Financial Institutions - A Quick Rant

BattleRifleG3 · 07-06-2006, 08:30 AM

I really don't get how these things work. A mortgage consultant tells me NOT to pay off credit cards, saying it would hurt my credit and eligibility. What? Paying off debt is suddenly a bad thing? It makes someone look less creditworthy? In the same conversation he said that paying down a principle is warmly accepted. What drug induced lunatic wrote up the current credit scoring system? Of course failing to bay bills on time and such is a bad thing, but since when were responsible credit users frowned upon? It's like the only way to earn credit is to pay through the nose in interest instead of clearing your debts.

And then there's insurance. I think there should be a new category of insurance fraud - insurance that refuses to pay what is clearly in line with their policy. I mean, you pay a ton of money for their coverage, and then getting them to pay for legitimate claims is like pulling teeth, requiring lawyers. For pete's sake, if Bushmaster can use their insurance money to settle with the DC Sniper victims vs continuing the court battle, wouldn't the insurance companies be much better off using their money to fulfil their agreements instead of fighting them tooth in nail?

Like Social Security disability (sort of like socialist health insurance.) Something we've all paid into, yet everyone is denied until they get a lawyer.

This is rediculous. Could you imagine the buying power our public would have if it didn't sacrifice so much to financial institutions? Think of all the replacement cars you could have paid for with your insurance money. Think of how much people could buy, and thus how many people could be employed with all that money. Think of all the high quality guns we could buy for ourselves and our servicemen.

That's all for now, rant off. Your turn.

lefty o · 07-06-2006, 10:46 AM

pay off your debt, the guy is an idiot. i bought my house 5 years ago. i had 1 credit card to my name, it had a $500 limit on it. the key is not having debt, and having a stable job (more than 3yrs there).

troylaplante · 07-06-2006, 11:53 AM

Here is a site that should give you some decent info on the topic www.clarkhoward.com

BattleRifleG3 · 07-06-2006, 12:48 PM

There's another one - length of time at a job. Does anyone realize how fastly changing jobs tend to be these days? I'm all for making the most of a situation, but relatively new jobs are a fact of life - gee, sorry for moving up in the world.

lefty o · 07-06-2006, 12:55 PM

i cant blame them for looking at your job stability. it is an indicator of your ability to hold a job, which is a direct influence on your ability to pay your mortgage.

BattleRifleG3 · 07-06-2006, 01:03 PM

So taking a job that pays half again as much as your old job is a bad thing?

Having a new job is a first and foremost a sign that one is capable of getting a job. Someone who has recently gotten one is in a much better position to be able to find another one than someone with a narrow resume.

Job seeking and what amounts to job winning are a skill. A very important skill. It makes the person more stable than the marketplace because he is more ready to adapt if need be.

Stopper · 07-06-2006, 04:42 PM

Start drinking, HEAVILY. It's the only way to forget about all the BS and hoops you have to jump through just to become a "good" risk in thier books and qualify for thier money. Welcome to the world of credit, 2 years ago I couldn't borrow a nickel to buy food, now I can't make them stop wanting to give me more money. Be very careful what you ask for, you just may get it!

A house, new truck and a new 5th wheel later, I should have had the forthought to listened to meself. But no, so now I owe, I owe, it's off to slave labor I go.............

Big Dog · 07-06-2006, 06:57 PM

Just remember, the insurance and credit scams were devised decades, even centuries ago. The process has not kept pace with the reality of today's world. It's just gotten easier to dig yourself into a deeper hole these days.

lefty o · 07-06-2006, 10:50 PM

you are correct, having a job is a sign of being able to get one. lots of people get one every 6 or 8 months. not trying to belittle you, or downplay your upward bound attitude. we've all been there, but i am trying to point out how THEY look at it.

BattleRifleG3 · 07-07-2006, 07:50 AM

My main rant is that it seems as though there is no way to EARN credit by responsibly using it and paying it off debt ahead of schedule. Rather, you have to BUY it by paying interest when you don't have to.

This may well be the only opportunity banks ever have to get my money in interest. If they make me wait long enough, I won't have any need for them. It will mean more insanity for me, but they'll be the ones losing business.

jerry · 07-07-2006, 08:16 AM

It's all about NET WORTH.

lefty o · 07-07-2006, 10:32 AM

i disagree with the net worth. many people with zero net worth have bigger lines of credit, and bigger mortgages than you can believe.

BattleRifleG3 · 07-07-2006, 11:01 AM

Case in point - where in the world do they get these calculations from? Your credit is a secret even to you unless you pay someone money, and then just checking hurts your credit. If it's done fairly, shouldn't there be a publicly available formula where you can put it together from your own records?

dhermesc · 07-07-2006, 11:42 AM

The question is - what do you need credit for?

Most interest rates (car loans, consumer loans) are preset and as long as you have a decent FICO score you'll qualify. My 6 year old can qualified for the 0% car loans Ford is pushing right now.

If you are buying a house then the interest rates CAN vary to a degree based on small shifts on your FICO score. The one issue home loan people look at is credit card debt limit and how much you have outstanding on them. Most home loan people look at a Gold Card with a $15,000 limit as money already borrowed even if you have a "0" balance. They figure as soon as you buy the house the first thing you're going to do is max out that card buying new furniture and fixtures.

BattleRifleG3 · 07-07-2006, 12:16 PM

FICO score - exactly what I was talking about before. The thing we're not allowed to know about ourselves, and why not? There's all kinds of yap about improving your fico score, but no way for us to really know what's going on except to believe one of the conflicting talking heads. If they don't have a uniform formula, what credibility do they have?

Can anyone think of any good reason people shouldn't know their own creditworthiness?

Dale · 07-07-2006, 02:26 PM

Well...they paying off..and not paying off...has to do with AFTER you apply and during the closing.

They have to have something they can easily track to make sure there isn't bad money coming in, etc.

It's the way things are.

BTW, Lefto O's suggestion about them being an idiot and to pay them off is not a good suggestion, BRG.

Pay them off after the loan acceptance or most loan mortagage companies wonder where the money is suddenly coming from and why (if you are worried about it) the sudden hurry to erase a debt.

Too many companies have bitten by bad mortgage approvals through a "disquise"...just the way it is.

07-06-2006, 08:30 AM	#1
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	Financial Institutions - A Quick Rant I really don't get how these things work. A mortgage consultant tells me NOT to pay off credit cards, saying it would hurt my credit and eligibility. What? Paying off debt is suddenly a bad thing? It makes someone look less creditworthy? In the same conversation he said that paying down a principle is warmly accepted. What drug induced lunatic wrote up the current credit scoring system? Of course failing to bay bills on time and such is a bad thing, but since when were responsible credit users frowned upon? It's like the only way to earn credit is to pay through the nose in interest instead of clearing your debts. And then there's insurance. I think there should be a new category of insurance fraud - insurance that refuses to pay what is clearly in line with their policy. I mean, you pay a ton of money for their coverage, and then getting them to pay for legitimate claims is like pulling teeth, requiring lawyers. For pete's sake, if Bushmaster can use their insurance money to settle with the DC Sniper victims vs continuing the court battle, wouldn't the insurance companies be much better off using their money to fulfil their agreements instead of fighting them tooth in nail? Like Social Security disability (sort of like socialist health insurance.) Something we've all paid into, yet everyone is denied until they get a lawyer. This is rediculous. Could you imagine the buying power our public would have if it didn't sacrifice so much to financial institutions? Think of all the replacement cars you could have paid for with your insurance money. Think of how much people could buy, and thus how many people could be employed with all that money. Think of all the high quality guns we could buy for ourselves and our servicemen. That's all for now, rant off. Your turn. __________________ Trust is earned, not... GIVEN away. - Worf

07-06-2006, 12:48 PM	#4
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	There's another one - length of time at a job. Does anyone realize how fastly changing jobs tend to be these days? I'm all for making the most of a situation, but relatively new jobs are a fact of life - gee, sorry for moving up in the world. __________________ Trust is earned, not... GIVEN away. - Worf

07-06-2006, 01:03 PM	#6
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	So taking a job that pays half again as much as your old job is a bad thing? Having a new job is a first and foremost a sign that one is capable of getting a job. Someone who has recently gotten one is in a much better position to be able to find another one than someone with a narrow resume. Job seeking and what amounts to job winning are a skill. A very important skill. It makes the person more stable than the marketplace because he is more ready to adapt if need be. __________________ Trust is earned, not... GIVEN away. - Worf Last edited by BattleRifleG3; 07-06-2006 at 01:16 PM.

07-06-2006, 04:42 PM	#7
Stopper Senior Member Join Date: Mar 2002 Location: Kansass Posts: 2,211 Images: 1	Start drinking, HEAVILY. It's the only way to forget about all the BS and hoops you have to jump through just to become a "good" risk in thier books and qualify for thier money. Welcome to the world of credit, 2 years ago I couldn't borrow a nickel to buy food, now I can't make them stop wanting to give me more money. Be very careful what you ask for, you just may get it! A house, new truck and a new 5th wheel later, I should have had the forthought to listened to meself. But no, so now I owe, I owe, it's off to slave labor I go............. __________________ They should have stopped at "Congress shall make no law"

07-06-2006, 06:57 PM	#8
Big Dog Moderator Join Date: Mar 2002 Location: Tallahassee, Florida Posts: 10,219	Just remember, the insurance and credit scams were devised decades, even centuries ago. The process has not kept pace with the reality of today's world. It's just gotten easier to dig yourself into a deeper hole these days. __________________ Moderator of: AR15/M16, M14/M1A, New/Beginning Shooters and Militaria/Collectables.

07-06-2006, 10:46 AM	#2
lefty o Senior Member Join Date: Mar 2002 Location: mn Posts: 4,806	pay off your debt, the guy is an idiot. i bought my house 5 years ago. i had 1 credit card to my name, it had a $500 limit on it. the key is not having debt, and having a stable job (more than 3yrs there).

07-06-2006, 11:53 AM	#3
troylaplante Moderator Join Date: Nov 2004 Location: Selma, NC Posts: 2,223	Here is a site that should give you some decent info on the topic www.clarkhoward.com

07-06-2006, 12:55 PM	#5
lefty o Senior Member Join Date: Mar 2002 Location: mn Posts: 4,806	i cant blame them for looking at your job stability. it is an indicator of your ability to hold a job, which is a direct influence on your ability to pay your mortgage.

07-06-2006, 10:50 PM	#9
lefty o Senior Member Join Date: Mar 2002 Location: mn Posts: 4,806	you are correct, having a job is a sign of being able to get one. lots of people get one every 6 or 8 months. not trying to belittle you, or downplay your upward bound attitude. we've all been there, but i am trying to point out how THEY look at it.

07-07-2006, 07:50 AM	#10
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	My main rant is that it seems as though there is no way to EARN credit by responsibly using it and paying it off debt ahead of schedule. Rather, you have to BUY it by paying interest when you don't have to. This may well be the only opportunity banks ever have to get my money in interest. If they make me wait long enough, I won't have any need for them. It will mean more insanity for me, but they'll be the ones losing business. __________________ Trust is earned, not... GIVEN away. - Worf

07-07-2006, 08:16 AM	#11
jerry Senior Member Join Date: Mar 2002 Posts: 10,884 Images: 9 Blog Entries: 1	It's all about NET WORTH. __________________ I'm a down home back woods redneck

07-07-2006, 10:32 AM	#12
lefty o Senior Member Join Date: Mar 2002 Location: mn Posts: 4,806	i disagree with the net worth. many people with zero net worth have bigger lines of credit, and bigger mortgages than you can believe.

07-07-2006, 11:01 AM	#13
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	Case in point - where in the world do they get these calculations from? Your credit is a secret even to you unless you pay someone money, and then just checking hurts your credit. If it's done fairly, shouldn't there be a publicly available formula where you can put it together from your own records? __________________ Trust is earned, not... GIVEN away. - Worf

07-07-2006, 11:42 AM	#14
dhermesc Senior Member Join Date: Apr 2002 Location: East Central Kansas Posts: 1,762	The question is - what do you need credit for? Most interest rates (car loans, consumer loans) are preset and as long as you have a decent FICO score you'll qualify. My 6 year old can qualified for the 0% car loans Ford is pushing right now. If you are buying a house then the interest rates CAN vary to a degree based on small shifts on your FICO score. The one issue home loan people look at is credit card debt limit and how much you have outstanding on them. Most home loan people look at a Gold Card with a $15,000 limit as money already borrowed even if you have a "0" balance. They figure as soon as you buy the house the first thing you're going to do is max out that card buying new furniture and fixtures. __________________ Liberty is for those that claim it.

07-07-2006, 12:16 PM	#15
BattleRifleG3 Super Moderator Join Date: Mar 2002 Location: Western PA Posts: 11,401 Images: 13	FICO score - exactly what I was talking about before. The thing we're not allowed to know about ourselves, and why not? There's all kinds of yap about improving your fico score, but no way for us to really know what's going on except to believe one of the conflicting talking heads. If they don't have a uniform formula, what credibility do they have? Can anyone think of any good reason people shouldn't know their own creditworthiness?

07-07-2006, 02:26 PM	#16
Dale Senior Member Join Date: Mar 2002 Location: Too Dang Hot, Arizona Posts: 4,284	Well...they paying off..and not paying off...has to do with AFTER you apply and during the closing. They have to have something they can easily track to make sure there isn't bad money coming in, etc. It's the way things are. BTW, Lefto O's suggestion about them being an idiot and to pay them off is not a good suggestion, BRG. Pay them off after the loan acceptance or most loan mortagage companies wonder where the money is suddenly coming from and why (if you are worried about it) the sudden hurry to erase a debt. Too many companies have bitten by bad mortgage approvals through a "disquise"...just the way it is. __________________ "It confuses me how some people can vigorously go against the 2nd. Amendment and still call themselves patriotic"-me Last edited by Dale; 07-07-2006 at 02:30 PM.