Credit Rating: The Holy Cow that Must Not Be Sullied

[Pip]

Let's have a heated debate!

Hello!

I've been thinking this lately and wonder what others think ...

With all the propaganda about the great importance of maintaining a good credit rating — in newspaper "Your Money" sections, on TV, on the radio, in online adverts whenever you log in to Hotmail etc. — and what to do to fix a defective/poor credit rating ... Is this responsible for people hanging on for longer and longer before dealing with debt problems, which in turn leads to far worse debt problems once people eventually do default and stop paying e.g. minimum credit card payments?

In my own situation, if I had started looking into tackling my debt situation once I realised it was starting to become a bit of a struggle to maintain, I would have been far far better off and sorted out much sooner instead of keeping up minimum credit card payments for as long as it was humanly possible. The world in fact did not end and the sky did not fall in once I stopped paying full minimum payments and received default notices. But the propaganda around maintaining a good credit rating is very strong and I reckon in hindsight it has played a big part in my debt situation getting to the level it did.

As for all the money I shoved down the pan in keeping up this impossible charade ... let's not go there!

[SXGuy]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

You hit the nail on the head with that.

Truth is, the whole system works by relying on us being in debt.

No money is passed to anyone without interest attached to it.

For every £1 the bank lends, the borrower has to replay + interest

And for every £1 deposited to the banks, they lend up to £10.

fictional money is being created by physical money.

How can you repay something with something that did not exist

And if banks keep lending finctional money that cant be repaid with phsyical money, you have recession

And then what happens? bank of england print more "physical" money, to counter the amount of fictional.

[MrsD]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

If you think about the bigger picture, the Greek people are suffering because a few guys in government are trying not to default when they patently are defaulting. I know the Greeks have brought a lot on themselves but they need a plan B and I don't think the present situation is going to fix the problem. Greek people who have jobs and mortgages and lives can't afford to eat because of the draconian measures their government is taking in defence of a bloody credit rating which is set by a bloody private company. If a wee alien arrived, he's think we were all mad buggers!!!

[SXGuy]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

If you think about the bigger picture, the Greeks people are suffering because a few guys in government are trying not to default when they patently are defaulting. I know the Greeks have brought a lot on themselves but they need a plan B and I don't think the present situation is going to fix the problem. Grrek people who have jobs and mortgages and lives can't afford to eat because of the draconian measures their government is taking in defence of a bloody credit rating which is set by a bloody private company. If a wee alien arrived, he's think we were all mad buggers!!!

What the greeks should do, is take control of their bank, and use their soverign right to print money, then they can use that to repay the IMF and anyone they like.

The people of greece know this also, but the goverment refuse to acknowlege this, they stay intent to stick with the program that lines their pockets.

[Never-In-Doubt]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

This all boils down to the shitty DPA we subscribe to, if/when we go Euro DPA then things should be a little better one would suspect

[Never-In-Doubt]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

See this for a useful reference: ---> http://ec.europa.eu/justice/data-pro...n/index_en.htm

[mgfboy]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

This whole situation is something that has come as we have all tried to get a "higher standard of living". When I was a kid in the late sixties and early 70 , I lived in what was I suppose was a normal family that didn't want for much, both my parents worked once we went to school.

But today what we would had back then , would have people shouting about how they where below the povety line, only one B&W tv no washing machine etc!!!!!

But what happen in the 70's and onwards was, we as people we could get credit , so unlike our parent we could buy stuff before we could afford it. So in effect the old HP has grown into the whole financial sector and the bench market is the credit report and our credit ratings.

I wonder now though, as most of us have now at least in the short term stuffed , much like greece our credit ratings. Are we worst off and how many of us will repeat what we have done before once we get our credit ratings back, or when credit gets to be lose again???

I suppose what I'm saying is would we be better off being like our parents who didn't even know what a credit rating was???

[PlanB]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

If the banks don't lend money they don't make money. When they run out of doing business with the good guys they simply lower the bar for criteria. It's not so much about what's on your CRA file as how much notice does the lender take of it. The sub prime market was priced accordingly. It'll be back sooner rather than later.

In 2006 - 2007 GMAC would lend to anyone with a pulse.

[SXGuy]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

Yes we are worse off than anyone else, because the goverment is manipulating the growth figures legally.

Any growth we have had since the crash has been based on interest charged to debt being repaid.

Its a false econemy, and if they aint careful it will come back to bite us all in the ass.

[mgfboy]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

If the banks don't lend money they don't make money. When they run out of doing business with the good guys they simply lower the bar for criteria. It's not so much about what's on your CRA file as how much notice does the lender take of it. The sub prime market was priced accordingly. It'll be back sooner rather than later.

In 2006 - 2007 GMAC would lend to anyone with a pulse.

Trust me the sub prime market isn't coming back all that quickly, people that are placed in that market now , would have been seen a prime or nearly prime upto 07. You can still get some leading in the second charge market, but the rates charged are abit of the high side!!! I get asked a lot to try an sort subprime lending but it's bloody hard to sort out and again the costs are so high!!!

As for banks lending money to make money, they are now opening more a more charge bearing accounts to make up for the lack of lending. But I seem to remember that all bank accounts used to have transaction charges on them ( in effect you paid the bank for letting them have your money) so in away I suppose they as aways go back to their old ways.

GMC always had in their lending policy that heartbeats where optional

[PlanB]

Re: Credit Rating: The Holy Cow that Must Not Be Sullied

the Greeks people are suffering because a few guys in government are trying not to default when they patently are defaulting. I know the Greeks have brought a lot on themselves but they need a plan B

I'll see what I can do - but that's a 'big ask' Mrs Dopey