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This is crazy!!

post #1 of 13
6/30/09 at 9:08am
Thread Starter 
Credit cards now look at what you buy to determine credit score..
Here is the story
What You Buy Affects Your Credit


What I don't get is...if you buy generic products rather than brand ones, it can also mean you are good at managing your money and shopping smart. It's totally weird for them to do this. Maybe it's just me but I never thought that was happening...
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post #2 of 13
6/30/09 at 10:08am
There is a solution. We could all get rid of our credit cards and start only buying what we can afford.
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post #3 of 13
6/30/09 at 10:23am
Quote:
Originally Posted by Yosemite View Post
There is a solution. We could all get rid of our credit cards and start only buying what we can afford.
So true. It's funny, having my identity stolen via my debit card last year was probably the best thing that ever happened to me, as it prompted me to pay off my credit card and get out of the loop completely. It took getting rid of a beloved motorcycle to do it, but it was worth it. I even dropped the debit card, as well. Now, I use pre-paid credit cards if need to do any e-shopping or whatever. The small surcharge is worth the peace of mind.

The whole system sucks. But be that as it may, it's totally in our power to not fall victim to it. I think that's what makes credit manipulation such as this all the more frustrating; because we know deep down that as much as we're a victim, we're also the perpetrator.
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post #4 of 13
6/30/09 at 10:32am
It is very hard to build a credit score without credit cards and without a credit score it is very hard to buy a car or home, so credit cards are in a way a necessary evil. Also, some people use credit cards for the rewards programs they offer and pay them off at the end of the month. May as well try to get a little bit back from the money you spend. Other people have credit cards for emergency purposes only such as a vet emergency or car breakdown. I don't think the solution is to get rid of them, the solution is to demand fair credit scores.
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post #5 of 13
6/30/09 at 10:41am
Quote:
Originally Posted by Yosemite View Post
There is a solution. We could all get rid of our credit cards and start only buying what we can afford.
Just because you're using a credit card doesn't mean you're spending beyond your means. I pay mine off every month. I use the same credit card for almost all* my purchases so that I can see at a glance how much I spent each month.


*I decided a long time ago to always pay for alcoholic beverages in cash so there's no paper trail.
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post #6 of 13
6/30/09 at 11:40am
Quote:
Originally Posted by Grogs View Post
Just because you're using a credit card doesn't mean you're spending beyond your means. I pay mine off every month. I use the same credit card for almost all* my purchases so that I can see at a glance how much I spent each month.


*I decided a long time ago to always pay for alcoholic beverages in cash so there's no paper trail.
You are a minority I would bet. Many, many people do not know how to handle a credit card, are maxed out on credit cards, paying HUGE interest rate and are basically going one step forward and 2 steps back.

Our credit rating should not be based on our credit cards. I appreciate what Katie said above, but I maintain that if we all lived within our means, we wouldn't need credit cards and therefore our credit would not be based on credit cards. My parents never had a credit card in their lives and they had no difficulties purchasing a house or car or anything else they required. But they also didn't buy anything if they couldn't afford it. They made do with what they had until they saved the money to buy what they needed/wanted.

I do realize times have changed and that with the economy in the slump now, things are tough, but they went through the depression with no credit card and still managed.

Many people get a new credit card from one company to pay off the old card from another company - that's just crazy.
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post #7 of 13
6/30/09 at 11:44am
I live within my means also and pay off my credit card every month. I am very blessed to be able to do that.

I have been tightening the belt even more since the economy tanked last September. Just putting as much money in savings as I can, just in case.

I have never had a debit card in my life and have never, ever used an ATM machine.
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post #8 of 13
6/30/09 at 2:56pm
Thread Starter 
Quote:
Originally Posted by Yosemite View Post
There is a solution. We could all get rid of our credit cards and start only buying what we can afford.
I like this solution. But the problem with that is that our entire society uses the system of credit history, if you don't have good credit, you can't get a cell phone plan you can't even rent an apartment ..unless u have a co signer.
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post #9 of 13
7/1/09 at 11:12am
I made the foolish mistake when I was younger to get into severe credit card debt. It is really hard to get out from under that kind of crushing burden. Feeling like a complete loser because you know you did it to yourself doesn't help either.

But credit card compaines really cannot go on with these unfair policies. I belive it is way past the right time for reform and am looking forward to seeing what develops. It is too late for me but maybe my neices will have a fairer shot at developing a good credit habit.

I really want to get to the point where I can use credit cards for their intended purpose and pay cash for all other things. Not gonna happen for at least another 5 years. If my interest rates don't skyrocket!

If people want to get out of the credit card game I can tell you to go to a credit union and see about a loan. They pay off your cards allowing you to keep one open so you can maintain a credit score and their interest rate, while high is still less than what most people are paying right now. You can pay off within a few years and keep building good credit since you can have a card open.
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post #10 of 13
7/1/09 at 3:56pm
I saved up for my car and paid it off in one shot. I plan to have a hefty down payment before I buy a house. Fortunately, I have relatives with assets, and I would rather borrow from and pay interest to them than to a bank. I really don't care what the creditors think of me.

I also pay my credit card off each month. I live within my means and it totally irks me when people spend money on stuff they don't need and then complain about their debts.
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post #11 of 13
7/4/09 at 12:38pm
Quote:
Originally Posted by ckblv View Post
I live within my means also and pay off my credit card every month. I am very blessed to be able to do that.

I too am able to pay off my card every month. For 20 yrs I never spent over my means even though I have a school loan. There are so many young people in debt. I think they should teach personal finance in the High schools instead of 'World Economy'.

"Neither a lender or a borrower be."
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post #12 of 13
7/5/09 at 6:34am
Quote:
Originally Posted by binkyhoo View Post
I too am able to pay off my card every month. For 20 yrs I never spent over my means even though I have a school loan. There are so many young people in debt. I think they should teach personal finance in the High schools instead of 'World Economy'.

"Neither a lender or a borrower be."
Good ol Polonius - I see I am not the only fan of Shakespeare here

At my HS, Personal Finance was a required class. So was Economics.

Hubby and I are fortunate enough to be able to pay off the credit card every month. We also agreed to discuss all expenditures over $50 with each other. Like it or not, Credit Cards are sometimes necessary - especially if you want to buy stuff online.
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post #13 of 13
7/5/09 at 7:14am
I've been pretty much paying off my balance each month for the last 25 years, and for those rare occassions when I couldn't do that, I put my credit cards away until the balance was paid.

Some of the practices described in that article aren't new. My first job in IT was in the credit card business. The primary way that the company determined if you should get a card, and what your credit limit would be, was based on where you lived (I know this for a fact because I designed that system). This was back in 1983. They would have looked at your buying habits, but that information wasn't generally available back then. I bet that they have been doing this for a long time now.

Even though the credit industry has gotten a lot looser in recent years, they still have to have a way to protect themselves from irresponsible spenders. Companies spend a lot of money linking patterns of behavior to the likelihood of getting paid back. The people that suffer under these rules are those that are honest but still trying to be frugal.
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