher cost housing markets.

02 Dec 2012 05:25 PM
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oukewldave     
I thought the way women get out of financial trouble is to marry someone who is doing well? From what I have seen by women I know, this is pretty common solution.

02 Dec 2012 05:27 PM
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safetycap     
The answer is obvious
i651.photobucket.com

1. Borrow money from your parents
2. Sell some of your beloved stocks
3. Eat a lot of pasta and tuna fish

02 Dec 2012 05:31 PM
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Dr. Horrible     

DoctorCal: First, get a million dollars.


But, DoctorCal, what do I say to the taxman when he comes to my door and says "You have never paid taxes?"

02 Dec 2012 05:31 PM
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dustman81    [TotalFark]  

Overlord44: dustman81: why the FICO score is a scam

Care to give the bullet point or two version of that?


The FICO score isn't based on how financially successful you are. It's based on how often you borrow money and pay it back. Someone who has very little savings, but borrows money and pays it back over and over again will have a higher FICO score than someone who has savings and doesn't borrow money.

The FICO score and credit are so ingrained into the American culture that those who don't use credit are considered weird.

02 Dec 2012 05:31 PM
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special20    [TotalFark]  
I do not admire the attitude of some women. Typically, they find security through having money, yet don't feel they need to do much to earn it.

So, anybody know where I can buy some deep fried ice cubes? My GF just sent me out for some.

02 Dec 2012 05:33 PM
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discount sushi     

Overlord44: dustman81: why the FICO score is a scam

Care to give the bullet point or two version of that?


FICO is a scam in that your score is tied to having access to and using credit. If you do no have revolving debt such as a credit card, or no credit history at all your score can be quite low even if you pay for everything in cash and pay all your bills on time.

People who think the inability to have access to credit are quite naive though so you shouldn't put too much stock in the cash only thing (unless you work under the table or off books). You need to show you can pay off small debts before someone is going to write you a check for something larger like a car or house. If you want to opt out, save up and pay up, but I'd rather get a nice low interest loan. The main thing is to have credit that you use responsibly, and if you're paying off your balances and not living outside of your means it's really not that hard.

02 Dec 2012 05:36 PM
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Beanlet     

dustman81: The FICO score isn't based on how financially successful you are. It's based on how often you borrow money and pay it back. Someone who has very little savings, but borrows money and pays it back over and over again will have a higher FICO score than someone who has savings and doesn't borrow money.

The FICO score and credit are so ingrained into the American culture that those who don't use credit are considered weird.


Just curious, how does that make it a scam?

02 Dec 2012 05:37 PM
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foo monkey     
Love ya Ric!

02 Dec 2012 05:51 PM
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BlackDebbie     

dustman81: Overlord44: dustman81: why the FICO score is a scam

Care to give the bullet point or two version of that?

The FICO score isn't based on how financially successful you are. It's based on how often you borrow money and pay it back. Someone who has very little savings, but borrows money and pays it back over and over again will have a higher FICO score than someone who has savings and doesn't borrow money.

The FICO score and credit are so ingrained into the American culture that those who don't use credit are considered weird.


I don't really feel that strongly one way or another about FICO or not but I have to ask the following:

If you have a large savings, why is it such a problem to open up some line of credit, any line of credit just to keep your history consistent and positive? It seems to me to be ridiculous to refuse to get any kind of credit line just because you don't need it. I suppose I can see the logic of it but if you're the type who has a large savings account, you're likely not going to be the type who goes on a 30k bender with your credit card and will never be able to pay it back. I suppose it comes down the simple fact that if you ever plan on trying to buy a house or something that you can't afford to pay cash on, you're an idiot if you spend 10 or 20 or however many years refusing to establish a credit history just because "i don't have to do". It's a very childish way to look at the world and an utter failure on the part of the person when planning for their future. It's not like you're standing for anything, it just seems like you're being argumentative for the sake of it.

I know dozens of people who have credit cards with 10-30k credit lines who have never paid a cent of interest because they buy gas/groceries/utilities/etc with it and then just pay it off when they get their bill. I do that as well. In addition to not having to pay interest, I will get 3% cash back normally on at least one of those categories and 1% on the rest of it. That accounts for a few hundred dollars a year that I would have not had otherwise.

So why not just do something like either of those scenarios? Yes, the FICO score may be a "Scam" in your opinion but if you live here, just make the ever so small token gesture to play by the rules of the system you are a part of. I just wonder if anyone feels there's any compelling reason to refuse to participate in building an active credit history.

02 Dec 2012 05:52 PM
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ZeroPly     

dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.



Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...

Also, good luck renting that car while on vacation when your credit history looks like a 12 year old's...

02 Dec 2012 05:54 PM
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cig-mkr     

BlackDebbie: dustman81: Overlord44: dustman81: why the FICO score is a scam

Care to give the bullet point or two version of that?

The FICO score isn't based on how financially successful you are. It's based on how often you borrow money and pay it back. Someone who has very little savings, but borrows money and pays it back over and over again will have a higher FICO score than someone who has savings and doesn't borrow money.

The FICO score and credit are so ingrained into the American culture that those who don't use credit are considered weird.

I don't really feel that strongly one way or another about FICO or not but I have to ask the following:

If you have a large savings, why is it such a problem to open up some line of credit, any line of credit just to keep your history consistent and positive? It seems to me to be ridiculous to refuse to get any kind of credit line just because you don't need it. I suppose I can see the logic of it but if you're the type who has a large savings account, you're likely not going to be the type who goes on a 30k bender with your credit card and will never be able to pay it back. I suppose it comes down the simple fact that if you ever plan on trying to buy a house or something that you can't afford to pay cash on, you're an idiot if you spend 10 or 20 or however many years refusing to establish a credit history just because "i don't have to do". It's a very childish way to look at the world and an utter failure on the part of the person when planning for their future. It's not like you're standing for anything, it just seems like you're being argumentative for the sake of it.

I know dozens of people who have credit cards with 10-30k credit lines who have never paid a cent of interest because they buy gas/groceries/utilities/etc with it and then just pay it off when they get their bill. I do that as well. In addition to not having to pay interest, I will get 3% cash back normally on at least one of those categories and 1% on th ...


Count me in as one of those, Got a Cap One never paid a dime interest. I get sky miles that I convert to cash every six months.

02 Dec 2012 06:02 PM
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dustman81    [TotalFark]  

BlackDebbie: So why not just do something like either of those scenarios? Yes, the FICO score may be a "Scam" in your opinion but if you live here, just make the ever so small token gesture to play by the rules of the system you are a part of. I just wonder if anyone feels there's any compelling reason to refuse to participate in building an active credit history.


The only winning move is not to play. The game is rigged in the bank's favor. How do you think banks are able to build skyscapers and buy themselves bailouts?

ZeroPly: Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...


Do you want to work an employer who is so lazy in their hiring process they don't even bother to check as to why you don't have a credit score?

02 Dec 2012 06:06 PM
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raerae1980    [TotalFark]  
Went through banruptcy last year. I'm going to need a car soon, maybe in the next two years, as mine is over 10 years old and repairs are getting costly. I don't know what I'm gonna do, as I can't even get a Sears card, let alone a car loan.

/And yet, had no problem renting a car from Enterprise.

02 Dec 2012 06:07 PM
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CruJones     

dustman81: BlackDebbie: So why not just do something like either of those scenarios? Yes, the FICO score may be a "Scam" in your opinion but if you live here, just make the ever so small token gesture to play by the rules of the system you are a part of. I just wonder if anyone feels there's any compelling reason to refuse to participate in building an active credit history.

The only winning move is not to play. The game is rigged in the bank's favor. How do you think banks are able to build skyscapers and buy themselves bailouts?

ZeroPly: Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...

Do you want to work an employer who is so lazy in their hiring process they don't even bother to check as to why you don't have a credit score?


How is it "rigged"? Just pay on time and its completely free. As others have pointed out, you even can get cash back. I also earn about four or five free flights a year. And my money can earn interest for 30 days when the bill is paid. It's not rocket surgery.

02 Dec 2012 06:14 PM
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dustman81    [TotalFark]  

CruJones: dustman81: BlackDebbie: So why not just do something like either of those scenarios? Yes, the FICO score may be a "Scam" in your opinion but if you live here, just make the ever so small token gesture to play by the rules of the system you are a part of. I just wonder if anyone feels there's any compelling reason to refuse to participate in building an active credit history.

The only winning move is not to play. The game is rigged in the bank's favor. How do you think banks are able to build skyscapers and buy themselves bailouts?

ZeroPly: Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...

Do you want to work an employer who is so lazy in their hiring process they don't even bother to check as to why you don't have a credit score?

How is it "rigged"? Just pay on time and its completely free. As others have pointed out, you even can get cash back. I also earn about four or five free flights a year. And my money can earn interest for 30 days when the bill is paid. It's not rocket surgery.


I used to be a pay-in-full person until a payment arrived one day late and I was charged interest and a late fee. After that, I swore off credit cards, canceled my accounts and cut the cards. I've been using my debit card and have had zero problems.

The borrower is slave to the lender.

02 Dec 2012 06:29 PM
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Telos     

dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time.


What if you could buy a house with a mortgage payment LOWER than your rent would be? Which is true of many of the smaller houses in my area. What if the house is a duplex and you could rent the other half?

Credit itself is not evil. It's just very easy to misuse.


Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.


Started reading your article... disagree with how to build a high Fico score. Having available credit builds your score. Using it does not. In fact, using credit doesn't even mean you're paying more than you would have in cash!

I have 3 credit cards, two of which I've lost. The other one I use for all my miscellaneous spending, and pay off every two weeks. The bonus? I get rewards points, which completely paid for my mom's Christmas present this year.

So yeah, enjoy your cash. I'll enjoy the completely free TV I got by using a credit card.

/along with my 815 credit score

02 Dec 2012 06:38 PM
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Telos     

discount sushi: FICO is a scam in that your score is tied to having access to and using credit.


Slight correction, it's actually a little more complex. Having access to and NOT using your credit builds your rating too. I don't remember the specifics, but part of your score is how much credit you have available compared to how much you're using. So having a credit card and rarely or never using it would build your score.

02 Dec 2012 06:41 PM
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dustman81    [TotalFark]  

Telos: discount sushi: FICO is a scam in that your score is tied to having access to and using credit.

Slight correction, it's actually a little more complex. Having access to and NOT using your credit builds your rating too. I don't remember the specifics, but part of your score is how much credit you have available compared to how much you're using. So having a credit card and rarely or never using it would build your score.


All this shows is that most Americans believe the "build your credit" myth. "I need to go into debt to build my credit, so I can go further into debt."

02 Dec 2012 06:45 PM
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Zeb Hesselgresser     

CruJones: How is it "rigged"? Just pay on time and its completely free. As others have pointed out, you even can get cash back. I also earn about four or five free flights a year. And my money can earn interest for 30 days when the bill is paid. It's not rocket surgery.


Nice boot-strappy, rightwing personal responsibility rant, you forget where you are?

02 Dec 2012 06:46 PM
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italie     

dustman81: BlackDebbie: So why not just do something like either of those scenarios? Yes, the FICO score may be a "Scam" in your opinion but if you live here, just make the ever so small token gesture to play by the rules of the system you are a part of. I just wonder if anyone feels there's any compelling reason to refuse to participate in building an active credit history.

The only winning move is not to play. The game is rigged in the bank's favor. How do you think banks are able to build skyscapers and buy themselves bailouts?

ZeroPly: Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...

Do you want to work an employer who is so lazy in their hiring process they don't even bother to check as to why you don't have a credit score?




I don't want to work for an employer that considers credit history an indicator of my worthiness for a specific job (unless that job requires spending that company's money under my sole discretion...)

02 Dec 2012 06:47 PM
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Telos     

dustman81: Telos: discount sushi: FICO is a scam in that your score is tied to having access to and using credit.

Slight correction, it's actually a little more complex. Having access to and NOT using your credit builds your rating too. I don't remember the specifics, but part of your score is how much credit you have available compared to how much you're using. So having a credit card and rarely or never using it would build your score.

All this shows is that most Americans believe the "build your credit" myth. "I need to go into debt to build my credit, so I can go further into debt."


You do realize that having a credit card is not the same as being in debt, right?

02 Dec 2012 06:51 PM
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dustman81    [TotalFark]  

Telos: dustman81: Telos: discount sushi: FICO is a scam in that your score is tied to having access to and using credit.

Slight correction, it's actually a little more complex. Having access to and NOT using your credit builds your rating too. I don't remember the specifics, but part of your score is how much credit you have available compared to how much you're using. So having a credit card and rarely or never using it would build your score.

All this shows is that most Americans believe the "build your credit" myth. "I need to go into debt to build my credit, so I can go further into debt."

You do realize that having a credit card is not the same as being in debt, right?


You do realize that a credit card is a liability, right?

02 Dec 2012 06:55 PM
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Gyrfalcon     

dustman81: Telos: dustman81: Telos: discount sushi: FICO is a scam in that your score is tied to having access to and using credit.

Slight correction, it's actually a little more complex. Having access to and NOT using your credit builds your rating too. I don't remember the specifics, but part of your score is how much credit you have available compared to how much you're using. So having a credit card and rarely or never using it would build your score.

All this shows is that most Americans believe the "build your credit" myth. "I need to go into debt to build my credit, so I can go further into debt."

You do realize that having a credit card is not the same as being in debt, right?

You do realize that a credit card is a liability, right?


Only if there's a balance on it.

02 Dec 2012 06:59 PM
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brianbankerus     

dustman81: All this shows is that most Americans believe the "build your credit" myth. "I need to go into debt to build my credit, so I can go further into debt."


You have to have cards, not debt. Having cards with low or no balance is better than having cards with a high balance.

02 Dec 2012 07:03 PM
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anfrind     

raerae1980: Went through banruptcy last year. I'm going to need a car soon, maybe in the next two years, as mine is over 10 years old and repairs are getting costly. I don't know what I'm gonna do, as I can't even get a Sears card, let alone a car loan.

/And yet, had no problem renting a car from Enterprise.


I don't know what you should do about your car, but to improve your credit record, check if your bank or credit union offers a "secured" credit card. The credit limit will be no more than what you have in savings (so that if you fail to pay they know they can get their money back one way or another), so in practice it's the same as a debit card. However, it's easy to get (since there's very little risk to the lender), and it lets you work on improving your credit history.

Although it probably won't improve your credit record very quickly if you've just gone through bankruptcy.

02 Dec 2012 07:04 PM
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brianbankerus     

Gyrfalcon: You do realize that a credit card is a liability, right?

Only if there's a balance on it.


Correct.

02 Dec 2012 07:08 PM
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Mija     

CruJones: dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.

You shouldn't need a book/cult to realize that you don't need credit if you pay cash for everything.


The book shows people how to budget and prioritize. They don't pay cash because they have extra money laying around. They pay cash because they undergo a change in their entire thought process and way of life. I know. About twelve years ago my husband and I started living the way that book teaches and I am blessed beyond measure by it. You should try it. I don't see anything cult like about it. It's just good sense. The point is, you don't have to be a slave to a lender. You can live free and without fear if you practice a little wisdom.

Personally, as a Christian it offends me to hear Dave Ramsey's twisted version of Republican greed and fake Christianity. But you don't have to share Dave's personal views to profit from the Bible based financial guidelines he puts forth.

02 Dec 2012 07:10 PM
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JuggleGeek     
FTFA : They played by all the rules, but are in an economic free-fall.

When you borrow money and can't pay it back, then you do not qualify as "played by all the rules".

02 Dec 2012 07:11 PM
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dustman81    [TotalFark]  

Mija: CruJones: dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.

You shouldn't need a book/cult to realize that you don't need credit if you pay cash for everything.

The book shows people how to budget and prioritize. They don't pay cash because they have extra money laying around. They pay cash because they undergo a change in their entire thought process and way of life. I know. About twelve years ago my husband and I started living the way that book teaches and I am blessed beyond measure by it. You should try it. I don't see anything cult like about it. It's just good sense. The point is, you don't have to be a slave to a lender. You can live free and without fear if you practice a little wisdom.

Personally, as a Christian it offends me to hear Dave Ramsey's twisted version of Republican greed and fake Christianity. But you don't have to share Dave's personal views to profit from the Bible based financial guidelines he puts forth.


Exactly. I don't agree with his Republican propaganda, but the points he makes about attitudes about money do make sense.

02 Dec 2012 07:14 PM
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brianbankerus     

anfrind: check if your bank or credit union offers a "secured" credit card.


These do the trick, but they are the worst. I had one for two years. It had a $300 limit. I had to pay I think a $65 application fee and an annual fee of $50. So in the two years I paid $165 for the luxury of having a line of credit. Ridiculous.

02 Dec 2012 07:16 PM
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brianbankerus     

dustman81: Exactly. I don't agree with his Republican propaganda, but the points he makes about attitudes about money do make sense.


You know there are like a million books like this, some even by people who aren't reprehensible.

02 Dec 2012 07:21 PM
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Silverstaff     

ZeroPly: dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.


Yes, this works fantabulous until you're applying for a job where they check your credit history. Hmm... this guy doesn't have any. Let's just move on to applicant #218...

Also, good luck renting that car while on vacation when your credit history looks like a 12 year old's...


This.

While I understand that avoiding the use of credit when possible is a good thing, in practice you need at least some credit history and a halfway decent FICO score in modern society.

Background checks for jobs will often require it, especially if the job in any way involves money or financial decisions. That can include being a cashier at a store, or working in a call center if it in any way involves customer accounts, so that's not just "good" jobs requiring it either. I've got an acquaintance who's basically unemployed because his totally farked up credit history has meant a lot of places have looked him over.

Background checks for apartments will often require it. I had a good friend who had extreme difficulty finding an apartment because she had no credit history. The only places that would rent to her were dives in bad neighborhoods. No "respectable" apartment complex around here will rent to you with no credit or bad credit.

Buying a car. Unless you plan on paying cash for old beaters, or dealing with shady "buy here pay here" lots, you'll need credit.

You don't need to live on credit to have a credit history.

Get a basic credit card. Doesn't have to be elaborate. If you've got no credit history, but you've got a job, you should be able to get one with a $500 or so line of credit from a credit union or a major bank. Be sure to get one without an annual fee, no point in paying money just to have a credit card. Make sure you've got the money to pay it off, but buy some things with it occasionally, like do your Christmas shopping with it or put the occasional dinner and a movie with the Mrs. on it, and promptly pay it off after the bill posts.

Secured cards are for people with trashed credit history. I had no credit record, and no income, and I still got $500 cards from my local credit union and Capital One, just for being a human being with a valid SSN. Of course, that was about 5 years ago.

02 Dec 2012 07:28 PM
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GORDON     

Zeb Hesselgresser: CruJones: How is it "rigged"? Just pay on time and its completely free. As others have pointed out, you even can get cash back. I also earn about four or five free flights a year. And my money can earn interest for 30 days when the bill is paid. It's not rocket surgery.

Nice boot-strappy, rightwing personal responsibility rant, you forget where you are?


yeah, personal responsibility is stupid in a world where no one is ever held responsible for anything

02 Dec 2012 07:33 PM
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Just_a_Bear     
very misleading, subby, since major problems stay on your credit report for seven years.

02 Dec 2012 07:33 PM
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anfrind     

brianbankerus: anfrind: check if your bank or credit union offers a "secured" credit card.

These do the trick, but they are the worst. I had one for two years. It had a $300 limit. I had to pay I think a $65 application fee and an annual fee of $50. So in the two years I paid $165 for the luxury of having a line of credit. Ridiculous.


That may depend on the lender. When I was in college, I got mine through a local credit union, and it had a $500 limit and no fees. And about a year later, I landed a fairly lucrative summer job and they approved me to upgrade to an unsecured card with a $1,000 limit.

I may have had a bit of an advantage going in, however, in that when I still lived at home my dad put both our names on a CompUSA credit card (so that if we needed any computer parts he could send me to buy them without him having to be there to pay), which he kept in good standing until CompUSA went out of business. Which meant that, unbeknownst to me until I applied for that secured credit card, I already had a reasonably good credit history.

02 Dec 2012 07:36 PM
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Ryan2065     

dustman81: The FICO score isn't based on how financially successful you are. It's based on how often you borrow money and pay it back.


So a score that shows how responsible you are paying back your debt is used by banks to determine if you should get a line of credit? You don't say! What a scam!

02 Dec 2012 07:39 PM
Reply
grossmont     
And I'll probably never be able to get a mortgage...

Banks need to get into the 21st century and realize that there are many people like myself who work as a contractor (self employed) and then might work for a company as an employee later on, and switching back and forth. The banks want you to be either self employed or working as an employee for 2 years straight before they'll give you a mortgage.

// Fark You B of A for pre-qualifying me and then saying no.
// And Fark you B of A again for saying no 1 day after I could have gotten my earnest money back

02 Dec 2012 08:04 PM
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ElBarto79     

Mija: CruJones: dustman81: [talesuntangled.files.wordpress.com image 310x400]

Read this and you'll find out why the FICO score is a scam. Don't worry about your credit score. Pay cash and live below your means. 

When it comes to buying a house, rent and save your money. Pay your rent early or on time. Find a mortgage lender that uses manual underwriting. Get a 15-year, fixed rate and put down as much as you can.

You shouldn't need a book/cult to realize that you don't need credit if you pay cash for everything.

The book shows people how to budget and prioritize. They don't pay cash because they have extra money laying around. They pay cash because they undergo a change in their entire thought process and way of life. I know. About twelve years ago my husband and I started living the way that book teaches and I am blessed beyond measure by it. You should try it. I don't see anything cult like about it. It's just good sense. The point is, you don't have to be a slave to a lender. You can live free and without fear if you practice a little wisdom.

Personally, as a Christian it offends me to hear Dave Ramsey's twisted version of Republican greed and fake Christianity. But you don't have to share Dave's personal views to profit from the Bible based financial guidelines he puts forth.


I've met a few people that follow these methods. None of them were particularly intelligent and none of them had any money. Probably 50% of Americans would be much better off simply carrying and paying cash for everything. They don't have to worry about racking up debt on a credit card and they don't have to worry about racking up overdraft fees on a debit card. In addition having to physically handle cash for every transaction will induce them to think about whether or not they really need that particular item and to think about how much money they actually have to spend in a way that using plastic will not.

For these people I certainly think they should follow his advice and will probably be much better off for it. However as long as you can manage your finances responsibly then there are numerous benefits to using credit cards over cash, to borrowing for certain expenses and to maintaining a good credit score.

Take college for example; sure you could work your butt off for 10 years to save up all the money you need to pay cash for a college degree. But by the time you do that you'll be approaching 30, and tuition will have gone up considerably. You would have been much better off borrowing the money you needed right out of highschool. The increase in your salary would be well worth any interest you'd be paying for the loan, plus your tuition will be much less the sooner you do it.

Of course there are counterarguments you can make for anything I could show you, the unemployed college grad up to his eyeballs in debt for example. If living off the grid financially works for you then more power to you. One thing I would ask is, how do you rent a car or hotel room without a credit card?

02 Dec 2012 08:09 PM
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Zeb Hesselgresser     

GORDON: Zeb Hesselgresser: CruJones: How is it "rigged"? Just pay on time and its completely free. As others have pointed out, you even can get cash back. I also earn about four or five free flights a year. And my money can earn interest for 30 days when the bill is paid. It's not rocket surgery.

Nice boot-strappy, rightwing personal responsibility rant, you forget where you are?

yeah, personal responsibility is stupid in a world where no one is ever held responsible for anything


It's not stupid, it's unfair. The judgement your white-privilege affords you, wasn't evenly distributed, therefore we need to reign in it's advantages.

02 Dec 2012 08:10 PM
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