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

[Mr.LV]

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

Gaawwwwwwdd damnnnnnnn that shit should be a crime

 

[LordZuko]

Bad credit but paid off, a lot of people - especially people in this time and era with massive student debts don't take into consideration how much debt eats into their net income and their ability to save and create wealth over the long-term. It's very very hard to get wealthy when you're consistently obligated to pay someone a portion of your income b/c you owe them. Most people pay the minimum payment too with high interest rates so just imagine. Imagine what you could do if your mortgage was paid off or if you had no student loans or credit card debt ? Credit allows you to borrow money that you have to eventually pay. It's far better in the long-term to have bad credit and no debt, than good credit but in debt up to your neck.

It's funny to me how disciplined people get when they have to pay bills but when it comes time to save money or cut costs so they can keep more of their money they get in flux. That needs to change... It is not a good cycle to be in.

shit nigga I was gonna jag $150 this weekend. thought better of it in the end, threw that shit in the savings account instead.

You can use debt to your advantage tho, IMO. Having revolving debt shows lending institutions that you can be trusted with loans.

however if I hd to do it all over again I'd a went to JuCo my first two years then transferred to a 4 yr university. I would've saved at least 10k in loans, maybe even 20k.

 

[DarcSkies]

If you already have everything you want in life, "house, the car you want to keep, paid off student loans" and all that "American dream" shit then No credit.

But if you are dreaming of big purchases down the line, "home, that really nice car you've always wanted, that high priced job that requires a security clearance and a credit check, etc etc etc" then it's better to have the good credit.

 

[luke1733]

If you have any type of loan or mortgage you're in some type of debt. I'd rather take someone or be someone with debt and great credit b/c by usual circumstance; this type of person with great credit will not have outstanding debt. Otherwise if he did their credit would immediately go down.

However someone with bad credit, states they have a history of problems of accumulating debt, and most likely owe or multiple creditors.....thus the bad credit.

 

[CeLLaR-DooR]

My maa would laugh at this question. Paid off debts >>>>>>>>

 

[CEOFABRIC]

Bad credit with 0 debt it is. No overhead means you'll have plenty of cash on hand for all purchases.. Only issue would be the interest rates on major purchases.

 

[stackmaster 313]

I want GOD credit lol....

It's good debt and bad debt.

Simply put good debt puts money in your pocket

I.E A business or real estate investment loan that puts money in your pocket.

And bad debt

A car loan or mortgage payment money comes momthy payments out never comes in.

So give me GREAT credit and GOOD debt.

Read Rich Dad Poor Dad please people.

Or get some type of financial education.

 

[stackmaster 313]

Money comes out not in bad debt

 

[cannonspike1994]

You only need credit if your buying something you cant afford.

 

[yellowtapesport]

I'm a cash type dude but credit is more important in the long run

 

[dallas' 4 eva]

One thing I have learned, unless you super duper paid, all the cash in the world don't mean shit, you gotta have some credit.

 

[LordZuko]

I want GOD credit lol....

It's good debt and bad debt.

Simply put good debt puts money in your pocket

I.E A business or real estate investment loan that puts money in your pocket.

And bad debt

A car loan or mortgage payment money comes momthy payments out never comes in.

So give me GREAT credit and GOOD debt.

Read Rich Dad Poor Dad please people.

Or get some type of financial education.

speaking of which @Sion have you read this?

 

[TheGOAT]

Have you read the latest Bloomberg Report?

Shit is looking bleak out there.

 

[yellowtapesport]

You only need credit if your buying something you cant afford.

Dumbest shit ever. Shit is the opposite of financial literacy

 

[Miss.BlackAmerica]

I once worked as an underwriter for a large bank, and I can honestly tell you that good credit but in debt is ≤ bad credit with no debt. By having debt, even though you have good credit such can cause a bank to fear giving you a loan or credit card or whatever, due to you being a risk, and if credit is extended to you the interest rate will be higher. If you have good credit, but are in debt you are more likely on the road to bad credit due to defaulting on your debt.

Most banks will not extend credit to those who are in debt no matter how good your credit is. If your credit cards are maxed out, we will look at you in the same way we look at those with bad credit. Your credit cards should never be over 30%. And most banks won't even extend home loans to those who have a high amount of student loan debt etc, unless its in deferment for a year.

Banks like Chase which offer prime credit cards are known to close individual credit cards when they do their annual soft pulls and notice a card member is in debt, they fear you will run up their credit card and not be able to pay them due to your other debts. American Express is also now known to randomly select members, and suspend their cards until they submit w2 forms for proof of income.

The goal is not to be in debt. But bad credit puts you at risk of judgements and lawsuits ect, especially if you own prime banks.

 

[jetlifebih]

I once worked as an underwriter for a large bank, and I can honestly tell you that good credit but in debt is ≤ bad credit with no debt. By having debt, even though you have good credit such can cause a bank to fear giving you a loan or credit card or whatever, due to you being a risk, and if credit is extended to you the interest rate will be higher. If you have good credit, but are in debt you are more likely on the road to bad credit due to defaulting on your debt.

Most banks will not extend credit to those who are in debt no matter how good your credit is. If your credit cards are maxed out, we will look at you in the same way we look at those with bad credit. Your credit cards should never be over 30%. And most banks won't even extend home loans to those who have a high amount of student loan debt etc, unless its in deferment for a year.

Banks like Chase which offer prime credit cards are known to close individual credit cards when they do their annual soft pulls and notice a card member is in debt, they fear you will run up their credit card and not be able to pay them due to your other debts. American Express is also now known to randomly select members, and suspend their cards until they submit w2 forms for proof of income.

The goal is not to be in debt. But bad credit puts you at risk of judgements and lawsuits ect, especially if you own prime banks.

insightful....

does anybody know if it is possible to raise your credit score without going into a crazy amount of debt?

for an example....

will playing the credit card game of making a purchase and paying it off in full every month for 36 months give me the same result of getting a car loan for 36 months and making the payments on time for the duration of the loan??

im trynna rebuild my shit without jumping out the window on a car loan...id rather avoid the car loan and play this crediat card game until my credit score is high enough for a home loan...

 

[Miss.BlackAmerica]

I once worked as an underwriter for a large bank, and I can honestly tell you that good credit but in debt is ≤ bad credit with no debt. By having debt, even though you have good credit such can cause a bank to fear giving you a loan or credit card or whatever, due to you being a risk, and if credit is extended to you the interest rate will be higher. If you have good credit, but are in debt you are more likely on the road to bad credit due to defaulting on your debt.

Most banks will not extend credit to those who are in debt no matter how good your credit is. If your credit cards are maxed out, we will look at you in the same way we look at those with bad credit. Your credit cards should never be over 30%. And most banks won't even extend home loans to those who have a high amount of student loan debt etc, unless its in deferment for a year.

Banks like Chase which offer prime credit cards are known to close individual credit cards when they do their annual soft pulls and notice a card member is in debt, they fear you will run up their credit card and not be able to pay them due to your other debts. American Express is also now known to randomly select members, and suspend their cards until they submit w2 forms for proof of income.

The goal is not to be in debt. But bad credit puts you at risk of judgements and lawsuits ect, especially if you own prime banks.

insightful....

does anybody know if it is possible to raise your credit score without going into a crazy amount of debt?

for an example....

will playing the credit card game of making a purchase and paying it off in full every month for 36 months give me the same result of getting a car loan for 36 months and making the payments on time for the duration of the loan??

im trynna rebuild my shit without jumping out the window on a car loan...id rather avoid the car loan and play this crediat card game until my credit score is high enough for a home loan...

An auto loan is classified as an installment account, like student loans etc, such will help build your credit, but creditors like to see diverse credit files. Those with good credit usually have what we refer to as thick files (many years of documented credit), diverse credit file, and on time payments, with large credit limits. You need revolving credit, which can be done by getting a credit card or store card, and never going over 30% of the credit limit. Going over 30% will decrease your score. Most people will say pay your card before the bill cuts as this causes you not to pay interest (the bank won't make money off of you), this will also eventually cause banks to increase your limit.

Having a credit card don't mean debt. I have 12 credit cards all prime cards, my highest credit limit on a card is 40,000, and the lowest is 15,000. I'm in no debt, I don't charge what I know I can't pay back. And if I do use a card I try to pay what I owe back before the month is over. The problem becomes an issue when people think "credit" is their money.

Get a credit card, buy pizzas here and there, just small things; don't go over the limit. After six months, apply for a better card, let your cards age. Ask for CLI (Credit line increases), pay your bills on time. Don't apply for every card you see. Do all this while letting your credit age. You will have a credit score 700+ after a couple years if you coming from bad credit. I'm in my 20s and have 800+ FICO scores from all three credit agencies. Getting and maintaining credit isn't hard.

Oh, an if possible try to get credit with a credit union, they are the best when it comes to giving credit.

 

[jetlifebih]

I once worked as an underwriter for a large bank, and I can honestly tell you that good credit but in debt is ≤ bad credit with no debt. By having debt, even though you have good credit such can cause a bank to fear giving you a loan or credit card or whatever, due to you being a risk, and if credit is extended to you the interest rate will be higher. If you have good credit, but are in debt you are more likely on the road to bad credit due to defaulting on your debt.

Most banks will not extend credit to those who are in debt no matter how good your credit is. If your credit cards are maxed out, we will look at you in the same way we look at those with bad credit. Your credit cards should never be over 30%. And most banks won't even extend home loans to those who have a high amount of student loan debt etc, unless its in deferment for a year.

Banks like Chase which offer prime credit cards are known to close individual credit cards when they do their annual soft pulls and notice a card member is in debt, they fear you will run up their credit card and not be able to pay them due to your other debts. American Express is also now known to randomly select members, and suspend their cards until they submit w2 forms for proof of income.

The goal is not to be in debt. But bad credit puts you at risk of judgements and lawsuits ect, especially if you own prime banks.

insightful....

does anybody know if it is possible to raise your credit score without going into a crazy amount of debt?

for an example....

will playing the credit card game of making a purchase and paying it off in full every month for 36 months give me the same result of getting a car loan for 36 months and making the payments on time for the duration of the loan??

im trynna rebuild my shit without jumping out the window on a car loan...id rather avoid the car loan and play this crediat card game until my credit score is high enough for a home loan...

An auto loan is classified as an installment account, like student loans etc, such will help build your credit, but creditors like to see diverse credit files. Those with good credit usually have what we refer to as thick files (many years of documented credit), diverse credit file, and on time payments, with large credit limits. You need revolving credit, which can be done by getting a credit card or store card, and never going over 30% of the credit limit. Going over 30% will decrease your score. Most people will say pay your card before the bill cuts as this causes you not to pay interest (the bank won't make money off of you), this will also eventually cause banks to increase your limit.

Having a credit card don't mean debt. I have 12 credit cards all prime cards, my highest credit limit on a card is 40,000, and the lowest is 15,000. I'm in no debt, I don't charge what I know I can't pay back. And if I do use a card I try to pay what I owe back before the month is over. The problem becomes an issue when people think "credit" is their money.

Get a credit card, buy pizzas here and there, just small things; don't go over the limit. After six months, apply for a better card, let your cards age. Ask for CLI (Credit line increases), pay your bills on time. Don't apply for every card you see. Do all this while letting your credit age. You will have a credit score 700+ after a couple years if you coming from bad credit. I'm in my 20s and have 800+ FICO scores from all three credit agencies. Getting and maintaining credit isn't hard.

Oh, an if possible try to get credit with a credit union, they are the best when it comes to giving credit.

does having multiple credit cards qualify as "diversified credit" or do i need a credit card a car loan

 

[Miss.BlackAmerica]

I once worked as an underwriter for a large bank, and I can honestly tell you that good credit but in debt is ≤ bad credit with no debt. By having debt, even though you have good credit such can cause a bank to fear giving you a loan or credit card or whatever, due to you being a risk, and if credit is extended to you the interest rate will be higher. If you have good credit, but are in debt you are more likely on the road to bad credit due to defaulting on your debt.

Most banks will not extend credit to those who are in debt no matter how good your credit is. If your credit cards are maxed out, we will look at you in the same way we look at those with bad credit. Your credit cards should never be over 30%. And most banks won't even extend home loans to those who have a high amount of student loan debt etc, unless its in deferment for a year.

Banks like Chase which offer prime credit cards are known to close individual credit cards when they do their annual soft pulls and notice a card member is in debt, they fear you will run up their credit card and not be able to pay them due to your other debts. American Express is also now known to randomly select members, and suspend their cards until they submit w2 forms for proof of income.

The goal is not to be in debt. But bad credit puts you at risk of judgements and lawsuits ect, especially if you own prime banks.

insightful....

does anybody know if it is possible to raise your credit score without going into a crazy amount of debt?

for an example....

will playing the credit card game of making a purchase and paying it off in full every month for 36 months give me the same result of getting a car loan for 36 months and making the payments on time for the duration of the loan??

im trynna rebuild my shit without jumping out the window on a car loan...id rather avoid the car loan and play this crediat card game until my credit score is high enough for a home loan...

An auto loan is classified as an installment account, like student loans etc, such will help build your credit, but creditors like to see diverse credit files. Those with good credit usually have what we refer to as thick files (many years of documented credit), diverse credit file, and on time payments, with large credit limits. You need revolving credit, which can be done by getting a credit card or store card, and never going over 30% of the credit limit. Going over 30% will decrease your score. Most people will say pay your card before the bill cuts as this causes you not to pay interest (the bank won't make money off of you), this will also eventually cause banks to increase your limit.

Having a credit card don't mean debt. I have 12 credit cards all prime cards, my highest credit limit on a card is 40,000, and the lowest is 15,000. I'm in no debt, I don't charge what I know I can't pay back. And if I do use a card I try to pay what I owe back before the month is over. The problem becomes an issue when people think "credit" is their money.

Get a credit card, buy pizzas here and there, just small things; don't go over the limit. After six months, apply for a better card, let your cards age. Ask for CLI (Credit line increases), pay your bills on time. Don't apply for every card you see. Do all this while letting your credit age. You will have a credit score 700+ after a couple years if you coming from bad credit. I'm in my 20s and have 800+ FICO scores from all three credit agencies. Getting and maintaining credit isn't hard.

Oh, an if possible try to get credit with a credit union, they are the best when it comes to giving credit.

does having multiple credit cards qualify as "diversified credit" or do i need a credit card a car loan

Yes, it will help in your credits diversity. Diversity just means the different types of credit that was extended to you (credit cards, retail cards, student loans, auto loans, home loans, personal loan).

 

[jetlifebih]

oh iiiiiiiiiiiiiiiiiiiight thx