Tess in the Burbs Posted October 20, 2011 Share Posted October 20, 2011 Well being home, not working all these years has finally affected my credit. We paid off our debt this year. So when I went to start electric service for this move I was told I had to pay a deposit. I was shocked since it's in both dh's name and my own and we have been with this company at multiple addresses since 2004. Since I was 'declined' service without a deposit I got a free credit report. Nothing bad on there. Nope, it's all paid off and THAT is why I was 'declined' and had to pay a deposit. Dh called and it's taken care of, but yep, sure enough: get debt free, stay home with your kids and you will have bad credit, lol :tongue_smilie::lol::glare: this post is pure sarcasm on my part. For those that want to give advice: yes, I have a credit card in my name and yes, we use it a few times a month just to keep credit open. I also have one store card I use a few times a year as well. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 Truly the banking system in this world is out of control... :glare: Quote Link to comment Share on other sites More sharing options...
FaithManor Posted October 20, 2011 Share Posted October 20, 2011 Good gravy! We have 25 months and we will be debt free. I guess this is what we have to look forward to. :glare: The banking industry is designed to keep the citizenry in hock/indentured. ARGHHHHHHHHHHHHHHHHHHHHH! Faith Quote Link to comment Share on other sites More sharing options...
Josie Posted October 20, 2011 Share Posted October 20, 2011 Really ticks me off. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted October 20, 2011 Share Posted October 20, 2011 Good gravy! We have 25 months and we will be debt free. I guess this is what we have to look forward to. :glare: The banking industry is designed to keep the citizenry in hock/indentured. ARGHHHHHHHHHHHHHHHHHHHHH! Faith Right there with you on that time table. I suppose we ought to take out a mortgage before we actually reach debt free status. :glare: Quote Link to comment Share on other sites More sharing options...
simka2 Posted October 20, 2011 Share Posted October 20, 2011 it is very frustrating. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 I feel its incredibly dangerous to have bad credit. As dangerous as too much debt.Why? Personally I find it much more comfortable to have no debt and a lot of savings than when we had too much debt. Quote Link to comment Share on other sites More sharing options...
Trresh Posted October 20, 2011 Share Posted October 20, 2011 I feel its incredibly dangerous to have bad credit. As dangerous as too much debt. Why? Quote Link to comment Share on other sites More sharing options...
angela in ohio Posted October 20, 2011 Share Posted October 20, 2011 (edited) You just need to call up the chain of command and find a person who will actually look at your situation instead of punching in numbers. It might take a few more minutes, but it's worth it not to have the worry of losing it all hanging over your head. If being debt free was truly that terrible for your credit, would they be giving credit cards to college students with no credit history at all? Stand your ground. There will alwyas be a few hiccups when you walk against the masses marching in the other direction. Edited October 20, 2011 by angela in ohio Quote Link to comment Share on other sites More sharing options...
ZooRho Posted October 20, 2011 Share Posted October 20, 2011 There is a new law or something. just saw it on the news and yeap non working spouses can no longer use household income for thier credit. Neither can College students. Quote Link to comment Share on other sites More sharing options...
nono Posted October 20, 2011 Share Posted October 20, 2011 Our electric company paid interest on deposits. I had plenty of good credit, and good standing with my former credit co., but I simply paid the deposit. They at least didn't charge fees like a bank would have during the year they had my money! :D Quote Link to comment Share on other sites More sharing options...
Night Elf Posted October 20, 2011 Share Posted October 20, 2011 There is a new law or something. just saw it on the news and yeap non working spouses can no longer use household income for thier credit. Neither can College students. Wells Fargo wouldn't let me use my household income to be a co-signer on a credit card with my dd19. My big fat $0 didn't look real good on that application. Her salary wasn't sufficient either, even though she had been in her job almost 2 years at that time. Are credit card companies still passing out cards like candy to college students? I would be surprised in this economy, when people with really good credit cannot even get banks to approve refinances or other loans. Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 There is a new law or something. just saw it on the news and yeap non working spouses can no longer use household income for thier credit. Neither can College students.It sounds like yet another attack on the family. When does it go into effect? MomsintheGarden just got a credit card from Amazon with a decent credit limit this week using household income. (Thanks for the recommendation, nono!) Quote Link to comment Share on other sites More sharing options...
Parrothead Posted October 20, 2011 Share Posted October 20, 2011 There is a new law or something. just saw it on the news and yeap non working spouses can no longer use household income for thier credit. Neither can College students. Maybe I ought to take back all those times I've said I'm not the maid. :glare: Quote Link to comment Share on other sites More sharing options...
Punks in Ontario Posted October 20, 2011 Share Posted October 20, 2011 Yeah that really stinks. We switched house insurance companies about a year ago. About a month after the switch we got a phone call that because of our poor credit rating, we were being charged a 30%+ surcharge. We're also debt free and pay everything off. The agent was horrified since he was aware of that, but head office would not budge. He even recommended another company to switch to who wouldn't do this. Uggh.:tongue_smilie: Quote Link to comment Share on other sites More sharing options...
mommaduck Posted October 20, 2011 Share Posted October 20, 2011 Really ticks me off. :iagree: Quote Link to comment Share on other sites More sharing options...
Mimmy Posted October 20, 2011 Share Posted October 20, 2011 That's ridiculous:glare: Quote Link to comment Share on other sites More sharing options...
SKL Posted October 20, 2011 Share Posted October 20, 2011 It's true for working moms, too. I should have the highest imaginable credit record after paying off my student loans, house, car, and all other debt, then remaining debt-free for a decade. But I don't. The comment at the bottom of the credit report basically says, "you'd have a higher score if you had some bills." I do keep a couple of credit cards and I pay off the balances each month. I prefer this to having to plan ahead to carry the right amount of cash, and also, it gives me a sense of security in case I should ever need to make an emergency purchase. You also need credit cards to enter into certain types of transactions (airline tickets / hotels / rental cars). As long as it's paid off every month, it's actually cheaper than cash. Quote Link to comment Share on other sites More sharing options...
Lolly Posted October 20, 2011 Share Posted October 20, 2011 It sounds like yet another attack on the family. When does it go into effect? MomsintheGarden just got a credit card from Amazon with a decent credit limit this week using household income. (Thanks for the recommendation, nono!) It has been in effect. She shouldn't have been allowed to use household income. Is it possible that she put in the household income when asked for her income? Quote Link to comment Share on other sites More sharing options...
ZooRho Posted October 20, 2011 Share Posted October 20, 2011 It sounds like yet another attack on the family. When does it go into effect? MomsintheGarden just got a credit card from Amazon with a decent credit limit this week using household income. (Thanks for the recommendation, nono!) I don't know I saw it on the news the other night, didn't catch the whole report. I think it could have been NBC nightly news (my station of choice for local news), so it is on after local news Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 (edited) It has been in effect. She shouldn't have been allowed to use household income. Is it possible that she put in the household income when asked for her income?Yes. That is what she did. For source, she selected "Spouse or Partner". For time at current job, she put "Not employed". She was approved for the basic amount immediately and then she was informed that she had a higher limit when the card came. Here is the note on the web form for that section: Income: Alimony, child support or separate maintenance need not be included if you do not wish to rely on it.Gross Annual Income is income that you are able to use for repaying your debts. Examples may include income earned from salaries, investments, rental properties, Social Security benefits and retirement accounts. Note the middle sentence which I bolded. Edited October 20, 2011 by RegGuheert Quote Link to comment Share on other sites More sharing options...
Annie Laurie Posted October 20, 2011 Share Posted October 20, 2011 We're debt free, except our mortgage, and have been for years. We have a good credit score though because we charge everything every month (groceries, gas, things that were already budgeted for the month) and then pay it off before it accrues any interest. Credit card companies call people like us who never have a balance "deadbeats". Quote Link to comment Share on other sites More sharing options...
Parrothead Posted October 20, 2011 Share Posted October 20, 2011 Yes. That is what she did. For source, she selected "Spouse or Partner". For time at current job, she put "Not employed". She was approved for the basic amount immediately and then she was informed that she had a higher limit when the card came. Here is the note on the web form for that section:Note the middle sentence which I bolded. I just did the same thing. It asked for household income. But it wanted a phone number for an employer. I just gave them dh's number. Since we have no credit card debt I thought I better get one while the getting is good. Quote Link to comment Share on other sites More sharing options...
nono Posted October 20, 2011 Share Posted October 20, 2011 MomsintheGarden just got a credit card from Amazon with a decent credit limit this week using household income. (Thanks for the recommendation, nono!) I'm glad it worked out! And read your mail occasionally. I almost missed a sign up deadline for earning bonus points. :blush5: (Mail sorting isn't my forte, but is my responsibility...) Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 I'm glad it worked out! And read your mail occasionally. I almost missed a sign up deadline for earning bonus points. :blush5: (Mail sorting isn't my forte, but is my responsibility...)Snail mail or email? I don't get the emails from Amazon, but I can ask MomsintheGarden to look for them. BTW, those points are ALREADY paying for parts of purchases. Pretty cool!! Thanks again! Quote Link to comment Share on other sites More sharing options...
Ginevra Posted October 20, 2011 Share Posted October 20, 2011 This cant be a surprise. Dave Ramsey brags about his horrible fica score. I feel its incredibly dangerous to have bad credit. As dangerous as too much debt. I feel similarly. :iagree: Quote Link to comment Share on other sites More sharing options...
Moxie Posted October 20, 2011 Share Posted October 20, 2011 I'm still curious how bad credit is as dangerous as too much debt??? Quote Link to comment Share on other sites More sharing options...
The Girls' Mom Posted October 20, 2011 Share Posted October 20, 2011 This scares me a little. We've been debt free for several years now. We are getting ready to move and will need to finance a house, at least for the short term. I wonder if my line of credit (that I rarely use) and my credit card (that never has a balance) will help? Quote Link to comment Share on other sites More sharing options...
Hathersage Posted October 20, 2011 Share Posted October 20, 2011 The whole not using household income went into effect on October 1st... here is article on it...http://bucks.blogs.nytimes.com/2011/05/09/stay-at-home-moms-and-the-need-for-credit/ Quote Link to comment Share on other sites More sharing options...
SKL Posted October 20, 2011 Share Posted October 20, 2011 I'm still curious how bad credit is as dangerous as too much debt??? I don't know where the quote came from, but maybe the point is that if you don't have good credit, you can't get emergency cash should the need arise. For example, if (God forbid) you found your family unexpectedly without a roof over your head some night, would you have the resources to secure shelter / other necessities until things got straightened out? Quote Link to comment Share on other sites More sharing options...
malbanese Posted October 20, 2011 Share Posted October 20, 2011 This cant be a surprise. Dave Ramsey brags about his horrible fica score. :iagree: This is so true! My husband and I don't believe in debt either. Our house is paid for and we pay cash for our autos, so when I got my "free fico score" I was shocked! The reason given was lack of "demonstration of credit worthiness!" We do use a credit card and pay it off every month, but for some reason, that didn't count! Crazy! Indentured is right! Quote Link to comment Share on other sites More sharing options...
nono Posted October 20, 2011 Share Posted October 20, 2011 Snail mail or email? Snail. Hence the problem. ;) Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 The whole not using household income went into effect on October 1st... here is article on it...http://bucks.blogs.nytimes.com/2011/05/09/stay-at-home-moms-and-the-need-for-credit/ Thanks. Our government has given WAY too much power to a privately-owned band (Federal Reserve Bank). Now they are interpreting acts of Congress?? :glare: Isn't it bad enough that they create money out of thin air and then lend it to our government? FWIW, MomsintheGarden applied for the card on October 13. Quote Link to comment Share on other sites More sharing options...
Hathersage Posted October 20, 2011 Share Posted October 20, 2011 Thanks. Our government has given WAY too much power to a privately-owned band (Federal Reserve Bank). Now they are interpreting acts of Congress?? :glare: Isn't it bad enough that they create money out of thin air and then lend it to our government? FWIW, MomsintheGarden applied for the card on October 13. Do you live in a community property state? stay-at-home parents applying for credit cards in their own names in a community property state can claim a share of their spouses' incomes and assets Quote Link to comment Share on other sites More sharing options...
RegGuheert Posted October 20, 2011 Share Posted October 20, 2011 Do you live in a community property state?No. We live in VA, which is not a community property state. Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted October 21, 2011 Share Posted October 21, 2011 This cant be a surprise. Dave Ramsey brags about his horrible fica score. I feel its incredibly dangerous to have bad credit. As dangerous as too much debt. I agree. We are completely debt free including our house, but we still use our credit card to pay for everything. We just pay it off at the end of each month. It has not effected our credit rating at all. We are still in the excellent rating. Having a lower credit score will cause many of your insurance rates to go up, etc. I would be contacting the credit agency and seeing exactly what dropped your rating. And I would step up using my credit card and just paying it off. Quote Link to comment Share on other sites More sharing options...
MariannNOVA Posted October 21, 2011 Share Posted October 21, 2011 I hear you! :grouphug: Quote Link to comment Share on other sites More sharing options...
SweetMissMagnolia Posted October 21, 2011 Share Posted October 21, 2011 a friend had similar issues this year.....I was absolutely shocked.... Quote Link to comment Share on other sites More sharing options...
Colleen in SEVA Posted October 24, 2011 Share Posted October 24, 2011 http://www.creditcards.com/credit-card-news/stay-at-home-parent-credit-cards-household-income-1282.php (sarcastic tone) Luckily for me, we still have plenty of debt. :lol: Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted October 24, 2011 Share Posted October 24, 2011 Well being home, not working all these years has finally affected my credit. We paid off our debt this year. So when I went to start electric service for this move I was told I had to pay a deposit. I was shocked since it's in both dh's name and my own and we have been with this company at multiple addresses since 2004. Since I was 'declined' service without a deposit I got a free credit report. Nothing bad on there. Nope, it's all paid off and THAT is why I was 'declined' and had to pay a deposit. Dh called and it's taken care of, but yep, sure enough: get debt free, stay home with your kids and you will have bad credit, lol :tongue_smilie::lol::glare: this post is pure sarcasm on my part. For those that want to give advice: yes, I have a credit card in my name and yes, we use it a few times a month just to keep credit open. I also have one store card I use a few times a year as well. Oh, I would have fought that, hard. I've stayed home for over a decade and have top credit scores. Like you, I have a single credit card and use it occasionally to keep that rating up there. When the bank cut my credit limit (which is large enough to buy a car, since I have had the credit card for 33 years!) I protested all the way to the top, reminding them that they don't find that kind of loyalty ever anywhere and I'll keep the card til I die, if they keep my rate at 4% and my credit limit high (because of credit available to used ratio affecting credit rating). CEO had his Secretary call me from New York and take care of it when Customer (no)service refused. If you have been with the company and have good credit (no negatives) even with paid off debt, I'd go up that chain til you found someone with half a brain cell who could understand this is a GOOD thing. Quote Link to comment Share on other sites More sharing options...
justamouse Posted October 24, 2011 Share Posted October 24, 2011 We're debt free, except our mortgage, and have been for years. We have a good credit score though because we charge everything every month (groceries, gas, things that were already budgeted for the month) and then pay it off before it accrues any interest. Credit card companies call people like us who never have a balance "deadbeats". This is us. We use them, we just pay them off. It's also how some people travel, they put it on the CC, pay it off every month and accrue the miles. And yes, the banks suck. They are out for themselves, only, and marking you as deadbeat/bad credit for being financially responsible is reprehensible. Quote Link to comment Share on other sites More sharing options...
Tarreymere Posted October 24, 2011 Share Posted October 24, 2011 We just don't do credit. We pay cash for our (used) cars, and our home (mobile home)is being paid through an installment agreement with the previous owner (set up to run over five years and almost done). That kind of thing isn't uncommon around here. If that option wasn't available to us we would simply rent and save up. Of course, we don't live in an expensive area and we don't feel it is necessary for us to live in a certain kind of dwelling or neighborhood. Credit isn't something we give any thought to and not having credit doesn't change the way we have chosen to live. Of course, sometimes when I see a nice house for sale that we could easily afford the payment to if we did have credit, I have to remind myself why we live the way we do. But it really isn't a hardship. I'm sitting in my lowly mobile home right now, next to the woodstove, and looking out my window at the beautiful Pennsylvania foliage all around me and if I walk outside I can see the lake and the geese. I can't complain. Well, I can mutter a bit about wishing we could re-do the kitchen floor sooner rather than later....... Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted October 24, 2011 Share Posted October 24, 2011 I'm still curious how bad credit is as dangerous as too much debt??? I can tell you why it's dangerous for us. DH would lose his job, and it would limit his prospects in his field. Everything in this country is starting to revolve around credit. I can't even download FREE BOOKS onto my dd's NOOK without a credit card attached to the account (don't get me started on that one). We've been Dave Ramsey fans for many years, but we don't think all aspects of being debt free are entire realistic for the entire population. Blessings! Dorinda Quote Link to comment Share on other sites More sharing options...
TravelingChris Posted October 24, 2011 Share Posted October 24, 2011 Yes, having bad credit would probably lead to my dh not being able to do his job. He needs to have good credit and no problems like alcoholism, gambling,etc. No problems for us anyway about having no credit- we have a mortgage, one car payment and a few credit cards we use. Quote Link to comment Share on other sites More sharing options...
shinyhappypeople Posted October 24, 2011 Share Posted October 24, 2011 (edited) I can tell you why it's dangerous for us. DH would lose his job, and it would limit his prospects in his field. Everything in this country is starting to revolve around credit. I can't even download FREE BOOKS onto my dd's NOOK without a credit card attached to the account (don't get me started on that one). We've been Dave Ramsey fans for many years, but we don't think all aspects of being debt free are entire realistic for the entire population. Blessings! Dorinda fyi: I use my debit card for the free ebooks and haven't had a problem. It's truly frightening to think about the effect credit can have on someone's job, insurance rates and LIFE. Some people have bad credit because of a job loss. So, the cycle is: unemployment ---> bad credit ----> can't get a job. It's a vicious cycle :( One that we were affected by when DH was unemployed. Prior to his job instability we had good credit. I wonder if charging something once a year, carrying the balance for one month :tongue_smilie: and then paying it off would be enough to maintain a good credit score. Edited October 25, 2011 by shinyhappypeople Quote Link to comment Share on other sites More sharing options...
justamouse Posted October 24, 2011 Share Posted October 24, 2011 fyi: I use my debit card for the free ebooks and haven't had a problem. It's truly frightening to think about the effect credit can have on someone's job, insurance rates and LIFE. Some people have bad credit because of a job loss. So, the cycle is: unemployment ---> bad credit ----> can't get a job. It's a vicious cycle :( One that we were affected by when DH was unemployed. Prior to his job instability we had good credit. I wonder if charging something once a year, carrying the balance for one month :tongue_smilie: and then paying it off would be enough to maintain a good credit score. It's all hypothetical at this point for me, since our credit is in the toilet and we're in bankruptcy. So, our lousy credit score is justified. But, I'm thinking of the future. This is why there needs to be some regulation. Your credit should have no bearing on your employment-especially as people become more circumspect with using credit cards!! Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted October 28, 2011 Share Posted October 28, 2011 fyi: I use my debit card for the free ebooks and haven't had a problem. I did too until last week when they charged me for a free book. What I was told was, even if the book is free, they run your card for .01-1.00 depending on the book. They supposedly don't take the funds, but in my case they did. At any rate, I asked them why they even touch my card for free books when Amazon doesn't (we are a Nook and Kindle household:tongue_smilie:). They couldn't tell me as to why. I think it's a scam. And, you're right, I think its horrifying that we're all being judged by credit. I know in theory we're in charge of our FICO, but it doesn't feel that way. It seems like it's too easy for mistakes to be made. Banks make mistakes, your identity gets stolen, or a company double charges your card and it's instantly on your credit. The worst part of it is, you're guilty until proven innocent! OK, now I have to go talk about something else because otherwise I'll have nightmares.:lol: Quote Link to comment Share on other sites More sharing options...
Tarreymere Posted October 28, 2011 Share Posted October 28, 2011 Wow, you mean a person can't get a job in some places without good credit? How crazy! I guess I'm going to snuggle down in my mobile home and not worry about the kitchen floor, credit is too scary to contemplate dealing with. Good thing DH didn't have his credit checked by his job, his late wife was really, really awful with that kind of thing and I know that his name was on a lot of it since we had to pay portion of it. I did see a house last night that is for sale in a decent area near us for only $12,000 and I admit I was thinking of it........we could buy it outright though if we really wanted it. Or maybe some of you might be interested! Not many jobs here unless you are into tool and die, though. Quote Link to comment Share on other sites More sharing options...
mytwomonkeys Posted October 28, 2011 Share Posted October 28, 2011 This cant be a surprise. Dave Ramsey brags about his horrible fica score. that's what i thought, lol. dave ramsey couldn't even pull up his credit report because it lacked sufficient information. Quote Link to comment Share on other sites More sharing options...
bethben Posted October 28, 2011 Share Posted October 28, 2011 Yeah that really stinks. We switched house insurance companies about a year ago. About a month after the switch we got a phone call that because of our poor credit rating, we were being charged a 30%+ surcharge. We're also debt free and pay everything off. The agent was horrified since he was aware of that, but head office would not budge. He even recommended another company to switch to who wouldn't do this. Uggh.:tongue_smilie: We have had the same thing happen. Our home insurance is higher because our debt load is only our mortgage. We've haven't had a car loan in over 5 years, we pay off our credit cards on time and never carry a balance and our mortgage is less than 1/2 of what our home is worth. The insurance couldn't budge and she told me to call my state representative who was partly responsible for the law. Apparently, those who are "poor" have been found to be more irresponsible when it comes to insurance and so they made a stupid law that also penalizes people who have little debt. And they wouldn't base it on income or anything else but a stupid credit rating. It IS annoying! Beth Quote Link to comment Share on other sites More sharing options...
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