The Credit System What do you think about the credit system?

[communitykat 0]

I think it is crazy in a free and half-democratic country like the United States that businesses have been given the key to citizens financial futures. For you who are not familiar with the credit system it goes something like this:You have to have credit to function in the U.S., to:Rent an apartmentGet some jobsBuy a carBuy a houseGet a loan..and much much moreIn order to get credit you have to have a credit cardIn order to get a credit card you have to have a bank accountNow, we all know that credit cards and bank accounts can be a hassel. To a poor person who lives paycheck to paycheck (70% of U.S. says the Wall Street Journal) they can spell financial disaster. I once got $300 in fees for being 2 cents over on my bank account, and credit cards are almost certian long term debt. In 2004, average credit card debt per household was $9,300 up from aroun $3,000 in 1990, that is over 200% increase. You can look at the figures if you google Grandfather Economic Report series. It is shameful and becoming a serious problem for the United States (I don't know what it is like in other countries). So, once you get a bank account and a credit card and build up some debt...(because this is what they are looking for. To have good credit you have to have REVOLVING credit, which means you have to be a certian amount in debt continually, and continually make payments. You can't just use the card, pay it off and not use it for a while)....you will get a credit score. Your credit score can be accessed by many, many entities including, businesses, renters, the government, schools...but cannot be accessed by the consumer whos credit report it is. One must pay to have a their credit report sent to them. However, every time someone looks at a persons credit report their credit rating goes down. So, you can't apply for a lot of loans at one time. You cannot apply for a lot of credit cards at one time. If you are searching for a place to live, your credit score will steadily go down as more and more renters inquire about your credit. Who are these people and why do they have access into my personal finances and even control over it? Who created this system?Do you think it is right?

[rvalkass 5]

I don't think it is right that companies should have access to your personal finances. I understand that they want to know if the person they are lending money to is trustworthy and reliable, but these reports are not accurate at all. Companies very frequently put inaccurate information on there, or information that is nothing to do with you whatsoever. I don't like credit cards anyway, and never intend to get one myself, as they just cause more trouble than the supposed extra convenience you have.

[Saint_Michael 3]

Amen to that rvalkass, credit cards are pointless to the fact your paying either double or triple of what you spent if you don' pay it back. Same with school loans and other things with credits. Lucky For me I am set with vehicles don't have to worry about purchasing one. Now getting a house that maybe a different matter but that will come eventually, hopefully the misses will have better credit them me .

[arnz 0]

Lets not forget the interest rates and whether it may go up or down, especially when paying something major off as in the first "new car" or being a first homebuyer.

[arnz 0]

Also, keep in mind if its a large purchase that the card holder plans to pay off (through a financial plan or whatever), and stuggles down the track later because of other unexpected financial burdens (ie accident, or something needing replacing, and so forth). The holder would likely end up paying more than what they plan to pay it for.

[velma 6]

Hi i can agree to a limit on what you say, It is true that credit cards make yuo want to spend more than what you need, I mean my cousin's dad has lots of debts due to credit cards but they can come handy when you cannot carry heavy duty cash like suppose an emergency has happened and you need to pay then you can always swipe the card if there isnt sufficient cash in the bank.I guess everything has a pro and con like the credit card and I guess it's our responsibility to know what you need and what you dont need before buying.Cheers,

[lekrissy 0]

I think it's very unfair because I am one of those people who live paycheck-to-paycheck (my husband is the one who works). We almost became homeless just because we don't have credit. And we can't get a bank right away because my husband went over in our last bank. That leads me to myself: I can't get a job because we can't afford another car, and walking to and from a job isn't safe for anyone where we live. So, we're stuck financially. We can't even go to college for the same reasons. That's why I've been trying to find work online. We want to save up for a house, but can't because we don't have a bank and we can't get loans because we don't have credit. It's a vicious cycle. We really can't do much with our lives because we don't have credit and we're borderline poverty.