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Started By
Message
What is your opinion on credit?
Posted on 5/18/15 at 10:13 am
Posted on 5/18/15 at 10:13 am
Not that you asked, but here is mine.....
I believe it is a scam dating back to the original business model that created it. It is a way for banks to provide money that doesn't exist to people that cannot truly afford it. It is geared toward preying on innate human nature to get instant gratification. It is a scheme devised to let people avoid saving for something they need in favor of something they want.
I personally don't care what my credit score is and can't say I've ever checked it once. Although I have "purchased" a vehicle through a loan many years ago, as I've grown and matured I refuse to use one for anything that I could think of.
Sure I'd like a nice new home in a stable neighborhood, but until I can afford to build it with cash, I won't get it. Sure, it may take me 10 years (random number there with no real base) to save up for an expense like that, but why would I want to pay 500k over 30 years for a 200k home?
How crazy am I?
I believe it is a scam dating back to the original business model that created it. It is a way for banks to provide money that doesn't exist to people that cannot truly afford it. It is geared toward preying on innate human nature to get instant gratification. It is a scheme devised to let people avoid saving for something they need in favor of something they want.
I personally don't care what my credit score is and can't say I've ever checked it once. Although I have "purchased" a vehicle through a loan many years ago, as I've grown and matured I refuse to use one for anything that I could think of.
Sure I'd like a nice new home in a stable neighborhood, but until I can afford to build it with cash, I won't get it. Sure, it may take me 10 years (random number there with no real base) to save up for an expense like that, but why would I want to pay 500k over 30 years for a 200k home?
How crazy am I?
33
Posted on 5/18/15 at 10:14 am to BigEdLSU
Thanks Dave
Posted on 5/18/15 at 10:15 am to yellowfin
Posted on 5/18/15 at 10:15 am to BigEdLSU
What about credick?
Posted on 5/18/15 at 10:16 am to BigEdLSU
the only way to financial peace is to walk daily with the prince of peace, Christ, Jesus
Posted on 5/18/15 at 10:16 am to yellowfin
Do you have an opinion you would like to share with the class? 
Posted on 5/18/15 at 10:16 am to BigEdLSU
This thread is a 490.
Posted on 5/18/15 at 10:17 am to BigEdLSU
quote:
as I've grown and matured
You sure about that?
This post was edited on 5/18/15 at 10:17 am
Posted on 5/18/15 at 10:17 am to BigEdLSU
quote:
How crazy am I?
Not very. If easy credit weren't available, nice homes in nice neighborhoods wouldn't be north of $300k.
I'm a believer in Thomas Stanley's model. You would enjoy his books. Dave Ramsey is a POS that married his way out of financial ruin and decided to sell common sense for $29.95.
This post was edited on 5/18/15 at 10:18 am
Posted on 5/18/15 at 10:17 am to BigEdLSU
quote:
How crazy am I?
Dave is good for the majority of people in our great country, however there are those that can use credit to their advantage.
I used to be a proponent of paying for everything with my debit card. Today, I now use a PenFed VISA to purchase gasoline and receive 5 % back monthly for my trouble. And the bill is paid off every single month in full.
I also use a Discover credit card as I receive a 1 year additional warranty on items that I purchase, which can come in handy when buying appliances or electronics. And the bill is paid off monthly in full.
This post was edited on 5/18/15 at 10:20 am
Posted on 5/18/15 at 10:17 am to BigEdLSU
quote:
why would I want to pay 500k over 30 years for a 200k home?
If you had a better credit score you might get a better interest rate and wouldn't end up paying so much.
Posted on 5/18/15 at 10:18 am to BigEdLSU
It is not money that doesn't exist. It is money that has been deposited into the financial institutions by other members of the economy that is not currently being used. When used responsibly credit allows for a more efficient economy by providing opportunity for those who otherwise would not have it and putting unused resources to work.
Posted on 5/18/15 at 10:18 am to yellowfin
I have great credit, so my opinion is that credit is a good thing. The better credit you have the lower the interest rate you usually get on a loan. I just bought an awesome new truck and got an extremely low used vehicle interest rate. Less than 2.5% (super low for a used vehicle). If I had shiit credit then it would be closer to like 5-10%
I don't see why anyone would not "care" about their credit situation. It honestly plays into almost every financial decision that an individual can make.
I don't see why anyone would not "care" about their credit situation. It honestly plays into almost every financial decision that an individual can make.
This post was edited on 5/18/15 at 10:20 am
Posted on 5/18/15 at 10:19 am to BigEdLSU
But I need 22's now!
Posted on 5/18/15 at 10:19 am to LSUBoo
quote:
why would I want to pay 500k over 30 years for a 200k home?
We chose a 15 year loan. 2.875 % interest rate is almost like free money.
Posted on 5/18/15 at 10:19 am to Will Cover
I honestly don't listen to Dave Ramsey. I assume that's the reference? Does his show sound similar or something?
Posted on 5/18/15 at 10:20 am to Peazey
I don't think that's true. If be willing to bet most, if not all banks have more money loaned out than available resources. They just type some numbers into a computer and create cash.
Posted on 5/18/15 at 10:21 am to BigEdLSU
quote:
I honestly don't listen to Dave Ramsey. I assume that's the reference? Does his show sound similar or something?
He advocates a no credit at all approach. He's been successful marketing "don't buy shite you can't afford" to the masses.
Stanley is a PhD that researched the spending habits of those with net worth north of $1 million. His findings are quite surprising, and the $30k millionaires on the OT would probably disagree.
Posted on 5/18/15 at 10:21 am to BigEdLSU
quote:
Do you have an opinion you would like to share with the class?
credit is a very useful tool for personal and business finances
but can also be very dangerous for someone without discipline
Posted on 5/18/15 at 10:21 am to BigEdLSU
quote:
I honestly don't listen to Dave Ramsey. I assume that's the reference? Does his show sound similar or something?
Yes.
quote:
Your credit score is an indication of financial success.
No way. Your credit score—maybe you’ve heard it called a FICO score—tells you one thing: how well you manage debt. Don’t think of it as a FICO score. Think of it as an “I Love Debt” score. It’s all about debt—how much and what kind of debt you have, how consistently you’ve used and paid on debt and that kind of thing. Think about it this way: If you inherited $200,000 tomorrow, or if you received a raise at your job, your credit score wouldn’t reflect that at all. If your income isn’t a factor, then how can a credit score actually measure your success with money? In reality, the best indicator of financial success is your bank account, not a high credit score.
- Dave Ramsey
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