For you youngsters with credit card debt...

[CosmicCowboy]

Get ready for a shock

I posted about this in the stock market thread but realize a lot of you probably don't check that thread...

I know I have been the official doom and gloom guy on the economy for months now but as time passes I am proving to be more right than wrong, at least short term. Markets dropped another 5% today. Don't think that just because you don't own stocks or bonds that it won't affect you. Credit card companies are next. Those guys live on taking your new debt and packaging it into equities they sell to others so they can keep loaning you more money on your credit card. Oops. Nobody wants that junk paper anymore so the credit card companies aren't gonna have any money. Expect the "limits" on your cards to drop (maybe even below what you owe) and the monthly minimum payments to rise dramatically. The credit card companies are gonna want their money back. You think they can't do that? Think again...those pages of fine print that you just glanced at and signed years ago when you applied for your cards allow them to do basically anything they want...

[Bigzax]

lifecoach, wherefore art thou lifecoach...

[BacktoBasics]

I totally agree with CC.

Most of these card companies have stips in the fine print that allow them to change:

your minimum payment
due dates
available credit limits
interest rate

and so on

Even if you have a "good deal" or a decent respectable card beware. Most of the them will wait until you're near your limit to charge their annual fees which effectively puts you over your limit. This then allows them to raise your rate and minimum payment due where as the contract may not have allowed them to do it before.

So if you think you have safe guards to keep you locked in to a rate or payment just wait until you run your card over Christmas or next Christmas. You'll get your 45 dollar annual fee tacked on right after you swipe your card on a purchase that puts your balance at 480 bucks with a limit of 500. You'll think you're safe and then bam there's your annual fee putting you over the limit by a few bucks.

Now your iron clad contract is worthless because every single credit card company has stips that if you go over your limit just once your awesome 4.99% becomes 21.99% or worse.

Hell I'm not perfect its happened to me too. Thankfully I had the money to pay off the account and close it before heavy interest started to accrue.

They can also do this without telling you shit. They bank on someone going over their limit and not knowing. Could be months of 19.99% interest before you even notice. They love how preoccupied you are with everything else.

[JoeChalupa]

Anyone who doesn't know CC companies can up your rates probably didn't understand ARM's either.

[Blake]

credit cards are the devil

[Viva Las Espuelas]

no credit cards or credit card debt here.

if i don't have the money. i don't buy it.

[BacktoBasics]

Anyone who doesn't know CC companies can up your rates probably didn't understand ARM's either.Lots of people think fixed is fixed is fixed. The CC companies are selling fixed rates not adjustable rates they just fail to realize that if you're a day late or if you go over your limit its not just a 25 dollar fee the penalty is that you lose your fixed rate.

Don't get me started on ARMs I agree that some people are too stupid to understand what they're getting into but a lot of people were flat out decieved and lied to.

Fuck it I guess thats not much different that credit card companies. None of this shit is ever going to get better.

[BacktoBasics]

no credit cards or credit card debt here.

if i don't have the money. i don't buy it.Its good for your FICO to a have a card (or two) with a reasonable limit and a balance around 25% of the limit. This kind of revolving debt potentially plays a larger role in your score than a 150k house thats been on time for 4 years. Revolving debt is a requirement at 90% of the banks lending for motorcycles, RV's and boats.

What I'm saying is that if you are already responsible with your money you'd really benefit from having a card with a minimal balance. Just pump a tank or two of gas a month and pay it off.

[stretch]

no credit cards or credit card debt here.

if i don't have the money. i don't buy it.

:tu

me too.

but i know getting a CC eventually will help my credit score.

[Viva Las Espuelas]

Its good for your FICO to a have a card (or two) with a reasonable limit and a balance around 25% of the limit. This kind of revolving debt potentially plays a larger role in your score than a 150k house thats been on time for 4 years. Revolving debt is a requirement at 90% of the banks lending for motorcycles, RV's and boats.

What I'm saying is that if you are already responsible with your money you'd really benefit from having a card with a minimal balance. Just pump a tank or two of gas a month and pay it off.
are requirements for getting a credit card getting tougher now or are they giving them out left and right just planning on you not paying up in time? and i'm not talking about any platinum cards. just a regular bend-me-over-the-potato-sacks-later credit card.

[stretch]

What I'm saying is that if you are already responsible with your money you'd really benefit from having a card with a minimal balance. Just pump a tank or two of gas a month and pay it off.

Funny that you say that, cuz thats what I planned on basically doing whenever I get a card. However, I don't completely understand everything about credit. All I know is that I don't ever fucking want to get into debt.

What should I look for when I'm ready to get one? I'd say I'm extremely responsible with money.

[mrsmaalox]

I have a credit card I use for dining out only. Balance never gets high, I pay it off every month.

[BacktoBasics]

are requirements for getting a credit card getting tougher now or are they giving them out left and right just planning on you not paying up in time? and i'm not talking about any platinum cards. just a regular bend-me-over-the-potato-sacks-later credit card.Very tough question. Usually age, time in the bureau, recent home purchase or vehicle purchase can trigger a "pre-approval" for these companies but I have yet to determine if its based on dollar of purchase or what you're purchasing.

My best guess is that if you don't have an assload of chargeoffs and you have some reasonable recent history with a FICO over 580 you should qualify for a card.

My FICO depending my credit card usage ranged this year from 720 to 580ish. For the month or two that I had a score in the upper 500's low 600's I was still getting offers because they don't actually pull your score or bureau when they offer you a pre-approval...thats basically pot luck.

I've landed cards with rates under 10% with a low 600 score but that was two years ago.

You usually don't get offered the really good cards until you've purchased a home. They love giving 5k 10k cards to new home owners hoping you'll load up on new furniture.

Your best bet would be to pull your credit and score and see where you're at. I'd say that over 600 FICO with a decent bureau would earn you an average card. If you get rejected do not start applying everyone. Maybe hit up your bank.

[BacktoBasics]

Funny that you say that, cuz thats what I planned on basically doing whenever I get a card. However, I don't completely understand everything about credit. All I know is that I don't ever fucking want to get into debt.

What should I look for when I'm ready to get one? I'd say I'm extremely responsible with money.
I'm not a CC card expert but I would definately find out what the annual fee is and what are the penalties for going over your limit and making a late payment. I like cards that charge you a penalty for a late payment rather than up your rate. Those cards do exist but they're rare. If you get a killer card that 5% in interest and it has a limit of 300 bucks but annual fees of 250 then if you carry anything over 50 bucks on the card you're exposing yourself to them hitting you with their fees which will put you overlimit. This overlimit due to fees thing is exactly how they take your 5% to 20%.

I know I have a card right now thats 7.99% but if I go over my limit my rate jumps to 23.99%. My annual fees are 39 bucks. So I never allow myself to get closer than 39 bucks of my limit because if they hit me with the fees and it puts me over the limit the card turns to shit immeadiately.

Keep your balance at 25% of the limit. Thats the magic number. Rememer your FICO is really only valuable when you need to make a purchase. So what if you use your cards. Before you buy a car or boat or whatever just pull your credit report, pay your cards down and wait 45 days. Pull the report again to make sure the payments have been updated (your score will be higher because your available to limit dropped) and then make your purchase.

[2centsworth]

oh yeah. what credit card companies need to do is make the debts unaffordable so they too can experience mass defaults.

think guys, think.

[BushDynasty]

I'm not a CC card expert but I would definately find out what the annual fee is and what are the penalties for going over your limit and making a late payment. I like cards that charge you a penalty for a late payment rather than up your rate. Those cards do exist but they're rare. If you get a killer card that 5% in interest and it has a limit of 300 bucks but annual fees of 250 then if you carry anything over 50 bucks on the card you're exposing yourself to them hitting you with their fees which will put you overlimit. This overlimit due to fees thing is exactly how they take your 5% to 20%.

I know I have a card right now thats 7.99% but if I go over my limit my rate jumps to 23.99%. My annual fees are 39 bucks. So I never allow myself to get closer than 39 bucks of my limit because if they hit me with the fees and it puts me over the limit the card turns to shit immeadiately.

Keep your balance at 25% of the limit. Thats the magic number. Rememer your FICO is really only valuable when you need to make a purchase. So what if you use your cards. Before you buy a car or boat or whatever just pull your credit report, pay your cards down and wait 45 days. Pull the report again to make sure the payments have been updated (your score will be higher because your available to limit dropped) and then make your purchase.

That sure is funny, a fella who's not an expert doesn't normally go around telling people what to do alla time like you do.

It's not too late, I still have a spot for someone like you in my administration. You'll fit right in.

[DarkReign]

I only have one credit card with a $20k limit at 9.9%.

Usually carry a 20% balance month to month...the bank that I have loves people like me. I make 2-3 payments a month of $1000 and they roll in interest.

Not much longer, you bitches. 3 more months until payoff...

[BacktoBasics]

That sure is funny, a fella who's not an expert doesn't normally go around telling people what to do alla time like you do.

It's not too late, I still have a spot for someone like you in my administration. You'll fit right in.I'm a lot better versed in other areas but I still know more about CCs than the average moron like yourself.

I would consider myself a credit expert and master FICO manipulator.

[BacktoBasics]

oh yeah. what credit card companies need to do is make the debts unaffordable so they too can experience mass defaults.

think guys, think.
My thoughts would follow along these lines.

CC company exercises their ability to manipulate your account and raise your rate and payment. They already do this but they'll raise the frequency of doing it. They'll attempt to collect maybe a bit more than normal but secure somewhere around 35% of your principle amount. Then when you can't pay they'll charge it off and sell the inflated debt (due to the penalties and higher rate they had on you for a month or two) for 75% of what your balance is. This will roundabout effectively secure your full balance or more. Then the debt collector can attempt to work you over for more until they feel like selling it all over again.

Its not going to happen to everyone. If CC companies wanted to they could increase the rate of defaults right now but there is no reason to push the issue. I think sooner than later they'll make a larger push than they do now.

Again they are already doing this at a controled frequency. They'll simply up the frequency to compensate for loss.

Hell sometimes they don't sell the debt they just hire the collection company to collect on their behalf for a portion. Sometimes they sell the debt sometimes not. Its already happening though. This isn't some new conspiracy theory.

[romad_20]

Just paid mine off last week!!!! WooHooo!!!!:downspin:

[Nbadan]

I paid my credit card off (AMEX) and they canceled my credit!

:lmao

[Heath Ledger]

If you pay your card balances down to zero your score will actually spike pretty nicely just be sure to use every card at least 2 or 3 times a year so they don't get cancelled.

My gf has already noticed a few cards shrinking your limit, even though she has never missed a payment and has low balances, this negative effects your overall score due to your utiliztion/credit available ratio. On average all three of my scores jumped 40 pts each when i had zero balances on all of my cards. Curretnly i owe maybe $2500 which i plan to pay off thru the holidays im not using even one credit card for gifts its all cash this year.

[beefanus]

Get ready for a shock

I posted about this in the stock market thread but realize a lot of you probably don't check that thread...

I know I have been the official doom and gloom guy on the economy for months now but as time passes I am proving to be more right than wrong, at least short term. Markets dropped another 5% today. Don't think that just because you don't own stocks or bonds that it won't affect you. Credit card companies are next. Those guys live on taking your new debt and packaging it into equities they sell to others so they can keep loaning you more money on your credit card. Oops. Nobody wants that junk paper anymore so the credit card companies aren't gonna have any money. Expect the "limits" on your cards to drop (maybe even below what you owe) and the monthly minimum payments to rise dramatically. The credit card companies are gonna want their money back. You think they can't do that? Think again...those pages of fine print that you just glanced at and signed years ago when you applied for your cards allow them to do basically anything they want...
2 words in responce to what u just said fucking awesome!!!!!! it just makes me want to go but a porshe and put it on my master card!!!! cant wait!!!

entire american economy < bucket of dog shit

[spursfan09]

fuck credit cards.

I did a report in my ethics in business class. Just be aware, if you default on one credit card, expect other cards to charge you a higher interest rate. If you default on a house payment or car payment, your rates can go up even if though your credit card has nothing to do with it. They will say its justified because you become a liability if you can not pay all your balances on time. This is called universal default. I also learned alot of horrible things they can do and its all okay because its "disclosed" in the fine print. This is why I do not have a credit card!

[Xylus]

I just got done paying $3000 off a couple of credit cards and I feel great. It's like a weight has been lifted.

[stretch]

me < bucket of dog shit

fixed.

[Horn Tooter]

I only have one credit card with a $20k limit at 9.9%.

Usually carry a 20% balance month to month...the bank that I have loves people like me. I make 2-3 payments a month of $1000 and they roll in interest.

Not much longer, you bitches. 3 more months until payoff...

Same here but my credit line is 25K and I pay it off each month.

[Thunder Dan]

thank god I paid off all my debt after college. Two years ago I didn't do a damn thing. I would go out once a month (if that), I lived at home with the folks- which sucked...but I paid off all the stupid debt I had from being a moron in college. I paid off about 5k. It is the best feeling in the world to not have CC debt, and be able to actually budget your money. You will find that when you arn't making CC payments there is alot of money left over at the end of the month.

I now carry a AMEX card so there is no option to buy things I can't afford

[SAGambler]

oh yeah. what credit card companies need to do is make the debts unaffordable so they too can experience mass defaults.

think guys, think.

They have already done that in a way. They have so much fine print, that if you are a day late paying your phone bill, water bill or any other bill, they can up your rate to the high 20's or low 30's.

And here is the kicker. Most credit cards aren't really legal to begin with. They are in effect making "unsecured loans" using "other peoples money" which is illegal as hell. It's one of those laws they are completely happy with the fact that you "don't know about" or how to use it to YOUR advantage should the need arise.

Hell, I've know a couple of people that used this "little known secret" to rid themselves of thousands of dollars in credit card debt and had their credit reports completely voided of any knowledge of late payments or no payments.

So if you happen to have run up some large debts on credit cards, do youself a favor. Investigate and find out how you can wipe them out. It can be done. You just need to invest some time. It may take you a year or two, but it can and does happen.

[BacktoBasics]

Hell, I've know a couple of people that used this "little known secret" to rid themselves of thousands of dollars in credit card debt and had their credit reports completely voided of any knowledge of late payments or no payments.

So if you happen to have run up some large debts on credit cards, do youself a favor. Investigate and find out how you can wipe them out. It can be done. You just need to invest some time. It may take you a year or two, but it can and does happen.I would like to know exactly what you're talking about.

[marini martini]

I just bought everything in the world that my heart desired, and charged every credit card to the max. I'm just making the minimum payments on each one. God.life is good, especially driving my convertable jag in this gorgeous weather. Can't wait until my trans Atlantic cruise in March! Life is sweet!!!:toast

[Thunder Dan]

I just bought everything in the world that my heart desired, and charged every credit card to the max. I'm just making the minimum payments on each one. God.life is good, especially driving my convertable jag in this gorgeous weather. Can't wait until my trans Atlantic cruise in March! Life is sweet!!!:toast

you are really sticking it to the man!

[BacktoBasics]

I just bought everything in the world that my heart desired, and charged every credit card to the max. I'm just making the minimum payments on each one. God.life is good, especially driving my convertable jag in this gorgeous weather. Can't wait until my trans Atlantic cruise in March! Life is sweet!!!:toastBe a lot sweeter if you bought me something

[marini martini]

Be a lot sweeter if you bought me something

Oh.........I did!!!!:toast

Surgery's scheduled for next week!!!:lol

[ineedgoodcredit]

http://www.daveramsey.com/
This guy has helped me out.

[BacktoBasics]

Oh.........I did!!!!:toast

Surgery's scheduled for next week!!!:lol
Surgery :wow

[ploto]

I have one card that I use for convenience- for example for online shopping or gas purchases, but I have never carried a balance over. I have a great deal at my Credit Union with no annual fee and no interest if I pay it off each month. I use it a few times per month on purpose to show I am responsible with credit and then I transfer the money from my checking account to my credit card account online to pay the balance each month.

I have noticed one thing- they have always automatically raised my limit every year without me asking, but not this year.

[marini martini]

Surgery :wow


http://i240.photobucket.com/albums/ff231/marini-martini/FIL6497.jpg



:lmao

[DarkReign]

Same here but my credit line is 25K and I pay it off each month.


Meh, I deserved that.

[Anti.Hero]

They have already done that in a way. They have so much fine print, that if you are a day late paying your phone bill, water bill or any other bill, they can up your rate to the high 20's or low 30's.

And here is the kicker. Most credit cards aren't really legal to begin with. They are in effect making "unsecured loans" using "other peoples money" which is illegal as hell. It's one of those laws they are completely happy with the fact that you "don't know about" or how to use it to YOUR advantage should the need arise.

Hell, I've know a couple of people that used this "little known secret" to rid themselves of thousands of dollars in credit card debt and had their credit reports completely voided of any knowledge of late payments or no payments.

So if you happen to have run up some large debts on credit cards, do youself a favor. Investigate and find out how you can wipe them out. It can be done. You just need to invest some time. It may take you a year or two, but it can and does happen.

lol. People always looking for an easy way out of stupidity.

[BacktoBasics]

lol. People always looking for an easy way out of stupidity.I'm still waiting for him to come back and explain what he was talking about.

[chode_regulator]

Get ready for a shock

I posted about this in the stock market thread but realize a lot of you probably don't check that thread...

I know I have been the official doom and gloom guy on the economy for months now but as time passes I am proving to be more right than wrong, at least short term. Markets dropped another 5% today. Don't think that just because you don't own stocks or bonds that it won't affect you. Credit card companies are next. Those guys live on taking your new debt and packaging it into equities they sell to others so they can keep loaning you more money on your credit card. Oops. Nobody wants that junk paper anymore so the credit card companies aren't gonna have any money. Expect the "limits" on your cards to drop (maybe even below what you owe) and the monthly minimum payments to rise dramatically. The credit card companies are gonna want their money back. You think they can't do that? Think again...those pages of fine print that you just glanced at and signed years ago when you applied for your cards allow them to do basically anything they want...

wow if people here are just now hearing about this then news is slow going around here. CC companies have been doing this for at least a month now.


Lots of people think fixed is fixed is fixed. The CC companies are selling fixed rates not adjustable rates they just fail to realize that if you're a day late or if you go over your limit its not just a 25 dollar fee the penalty is that you lose your fixed rate.

Don't get me started on ARMs I agree that some people are too stupid to understand what they're getting into but a lot of people were flat out decieved and lied to.

Fuck it I guess thats not much different that credit card companies. None of this shit is ever going to get better.

not true. you ahve to be overdue almost a month on the due date of your bill for them to raise your interest rates or for it to negatively affect your credit. and when i say raise your rates, i mean in response to a late payment.


Its good for your FICO to a have a card (or two) with a reasonable limit and a balance around 25% of the limit. This kind of revolving debt potentially plays a larger role in your score than a 150k house thats been on time for 4 years. Revolving debt is a requirement at 90% of the banks lending for motorcycles, RV's and boats.

What I'm saying is that if you are already responsible with your money you'd really benefit from having a card with a minimal balance. Just pump a tank or two of gas a month and pay it off.

again, wrong. you jsut contradicted yourself ehre by saying keep a revolving credit, and then stating to pay the balance off each month.

[CosmicCowboy]

Citibank just announced today they are sending letters out to millions of credit card customers giving them the good news that they are raising their rates by 3%.

[BacktoBasics]

wow if people here are just now hearing about this then news is slow going around here. CC companies have been doing this for at least a month now.



not true. you ahve to be overdue almost a month on the due date of your bill for them to raise your interest rates or for it to negatively affect your credit. and when i say raise your rates, i mean in response to a late payment.

You could not possibly be more wrong. If you go over your limit they can increase your interest rate imeadiately and without notice. There are many many credit card companies that will raise your rate if you are so much as 1 day late. Now they can't show you late on your credit report until the 30 day mark. The credit bureaus recognize 30 day 60 day 90 day 120 days late. I'm not saying this is every card out there you have to check your contract to see what their "policy" is but you're crazy if you think they can't raise your rate unless the bureau shows you 30 days late. The two aren't connected in that way. If your contract calls for your rate to rise if your late....it will....regardless of what the bureaus recognize.



again, wrong. you jsut contradicted yourself ehre by saying keep a revolving credit, and then stating to pay the balance off each month.

Having a revolving debt open and available is good for your FICO just like I said above. Carrying a blance of 25% to limit is also good. If you're the kind of person that likes to pay shit off then do so but still have the account. Banks want to see that you maintain a revolving account and that its current and of low balance with a reasonable limit. Its good to have a small balance but realitively harmless to continually pay it off. You'll never time paying it off with them updating your bureau anyway. At some point your FICO is likely to reflect a balance just as likely as it would show a zero balance. The key is keeping it open and low while being on time.

[manustarting2gd]

Anyone looking to lower their debt in half, pay off and settle their debts in 36 months and lower their already unaffordable minimum payments?

I am a Debt Consultant and I work for FreedomDebt.com and I can help through our proven debt settlement program which has a 80% graduation rate and has seen over 40 thousand clients graduate to date since the companies inception in 2002. We are based in San Antonio off of Bandera Rd and I will be willing to give any SpursTalker a free debt analysis to help avoid bankruptcy and provide relief in a situation where many feel there is no help available.

I can only negotiate 10k in debt or more combined unsecured debt (credit cards, personal loans, department store cards) each account has to be $500.00 or more each and your combined debt must be equal or greater than $10,000 to be considered for the program.

Keep in mind this is a hardship program for those who really need help, not just someone who doesnt want to pay their credit cards and or high interest rates, we do underwrite the files for fraud and specifically pay attention to very recent cash advances and high amount balance transfers as well as recent large purchases.


PM ME for details if your interested.

[BacktoBasics]

I'm not saying always but usually debt counseling shows up in your bureau. Its a huge red flag for prime or near prime lending. Most of my customers that have credit counseling or consolidation are automatically declined for loans. So if you have plans to make a major purchase I would either hold off getting into a program or consider doing your own consolidation.

I'm not saying the above poster isn't a decent option. I don't know his exact plan of action.

[ashbeeigh]

:elephant I got a letter in the mail yesterday from GE Money saying my Old Navy card limit was lowered $50. Oh happy day.


Just to illustrate the point.

[CosmicCowboy]

Anyone looking to lower their debt in half, pay off and settle their debts in 36 months and lower their already unaffordable minimum payments?

I am a Debt Consultant and I work for FreedomDebt.com and I can help through our proven debt settlement program which has a 80% graduation rate and has seen over 40 thousand clients graduate to date since the companies inception in 2002. We are based in San Antonio off of Bandera Rd and I will be willing to give any SpursTalker a free debt analysis to help avoid bankruptcy and provide relief in a situation where many feel there is no help available.

I can only negotiate 10k in debt or more combined unsecured debt (credit cards, personal loans, department store cards) each account has to be $500.00 or more each and your combined debt must be equal or greater than $10,000 to be considered for the program.

Keep in mind this is a hardship program for those who really need help, not just someone who doesnt want to pay their credit cards and or high interest rates, we do underwrite the files for fraud and specifically pay attention to very recent cash advances and high amount balance transfers as well as recent large purchases.


PM ME for details if your interested.

Uhhh...your language is a little disingenuous. Maybe you should explain that you are not actually lowering their DEBT in half, but rather attempting to negotiate a lower interest rate on their debt in exchange for making guaranteed monthly electronic transfers of P & I...Something they could do for themselves without paying your monthly fee. And it will be a big hickey on their credit report for 7 years.

[BacktoBasics]

Some credit counseling is good its just rare. I've seen places help "you" negotiate better deals on principle amounts, interest rates and payments. They do this without showing up in your bureaus but thats very very rare. So I'm going to refrain from blasting manustarting2gd since we don't know exactly how he/she's doing it.

[Blake]

Anyone looking to lower their debt in half, pay off and settle their debts in 36 months and lower their already unaffordable minimum payments?

I am a Debt Consultant and I work for FreedomDebt.com and I can help through our proven debt settlement program which has a 80% graduation rate and has seen over 40 thousand clients graduate to date since the companies inception in 2002. We are based in San Antonio off of Bandera Rd and I will be willing to give any SpursTalker a free debt analysis to help avoid bankruptcy and provide relief in a situation where many feel there is no help available.

I can only negotiate 10k in debt or more combined unsecured debt (credit cards, personal loans, department store cards) each account has to be $500.00 or more each and your combined debt must be equal or greater than $10,000 to be considered for the program.

Keep in mind this is a hardship program for those who really need help, not just someone who doesnt want to pay their credit cards and or high interest rates, we do underwrite the files for fraud and specifically pay attention to very recent cash advances and high amount balance transfers as well as recent large purchases.


PM ME for details if your interested.


wow, where do I sign?

f-r-e-e that spells FREE, FreedomDebt.com, baby.

Just curious, if my debt is $9,999, am I not allowed in your program? Would I have to run down to Wendy's and charge a 5 piece chicken nuggets to get in?

[chode_regulator]

:elephant I got a letter in the mail yesterday from GE Money saying my Old Navy card limit was lowered $50. Oh happy day.


Just to illustrate the point.

do you have a lolw balance/not use it much. bc i know thats one of the ways theyre loooking at. cutting back on the hgih avail balance on people that dont use them. though 50 bucks seems kind of a low number.

[chode_regulator]

You could not possibly be more wrong. If you go over your limit they can increase your interest rate imeadiately and without notice. There are many many credit card companies that will raise your rate if you are so much as 1 day late. Now they can't show you late on your credit report until the 30 day mark. The credit bureaus recognize 30 day 60 day 90 day 120 days late. I'm not saying this is every card out there you have to check your contract to see what their "policy" is but you're crazy if you think they can't raise your rate unless the bureau shows you 30 days late. The two aren't connected in that way. If your contract calls for your rate to rise if your late....it will....regardless of what the bureaus recognize.


are you retarded. when did i mention going over your limit. did i not say my response was only to late payment? stop talking about going over your limit. now as far as different companies having different policies, i dont know, bnut i have several cards all with diff companies and none of them have a policy of one late day and you rasie rates. they have told me that it has to be past 30 days. now they can charge a late fee for only a day late. and next time try responding in a color that isnt a bithc to read

[manustarting2gd]

Uhhh...your language is a little disingenuous. Maybe you should explain that you are not actually lowering their DEBT in half, but rather attempting to negotiate a lower interest rate on their debt in exchange for making guaranteed monthly electronic transfers of P & I...Something they could do for themselves without paying your monthly fee. And it will be a big hickey on their credit report for 7 years.

Sorry to inform, you are explaining another program. You are very accurate in explaining debt consolidation. However the program I am presenting is debt settlement. This approach is all about the principal balance being negotiated down.

1st- This is not consumer credit counseling or debt consolidation. This approach is called debt settlement. No interest rate adjustments are involved.

2nd-We work with each of the clients creditors individually and we settle using bulk settlements in which the actual creditors settle lump sums of debt.

3rd-We settle off the principal balance (on average of 40-60 cents on the dollar) and our fee's are actually 15% of the total debt but since its a hardship program, it is included in the lowered monthly payment which will be lower than the minimums they are struggling with already.

4th -Another aspect you are incorrect on is the affect on credit, we do not appear on the credit report as managing the accounts for our clients(unlike Consumer Credit Counseling) the only affect on the credit is the debt going unpaid as we accumulate money in a settlement account. This will bring your credit score down, but it will not appear any worse than it would if the debt went unpaid without us involved. Once your accounts are settled (1-3yrs) in full you would be able to begin your credit restoration. We even help you get to a credible credit repair organization. Also, if you are in a hardship a good FICO score is only good to get you more in debt. I will say this is not for everyone, I turn those people away who just dont want to pay their bills because of high rates and help those who can't pay their bills but want to.

5th- We allow the creditors debt to age(go unpaid) being the fact that each credit card company has losses built into their business model and the longer the debt goes unpaid the more likely they will settle for a significantly lowered balance amount. If credit cards were willing to work with those that needed help we wouldnt be in business. Unfortunately this isnt the case, if you were to call your credit card company and tell them you needed a lower payment, they wouldn't. We are utilizing the fact that credit card companies would rather settle at 40% of the total balance vs taking a total loss or selling the debt to a collector for 5 or 10% of the balance. Its actually a very simple process. We usually settle the 1st account within 6-9 months of starting the program, allowing the debt to age as needed so the CC company will consider taking less than full balance owed and also allowing funds to accumulate in your savings account accordingly to settle with. Our programs last from 1-3 yrs and at the end of the program your accounts will be at a zero balance and settled.

Take a look and educate yourself before assuming incorrectly. This alternative method works and not many people know the details of it. This is why I felt ST would be a great place to explain it. This program has an 80% graduation rate and Consumer Credit Counseling and Debt Consolidation have an 80% failure rate.

Please keep your questions coming, If I can help anyone out of a dire situation this discussion would be worth it.

www.freedomdebt.com

http://www.freedomdebt.net/calculator.php

TASC - The Association of Settlement Companies
TASC’s goals are to promote good practice in the debt settlement industry,
protect the interests of consumer debtors

www.tascsite.org

Wall Street Journal Article(marketwatch section): www.marketwatch.com/news/story/With-FreedomDebtcom-Financial-Footing-Is/story.aspx?guid=%7BE7F7934B-8DB1-423C-A711-D13F1C98E58F%7D

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.


Thanks for considering another approach at debt. Credit card companies just lost a bill which would have helped them forgive old debt, this is yet another reason why our program works.

[spurster]

Ack, that red color in B2B's post was unreadable.

Regarding CC debt, the answer is don't unless it's a last resort. Going without until you have the money to buy what you want is good discipline and saves you tons of money, which means you end up with more money to buy what you want (maybe save for retirement, too, what a concept). My CCs are paid off each month, and I always get a few more CC offers each month to shred.

This is not intended to apply to big ticket items like cars or houses, but you will usually get a less crooked deal on car or house loans as long as they are fixed rate.

[BacktoBasics]

are you retarded. when did i mention going over your limit. did i not say my response was only to late payment? stop talking about going over your limit. now as far as different companies having different policies, i dont know, bnut i have several cards all with diff companies and none of them have a policy of one late day and you rasie rates. they have told me that it has to be past 30 days. now they can charge a late fee for only a day late. and next time try responding in a color that isnt a bithc to read
There are lots of cards, particularly ones that were given out to risky lends, that will raise your rate if you are one day late. Basically being one day late voids your agreement so the penalty is having your rate raised. I would say less than half of the credit cards in circulation have a less than 30 days late policy limited to just a fee. So you got some decent cards. Great. Its not the same for everyone. Next time try and write out a post with at least decent grammar and spelling.

[BacktoBasics]

Sorry to inform, you are explaining another program. You are very accurate in explaining debt consolidation. However the program I am presenting is debt settlement. This approach is all about the principal balance being negotiated down.

1st- This is not consumer credit counseling or debt consolidation. This approach is called debt settlement. No interest rate adjustments are involved.

2nd-We work with each of the clients creditors individually and we settle using bulk settlements in which the actual creditors settle lump sums of debt.

3rd-We settle off the principal balance (on average of 40-60 cents on the dollar) and our fee's are actually 15% of the total debt but since its a hardship program, it is included in the lowered monthly payment which will be lower than the minimums they are struggling with already.

4th -Another aspect you are incorrect on is the affect on credit, we do not appear on the credit report as managing the accounts for our clients(unlike Consumer Credit Counseling) the only affect on the credit is the debt going unpaid as we accumulate money in a settlement account. This will bring your credit score down, but it will not appear any worse than it would if the debt went unpaid without us involved. Once your accounts are settled (1-3yrs) in full you would be able to begin your credit restoration. We even help you get to a credible credit repair organization. Also, if you are in a hardship a good FICO score is only good to get you more in debt. I will say this is not for everyone, I turn those people away who just dont want to pay their bills because of high rates and help those who can't pay their bills but want to.

5th- We allow the creditors debt to age(go unpaid) being the fact that each credit card company has losses built into their business model and the longer the debt goes unpaid the more likely they will settle for a significantly lowered balance amount. If credit cards were willing to work with those that needed help we wouldnt be in business. Unfortunately this isnt the case, if you were to call your credit card company and tell them you needed a lower payment, they wouldn't. We are utilizing the fact that credit card companies would rather settle at 40% of the total balance vs taking a total loss or selling the debt to a collector for 5 or 10% of the balance. Its actually a very simple process. We usually settle the 1st account within 6-9 months of starting the program, allowing the debt to age as needed so the CC company will consider taking less than full balance owed and also allowing funds to accumulate in your savings account accordingly to settle with. Our programs last from 1-3 yrs and at the end of the program your accounts will be at a zero balance and settled.

Take a look and educate yourself before assuming incorrectly. This alternative method works and not many people know the details of it. This is why I felt ST would be a great place to explain it. This program has an 80% graduation rate and Consumer Credit Counseling and Debt Consolidation have an 80% failure rate.

Please keep your questions coming, If I can help anyone out of a dire situation this discussion would be worth it.

www.freedomdebt.com

http://www.freedomdebt.net/calculator.php

TASC - The Association of Settlement Companies
TASC’s goals are to promote good practice in the debt settlement industry,
protect the interests of consumer debtors

www.tascsite.org

Wall Street Journal Article(marketwatch section): www.marketwatch.com/news/story/With-FreedomDebtcom-Financial-Footing-Is/story.aspx?guid=%7BE7F7934B-8DB1-423C-A711-D13F1C98E58F%7D

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.


Thanks for considering another approach at debt. Credit card companies just lost a bill which would have helped them forgive old debt, this is yet another reason why our program works.If your credit is garbage this might help eliminate debt but by letting the account go into collection the debt is still on the report for 7 or more years in the form of a chargeoff. That or the debt is sold to the next collector. You're almost better off just not paying the debt at all at that point because of the charge off. So I have to ask...

What about the people that have good credit but a lot of debt? You let these accounts that are current go into collection?

Do you negotiate the removal of the trade line completely?

Do you remove duplication of the tradeline in the event that the debt is sold and both collection agency's are reporting it?

Because thats the real difference. I never have and never will negotiate a debt to a lower principle amount without also negotiating that the trade line be removed completely upon completion of the debt payments. In writing.

You can pay the debt off but a tradeline that has a zero balance charge off can still affect your credit score. Its also a real bitch to get removed. Its only slightly better to have a debt paid and charged off to zero than it is for it to be currently in collection and unpaid.

The only difference is that the debt can't be reposted as current once its paid...but it still remains until the statute of limitations comes around. Even then it typically requires you to send a letter of removal.

[BacktoBasics]

I'm sorry about the red gang.

[CosmicCowboy]

They can raise your rate even with perfect payment history. All they have to do is send you a letter telling you your rate just went up and if you don't like it then send us a check for the total balance due.

[Blake]

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.


something about this just doesn't sit right with me.

...and I'm betting there's a good reason why BBB decided to remove debt settlement companies from their listings.

[BacktoBasics]

something about this just doesn't sit right with me.

...and I'm betting there's a good reason why BBB decided to remove debt settlement companies from their listings.
Especially if their answer to getting out of debt is to stop paying on your current accounts to wait for a lower principle amount settlement.

[chode_regulator]

There are lots of cards, particularly ones that were given out to risky lends, that will raise your rate if you are one day late. Basically being one day late voids your agreement so the penalty is having your rate raised. I would say less than half of the credit cards in circulation have a less than 30 days late policy limited to just a fee. So you got some decent cards. Great. Its not the same for everyone. Next time try and write out a post with at least decent grammar and spelling.

:rolleyes
yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

[Blake]

:rolleyes
yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

you = average guy with credit card

B2B = guy who works in/around credit industry


so yes, you should present a works cited page if you are even trying to attempt to win whatever argument it is that you are trying to make

[BacktoBasics]

:rolleyes
yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

I'm right and you're wrong its as simple as that. I think its great that you didn't get a rate hike but thats far from the norm. :toast at least you can admit you're wrong.

I wouldn't have said shit about your nearly unreadable print had you not been a know it all pompous sarcastic ass in the first place...or....if you were right. Which you aren't.

[smeagol]

I never carry balances in my credit cards. I try not to live beyond my means.

[MiamiHeat]

My credit history is clean! Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! I am young so my credit history is virgin still.

Anyone have any advice on what to do?

[BacktoBasics]

My credit history is clean!. Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! My credit history is virgin still.

Anyone have any advice on what to do?
Option 1

See if you can get a small signature loan from your bank. Maybe 1k. My first 3k loan was approved because I used a vehicle that was paid off for collateral. That might be an option too. The next time I went in for a loan no collateral was needed and they gave me the loan almost no questions asked.

Option 2

I've seen a few banks agree to allow someone with little to no credit do this plan:

Customer goes to the bank and applies for the loan on the condition that the customer makes regular on time payments for a determined length of time, say one year but the bank doesn't give the customer the money until the loan is paid in full.

Designed to build trust. You pay the loan for a year and when its paid off they give you money. I've had quite a few customers do this to help build their credit. lol like credit layaway. I'm suprised that banks do this but I've seen it done at least a dozen times in the last year.

Option 3

This is pretty easy option. Conns will sell anything to anybody regardless of credit so long as you can put 30% down. The prices aren't inflated either. Save 300 bucks and go buy a 1k TV or Computer or whatever. The rate is absurd 20%ish but unlike Aarons or Rent A Center Conns does report to all three bureaus and again their prices aren't inflated like Aarons or Rent A Center.

[DarkReign]

My credit history is clean! Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! I am young so my credit history is virgin still.

Anyone have any advice on what to do?

Same thing I did.

Save $500 and give it to a bank. They'll then issue a credit card with a $500 limit.

You charge, you pay on time. Do that for a year.

The bank then sends you your $500 plus interest and you keep the $500 line of credit.

You charge, you pay on time. Do that for a year.

By the 4th year, you'll have a credit card you can buy a car with.

[BacktoBasics]

Same thing I did.

Save $500 and give it to a bank. They'll then issue a credit card with a $500 limit.

You charge, you pay on time. Do that for a year.

The bank then sends you your $500 plus interest and you keep the $500 line of credit.

You charge, you pay on time. Do that for a year.

By the 4th year, you'll have a credit card you can buy a car with.Yeah thats a good way to go. Pretty much what I was describing only they don't issue a card.

Secured lines of credit like DR is talking about are a good start.