Re: In Search of the Perfect Credit Score

John A. Weeks III wrote:

I simply suggest that one not borrow, expect to purchase a reasonable house that is within their means. Using consumer
debt at rates above 5% is a sure way to kill your chances of
building wealth, achieving critical mass, and getting out of
the paycheck to paycheck rut.

Right, but consumer credit at 0% can be good way of building wealth, albeit slowly. A 0% car loan, if it didn't involve giving up a cash rebate on the car in order to get it, is a better deal than taking the $20,000 or so out of a 5% CD and losing that $1000 a year in interest. A $30,000 0%, no-fee balance transfer from a credit card into a 5% CD gives you $1500 a year in wealth that you would not otherwise have. With automatic on-line payments it's a lot less trouble to manage this sort of thing than in the past when you had to mail in checks each month.

> Credit is like drugs. It
doesn't serve any good purpose, and all it does is make you
want more.

For those unable to control themselves this may be true. A lot of individuals with no self-control get themselves into trouble. For those that put every possible expense on the credit card then pay it off each month, the kickbacks in terms of cash or other stuff is worth it.
.

Relevant Pages

  • Credit Card Industry Faces Reforms
    ... Stricter regulation of the credit card industry will probably be approved by the end of the year, consumer advocates, members of Congress and banking officials said as the comment period on the Federal Reserve's proposed actions drew to a close last week. ... Observers said the New York Democrat's bill probably wouldn't pass the Senate this year because time is running out. ...
    (soc.retirement)
  • Re: NBC - Credit Card Rant
    ... it's put a real dent on my finances. ... Now the industry is fighting against creation of an agency that would ... raise credit card interest rates and all manner of exploitive fees to ... The Obama administration wants to create a Consumer Financial ...
    (rec.music.artists.springsteen)
  • Re: Was the Bank Bail-out all bad ?
    ... Banks charge interest rates as ... Consumer confidence went sour when Democrats took control of both houses of Congress. ... Up until the time the law took effect, credit card companies were allowed to charge higher interest rates because they were unsecured loans with almost zero chance of recovery from defaulters. ...
    (soc.retirement)
  • Re: Putting the economy in perspective
    ... >> The American consumer is alive and well - and spending. ... Gas prices don't help, but it's a hell of a lot more than that. ... WASHINGTON - The percentage of credit card payments that were past due ...
    (rec.music.artists.springsteen)
  • Credit Card Overhauls Seem Likely
    ... Consumer advocates say regulation of the credit card industry has long been without teeth. ... But as card holders struggle under the weight of big balances, high interest rates and fees, their pleas to lawmakers for help may well mean that the industry will face some significant regulation by early next year. ...
    (soc.senior.issues)