FYI for those here with Liquid assets..........

[CF DolFan]

Good move by your buddy, Defense.   If you settle, it doesn't hurt your credit score.  A bankruptcy on the other hand would totally trash it. 

Better check again Tommy. It's settled but it still goes against you as a charge off.

[Defense54]

Better check again Tommy. It's settled but it still goes against you as a charge off.

Thats true. But whats the Big deal? I already own a home and a 30 year fixed Moorgage.  I have perfect credit for over 25 yrs but I see absolutely no big Loans on the near Horizon. I'm gonna get myself straight and just stay that way. Probably No season Tickets for a long while either. (Although I am paying off the Big Screen )

Credit Card companies are so screwed up No one is gonna have good credit. I'm gonna clear my Tab fast before they start upping the interest.............

[YoFuggedaboutit]

Better check again Tommy. It's settled but it still goes against you as a charge off.

\

It would say "Account closed by credit grantor".  Not necessarily a charge off. 

[Buddhagirl]

Credit Card companies are so screwed up No one is gonna have good credit. I'm gonna clear my Tab fast before they start upping the interest.............

How does this work? If one does not charge anything, or pay their balance off every month how does one get bad credit?

[YoFuggedaboutit]

How does this work? If one does not charge anything, or pay their balance off every month how does one get bad credit?

You don't get bad credit that way, but you don't build it either.

[Defense54]

How does this work? If one does not charge anything, or pay their balance off every month how does one get bad credit?

Simply Put. These companies are backed by Banks. I don't think I need to remind you of how many banks have over extended themselves ? No banks = No credit no matter who you are. Those that do get it are going to be paying High Intrest rates. The Days of the intrest free card will be long gone for a while.

[Defense54]

You don't get bad credit that way, but you don't build it either.

Exactly...........but my point being there will be nothing to build credit for anyway for a while. Banks are going to be concentrating on getting the House market moving again. They could care less about your Home Depo or Jetsons appliance credit card in the near future.

[SportsChick]

You don't get bad credit that way, but you don't build it either.

Of course you build credit that way.... why wouldn't you. As long as you have accounts in good standing that are open, you are building credit

[Buddhagirl]

You don't get bad credit that way, but you don't build it either.

I built credit that way.
 

Simply Put. These companies are backed by Banks. I don't think I need to remind you of how many banks have over extended themselves ? No banks = No credit no matter who you are. Those that do get it are going to be paying High Intrest rates. The Days of the intrest free card will be long gone for a while.

I sitll don't see the issue here. Spend cash.

[Defense54]

I built credit that way.
 
I sitll don't see the issue here. Spend cash.

No doubt. But you will be spending your own........not theirs. Their deep pockets just hit bottom.

[Lee]

Doing it that way will affect his credit for quite some time.

I actually do this type of work for a living.  I either go to court or get settlement around 15-30% and have a lesser impact on credit scores.

When I go to court, many times I get the entire case dismissed and the client owes $0! :-)

[Phishfan]

Of course you build credit that way.... why wouldn't you. As long as you have accounts in good standing that are open, you are building credit

My understanding is you have to owe money and be in good standing to build credit. Showing that you owe nothing usually hurts your credit scores. Minor debt is looked at better than no debt in that world.

[run_to_win]

I actually do this type of work for a living.  I either go to court or get settlement around 15-30% and have a lesser impact on credit scores.

When I go to court, many times I get the entire case dismissed and the client owes $0! :-)

So what's our incentive to spend wisely and pay our debts?

Nothing personal, but I think this is part of what's wrong with this country.  Good people, "shmucks", work full time or more to honor their obligations.  Others are allowed to walk away scott-free.

[SportsChick]

My understanding is you have to owe money and be in good standing to build credit. Showing that you owe nothing usually hurts your credit scores. Minor debt is looked at better than no debt in that world.

Not true. My credit was in the garbage and I have a couple cards that I use every month and pay off every month and my score has improved quite a bit.

[Lee]

So what's our incentive to spend wisely and pay our debts?

Nothing personal, but I think this is part of what's wrong with this country.  Good people, "shmucks", work full time or more to honor their obligations.  Others are allowed to walk away scott-free.

There are many incentives to spend wisely and pay our debts.  First of all, nothing in the law is gauranteed... you may wind up owing more than your original balance (ie: attorneys fees, court costs, interest, etc...).

Its also important to note that the credit card companies are not always innocent victims here.... as I am sure you all are aware.

I would add so many more, but right now my time is very limited... I will make another post as soon as I can.