Questions about getting rid of all credit cards

Tony Shafer · 07-08-2008 06:49 AM

<table cellspacing="0" cellpadding="0" border="0"><tr><td valign="top" style="font: inherit;">

banks are tightning up..

just a couple of years ago, all you needed was a credit score of 580,good payment history with your cable company, car ins or your power bill..

the subprime crises has made it much more difficult to buy a house...

the banks have raised the minimum qualifications...

you need a much higher credit score...you need a credit history....it's harder to use a lease agreement as income to support a mortgage on an investment property..

and the credit bureaus are rivising the way they calculate your credit score

they are really hammering the middle class



--- On Mon, 7/7/08, leigh.drewett@ntlworld.com <leigh.drewett@ntlworld.com> wrote:

From: leigh.drewett@ntlworld.com <leigh.drewett@ntlworld.com>
Subject: Re: Budget101.com : Questions about getting rid of all credit cards
To: "Yahoo budget 101" <Budget101_@yahoogroups.com>
Date: Monday, July 7, 2008, 6:32 PM

<DIV id="yiv1996727639">

If you read dave ramsey's book you will see that you actually do not need a formal "credit history" to buy a house. So I would say bye bye credit cards!!
------------ ------
</BLOCKQUOTE></td></tr></table>

Tony Shafer · 07-08-2008 06:58 AM

these lenders are dropping one by one...

20% down payment is an excellent down payment...

but, these rules are changing daily...

these books were written last year or the year before and these guys here coud

be out of biz tomorrow...

--- On Mon, 7/7/08, Lucy Anderson <lucy.fortin@gmail.com> wrote:

From: Lucy Anderson <lucy.fortin@gmail.com>

Subject: Re: Budget101.com : Questions about getting rid of all credit cards

To: Budget101_@yahoogroups.com

Date: Monday, July 7, 2008, 5:29 PM

Um... not so much true.

Lucy Anderson · 07-08-2008 09:55 AM

The basic rules have not changed - 20% or more down, good history in paying rent, 6 to 12 months living expenses (including the mortgage payment) in the bank. That is just "good for you." The "I love debt" score - if it takes that to buy a house then I don't want one.

We had a subprime loan - stated income, high interest, zero down. DON'T DO IT. Walk away. My former spouse was stupid and that loan (first and second mortgage) caused so much stress. I'm about at the point where I had rather pay cash for my house. Then it will not foreclose. 100% of foreclosures had a mortgage. I know rent is dumb and I don't like it, but it is better than a predatory mortgage or a credit score because I loved debt and loved paying interest.

On Tue, Jul 8, 2008 at 3:58 AM, Tony Shafer <tshafer12@yahoo.com> wrote:
<blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204);">
<div style="background-color: rgb(255, 255, 255);">

these lenders are dropping one by one...

20% down payment is an excellent down payment...

but, these rules are changing daily...

these books were written last year or the year before and these guys here coud be out of biz tomorrow...

--- On Mon, 7/7/08, Lucy Anderson <lucy.fortin@gmail.com> wrote:

From: Lucy Anderson <lucy.fortin@gmail.com>

Subject: Re: Budget101.com : Questions about getting rid of all credit cards

To: Budget101_@yahoogroups.com

Date: Monday, July 7, 2008, 5:29 PM

Um... not so much true.




[/quote]

--
http://www..com

Matthew 22:37 - Love the Lord your God with all
John 13:34 - Love one another
Matthew 28:19 - Go and make disciples

Monica · 07-08-2008 05:30 PM

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2//EN">

>>the banks have raised the minimum qualifications...

you need a much higher credit score...you need a credit history<<
Yes, the banks and mortgage lenders have raised minimum qualifications. They need higher credit scores because people have SO MUCH credit they need to feel confident that those people can keep their heads above water.
BUT – and I cannot stress this enough – you DO NOT NEED A CREDIT HISTORY TO GET A MORTGAGE. It’s a MYTH designed to get people to use more and more credit!
Even in today’s mortgage industry this is true. Conventional lenders are doing fine – it’s the brokers who were using creative financing, particularly ARMS to get people into houses they couldn’t afford in the first place who are struggling. 
In fact, I take great comfort in talking to lenders who are doing manual underwriting (as opposed to fico underwriting) and hearing that they are actually beginning to look even MORE favorably at those who pay their bills with their take home pay and DO N OT rely on credit. They know responsible people when they see them and show preference to people who live within their means.
I would hate to see anyone on this list being scared into keeping a credit card out of false information about mortgage worthiness based on credit history.
Monica in IL

bodymindspirit7 · 07-09-2008 03:33 PM

Hi Everyone,

I am finally back on the list and received all of your messages.

Thank you for all of your helpful suggestions! After reading all of

your replies, I really feel confident about getting rid of my credit

card. Rather than cut it up or freeze it in water, I decided that I

am going to send it to my mother across the country with strict

instructions only to express mail it back if my car breaks down and I

have trouble renting a car. I have a really old car and it does

break down sometimes but I don't want to buy a new one and take a

huge loan. None of you seem to have trouble renting a car with a

debit card so hopefully I won't either. Thanks.

--- In Budget101_@yahoogroups.com, "bodymindspirit7"

<bodymindspirit7@...> wrote:

>

> Once again, I have charged my credit card up to the limit (luckily

I

> have a low limit on the card). I have decided that I no longer

want to

> have ANY credit cards. They have caused me nothing but trouble. I

> have been in and out (mostly in) credit card debt for 25 years. It

is

> exhausting and there is no way I can live the rest of my life

(probably

> at least 40 years) like this. I would like to just use a debit

card

> instead and just not have any credit cards. Do you all have credit

> cards?

>

> I am really afraid of having problems renting a car. I go on a few

> trips each year, sometimes alone, and sometimes the rental car

> companies require a credit card and will not accept a debit card.

Is

> there a way to get around this? What do you all do? What about

pre-

> paid credit cards? Do rental car companies take them?

>

> Other than the rental car problem, is there any other reason why I

MUST

> have a credit card? Can a person really get by with just a debit

card

> and maybe a pre-paid VISA? I just want to get out of this hell.

>

> Your help will be greatly appreciated.

>

Thread: Questions about getting rid of all credit cards

LinkBack

Thread Tools

Display