woot, credit cards just got a little less shitty

[U4EA]

http://en.wikipedia.org/wiki/Credit_rating

[Ryoki]

wth is credit scores =/

It's an evil system designed to reward people who manage their debt to the satisfaction of the financial institutions by offering them discounts on further loans whilst also simultaniously punishing both those who do not handle their debt well - as well as those who do not have debt at all - by (for instance) withholding those same discounts.

[shaft]

Youre quite ignorant of how it credit scores work if you think its just about raising limits so you can plunge yourself further into debt.
People with good credit score get better deals and lower interest rates on car loans, home loans, student loans, loans to start businesses. Those can be pretty useful.

So it's ike Eraser said then, just an incentive to plunge further into debt by getting better deals.

no. you're paying less interest on the dollar than someone with a bad credit rating, thus increasing your worth at a fast rate. If the loan is for a home, something that can typically appreciate in value over time, you build equity faster. The idea is to use debt wisely. People who "plunge" themselves into needless debt or cannot manage their money properly damage their credit score making it harder for them to get any credit at all. Thats why its there.

[Ryoki]

As long as you're paying for your new product with money that isn't yours, you default on the ownership as soon as you can't pay off your debt. So you're really increasing the worth of the financial institution rather than your own, until you've paid off everything.

Also, the main reason the credit score system is so terribly wrong is that it treats people who have no debt only marginally better than people who handle their debt very poorly. That shit is straight out of Crackdealing for Dummies, chapter IV: maintaining a loyal client base & dissing the bitches.

[Eraser]

yeah this is funny. People continually say they're getting cheaper loans by paying off their credit card debts yet fail to explain why it's so important to them spending money they don't have. While I can see how someone would use this as an option to get lower interest rates on their mortage (for a house), I'm pretty sure people take loans for loads of other, less important things as well.
It's also pretty backwards that those who have never had a loan or used a credit card are basically punished by banks as well. You're guilty until proven innocent.

[bitWISE]

The thing you and eraser are missing is that you literally cannot buy a home without decent credit (unless you're some kind of drug lord with a few hundred grand laying in your basement). You also can't finance a car without solid, long-standing credit (however, this is easier to get around by paying with cash). Probably the biggest problem you run into with bad or no credit is trying to finance college.

[plained]

sure i'd like to just pay cash 4 a house but i didnt have it lol

i didnt have a daddie or any financial resourses at all

but by rocking the credit i built up on my own with nothing but my volume done.

doing that got me an awesome rate becuz of volume done.

[shaft]

As long as you're paying for your new product with money that isn't yours, you default on the ownership as soon as you can't pay off your debt. So you're really increasing the worth of the financial institution rather than your own, until you've paid off everything.

Also, the main reason the credit score system is so terribly wrong is that it treats people who have no debt only marginally better than people who handle their debt very poorly. That shit is straight out of Crackdealing for Dummies, chapter IV: maintaining a loyal client base & dissing the bitches.

you usually know what you're getting yourself into ahead of time. its often a gamble, but its also a great opportunity to increase your worth and increase your standard of living at a much faster rate provided you make the right investments.


I also see no problem with credit scores, financial institutions are a business just like others they are investing their money in their customers. What other way can they gain assurance that they are investing their money properly then a credit resume of sorts. You wouldn't hire someone without a job resume on their word alone that they are are a good worker.

[xer0s]

It's obvious shaft knows what's up.

[plained]

if ur some solialist activast ur going against urself paying rent ur whole life instead fo becomeing an owner

u lose and give up sooo much personal freedoms.

very shortsighted and irresponsable to ur fellow like minded people .

[plained]

It's obvious shaft knows what's up.

i quite like shaft!

[MKJ]

renting is for morons

[shaft]

yeah this is funny. People continually say they're getting cheaper loans by paying off their credit card debts yet fail to explain why it's so important to them spending money they don't have.

do you ever plan on buying a house and how would you go about it? unless you're rich, or live with your parents until you have 300k under your mattress I see no point in pissing away money on rent every month when I could taking the same amount of money and building equity.

also its a cultural difference, but most places in the united states you need a vehicle for transportation. i could a) buy a $500 car till i have enough money for a $3000 car and so on.. b) i could lease (rent) a car for a monthy fee. or c) buy the car I actually want, pay a monthly fee, and gain an asset over 5 years.

[Ryoki]

The thing you and eraser are missing is that you literally cannot buy a home without decent credit (unless you're some kind of drug lord with a few hundred grand laying in your basement). You also can't finance a car without solid, long-standing credit (however, this is easier to get around by paying with cash). Probably the biggest problem you run into with bad or no credit is trying to finance college.

Oh, we're not missing that at all, we're just amazed that you people not only stand for it, but are actually defending it. It's clearly thuggish behaviour by the financial institutions to get a whole populace addicted to their products.

What other way can they gain assurance that they are investing their money properly then a credit resume of sorts. You wouldn't hire someone without a job resume on their word alone that they are are a good worker.

By looking at income and expenses rather than at debt history.

PS what a poor metaphor

[Eraser]

yeah this is funny. People continually say they're getting cheaper loans by paying off their credit card debts yet fail to explain why it's so important to them spending money they don't have.

do you ever plan on buying a house and how would you go about it? unless you're rich, or live with your parents until you have 300k under your mattress I see no point in pissing away money on rent every month when I could taking the same amount of money and building equity.

also its a cultural difference, but most places in the united states you need a vehicle for transportation. i could a) buy a $500 car till i have enough money for a $3000 car and so on.. b) i could lease (rent) a car for a monthy fee. or c) buy the car I actually want, pay a monthly fee, and gain an asset over 5 years.

Buying a house is one thing where I think a loan is acceptable. However, a mortage on a house is something quite different than a standard loan.
I would never get a loan from a financial institution to buy a car. I'd rather work two years, saving up money to buy one on myself.

I don't fully oppose loans, but I do feel that people spend money far too easily. The last couple of years the number of commercials for loans have increased like crazy here in the Netherlands. All these companies tell you that you should indulge yourself in everything you can't afford, because a loan will get it for you. It just seems like bad ethics to me. And as loans get more popular, the number of people with financial troubles increases rapidly as well. TV reality programs where TV crews help people get out of financial trouble are more popular than ever here as well. It's a sign of the times.

If people would just save up a bit before buying stuff they can't afford, they'd have a much better life.

[Dark Metal]

shaft, a car isn't much of an asset.

[Ryoki]

Hang on, this discussion is mutating from the credit system in place in the US to loaning an sich.

Disclaimer: loaning is an excellent solution when making a vastly expensive purchase like a house. Shit, i'm planning on doing this myself in the near future. I'm just of the opinion the system we have here to get your loan approved is a lot more honest & decent.

[MKJ]

spoken like a true loaner !

[shaft]

By looking at income and expenses

uhh, both of those are the biggest factors when you get a loan. the best credit rating in the world isn't going to get you a loan if you don't have income or if your current expenses outweigh it. (edit: unless you have something of value to borrow against)

And its not a poor metaphor, its about having a history of information on someone or something you plan to take a risk on. common sense.

[shaft]

shaft, a car isn't much of an asset.

not at the rate they depreciate..no. but at the end of 5yrs you still usually have something of worth.

[Ryoki]

They should be the only factors, not just the biggest. And yes, it's a pretty poor metaphor... a CV is nothing but the written down words of the person you're trying to hire. A more fitting metaphor would be hiring only people who are already clients of your company and pay their bills on time.

[xer0s]

The thing you and eraser are missing is that you literally cannot buy a home without decent credit (unless you're some kind of drug lord with a few hundred grand laying in your basement). You also can't finance a car without solid, long-standing credit (however, this is easier to get around by paying with cash). Probably the biggest problem you run into with bad or no credit is trying to finance college.

Oh, we're not missing that at all, we're just amazed that you people not only stand for it, but are actually defending it. It's clearly thuggish behaviour by the financial institutions to get a whole populace addicted to their products.

And what you're missing is that we're amazed that you people can't understand that people can better theirselves and their life with this system. It's not a scheme. I suppose when all you see on the news is talk of people going into debt and they never do stories on people that have done well for themselves, then I can understand how you'd think it's a bad system...

[Ryoki]

Xeros that's not the point at all, but thanks for playing mate.

[shaft]

They should be the only factors, not just the biggest. And yes, it's a pretty poor metaphor... a CV is nothing but the written down words of the person you're trying to hire. A more fitting metaphor would be hiring only people who are already clients of your company and pay their bills on time.

sorry a resume is more than, that its a record of your work history and skills which an employer should be able to verify if needed by contacting companies you've worked for.

and yes, if you think of the company as the workforce in general, you need to get into the "system" and gain experience and prove your worth to get yourself bigger and better jobs. same thing for bigger and better loans...

[plained]

wasting ur breath lol