StevenUhl777 From , joined Dec 1969, posts, RR:
Reply 2, posted (10 years 10 months 5 days 17 hours ago) and read 1328 times:
Buying first house in 2006 (hopefully), so that should make it interesting
Good luck! Can't go wrong, trust me...I bought my first place at 25 and sold it 4 years later, and bought my 2nd place. Who knows with mortgage rates these days, but they are trending upwards. Buy now if you can, if you can get in at 7% or below, that's still very good. There are lots of incentives for first-time home buyers like yourself. Also, do a 15-year mortgage if at all possible.
If you haven't done so already, check your credit report with all three agencies, and clean up any crap NOW, so that you're not turned down unexpectedly once you find that dream home.
If yo buy an 'entry-level' place, be it a condo or townhouse, don't go hog-wild making fancy upgrades, i.e. oak hardwood floors, as you probably won't get the money out when you go to sell it. If the place need carpet badly, do it...otherwise, just paint it and make some cosmetic improvements, and save your money for your true dream home.
707cmf From France, joined Mar 2002, 4885 posts, RR: 28
Reply 6, posted (10 years 10 months 5 days 13 hours ago) and read 1295 times:
I try to avoid credit at all cost.
In my opinion, except for a house, if you can't afford it, better don't buy it.
And having to take a credit means I cannot afford it.
A lot of people are indebted because the credit companies sent them a lot of mail telling them they could have a lot of $$$$$ ralmost at once, (you'll just have to give us back a lot more of $$$$$$ later - and if you cannot, well, not a problem, you'll just give us even more $$$$$$ - makes me sick)
A house, now, is something different. It is usually not possible to pay the whole house at once - heck it'll usually take at least 15 years ! But it is not something trivial (and you don't have to pay a rent anymore).
Of course, there'll always be some thing worth taking a credit for (college coms to my mind) - but when I see people getting indebted because they just wanted to have a bigger TV, or a Useless SUV, now, that makes me sick.
PROSA From United States of America, joined Oct 2001, 5644 posts, RR: 4
Reply 7, posted (10 years 10 months 5 days 7 hours ago) and read 1271 times:
It's possible to have a fairly mediocre credit rating even if you always pay your bills on time. Credit scoring formulas look at such factors as the ratio of one's outstanding credit card balances to credit limits. If you owe a total of $4,500 on credit cards with an aggregate credit limit of $5,000, while your neighbor owes $7,500 on cards with a total $10,000 limit, his or her credit score will be higher than yours, everything else being equal, notwithstanding the higher overall debt. But note that carrying some debt is essential to a high credit score - if you pay off your credit cards in full each month, you're considered an undesirable customer because the card issuers won't make any interest revenue off of you.
Finally, one thing that works to your advantage is that monthly payments (mortgages, car loans, credit cards, etc.) are considered timely if made within 30 days of the due date. A payment made on the 29th day won't hurt your credit score, though of course you'll incur a late charge.
"Let me think about it" = the coward's way of saying "no"
VSLover From United States of America, joined Feb 2004, 1900 posts, RR: 22
Reply 10, posted (10 years 10 months 5 days 2 hours ago) and read 1230 times:
mine is total crap! i just dont really care about bills enough to be bothered with them. yeah, its a horrible attitude that i am working on--i mean i do get around to paying them...eventually, my new secretary and i have it set up so she reminds me. fortunately, it doesnt really matter what my credit is like because 1) i'm set and 2) no matter where i rent in nyc, you have to have a guarantor unless you make 45x's your monthly rent, which is not the case with me and my job/apartment combo, and they just mean income, they dont care about alternative sources of funding. i'd like to buy a place, and could very easily do so, since they would never turn down someone who can pay cash (and very often in nyc you have to pay a HUGE % up front, or the apartment boards will deny you) but with my options for grad school next year, i dont know if i will get into a school in nyc or california.
it still is not as horrible as my former roomate, an investment banker rolling in the $$$ who couldnt even get a cellphone without a deposit of $300 as a result of his horrid credit. haha.
Iflyatldl From United States of America, joined Nov 2003, 1936 posts, RR: 3
Reply 12, posted (10 years 10 months 5 days 2 hours ago) and read 1225 times:
I just pay my balances in full. If I can't afford it, I just won't charge it. I just manage to stay out of trouble that way. I used to carry a bunch of cards, but I paid them off and dumped'em. Now, just two: Delta Skymiles AMEX and B of A Visa. More than I need!
Ah, Summer, Fenway Park, Boston Red Sox and Beer.....
WellHung From , joined Dec 1969, posts, RR:
Reply 13, posted (10 years 10 months 5 days 2 hours ago) and read 1219 times:
Yeah, there are a lot of credit myths out there... I haven't checked mine in a while, but last time it was 750+. Remember, there are 3 agencies and each will have different scores. Recently I opened a bunch of credit cards, so it's probably dropped a bit, but will go back up in a couple of months.
Regarding the amount of available credit, charging any card over 30% will lower your score. Also, it looks at the average age of accounts and whether or not they have been active in the last 6 months.
While you may not be a desirable customer if you pay off your cards every month, you will still have a high credit score. Credit rating is based on risk, not how much money credit card companies will make off you.
In Jcs17's case, if that overdraft is for a bank account, it won't affect your credit score, but will probably show up on CHEX. If you overcharged your credit card, that will not show up on your credit report either, but your rate will most likely go up 10% points.
I agree with ConcordeBoy that 707cmf has no clue what he's talking about by avoiding credit at all costs. If he thinks it is inherently bad (other than for homes), he is sorely uneducated on the subject. But it does make sense financially not to finance depreciating assets such as cars. Unfortunately, people are too concerned with spending more than they make. If you have any doubt about this, go to a car dealership on the weekend. Though if you can get one of those 2% car loans but have the money in the bank, it makes sense to go with the financing because even a money market account will give you a 2% return.
A330323X - a 533 is terrible. And since you are not yet over 20 it suggests you're going to be dealing with some huge problems in the future unless you learn some financial responsibility.
Worldoftui From Sweden, joined Aug 2007, 0 posts, RR: 0
Reply 14, posted (10 years 10 months 5 days 2 hours ago) and read 1207 times:
Unfortunately, my credit rating is excellent - and my will power is non-existent. I wish it was the other way round!
Just applied for a credit card and Â£5000 has been approved. I had a phone call from them telling me they would give me the cash so I could go on a "massive spending spree!". When I informed them that I was out of work, they just said "never mind" and said I could use the money to "treat myself!"
Jeez - is this the perfect example of irresponsible banking?
BTW - have used the card to get 10,000 points with the first purchase, hand have now cut it up.
Gordonsmall From UK - Scotland, joined Jun 2001, 2236 posts, RR: 21
Reply 15, posted (10 years 10 months 5 days ago) and read 1182 times:
I've got a pretty good credit rating.
Unlike in the US, here in the UK paying off your credit card balance every month improves your credit score by leaps and bounds.
I've got 3 credit cards. I started off with one when I was a full-time student, which had a £500 limit, I spent it up to the limit within a couple of months and then paid it off as soon as the bill came in. Within 2 weeks I had got a letter informing me that the RBS had increased my credit limit to £1500!
3 years down the line I've had 5 more such letters, and my limit on my original Visa card is now £15,000 though I hardly ever use it now, and I've since got another card through Ryanair with a credit limit of £8,000 and a Mastercard for work with another £10,000 limit.
I still get letters every other day from companies such as Capital One and MBNA telling me that I'm pre-approved for a £15,000 limit!
I've often thought about taking them up on their offer, and with my overdraft limit of £2,500 I've often thought after a bad day at work about maxing out my new card, original cards and overdraft and heading off to the carribean with 15 months pre-tax salary in my back pocket and never coming back!
Unfortunately the thought that eventually they might catch up with me and make me give it back stops me from doing it.
Statistically, people who have had the most birthdays tend to live the longest.