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What is your credit score?
- Thread starter iBreatheApple
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In your situation you really destroy the value on your vehicle.You either put a big down payment in the beginning or write a big check for the vehicle when you return it or you roll the debt into your next car deal.
Yeah, I think it was a 2002 Nissan Sentra and had 180k miles by the end of 2006. It was bought for about 10k and sold at the end for 2k. I didn't do most of the driving. Last thing I heard was that it was still being used on a daily basis and has something like 210k on it.
I'm debt free now and buy everything with cash, expect for the next apartment (maybe 50% cash).
It's write off and leasing a car that is used for a business is usually a better idea.
I agree. CCs do offer things that a debit card won't.
I don't know what state you're in but generally speaking, you're not supposed to acquire new debt while in bankruptcy without consulting the trustee. I am surprised you were able to get the credit cards.
In all honesty, some see it as a taboo subject and that it is really no one's business and I'm sure there are some embarrassing scores out there.The average age on this site is pretty young, chances are scores are low because of the lack of debt; that was my issue in college.
I don't know my score today but like Mord, I bought a home and my rate was market rate when I got it which means my credit had to have been just fine because I did not seek out a sub-prime mortgage.
I think the CC is a gimme for anyone who can consistently pay off their monthly bill and is not bungling savings targets because it's too easy to spend via card. The major reason not to have/use one is definitely if someone cannot trust themselves, in which case it's a healthy, voluntary decision to not have one (much like it's fine for me to have gallons of liquor in my house because I don't have much temptation to drink it, but were I alcoholic, the story would be different).
I am in Colorado and yes, you are correct. I am not supposed to have any credit cards while I have a BK that is not discharged.
This is true. I have a card that was full and I could not pay it off within that month. It was used to pay for a problem with my house and to that extent, if I'm going to carry CC debt, it best be for a good reason. As I continue to pay down the card I don't use it but the thought of it being that high is scary to me. I also don't like knowing that the cost of something was already expensive and now I'm paying 12% interest on the money. But again, it was either that or suffer with a problem in my house that would cause further damage.
Ouch. How many years has it been? I truly do feel for you.
LOL, I am sure Bill hasn't done anything for you that he deserve being paid.
LOL this is true! That no good loser!
0 is actually great. The only time credit is good is if you plan on borrowing money. I have no intention on doing that, ever.
I wouldn't/don't purchase anything I can't pay for with my own money. To each their own though.
Other than a house (depending on income), where saving to purchase in full could take a really long time. I can't think of a single scenario where borrowing money would make sense, and even then you don't need credit to get approved.
I'm a saver. I'd love someone to show how using credit makes sense.
Even if you pay in full each month. I'd bet the average person spends more on the CC, then if they used their debit/cash.
I 100% agree.
After paying my mortgage and student loans, I find almost no need for credit. Only when purchasing stuff online (that won't accept a debit card) do I find myself using a CC.
Even saving for a reasonable used car (maybe 10k), isn't so bad, especially if two people are doing it.
Good luck trying to buy a house with credit, if you never use/used credit before.
By the way. I have 2 credit cards now. One I use often and pay the balance each month, the other is locked up in a safe at home. I had great credit and I missed one payment by one day ( I swear I turned on auto payments just for this reason citibank revamped their site and that ended) about 2 years ago. The card company increased my interest rate to 20%. Had a hard time getting out from under them. Pretty said after using their Credit card for 11 years and never missing a payment that they screwed me like that.
I vowed last year that I will always pay the balance, and if I can't that month because of an emergency I will make it up the following month.
By the way. I have 2 credit cards now. One I use often and pay the balance each month, the other is locked up in a safe at home. I had great credit and I missed one payment by one day ( I swear I turned on auto payments just for this reason citibank revamped their site and that ended) about 2 years ago. The card company increased my interest rate to 20%. Had a hard time getting out from under them. Pretty said after using their Credit card for 11 years and never missing a payment that they screwed me like that.
I vowed last year that I will always pay the balance, and if I can't that month because of an emergency I will make it up the following month.
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That is true, it will help. Though it will also help to use revolving credit wisely. Pay off the balance each month...or only buy things once in a while on a card. Just to show you are using credit. It will help a credit score a lot. Before my issue with citibank I was in the mid 700 range. It has gone up and down since then.
I don't know.
I use a credit card for online purchases or with merchants I'm not so sure about. It's just safer than possibly compromising my bank account through a debit card. I don't carry a balance, it's paid off monthly. Credit is only unsensible in the hands of someone being unsensible with it.
I use a credit card for online purchases or with merchants I'm not so sure about. It's just safer than possibly compromising my bank account through a debit card. I don't carry a balance, it's paid off monthly. Credit is only unsensible in the hands of someone being unsensible with it.
What is the advantage of buying a car with cash if the automaker offers captive financing at sub-inflation / sub-savings account rates (like 0%)? One can argue that one didn't need the car in the first place, but if one does get the car, it's hard to understand how paying for it in cash is better unless you can negotiate a hefty price advantage in return for your cash.
The last point may be true.
Unfortunately, there's a lot of incorrect information in this thread. Caveat Emptor to those reading it looking for advice.
I will say these things:
* In life, credit is a tool in your toolbox. To absolutely ignore this tool is not bright, and to misuse it is also equally as dumb.
* On one side, we have people who think others who use credit - even wisely - are foolish. This in itself is foolish.
* On the other, we have people who probably misuse credit who think others who don't use credit are foolish.
* We also have people who make a lot of assumptions about how things are in other countries based on their own country. Oops.
So essentially this thread is going to be full of posturing statements, which won't be helpful.
I do want to correct two obvious mistakes in this thread:
* Unless there are extenuating circumstances, you almost certainly DO have a credit score if you are living in the US
You might not like this, but it's the case. Your file may be considered "thin" but you'll have a file in almost all cases. There are plenty of places that will report your payment activity to the credit bureaus - even places that you wouldn't associate with credit. For example, the natural gas company here reports my payments to the credit bureaus, even though I have no credit with them. Doctors offices are big on this now as well. Cell phone companies too.
People who say they have a "0" credit score are typically whistling in the dark.
* At least in the US, your credit score is most definitely used for more than credit
Again, you may not like this at all (I certainly don't!) but the number of situations where your score is being checked is on the upswing. Applying for a job? There's a reasonable chance at some point in the process that your score may be pulled. My home and auto insurance just went down a substantial amount as they pulled my score and found it was quite good. The converse would have happened if my score would have been low. I could post more examples but I suspect everyone gets the idea.
Again, credit is a tool. Misuse it to your detriment or use it to your benefit, your choice. Yes, you can try to just not play the game but there are already disincentives for that approach and I suspect there will be more going forward.
I will say these things:
* In life, credit is a tool in your toolbox. To absolutely ignore this tool is not bright, and to misuse it is also equally as dumb.
* On one side, we have people who think others who use credit - even wisely - are foolish. This in itself is foolish.
* On the other, we have people who probably misuse credit who think others who don't use credit are foolish.
* We also have people who make a lot of assumptions about how things are in other countries based on their own country. Oops.
So essentially this thread is going to be full of posturing statements, which won't be helpful.
I do want to correct two obvious mistakes in this thread:
* Unless there are extenuating circumstances, you almost certainly DO have a credit score if you are living in the US
You might not like this, but it's the case. Your file may be considered "thin" but you'll have a file in almost all cases. There are plenty of places that will report your payment activity to the credit bureaus - even places that you wouldn't associate with credit. For example, the natural gas company here reports my payments to the credit bureaus, even though I have no credit with them. Doctors offices are big on this now as well. Cell phone companies too.
People who say they have a "0" credit score are typically whistling in the dark.
* At least in the US, your credit score is most definitely used for more than credit
Again, you may not like this at all (I certainly don't!) but the number of situations where your score is being checked is on the upswing. Applying for a job? There's a reasonable chance at some point in the process that your score may be pulled. My home and auto insurance just went down a substantial amount as they pulled my score and found it was quite good. The converse would have happened if my score would have been low. I could post more examples but I suspect everyone gets the idea.
Again, credit is a tool. Misuse it to your detriment or use it to your benefit, your choice. Yes, you can try to just not play the game but there are already disincentives for that approach and I suspect there will be more going forward.
If your time has no value, credit cards are great. I like a quick deal. Cash and done.
In addition, 0% is only for new cars, which are a horrible usage of money. If you're getting 0% on a used car, then you're getting a horrible sales price.
Cash is king in these situations.
Because if you pay for the car with cash, you own it. If you are financing it, even at 0%, and something happens, such as loss of income, you either have to find a way to keep paying that payment or sell the car. The bank isn't going to repo your paid off car.
One thing that everyone forgets, the 2-4% change from VISA/MC/AMEX/DISC is passed to the consumer. If I shop, e.g. buy groceries, I've always found it cheaper at the places that won't except CC than the places that do except credit card. Therefore, by using a CC, you're almost always paying a 2-4% surcharge for that luxury (which adds up to roughly 100-200/year just on food alone.)
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never mind the difference in requirements/cost of insurance.
Compromised is compromised. I have multi bank accounts. My debit purchases all are done on the specific account I fund as needed for transactions. I'd never have purchases drawn from my main accounts under any situation. Debit cards can process the transactions as credit as well though and in my experience the protection has been the same.
Good down payment lessens the need for luck + as the other person said employment history, etc..
I like begin free, not stuck. As you said they increased your fees, etc.. When you use them you have to play by the rules they make and can change, not worth it.
Bold is what I'm talking about. Don't borrow, don't owe, nothing to make up.
Think realistically, two people buying the same car. One finances for 0%. The other buys for cash. Who do you think will get the better deal? Given the person actually negotiates and doesn't just sign. You're not going to finance at 0% and get the best deal. Lets go less expensive for example. I can go to Apple.com right now and finance at 0% 12-months my 17-inch MBP for $2,673.93 shipped. Or as I did, actually for less though, I could go to Amazon and get it for $2,359.00 shipped. You get 0%, I get $300+
Plus, 0% for 5 years or so on the car. What happens to that 0% if you fall on hard times and miss a payment or creditor messes up? Not 0% anymore.
To me though, deal is what I'm looking for though. So personally I'd get a used car for cash as that's where you'd get best deal. After having my 6 month old flawless parked car destroyed by a drunk driver, kinda changed my perception on new car smell value. We live and learn though.
Treating it like a checkbook, while building credit that enables a good score that helps when you need to utilize credit...
