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OT: Anyone else getting hosed by Credit Card Comapanies?


ace168516

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Stew,

I have heard stories recently about CC companys accepting a "cash offer" since they have or will have screwed your credit by then, when your money comes thru you should call them and offer 30% or so. Can't hurt to ask.

good idea. in a way, they helped me, as when i had to move out on my own and reestablish a household, i could very easily have maxed out that card and been even further in debt. so, i ended up fixing up my new place the old fashioned way--a little at a time and with cash. Even managed to fit in a second pair of oak heresies! my credit is already in the toilet though--i had refinanced the house before all of this happened and my credit score was 777--just checked it a few months ago and it was 575. so, it has taken quite a hit.

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Stew,

I have heard stories recently about CC companys accepting a "cash offer" since they have or will have screwed your credit by then, when your money comes thru you should call them and offer 30% or so. Can't hurt to ask.

good idea. in a way, they helped me, as when i had to move out on my own and reestablish a household, i could very easily have maxed out that card and been even further in debt. so, i ended up fixing up my new place the old fashioned way--a little at a time and with cash. Even managed to fit in a second pair of oak heresies! my credit is already in the toilet though--i had refinanced the house before all of this happened and my credit score was 777--just checked it a few months ago and it was 575. so, it has taken quite a hit.

I can see the importance of credit scores if you need to finance one of those necessary-type, big purchases, like a car or a home, but if you are not looking to do that, then, I think credit scores are overrated

If you do not use much credit, they score you lower - as if to try to embarrass you into borrowing and paying lenders interest. As far as I am concerned, in most cases, not being able to borrow can be a good thing, if it occurs at the right stage in your life.

When a lender does not want to loan you money, it should be a wake-up call, not of rejection, but of the fact that you really ought not to be borrowing. If you don't qualify for a very reasonable rate, then it shows that the proposed debt is likely an unreasonable burden on you.

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long story short, all is well until one day i get a letter from them saying that they were lowering my limit and by the way--you're over your new limit, so you also owe an over the limit penalty. to make matters worse, they also said since i was over my limit, they were increasing my interest rate.


Is that even legal? How can they give you what's in effect a retroactive penalty? That's really bald-faced gouging! Did you think of contacting your Congressman or the local news? I'd think they'd love to have a story like that to work with.
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All these stories....

It just reaffirms that if you don't want to get screwed around, don't do business wih credit card companies. You can write your Congressman all you want, but they will not get in the middle of it. Noting your complaint will not spare you the misery. Not setting yourself up for misery will.

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All these stories....

It just reaffirms that if you don't want to get screwed around, don't do business wih credit card companies. You can write your Congressman all you want, but they will not get in the middle of it. Noting your complaint will not spare you the misery. Not setting yourself up for misery will.

I disagree. If you do not or cannot pay the balance each month and on time then stay away, absolutely. But with that said, there are ways to beat them at their own game (see my previous post). Know when your payment is due and get it paid on time everytime, period. I have made literally thousands off of credit cards. I have paid not one red penny in interest or fees over the last 20yrs that I can remember. You must have the decipline to pay it off each month on time. That is the key to successful CC use.

Whats worse than a CC balance each month? WRITING Insufficient funds checks!

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Agree, credit cards should be used for thier 30 day (although my last one reduced it from 30 to 25 and then to 20 day billing cycle after years of not getting any interest from me) float and pay the full balance off. Of course they will then decrease your billing cycle, at that point I basically cancelled my card. The rewards stunk and I don't use it.

I use credit cards for convenience only. They get paid off in full every month. I think Dad taught me that. If you can't afford it, don't buy it. I used to salivate over the tear sheets for stereo gear until I'd saved enough lawn mowing money to plunk down green. Still do pretty much the same thing.

CASH IS KING BABY!

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All these stories....

It just reaffirms that if you don't want to get screwed around, don't do business wih credit card companies. You can write your Congressman all you want, but they will not get in the middle of it. Noting your complaint will not spare you the misery. Not setting yourself up for misery will.

I disagree. If you do not or cannot pay the balance each month and on time then stay away, absolutely. But with that said, there are ways to beat them at their own game (see my previous post). Know when your payment is due and get it paid on time everytime, period. I have made literally thousands off of credit cards. I have paid not one red penny in interest or fees over the last 20yrs that I can remember. You must have the decipline to pay it off each month on time. That is the key to successful CC use.

Whats worse than a CC balance each month? WRITING Insufficient funds checks!

Statistical studies show that paying with plastic tends to cause people to spend more money than they otherwise would if they were to pull out a wad of cash to make their purchases.

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Without addressing every post here individually I will just make kinda a bulk statement...including the fact that I agree with almost all comments here. I lost my job during college...a good job that helped me pay for that degree that now seems useless. I survived by paying for stuff for about 11 months on that...that is where about 1/2 the debt came from. I know that is generally no excuse for financial woes, but I liked the idea of being responsible for my own debt rather than asking my parents for money back in my early 20's. Life has gone on, and I have no vision of grandiose...I really just want to pay my bills and provide for my family. For the person than commented about the equity mismanagment in my refi...yes and no...I now understand where you are coming from...normally I would have paid off any revolving accounts...I did so for most of them, however, since my mortgage is owned by Chase and a small credit line was, I did not expect to get screwed for no reason. I guess I should have...3.99% for life was probably too much to ask for...it is cheaper than my mortgage rate. This is not going to kill me or send me to a lawyer...it just angers me that they seem to adjust the rules based on how the market is working for them, but I can't do the same.

Michael...you have it right about the usage of credit cards...when you are stable, it is great...you can earn point/miles/cash back whatever...I have a card I have been using for that purpose for a long time. Maybe just angry that everyone is getting bailed out but me (NO POLITICAL DISCUSSIONS PER AMY) I don't need to be bailed out...I just need people to treat their long standing customers like customers...not a cash cow...If my company decided to warranty our computers for 3 years and then when the economy went down changed it to one year for prior customers, we would not be in business anymore. Our small company holds up to a higher standard at probably a greater loss and it effects me, but nobody else seems to follow the lead. Anyways, I still love Kilpsch and the Meatloaf Corns will be about the last thing to go. No need to stop discussing either...I started the thread to make converstion, discuss.

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I never could understand how banks can charge $300,000 for a $100,000 dollar house on a mortage of 30 years with the rule of 78's. If some other entity does that in a 1 month period with say borrow $100 and pay back $300 dollars that's organized crime.

JJK

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"Statistical studies show that paying with plastic tends to cause people
to spend more money than they otherwise would if they were to pull out
a wad of cash to make their purchases."

Yeah, but those same people are the ones that carry a balance from month to month.[;)] By paying the balance each month you are spending cash. Its all in how you look at it.

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With that, I agree. You have to be a very frugally diligent person and not overspend and always pay timely. I always pay timely, except seldomly when I actually sit down to pay the bill and find out it is due tomorrow or yesterday. That's happened a couple of times. There are also more examples where I've used the card and bought more than I normally would had I had cash in hand at the time. Example, the purchase of a battery charger at Wal-Mart. If I was paying cash, I'd have bought the $20 model. I used the card and bought the $75 model. Just stuff like that.

But, yes, if you have an almost idealistic level of discipline, they can be just fine and even a benefit.

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At the risk of making this political, this has been happening a lot lately. (I'll be good, Amy!)

New regulations that may restrict how much and how often credit card companies can raise their rates has many companies scrambling to raise rates before the legislation goes into effect. I don't know the specifics of the legislation, but it's part of the economic reform going through Congress now.

I'm not saying anything good or bad about it. It's just businesses seeing possible restriction in the future, so they're raising rates while they can, just in case.

And that's all I'm gonna say about that. [:)]

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I'm not saying anything good or bad about it. It's just businesses seeing possible restriction in the future, so they're raising rates while they can, just in case.


Sorta like a pickpocket getting a last few wallets before the cop makes it onto this end of the street?
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I never could understand how banks can charge $300,000 for a $100,000 dollar house on a mortage of 30 years with the rule of 78's.


The 30-year mortgage itself is the first problem. 30 years is a long time and the interest really, really, adds up. It seems that in the US you have two choices, 15-year or 30-year, that's it. 30-year mortgages are very rare in Canada, perhaps because mortgage interest is not tax-deductible here, unless it's for a rental property or some other type of business. That gives a lot more incentive to get rid of your mortgage as soon as you can.

Young people buying their first home often go for a 25-year mortgage, but once you have some equity, or rates go down, or your income goes up, you can shorten it to whatever amortization suits you. I signed up for a 17-year mortgage once, and knocked it down to 13 years when I renewed a couple of years later. The payments weren't much different. I wound up mortgage-free after 15 years.
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"I never could understand how banks can charge $300,000 for a $100,000 dollar house on a mortage of 30 years with the rule of 78's."

They can't:

"In the United States, the use of the Rule of 78s is prohibited in connection with mortgage refinancings and other consumer loans having a term exceeding 61 months."

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Well, it must be nice to be able to say "pay off your card every month or don't have one"...but I'm in debt from a 3-year divorce fight & Chase did the 29.99% thing to me recently & dropped my limit. I tried to work with them but they said "if you'll let your payments get behind 60 days, we can offer you a lower rate on a payment plan!" WTF???

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A lot of people have had large c/c debts in the past and managed their ways out of them. I did about 10 years ago. At a point where I lost my job and had all sorts of debt is when I asked the same question yo did.... "WTF?"

It was then that I resolved to go on cash, stop spending like I used to, and never get back in that rat race again. It took a good handful of years to totally pay all debts, and it was worth it. I still have some debt on r/e and a car note. I will pay off the car in the next few months.

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For several thousand years most cultures banned usury - the charging of interest on loans. Gradually civil limits were raised to 9% and then 18% and finally no limit at all. Credit cards are nothing at 29%. PayDay loan shops charge 300% and more for loans.

Lets not bring your anti US crap in this thread, go praise Iran somewhere else.

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