credit reports

[retdetsgt]

You may or may not believe the number of people I talk to each day who classify it as shady, ridiculous, heartless, etc. etc. etc. that we put their interest rate to 28% when they missed payments and then they blame us, rather than whatever the original situation was that caused the account to fall behind, for the fact that they can't catch up.

And credit card companies don't get much sympathy from me. 28% is usury, pure and simple. Credit card companies came up with the strategy of giving out credit cards to everyone and their dog and making up their losses by charging outrageous amounts of interest to those who are trying to pay their bills.

Not that many years ago, the maximum interest you ever saw on a credit card balance was about 18%. Credit card companies actually had to make sure they only gave out credit to people who were likely to pay. Now they don't have to engage in good business practices because they can put it to the poor guy who's trying to make his bills. I never understood the philosophy of making it harder for a person struggling by raising their interest rate.:confused:

What's going to happen with all this credit crisis is that Congress is liable to pass some regulatory laws limiting the interest rate ceiling and the credit card companies will be screaming foul. I really don't care, their business practices created the problem.

[BaseballFan]

What if the half the collections have been paid and some are in the works?

I have to disagree with another poster about the responsibilty issue... Just because a card is in collections doesn't make the person irresponsible... If anyone has had to deal with shady credit card companies in the past, they will know what I am talking about.... If you haven't, God bless you...

If I can't be a police officer, serve my community, just because of my divorce 5 years ago where I was left holding the debt bag of well over 25K (credit cards), which most of it paid off via homeowners loan, while there are 2 collections still on my reports I am fighting with in regards to their legality, then so be it.



I'll just move on....

Thanks....

Edited for the reason I meant to add: I am not talking about repos, bk and the like. I am just referring to credit card collections in my discussion with this subject/issue.

I'm not meaning to single you out as you seem to have a good head on your shoulder, but if this something you want to do and you're up in the air as far whether or not to apply, why wouldn't you apply 1st and then find out?

I've never understood the possibility of being pursuaded by strangers to not do what you want to do, especially something that involves doing something positive for the community.

If this is what you want to do, apply for the position, it is worth the time and possibly money (travel/application fee) to fulfill something of yours. No one here knows as well as the dept. you're applying at whether or not you meet their requirements.

Finally, your credit history as far as the ability to acquire debt isn't impressive on its own merit. As we've seen this past week, the ability to acquire high mortagages, high credit debts, car payments, etc. with a person with questionable credit can just as likely be seen as a risk that maybe they should not have been given those loans as someone who has a good credit history deserving of those loans.

[BaseballFan]

And credit card companies don't get much sympathy from me. 28% is usury, pure and simple. Credit card companies came up with the strategy of giving out credit cards to everyone and their dog and making up their losses by charging outrageous amounts of interest to those who are trying to pay their bills.

Not that many years ago, the maximum interest you ever saw on a credit card balance was about 18%. Credit card companies actually had to make sure they only gave out credit to people who were likely to pay. Now they don't have to engage in good business practices because they can put it to the poor guy who's trying to make his bills. I never understood the philosophy of making it harder for a person struggling by raising their interest rate.:confused:

What's going to happen with all this credit crisis is that Congress is liable to pass some regulatory laws limiting the interest rate ceiling and the credit card companies will be screaming foul. I really don't care, their business practices created the problem.

I agree 100%.

If the banking industry is going to abide by tighter restrictions as far as loan qualifications and capping interest rates, credit card companies should have to do the same.

I was 18 when I rec'd my 1st credit card offer, I was in no position both financially and maturitywise to take on that responsibility. I assume a good % of those people in large credit card debts are in that same boat as I was when I was 18.

I'm surprised when I hear stories of people losing their houses as their mortgage payment goes into their credit card bills, to me, that's a poor choice if it's one or the other. I'm also surprised the credit card compaines haven't nose-dived like the lending institutions although I think it's coming very soon. Credit card companies aren't federally insured like the banks, so when they have bad debt that isn't recovered, there's no financial safety net. I doubt the support towards saving a credit company would be a loud voice.

[retdetsgt]

I was 18 when I rec'd my 1st credit card offer, I was in no position both financially and maturitywise to take on that responsibility. I assume a good % of those people in large credit card debts are in that same boat as I was when I was 18.

I know I'm pretty ancient, but I had to be 21 to get my first credit. And even then, I was given very little until I PROVED that I was reliable and would pay my bills. I think my first credit card had about a $200 limit on it and it was only gradually raised as I paid my bill on time.

The practice of easy credit and draconian interest rates has produced a false economy that's beginning to collapse. It was based on consumer buying, but it was buying on credit and not very good credit at that. I used to shake my head at people who would get an adjustable rate mortgage because they're literally gambling that interest won't go up. And they got adjustable rate loans because that was the only thing they could barely afford. The prime goes up a half a point and they are no longer in their range of affordability. The people that got interest only loans were as stupid as the people who gave them the loans.:rolleyes: I'm amazed that so few people saw that coming, I did and I'm no financial genuis. It was just common sense.

I raised my kids in an 1100 sp ft home that I could afford. I now live in a much larger house, but that's because I've built up equity over the years. I live in a 2500 sq ft home I built in 1999 that's nearly paid for. I look around my neighborhood and see young people with families that live in bigger, nicer houses that I do. On guy across the street is a cop who's wife doesn't work. He's in his late 20's with 2 little kids. I know what he makes and he has to be shelling out a huge chunk of his take home on his mortgage payment. Half the people in my neighborhood have to be getting by financially by the skin of their teeth. One deputy from my old county did have to sell his house down the street. I watched it being built and noticed the price the builder wanted for it. The deputy had it advertised for less than he paid for it.

I'm one of those people the credit card companies hate. I buy everything on my credit card and get money back. I charge from 2-3 thousand a month on it and pay it off monthly. They don't make a dime interest off me and I not only get their rewards, but I use their money for free.:D

[seeking]

And credit card companies don't get much sympathy from me. 28% is usury, pure and simple. Credit card companies came up with the strategy of giving out credit cards to everyone and their dog and making up their losses by charging outrageous amounts of interest to those who are trying to pay their bills.

Not that many years ago, the maximum interest you ever saw on a credit card balance was about 18%. Credit card companies actually had to make sure they only gave out credit to people who were likely to pay. Now they don't have to engage in good business practices because they can put it to the poor guy who's trying to make his bills. I never understood the philosophy of making it harder for a person struggling by raising their interest rate.:confused:

What's going to happen with all this credit crisis is that Congress is liable to pass some regulatory laws limiting the interest rate ceiling and the credit card companies will be screaming foul. I really don't care, their business practices created the problem.

I agree 28% is a bad rate to charge, and you'll never see me using a card with an interest that high, but then I would not apply for credit if I could not sustain it. And I certainly wouldn't keep using the card if I couldn't pay it off, and that's where a lot of these people get to me. They fall behind on payments, we raise their interest, they fall behind again and they're still putting charges on the card. I've talked to people complaining they don't want to pay 28% interest and they just put a charge on there the day before calling me to complain about the interest rate they've had for months. If you don't agree with the rate, that's fine, don't agree with the terms of the card, also fine, but every time you make a purchase on a credit card you are stating that you do agree to those terms.

As far as good business practices, actually the high rates that a lot of people are paying are a result of laws they've put into place. It used to be that people could pay a $15 minimum a month and they were never making a dent in their balance because it wasn't even covering their interest. So now, your monthly minimum payment has to be made up of any new interest accrued and any fees applied. It sucks on a level because it leaves some people unable to make that kind of payment, even if it's just the late fee that's raised the minimum for that one month, on the other hand, it's exactly what people were asking for when they thought credit cards were being unfair by only requiring people to pay a portion of their interest each month.

Don't get me wrong, there are some people I have sympathy for. Like I said, especially in a medical or marital situation that drags on for a time, the fees and interest pile up, and I don't like the stress that causes on people. But that's also why we have hardship programs for people who have fallen behind, and where it used to be you had to be severely delinquent to get them, now even being a month (or not even necessarily past due if we put through an exception due to your situation) you can get a lower payment and interest rate--the only thing required is that you be able to sustain the payments we work out for the duration you're needing and that we close the card.

I can't speak for all credit card companies, and some of them very well may be just out for themselves, but the one I work for is, at least, concerned with the interest of the cardmember not just the interest we can get back. Believe it or not, they don't want people to be behind. They want people to be able to maintain their payments and use credit responsibly, and they do actually make an effort to help people. I have not seen anyone put to 28% who just missed a payment or two (and even those who got raised to less than that I've seen them get put back down through customer service once the account was brought current), and several people call in because of letters they've sent out educating on the effects to your credit score of late payments and asking them to call in to work out a solution. I deal with a fair bit of people all day who are inconsiderate, rude, and generally don't get my sympathy, but I also work with a lot of people who thank me for calling, or call us thanking us for reaching out to them.

[retdetsgt]

As far as good business practices, actually the high rates that a lot of people are paying are a result of laws they've put into place. It used to be that people could pay a $15 minimum a month and they were never making a dent in their balance because it wasn't even covering their interest. So now, your monthly minimum payment has to be made up of any new interest accrued and any fees applied. It sucks on a level because it leaves some people unable to make that kind of payment, even if it's just the late fee that's raised the minimum for that one month, on the other hand, it's exactly what people were asking for when they thought credit cards were being unfair by only requiring people to pay a portion of their interest each month.

Then the companies should hand out credit cards to people initially with low maximums and raise it only when they prove reliable rather than handing out cards willy nilly to every kid that asks for one and give them a $5K limit to start out.:rolleyes:

They HAVE to charge incredible interest to make up for the losses they incur because of the ease in which they hand out the cards to begin with.

And sure people are still using the card, they're paying so much in interest they are probably using the card to get by. Raising the rate on someone having trouble paying now is like throwing more weight in a cart so heavy that a horse is already having trouble pulling. It's a draconian and regressive way to punish.

I agree, people are stupid. But that shouldn't give companies the right to take advantage of them. Again, show some restraint in giving out credit and there won't be nearly as many delinquent payments.

[seeking]

I'm not saying some companies don't do what you're saying; but the one I work for is actually fairly difficult to get sizeable credit on unless you've proven yourself. Even my employee rated credit card only gave me $1500 to start out and I have other cards that are $7000 (but then, those are ones I've had for a few years and always paid the balance down on). That's one thing they always point to us as far as being nice to the cardmember, etc. If we gave them the credit they have (some of them 30-40k or more) at one point, they must have been a good cardmember, had excellent credit etc. If there are companies tossing out credit to anyone that breathes, then they deserve what they get when people don't pay, but the one I work for routinely reevaluates people's credit to make sure they're still able to afford the kinds of lines their given--it doesn't make business sense either for us or for them if they aren't making the same income, or steady payments on their other bills, to keep extending them a large credit. To the same end, that's why we allow people to voluntarily close the account as part of a program before it ends up getting revoked, don't report them to the credit burueu as having any kind of harship assitance (such as a lot of the CCAs that people work with do), and often times get little or not interest back on the amounts of those cards. So if you consider the ones who have say 30-40k and got on a program right when they fell behind, they basically only paid 28% interest for two months, and we eat the difference on the remaining five years while we wait for them to pay it off, basically only getting back just what we loaned.

[momentarylapse1]

Hey All!

I'm new to this forum, so PLEASE go easy on me...

Here's my situation...I'm about to take my medical exam, physical and psych. I'm a 33 yr old white male, have an associate degree and have a clean background for the most part (no felonies, been at least 5yrs since my last ticket, etc).

My question is about credit. I have a 700 F.I.C.O. score, but have about $35k in cc debt and $15k in loans outstanding. I play my bills on time (think I have only 1 or 2 late pays in my life).

I have a feeling this will raise a red flag and I'm very concerned. Will this endanger my chances of getting hired?

I appreciate any advice/info you can give me. I hope to see you all in January's class! :D