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11-09-2016, 09:41 PM | #481 | |
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Location: Hollywood, CA
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Quote:
That said, I just don't understand the numbers. If I read them correctly, he's $50,000 in debt with $7k equity in his home. How in the world could he have "A+" credit? This is what led to the crash of 2008. |
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11-09-2016, 09:47 PM | #482 | |
Kind of a mod
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Location: Donkey Land
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Quote:
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11-09-2016, 09:59 PM | #483 | |
Supporter
Join Date: Sep 2000
Location: Hollywood, CA
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Quote:
Again, I'm not trying to denigrate, just understand. It seems like I don't understand the rules. Mosbonian could explain this back in the old days but he rarely posts these days. |
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Posts: 88,960
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11-09-2016, 10:05 PM | #484 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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Quote:
My understanding is that a credit rating isn't about your net worth or your ability to pay so much as it is your actual history of paying. A person with debt who pays on it unerringly is perceived as a very positive risk, even better than a person without debt who doesn't have a record of unerring payment. |
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11-09-2016, 10:11 PM | #485 | |
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Location: Hollywood, CA
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Quote:
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11-09-2016, 10:14 PM | #486 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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I suppose that's true in a way, but credit scores are meant to help banks know how much risk they'll be taking that you won't pay them back. It has nothing to do with whether it's a financially-responsible decision for you to hold additional credit.
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11-09-2016, 10:23 PM | #487 | |
Veteran
Join Date: Oct 2008
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Quote:
They aren't being as profitable to a bank, so their score drops |
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11-09-2016, 10:24 PM | #488 |
Supporter
Join Date: Sep 2000
Location: Hollywood, CA
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The bottom line for me is that if I was earning $60k a year but $50k in debt with CC companies with 20% interest, I'd be freaking out and probably unable to sleep.
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11-09-2016, 10:27 PM | #489 |
Kind of a mod
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11-09-2016, 11:08 PM | #490 |
Shit
Join Date: Jun 2008
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11-10-2016, 12:51 AM | #491 |
Woman should only make babies
Join Date: Nov 2003
Location: Apartment "G UNIT!"
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I had like an 820 credit score when I bought a car and I am a dumbass.
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11-10-2016, 08:23 AM | #492 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
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Quote:
This. And, to carry it one step further, the bank or other lender will look at your "balance sheet" overall to determine whether ot make the loan. Your credit score is only one indicator, primarily around "reliability". Even with 800+ he couldn't/shouldn't be able to buy a $1 million house on $50k of income or whatever. |
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11-10-2016, 08:34 AM | #493 | ||
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
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Quote:
DaFace's post says it all in terms of the priority list. Get that CC paid off asap. Once you pay off the CC and have started the matching 401(k), etc. what you would REALLY like to do is refinance the house and NOT pay PMI. This requires that you have paid down 20% of the house based on valuation. PMI is money out of your pocket solely for the benefit of the bank and is COMPLETELY BAD. Here are your numbers: Quote:
That will save you quite alot every month. Based on your numbers, you already have $7K of that $17K, so you need $10K more to make it happen. |
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Posts: 43,125
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11-10-2016, 08:42 AM | #494 | |||
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
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Quote:
I'm not kidding when I tell you that some disturbingly HUGE percentage of America is basically in this boat, which is a huge part of why people are so disaffected and voted for "Hope and Change" in 2008 and for Trump in 2016. MEDIAN savings (half of population above, half below) for people aged 56-61 is $17,000. SEVENTEEN thousand. It's ****ing mind-boggling. Quote:
Quote:
http://www.businessinsider.com/how-m...irement-2016-3 |
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11-10-2016, 09:27 AM | #495 |
Scarlett Johansson's boytoy
Join Date: Nov 2006
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google reddit personal finance and sign up
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Posts: 12,526
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