Looking for Financial Advice

[GregWeld]

I agree with you -- and even rich people need and use credit...

[Vegas69]

You got that right, the only way you don't need credit is if your retired. Any seasoned investor will risk YOUR money instead of his. How many times in the last 10 years could you have been burned loaning me 50k on anything. Ya, you just lost your 50k. I have a brand new bottle of vaseline. Credit means more now than it ever has, and I'll prove it to you. Anybody could get a loan 3 years ago. It made sense to everybody. Now, you better be iron clad to stand a chance. I can't disagreee. Money was waaaaaaay to looose. I made a boat load of money off loose money. The good ol days. In this economy(I hate this term)if you can obtain money with CREDIT you can make it happen. END OF STORY. I need to get off my ass.

[tones2SS]

Originally Posted by Vegas69

Credit means more now than it ever has, and I'll prove it to you. Anybody could get a loan 3 years ago. It made sense to everybody. Now, you better be iron clad to stand a chance. I can't disagreee. Money was waaaaaaay to looose. I made a boat load of money off loose money. The good ol days. In this economy(I hate this term)if you can obtain money with CREDIT you can make it happen. END OF STORY.

VERY, VERY TRUE!!!!

[sniper]

Originally Posted by 1969 SS

people that aren't rich NEED credit. there is no such thing as not needing credit. I learned (am still learning) the hard way. I have about 6 or 7 credit cards.

I have to take issue with your statement. I am more inclined to think people that aren't rich need less credit. Most middle class to lower people use credit to purchase things they cannot afford to buy with cash. Hence there is NOT a NEED for credit. A home while nice to have is not a neccessity. And yet you can buy a home with higher interest rate, or higher down payment or puchase down points, or many other means to get a home. And with timely payments over a few years you can refi or pay down your mortgage earlier negating much of the interest no matter the rate.

Cash forces you to live within your means. Credit allows you the freedom to ruin everything.

Originally Posted by Vegas69

Credit means more now than it ever has, and I'll prove it to you. Anybody could get a loan 3 years ago. It made sense to everybody. Now, you better be iron clad to stand a chance. I can't disagreee. Money was waaaaaaay to looose.

And here again. I know a few small business owners with "iron clad" credit that cannot get increases or more credit to grow their business's. Banks and business are withdrawn and holding their credit and reserves because of the uncertain future. Remember a lot of that bailout money was supposed to be passed down to business to continue the business of business. That didn't happen.

[Northeast Rod Run]

Originally Posted by sniper

I have to take issue with your statement. I am more inclined to think people that aren't rich need less credit. Most middle class to lower people use credit to purchase things they cannot afford to buy with cash. Hence there is NOT a NEED for credit. A home while nice to have is not a neccessity. And yet you can buy a home with higher interest rate, or higher down payment or puchase down points, or many other means to get a home. And with timely payments over a few years you can refi or pay down your mortgage earlier negating much of the interest no matter the rate.

and that is exactly why credit is needed, when you aren't a very wealthy person. if you didn't make timely payments, you wouldn't be allowed to refi because you wouldn't have built up good credit, not to mention that good credit makes things affordable. if I had bad, or no credit, there is no way I could buy a house because the interest rates would make it totally unaffordable for me

[Vegas69]

Originally Posted by sniper

I have to take issue with your statement. I am more inclined to think people that aren't rich need less credit. Most middle class to lower people use credit to purchase things they cannot afford to buy with cash. Hence there is NOT a NEED for credit. A home while nice to have is not a neccessity. And yet you can buy a home with higher interest rate, or higher down payment or puchase down points, or many other means to get a home. And with timely payments over a few years you can refi or pay down your mortgage earlier negating much of the interest no matter the rate.

Cash forces you to live within your means. Credit allows you the freedom to ruin everything.


And here again. I know a few small business owners with "iron clad" credit that cannot get increases or more credit to grow their business's. Banks and business are withdrawn and holding their credit and reserves because of the uncertain future. Remember a lot of that bailout money was supposed to be passed down to business to continue the business of business. That didn't happen.

Business credit is a different discussion.

[70rs]

I think it's safe to say that there are both good and not so good things about having and using credit. If it is used wisely it can be a great thing. If used (abused) it can be a very bad thing.

So we can all agree that we don't all agree......

[tones2SS]

Originally Posted by sniper

And here again. I know a few small business owners with "iron clad" credit that cannot get increases or more credit to grow their business's. Banks and business are withdrawn and holding their credit and reserves because of the uncertain future. Remember a lot of that bailout money was supposed to be passed down to business to continue the business of business. That didn't happen.

It's the "current state" of the banks. Hardly any businesses are getting credit. The company I used to work for had their credit cut in half. I do agree with the bailout money comment, but that is another story for another time.

[Flash68]

Originally Posted by Vegas69

Business credit is a different discussion.

Well, yes and no...

The backbone of this country is built on small businesses and their payrolls, and the very large majority of these small businesses (like my 2) are dependent on credit/financing that is applied for based on personal credit. I am dealing with this right now with both of my businesses.

Banks just aren't lending like the govt is asking them to, and I don't necessarily blame them from a business perspective, but it surely isn't helping solve the problems.

[Vegas69]

I have no experience obtaining credit personally for my business. I get offered business credit at the bank but I'm sure it's not much. When I said business credit is a different discussion, I meant the guidelines between obtaining a loan with business credit and personal credit are different.