Forum Replies Created
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AuthorPosts
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ucodegen
Participant[quote meadandale]
Yes, there will be the oddballs who pay cash and don’t use credit and thus have a low credit score that doesn’t reflect their financial acumen but seriously, what percentage of people fall into that category? I’d estimate well under 1%.
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More people than you think. I have a non-existent credit score.. someone I know has a very good credit score, but is living paycheck to paycheck. I have way more than 1 years worth of salary saved up. This person, of course, doesn’t.
[quote UCGal]
paramount – not sure what I did to piss you off.
Does it really bother you that I spend less than I earn? Wow.
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I think you hit too close to home.. because the response got ‘personal’..
[quote GH]
If an employee has a history of theft, that kind of information WOULD be valuable to a potential employer.
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Criminal record.. often asked about on employment applications.Participant[quote meadandale]
Yes, there will be the oddballs who pay cash and don’t use credit and thus have a low credit score that doesn’t reflect their financial acumen but seriously, what percentage of people fall into that category? I’d estimate well under 1%.
[/quote]
More people than you think. I have a non-existent credit score.. someone I know has a very good credit score, but is living paycheck to paycheck. I have way more than 1 years worth of salary saved up. This person, of course, doesn’t.
[quote UCGal]
paramount – not sure what I did to piss you off.
Does it really bother you that I spend less than I earn? Wow.
[/quote]
I think you hit too close to home.. because the response got ‘personal’..
[quote GH]
If an employee has a history of theft, that kind of information WOULD be valuable to a potential employer.
[/quote]
Criminal record.. often asked about on employment applications.Participant[quote briansd1]
Not so fast… my 80+ yo dad knows how to spend money very well, especially when he travels and takes the ladies out. He’s spending my inheritance, damn it!
[/quote]
Your inheritance is what is left over.. he earned it, you didn’t. You get to spend what you make. If you get inheritance or ‘gifts’.. consider it extra.a decent bankruptcy would let these people have a future.
They declared bankruptcy several times, only to withdraw the bankruptcy. I suspect they were using this to delay the foreclosure process.
a decent society would let these people cram it down and screw the shylocks not some losers in reno.
And just who would absorb that cram-down? People who acted responsibly with their money? Its gotta come from somewhere! The true ‘shylocks’ were the brokers that hot-potato’d the mortgage and made sure that the got their commission. The holders of the note got screwed because they fronted the cash and only got a percentage back.
Participant[quote briansd1]
Not so fast… my 80+ yo dad knows how to spend money very well, especially when he travels and takes the ladies out. He’s spending my inheritance, damn it!
[/quote]
Your inheritance is what is left over.. he earned it, you didn’t. You get to spend what you make. If you get inheritance or ‘gifts’.. consider it extra.a decent bankruptcy would let these people have a future.
They declared bankruptcy several times, only to withdraw the bankruptcy. I suspect they were using this to delay the foreclosure process.
a decent society would let these people cram it down and screw the shylocks not some losers in reno.
And just who would absorb that cram-down? People who acted responsibly with their money? Its gotta come from somewhere! The true ‘shylocks’ were the brokers that hot-potato’d the mortgage and made sure that the got their commission. The holders of the note got screwed because they fronted the cash and only got a percentage back.
Participant[quote briansd1]
Not so fast… my 80+ yo dad knows how to spend money very well, especially when he travels and takes the ladies out. He’s spending my inheritance, damn it!
[/quote]
Your inheritance is what is left over.. he earned it, you didn’t. You get to spend what you make. If you get inheritance or ‘gifts’.. consider it extra.a decent bankruptcy would let these people have a future.
They declared bankruptcy several times, only to withdraw the bankruptcy. I suspect they were using this to delay the foreclosure process.
a decent society would let these people cram it down and screw the shylocks not some losers in reno.
And just who would absorb that cram-down? People who acted responsibly with their money? Its gotta come from somewhere! The true ‘shylocks’ were the brokers that hot-potato’d the mortgage and made sure that the got their commission. The holders of the note got screwed because they fronted the cash and only got a percentage back.
Participant[quote briansd1]
Not so fast… my 80+ yo dad knows how to spend money very well, especially when he travels and takes the ladies out. He’s spending my inheritance, damn it!
[/quote]
Your inheritance is what is left over.. he earned it, you didn’t. You get to spend what you make. If you get inheritance or ‘gifts’.. consider it extra.a decent bankruptcy would let these people have a future.
They declared bankruptcy several times, only to withdraw the bankruptcy. I suspect they were using this to delay the foreclosure process.
a decent society would let these people cram it down and screw the shylocks not some losers in reno.
And just who would absorb that cram-down? People who acted responsibly with their money? Its gotta come from somewhere! The true ‘shylocks’ were the brokers that hot-potato’d the mortgage and made sure that the got their commission. The holders of the note got screwed because they fronted the cash and only got a percentage back.
Participant[quote briansd1]
Not so fast… my 80+ yo dad knows how to spend money very well, especially when he travels and takes the ladies out. He’s spending my inheritance, damn it!
[/quote]
Your inheritance is what is left over.. he earned it, you didn’t. You get to spend what you make. If you get inheritance or ‘gifts’.. consider it extra.a decent bankruptcy would let these people have a future.
They declared bankruptcy several times, only to withdraw the bankruptcy. I suspect they were using this to delay the foreclosure process.
a decent society would let these people cram it down and screw the shylocks not some losers in reno.
And just who would absorb that cram-down? People who acted responsibly with their money? Its gotta come from somewhere! The true ‘shylocks’ were the brokers that hot-potato’d the mortgage and made sure that the got their commission. The holders of the note got screwed because they fronted the cash and only got a percentage back.
Participant[quote four walling]
I respectfully disagree.If you do not have a credit history then you are not creditworthy.
[/quote]
You did not prove your contention. In fact, you may have succeeded in proving the contrary point and only demonstrated that you have to ‘play the game’, whether or not that really succeeds in truely demonstrating true creditworthyness in the following:
[quote four walling]
It is important to finance a large purchase, such as an automobile even though you can afford to pay cash for it. All you need to do is keep making payments on the car for about 12 months then write a check for the balance and pay it off.
.
.
Financing a vehicle does wonders for your FICO score. I have not financed a vehicle for years, but the credit history of the few that I have in the past makes for a nice looking credit bureau.
[/quote]
If you hadn’t ‘played the game’, where would your FICO be? Did ‘playing the game’ really change how you would pay off a loan in the future?So does it mean you have better management of money if you need to use credit to buy something, or if you generally anticipate financial need and also make allowances for the unanticipated?
Having successfully financed and paid off a car does not make you creditworthy.. all it says is that you took out a loan and paid it off. The fallacy of it making you creditworthy is partially to blame for our current banking problems and the failure of Option-ARM and Alt-A loans. These loans were taken out by people with high credit scores. These are not the same as sub-prime which were taken out by low credit score individuals.
What has been happening is that the credit rating agencies have been trying to ‘enlarge’ their businesses, since companies using them have to pay a fee to the credit rating agencies. In many cases, the credit rating is being seriously mis-applied. This is also why:
[quote four walling]
When you go to finance a car, the lender does not ask you how much money that you have in the bank and they don’t care.
[/quote]
Before the heavy use of credit agencies, the lender would want proof of how much money you have in savings because if you could not generate at least some savings, you probably couldn’t afford additional expenses in the form of the car loan.Finally, here is an older graph showing the various types of loans that were going to re-cast.
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=100|height=92]as well as a gratuitous link to Dr HousingBubble…
Participant[quote four walling]
I respectfully disagree.If you do not have a credit history then you are not creditworthy.
[/quote]
You did not prove your contention. In fact, you may have succeeded in proving the contrary point and only demonstrated that you have to ‘play the game’, whether or not that really succeeds in truely demonstrating true creditworthyness in the following:
[quote four walling]
It is important to finance a large purchase, such as an automobile even though you can afford to pay cash for it. All you need to do is keep making payments on the car for about 12 months then write a check for the balance and pay it off.
.
.
Financing a vehicle does wonders for your FICO score. I have not financed a vehicle for years, but the credit history of the few that I have in the past makes for a nice looking credit bureau.
[/quote]
If you hadn’t ‘played the game’, where would your FICO be? Did ‘playing the game’ really change how you would pay off a loan in the future?So does it mean you have better management of money if you need to use credit to buy something, or if you generally anticipate financial need and also make allowances for the unanticipated?
Having successfully financed and paid off a car does not make you creditworthy.. all it says is that you took out a loan and paid it off. The fallacy of it making you creditworthy is partially to blame for our current banking problems and the failure of Option-ARM and Alt-A loans. These loans were taken out by people with high credit scores. These are not the same as sub-prime which were taken out by low credit score individuals.
What has been happening is that the credit rating agencies have been trying to ‘enlarge’ their businesses, since companies using them have to pay a fee to the credit rating agencies. In many cases, the credit rating is being seriously mis-applied. This is also why:
[quote four walling]
When you go to finance a car, the lender does not ask you how much money that you have in the bank and they don’t care.
[/quote]
Before the heavy use of credit agencies, the lender would want proof of how much money you have in savings because if you could not generate at least some savings, you probably couldn’t afford additional expenses in the form of the car loan.Finally, here is an older graph showing the various types of loans that were going to re-cast.
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=100|height=92]as well as a gratuitous link to Dr HousingBubble…
Participant[quote four walling]
I respectfully disagree.If you do not have a credit history then you are not creditworthy.
[/quote]
You did not prove your contention. In fact, you may have succeeded in proving the contrary point and only demonstrated that you have to ‘play the game’, whether or not that really succeeds in truely demonstrating true creditworthyness in the following:
[quote four walling]
It is important to finance a large purchase, such as an automobile even though you can afford to pay cash for it. All you need to do is keep making payments on the car for about 12 months then write a check for the balance and pay it off.
.
.
Financing a vehicle does wonders for your FICO score. I have not financed a vehicle for years, but the credit history of the few that I have in the past makes for a nice looking credit bureau.
[/quote]
If you hadn’t ‘played the game’, where would your FICO be? Did ‘playing the game’ really change how you would pay off a loan in the future?So does it mean you have better management of money if you need to use credit to buy something, or if you generally anticipate financial need and also make allowances for the unanticipated?
Having successfully financed and paid off a car does not make you creditworthy.. all it says is that you took out a loan and paid it off. The fallacy of it making you creditworthy is partially to blame for our current banking problems and the failure of Option-ARM and Alt-A loans. These loans were taken out by people with high credit scores. These are not the same as sub-prime which were taken out by low credit score individuals.
What has been happening is that the credit rating agencies have been trying to ‘enlarge’ their businesses, since companies using them have to pay a fee to the credit rating agencies. In many cases, the credit rating is being seriously mis-applied. This is also why:
[quote four walling]
When you go to finance a car, the lender does not ask you how much money that you have in the bank and they don’t care.
[/quote]
Before the heavy use of credit agencies, the lender would want proof of how much money you have in savings because if you could not generate at least some savings, you probably couldn’t afford additional expenses in the form of the car loan.Finally, here is an older graph showing the various types of loans that were going to re-cast.
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=100|height=92]as well as a gratuitous link to Dr HousingBubble…
Participant[quote four walling]
I respectfully disagree.If you do not have a credit history then you are not creditworthy.
[/quote]
You did not prove your contention. In fact, you may have succeeded in proving the contrary point and only demonstrated that you have to ‘play the game’, whether or not that really succeeds in truely demonstrating true creditworthyness in the following:
[quote four walling]
It is important to finance a large purchase, such as an automobile even though you can afford to pay cash for it. All you need to do is keep making payments on the car for about 12 months then write a check for the balance and pay it off.
.
.
Financing a vehicle does wonders for your FICO score. I have not financed a vehicle for years, but the credit history of the few that I have in the past makes for a nice looking credit bureau.
[/quote]
If you hadn’t ‘played the game’, where would your FICO be? Did ‘playing the game’ really change how you would pay off a loan in the future?So does it mean you have better management of money if you need to use credit to buy something, or if you generally anticipate financial need and also make allowances for the unanticipated?
Having successfully financed and paid off a car does not make you creditworthy.. all it says is that you took out a loan and paid it off. The fallacy of it making you creditworthy is partially to blame for our current banking problems and the failure of Option-ARM and Alt-A loans. These loans were taken out by people with high credit scores. These are not the same as sub-prime which were taken out by low credit score individuals.
What has been happening is that the credit rating agencies have been trying to ‘enlarge’ their businesses, since companies using them have to pay a fee to the credit rating agencies. In many cases, the credit rating is being seriously mis-applied. This is also why:
[quote four walling]
When you go to finance a car, the lender does not ask you how much money that you have in the bank and they don’t care.
[/quote]
Before the heavy use of credit agencies, the lender would want proof of how much money you have in savings because if you could not generate at least some savings, you probably couldn’t afford additional expenses in the form of the car loan.Finally, here is an older graph showing the various types of loans that were going to re-cast.
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=100|height=92]as well as a gratuitous link to Dr HousingBubble…
Participant[quote four walling]
I respectfully disagree.If you do not have a credit history then you are not creditworthy.
[/quote]
You did not prove your contention. In fact, you may have succeeded in proving the contrary point and only demonstrated that you have to ‘play the game’, whether or not that really succeeds in truely demonstrating true creditworthyness in the following:
[quote four walling]
It is important to finance a large purchase, such as an automobile even though you can afford to pay cash for it. All you need to do is keep making payments on the car for about 12 months then write a check for the balance and pay it off.
.
.
Financing a vehicle does wonders for your FICO score. I have not financed a vehicle for years, but the credit history of the few that I have in the past makes for a nice looking credit bureau.
[/quote]
If you hadn’t ‘played the game’, where would your FICO be? Did ‘playing the game’ really change how you would pay off a loan in the future?So does it mean you have better management of money if you need to use credit to buy something, or if you generally anticipate financial need and also make allowances for the unanticipated?
Having successfully financed and paid off a car does not make you creditworthy.. all it says is that you took out a loan and paid it off. The fallacy of it making you creditworthy is partially to blame for our current banking problems and the failure of Option-ARM and Alt-A loans. These loans were taken out by people with high credit scores. These are not the same as sub-prime which were taken out by low credit score individuals.
What has been happening is that the credit rating agencies have been trying to ‘enlarge’ their businesses, since companies using them have to pay a fee to the credit rating agencies. In many cases, the credit rating is being seriously mis-applied. This is also why:
[quote four walling]
When you go to finance a car, the lender does not ask you how much money that you have in the bank and they don’t care.
[/quote]
Before the heavy use of credit agencies, the lender would want proof of how much money you have in savings because if you could not generate at least some savings, you probably couldn’t afford additional expenses in the form of the car loan.Finally, here is an older graph showing the various types of loans that were going to re-cast.
[img_assist|nid=8228|title=Mortgage Rate Resets 2007.10|desc=|link=node|align=left|width=100|height=92]as well as a gratuitous link to Dr HousingBubble…
ParticipantI think the practice of using a credit check on job applicants is questionable. It is justifiable if the position that the applicant is going for requires bonding, certain types of licenses (series 3, series 7), or requires a security clearance. I haven’t seen any proof where there is a correlation between good credit and good job performance. In many ways, the correlation may actually be a ‘reverse’ correlation. A person with a high debt load may actually be a ‘better’ employee because they are living paycheck to paycheck and really need that next paycheck, versus an employee that has over 1 years worth of income saved up.
There is a secondary problem with using a credit report on job applications, where it really is not warranted. It creates a scenario where one financial mis-step can make a persons financial life unrecoverable. After one mis-step, they are placed at the ‘back of the line’ for job applications irregardless of their actual job qualifications.
Finally there is another problem. Current credit reports are not really a measure of credit-worthiness. It is really the measure of the use of credit. A person who buys with cash, or has ‘surplus cash’ will show up poorly on credit reports. This is the same hole that many banks fell into when writing mortgages. They just used the FICO score and did not check if the person could really pay off the mortgage. It is a problem that I have also run into several years ago when applying for an apartment. A credit report on me basically showed up nothing, because I largely buy with cash (if I don’t have the money, I don’t buy it). I ended up showing the apartment management company representatives one of my bank statements.. which had her looking at it for a while. She didn’t understand why, with that type of balance, I didn’t show up on the credit report. I had to explain to her what a credit report really is, and how it works. If you don’t have any debt, particularly if you never had any debt, you will not show up on credit reports.
ParticipantI think the practice of using a credit check on job applicants is questionable. It is justifiable if the position that the applicant is going for requires bonding, certain types of licenses (series 3, series 7), or requires a security clearance. I haven’t seen any proof where there is a correlation between good credit and good job performance. In many ways, the correlation may actually be a ‘reverse’ correlation. A person with a high debt load may actually be a ‘better’ employee because they are living paycheck to paycheck and really need that next paycheck, versus an employee that has over 1 years worth of income saved up.
There is a secondary problem with using a credit report on job applications, where it really is not warranted. It creates a scenario where one financial mis-step can make a persons financial life unrecoverable. After one mis-step, they are placed at the ‘back of the line’ for job applications irregardless of their actual job qualifications.
Finally there is another problem. Current credit reports are not really a measure of credit-worthiness. It is really the measure of the use of credit. A person who buys with cash, or has ‘surplus cash’ will show up poorly on credit reports. This is the same hole that many banks fell into when writing mortgages. They just used the FICO score and did not check if the person could really pay off the mortgage. It is a problem that I have also run into several years ago when applying for an apartment. A credit report on me basically showed up nothing, because I largely buy with cash (if I don’t have the money, I don’t buy it). I ended up showing the apartment management company representatives one of my bank statements.. which had her looking at it for a while. She didn’t understand why, with that type of balance, I didn’t show up on the credit report. I had to explain to her what a credit report really is, and how it works. If you don’t have any debt, particularly if you never had any debt, you will not show up on credit reports.
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