credit cards

Originally Posted by Dr. Plummer

Can I just say that each time you are turned down credit, it goes against your credit rating, I was told this when I applied for a mortgage, my financial advisor said it counts for loans and credit cards and everything credit wise.

Not sure what you mean by 'against', a note is made of each credit check made on you including the reason why. Some companies score against you for this, others do not.

Originally Posted by pem

Not sure what you mean by 'against', a note is made of each credit check made on you including the reason why. Some companies score against you for this, others do not.

What I meant is, it can lower your chance of getting credit, just repeating what the financial advisor said. Like you said that they may not score on this, different companies do credit scoring by different methods and means.

[SMHarman]

Originally Posted by gazzae

Its strange, I can only get one credit card with a limit of £200! I have applyed for cards from egg, marbles etc etc and they all turn me down.

I don't think I have bad credit rating as I have a loan for my car and my PC which I have never missed a payment on. Plus I have an £80K mortgage that I've never missed a payment on either.

Maybe I'm just lucky that they don't want to give me credit cards!

As you don't currently have any revolving credit accounts, just loan accounts they will want to see a satisfactory pattern of activity.

Spend and pay off on time and you will see that £200 go up rapidly and more offers following. Your record may well be clean, but the companies are wary as it could be someone else trying to get credit on your profile...

You should also check your credit report, the previous owners of your house may have had bad credit and that could be a mark against you, there may be errors on it. Also are you on the electoral roll at the address, and have you agreed to having that info published so the credit companies can see it.

[kronas]

Originally Posted by Scarlett

I assume then that you don't currently have a card then. I agree that its easy to get credit at a bad interest rate but generally thats all that's availible (I know that when I've tried to get a decent loan (i.e. 6/7 %) I get refused because I'm not married (yet) didn't own a house (which I do now) and had moved around a lot due to Uni and rental agreements being 6 months only.)

yes but looking at it the point i was making is some people takeup the loans from the compaines set up to consolidate your debts in to one loan its a con really would you accept 15% from them think about how much you have to pay back on a £26k loan

Originally Posted by Scarlett

It's easy to say that you won't over spend etc. but until you have that card in you hands then you probably won't know exactly what its like to have the ability to have the new DVD/CD/game each week.

i do infact i have become very much more habitual in spending money wisely

Originally Posted by Scarlett

I agree that having a low credit limit is a good idea but I intend to have 2 cards once I've sorted ourselves out. one will have £100-200 limit and be for those nice little items that you want and the other will be £2000 or so for the white goods that we want as you get some major protection by using a CC that you don't get any other way. (Which is why I wasn't worried when powerhouse when into receivership about 2 weeks after I'd paid for, but not received, a new fridge.)

yes you see looking at if you were to buy items such as a fridge or washing machine that are essential to your everyday needs then maybe saving up for it is alot better then swipeing the card you are then not tempted in the future to spend

Originally Posted by Scarlett

I don't quite see where this comes from. Nobody deserves to be debt ridden and certainly taking someones house away from them Will not solve the problem. (It will compound it though)

if you cant be compitent with money then you do deserve to be in a hole it is your fault i have no pity in these circumstances

Originally Posted by Scarlett

How about us graduates ? If the Labour party has it's way with tuition fee's it will leave a generartion with more debt when they leave university than they are likely to earn in there first year of work. I left with about 6K of debt and my other half was about the same. since then we've paid some of that off but gained some more. However, being in debt is acceptable in todays society and it will remian that way until a large number of people come of worse and end up backrupt. and even then it will still be acceptable but more people will try to avoid it.

you find a job part time and you pay it off bit by bit as well as going to UNI and if you struggle too much ask you parents for a little help

Originally Posted by Scarlett

BTW, did you learn about budgeting and sensible control of you money in school ? I know I didn't.

nope i learned control compitence and not to be greedy i have put this in to excercise with great affect more about this later

Originally Posted by deedee

Having been there & done that & struggled like hell to get myself out of the nasty cycle of more credit to pay off credit, I think the view of people deserving what they get & not being able to control themselves is a rather narrow one.
I, like may other many others (though admittedly not all), had to borrow just to make ends meet. At the time, I took the cheapest (& scuttiest) flat available, but due to shockingly low wages needed to borrow to top up my income. I did not spend on "luxury" items that I did not need, rather food, essential bills & occasinally a bit for my rent.
It has taken many, many years to pay (most of) this back & now, due to a better paid job & a well paid partner, I have the luxury of not needing credit cards or loans, instead I spend cash or use my debit card so that I can only spend what I have!
I feel that when you have a little more life experience under your belt your generalised oulook that people deserve to lose their homes due to borrowing too much may alter (I would at least hope it would). It is a truly frightening experience which I would not wish on anyone.

OK, finished

and as you have blatently missed my point of the initial post i will explain

the program was rather talking about people who spend there money on luxury goods if its for a mortgage house then getting in to debt is easy but i was not mentioning anything related to buying food or essential items

so thank you very much to whoever gave me a negative rep

[kronas]

Originally Posted by basa

Um...typical of a 17 year old.

and a typical response from a typical person who does not grasp the concept of understanding me and likes to plagiarize me

Originally Posted by basa

I got into debt when I lost my job having two (then babies) daughters. Try maintaining a house with two children who want all the luxuries in life (like shoes, clothes an occasional meal !!)

the luxuries bit im talking about here ever head of 'putting your foot down' you dont have to bow down to the pressures of kids wanting the latest toy

Originally Posted by basa

It all seems so easy as a bright eyed, no responsibilities, no commitments teenager, but come back in 10 years and tell me how easy it is to fund a growing household on one salary !!

if we are all still around somewhere

[kronas]

Originally Posted by towny

Kronas - a friend of mine with teenage children used to have a sign in her kitchen:

NOTICE TO TEENAGERS:

Quick! Leave home, get a job and start paying bills, while you still know everything!

Life is not nearly as easy as you seem to think.

trust me i know life is not easy

Originally Posted by Incognitas

I had a CC once.After my husband wouldn't stop spending on the damned thing ,he was away with the navy and bored and still hadn't learned to do without my salary when I stopped to start our family,and we had debts of £3000 because as soon as we reached our limit they kept upping the damned credit limit.

Eventually we had to go see our bank manager(Barclays and a humiliating experience) who made us cut up our cards and then tried to give us a loan(with even more interest to pay). We said no thanks and decided to cash in an insurance policy instead.

this is a case i was more talking about where you spend spend spend and then you are in debt because you kept on getting the damn credit card out and using it

then the bank wants to sell you a loan on high interest

Originally Posted by Nemesis

.
Kronas, you're young and seem to view the world as a place full of nice people who will look after your interests, and that you can ultimately make all the right decisions. Be careful, this is NOT the case, situations and events have a way of creeping up on you and overtaking you.

This is in no way disrespecting you, it's just the rest of us have the benefit of hindsight, and some worldly experience.

i know you can get in to debt by owning your own home or mortgage food bills etc

but thats why you look for a job which pays well and if you need to rent a flat pay the bills its alot cheaper that dependant on your earnings you have to do the maths

if you read my previous posts i never meant to say that people deserve debt who are honest and dont buy luxuries but not every single person out there is in debt because of the above that many have mentioned in previous posts im talking about buying electrical appliances or expensive home improvements

Originally Posted by Stuart W

I would agree with the majority posted so far, the first post is obviously from a young debt-free person. Oh, and I also noticed that you seem to think you can get a credit card with a low limint. Odd. In my expirience, the credit limit will go up and up regardless of your instructions.

if that is the case and if i instruct the bank to not raise the limit but they do then there is no point in getting one

Originally Posted by Stuart W

REMEMBER the banks want a few people in debt, it's where they get their money!

there will always be people in debt

[kronas]

Originally Posted by ronald146m

Was this the programme Kronas?

Spend it like Beckham

Ron

that was it missed the intro i didnt even know it was on i was there by pure coincidence

Originally Posted by kronas

if you cant be compitent with money then you do deserve to be in a hole it is your fault i have no pity in these circumstances.

No kronas, nobody deserves to be in a 'hole'. People become in a hole before they even realise it. Do not take this as offense to your age but you are less likely to be experienced to those alot older than you who have gone through hell trying to make ends meet, we were all 17 once Kronas and we wish we could turn back the clock to that age and still know what we know now. You are at an age where you may not have any commitments, such as children, mortgage payment or rent, water rates, council tax, ground rent, electric and gas bills to pay, I will stand corrected if I am wrong.

When I was 16/17, I said I would never get any credit cards or loans, I've now currently got a car loan and two credit cards and various other store credit cards. Life takes unexpected turns Kronas and at 17, Kronas - I hazard a guess that you have not gone through what many of the posters in this thread have gone through, that is 'difficult' times.

[kronas]

Originally Posted by Dr. Plummer

No kronas, nobody deserves to be in a 'hole'. People become in a hole before they even realise it. Do not take this as offense to your age but you are less likely to be experienced to those alot older than you who have gone through hell trying to make ends meet, we were all 17 once Kronas and we wish we could turn back the clock to that age and still know what we know now. You are at an age where you may not have any commitments, such as children, mortgage payment or rent, water rates, council tax, ground rent, electric and gas bills to pay, I will stand corrected if I am wrong.

When I was 16/17, I said I would never get any credit cards or loans, I've now currently got a car loan and two credit cards and various other store credit cards. Life takes unexpected turns Kronas and at 17, Kronas - I hazard a guess that you have not gone through what many of the posters in this thread have gone through, that is 'difficult' times.

as i explained before i dont mean the people who are in debt due to the reasons you have stated above im talking about people spending cash left right and center even though they know they cant

*bangs head against brick wall due to people not understanding what he is trying to say

Originally Posted by kronas

as i explained before i dont mean the people who are in debt due to the reasons you have stated above im talking about people spending cash left right and center even though they know they cant

Have you considered Kronas that these people may have a 'spending' spree condition that is out of control? They cannot help it even if they really really want to.

[Dave Stones]

i suppose i am semi-lucky being a student. obviously not counting the debt mountain building up behind my student loans...

but anyway i have a credit card with £500 limit and a current a/c with £1000 overdraft. i have just poked into the overdraft and had to use my CC to make a couple of relatively big purchases, but i am lucky in that they are both interest free. i arent looking forward to the day with it goes up to 17.9% or wahtever teh CC interest rates are...

[kronas]

Originally Posted by Dr. Plummer

Have you considered Kronas that these people may have a 'spending' spree condition that is out of control? They cannot help it even if they really really want to.

of course you can ill show you

i currently have say £100 to spend i want..............

sky+ £199 plus £50 install then
dvd player costing £100
a 5.1 sub woofer and speaker system costing £200

now you see whats wrong here ?

i cant possibly buy all that so i do without i may have enough money to buy the dvd player but i choose not to..

now a person with a credit card might just use the CC to put it on the plastic he only earns £200 a week so he has got the council tax to pay weekly or monthly the eletricity all those previously mentioned bills

so at the end of the month he has pennies left now why would someone stick even higher priced goods luxury goods on a CC when he fully well knows due to his income and expenditure he cant pay it add the interest and voila

you have uneeded debt thats what i meant by luxury goods these people need sorting and deserve debt if you cant do the sums

i know about mortgages children all that i have sympathy and life is hard i dont have sympathy for luxury buyers who amass debt

Originally Posted by Dave Stones

i suppose i am semi-lucky being a student. obviously not counting the debt mountain building up behind my student loans...

but anyway i have a credit card with £500 limit and a current a/c with £1000 overdraft. i have just poked into the overdraft and had to use my CC to make a couple of relatively big purchases, but i am lucky in that they are both interest free. i arent looking forward to the day with it goes up to 17.9% or wahtever teh CC interest rates are...

Yep, the credit card companies who offer 0% interest on purchases and transfers, then 6 months down the line that offer vanishes and it hits you before you realise it.

[Jerrek]

When I was writing my original post, I was talking about credit card debt.

I do understand debt in certain cases, even though I hate it. A house. A car. Education.

I am C$8,000 (3,500 pounds) in debt from a student line of credit. That was only during the first year, when my folks had a particularly hard time. They do pay the interest each month on it. I'll be responsible for that debt once I graduate.

I have three credit cards. A regular student MasterCard with no rewards. A GM VISA which gives me 3% cash back towards a GM car (+ $1,000 when I graduate). And an American Express Airmiles card.

I use the GM card for everything to get points. I use the regular card for items I want to budget separately to make it easier. I pay them off clean each month. In fact, I often deposit money before buying something with the credit card because I'm so allergic to credit card debt.

My parents have several credit cards, each with a specific purpose. My dad has one Airmiles card that he uses for business purposes, and can often spend $30,000 to $50,000 a month on the card [the company pays the card though]. That translates into a heck of a lot of airmiles for us.

[snodvan]

I tried to keep a low credit limit on one of my cards (mainly used for web purchases) but the limit crept up and up. I asked (HSBC) for it to be reduced but without success. Now I use a Cahoot web-only Visa card. That has a big limit BUT it is very safe for web use because the "card" number changes at every transaction. Unfortunately some systems cannot accept such web-only cards eg on Ebay you have to 'register' your card - impossible if the number keeps changing.