Credit question: Bad credit but paid off or Good credit but in debt

[2stepz_ahead]

I rather bad credit but paid off.

after a while good credit wont mean shit because you wont be able to get certain thins because of the debt to income ratio.

 

[Trillfate]

Yeah I'll take God credit.

 

[Brother_Five]

God credit >>>

 

[leftcoastkev]

As far as credit....Been there. Done that.

I still rather not owe anybody. As long as you didn't file bankruptcy or have collections, it doesn't take too long to rebuild credit. You'll need to open a couple of secured credit cards with 1-5k limits and wait it out a year or 2. Your payment history while be poor but your debt to credit ratio will be good.

If your credit is bad and you don't have the cash, you'll need to stay put as far as housing (ownership) until it's better unless you're renting and even then you better have at least a 640 (many places 680) and be making 3x the rent in income. You may be able to get in with a lower credit score but you gotta be ready to pay double the deposit.

Living off cash isn't bad at all. It's basically how I've been rolling for the past 7 years or so. Only time I use credit is for stuff like cars. Even then, I'll drop half or more down on a new car, used credit to finance the other half, then pay off the principle ASAP. Credit is good now, but I think it's stupid to pay more on the back end to have trivial stuff on the front end, unless it's unavoidable. Once I have stuff laying around the house, I don't wanna pay for that shit. I rather pay for it WHEN I want it because I get tired of things real quick and feel worse about paying for it after the fact.

 

[skpjr78]

Neither for the win

 

[dalyricalbandit]

Good credit bad credit no credit still get approved to drive the car of your dreams

 

[LordZuko]

how do you pay everything off but still have bad credit? isn't negative credit reporting a result of late payments and items sent to collections and judgements? If you pay a bill late or if it goes to collections you can tell them to report it to your credit agency.

Either way, Good credit>>>>>>>>>>>>>>>>

 

[Peace_79]

Good credit >>>

Debt to income only impacts you negatively when you have an exorbitant monthly payment for said debt.

It matters what kind of debt we are talking about- mortgage? Student loans? Revolving debt?

We also have to consider the person's age, and their financial position; earning potential.

Great credit affords you so many opportunities in life, period. Debt is relative

 

[obnoxiouslyfresh]

Having good credit is invaluable.

My score was 740ish the last time I checked. And according to my bank account, I can live comfortably without working for the rest of my life... as long as I die on Thursday.

 

[TheGOAT]

The credit industry is a joke. The more you owe the better your score is (assuming u make payments on time)

But if you pay off your debts completely your score dont improve.

Shit dont make no sense logically.

I got good credit tho.

787

 

[LordZuko]

We live in a debt based financial system. many of people's major purchases require a loan unless they have the cash to pay outright, most notably vehicles and houses. Unless you have 300k just sittin around then you need a backer.

It is a hustle tho. However, the only thing these companies are exploiting is our desire to prove how independent we are, and to show the acquisition of material goods as a status symbol. For example, there's no reason why two or three families couldn't get together and put up a 60% down payment on a 5-6 bdrm mini mansion

The house could be paid off rather quickly, and then other families could save up for their own spots. In some cultures you have multigenerational families. There are all types of ways to build credit without going into serious debt, but we don't really hear about them til it's too late, and they don't teach Finance 101 in high school when it would be useful.

 

[CapitalB]

I rather bad credit but paid off.

after a while good credit wont mean shit because you wont be able to get certain thins because of the debt to income ratio.

like u said..

that debt to income ratio is a muthafucka..

im still buildin mine and still learnin the game..

this credit shit is tricky..

i hate it..

i prefer to jus use cash..

fuck all the bullshit... if i can talk my mom and pops into gettin land in they name imma say fuck it all together..

cause i can careless who's name shit is in long as its in the family..

 

[CapitalB]

We live in a debt based financial system. many of people's major purchases require a loan unless they have the cash to pay outright, most notably vehicles and houses. Unless you have 300k just sittin around then you need a backer.

It is a hustle tho. However, the only thing these companies are exploiting is our desire to prove how independent we are, and to show the acquisition of material goods as a status symbol. For example, there's no reason why two or three families couldn't get together and put up a 60% down payment on a 5-6 bdrm mini mansion

The house could be paid off rather quickly, and then other families could save up for their own spots. In some cultures you have multigenerational families. There are all types of ways to build credit without going into serious debt, but we don't really hear about them til it's too late, and they don't teach Finance 101 in high school when it would be useful.

this the mindstate im in now..

and tryin to push wit my family..

but these lost muthafuckas wanna stay in whack ass LA for whatever reason?? smmfh

 

[aneed123]

fuck ass student loans

 

[texas409]

Student loans takes 300 out my check every payday. I'm getting hosed

 

[not_osirus_jenkins]

Man credit is a lifeline. In my new business venture it's the only thing I worry about. So right now I'm about to buy another 4 plex in Albuquerque. 40k on one of my credit cards. The owner wants 10% down 800 a month. Each room rents for 575. My interest rate on my cards is so low that it makes financial sense to borrow against my credit rather then get a loan. Then pay on the 10k with the rental income. And the debt to income ratio, man look, imma give some advice that I should be charging for. If you currently have good credit open a business. Get your LLC, get your Duns & Bradstreet number, get an ein and apply for business credit. The best thing about business credit is that it doesn't affect your personal credit. The 2nd best thing is that it doesn't work like personal credit where the more you have on your card the worse it looks. The more you have on a business line of credit the more they WANT to extend to you. You can make tons of money with debt.

 

[taylornathaniel]

Student loans takes 300 out my check every payday. I'm getting hosed

get that loan forgiveness

 

[usmarin3]

The credit industry is a joke. The more you owe the better your score is (assuming u make payments on time)

But if you pay off your debts completely your score dont improve.

Shit dont make no sense logically.

I got good credit tho.

787

That's because America is built to keep you in debt.

 

[NothingButTheTruth]

I would need to know how much money I'm hypothetically pulling in annually to make the choice.

 

[mryounggun]

Just looking at the thread title, I would choose differently. But to be HUNDREDS of thousands in debt with good credit, that's a bad look. It's far easier, faster and cheaper to repair your credit than it is to pay off that amount of debt.