The True Nature of Credit

[VideoTechMan]

One day a man came inside his bank, and came to ask about a loan application. A loan officer came out and greeted him.

Loan Officer: "Hello Sir, how can I help you today?"

Man: "I would like to inquire about personal loans."

Loan Officer: "Sure sir I can help you with that, come have a seat here."

The man went over to the officer's desk and sat down in the chair. Then she came in with some papers and sat down as well.

Loan Officer: "Ok sir, what kind of loan do you need and for how much?"

Man: "Not very much. Just a small one for $1,000."

Loan Officer (with a smile): "Ok sir I can help you with that...do you know how your credit is?"

"Credit?", the man asked, then thought for a moment. "Wow, its been so long since ive had any kind of credit."

"About how long sir?" the Loan Officer asked.

"Oh man...I think it has been 50 years since having any kind of credit," the man said thoughtfully.

The loan officer looked at him as if in slight shock. "50 years sir?? Did you have any kind of credit at that time?"

The man thought for a moment and said," The last time i had credit....oh gosh I was 27 years old...only 2 secured credit cards and that was all. I was trying to rebuild my credit at that time, but there werent any lenders that would give me a second chance."

The loan officer looked at the man thoughtfully. "Have you tried working on your credit sir?"

"No, I gave up on it" the man said. "After being tired of being turned down by lenders, I gave up on any kind of credit since then."

The loan officer then looked at him with curiosity. "If you don't mind me asking sir, did you take any steps to improve your credit so that you would be in a better position?"

"No ma'am, I felt it wasnt worth it anymore. I had concluded that once your credit has been messed up, its pretty much hopeless and that I would never get another chance at credit in my lifetime," the man replied.

The loan officer looked at the man with disbelief, as in wondering how was he able to make it without credit for so many years.

The man continued. "Since that time, I just saved up cash for everything I needed and wanted. Some things took longer to save up for, but felt satisfying once i did have the cash to pay it off. To me it proved that I dont need credit or any lenders to get what I needed. I had figured, credit unions, banks, car dealerships, and mortgage companies consider you a complete joke and a waste of time. So I gave up on them. Unless you had a perfect score of 850 and higher, and have been at your current job for 45 years, and dont have a single mark on your credit, you are worthless to them."

The loan officer seem quite interested in what the man was saying. She then replied," Well sir, you shouldnt feel that way, there is always hope for people that have had credit challenges. You could have been back on your feet within a year or two."

The man then replied, "Well it doesnt matter now, ive been paying cash for so long its a normal habit of mine."

Then the officer asked, "Ok sir, would you like to fill out an application for a personal loan?"

The man looked at the loan officer and smiled. "That's ok ma'am. I think now I am too old for any kind of loans, because being 78 years old, I doubt I would live long enough to pay it back anyway. Besides, I dont want to get turned down again.

"But sir you havent applied for any kind of credit for 50 years...I am sure you could qualify for something," the officer replied.

"No its ok," the man said. "I dont need any credit. I just needed someone who was willing to listen." And after that, he got up and started to leave, and he thanked the officer for her time.

"You're very welcome sir, and despite on what you feel about credit, there is always hope sir. If you ever do need any assistance, I am here sir," the officer said with a smile.

The man smiled, and went about his way.


Moral of Story....it just proves unless you have a perfect credit score of 850 and higher, had a job for 55 years and never made a mistake on your credit, a person is worthless, a waste of time and a complete joke to the lending companies, especially banks, car dealerships and mortgage companies. People always say to work on your credit and you hear so many ads boasting on this deal and that deal, but its all a catch-22....how can you rebuild anything when nobody will give you a second chance.

To hell with credit. Cash all the way. There are always ways to defeat the system.

VTM

[flaninacupboard]

america is so screwed up it's disappeared up it's own arse hole. emigrate to the UK or Australia.....

[vitualis]

Not to be cynical, by a completely unreferenced story -- not even annecdotal "n=1" story for goodness sakes, but essentially a fiction!

Credit has its uses.

If you don't have good enough financial management skills to handle credit, then perhaps you shouldn't have it...

Regards.

[thecoalman]

My brother knew a guy that paid cash or check for everthing not because he had to but because he could. Owned his home, cars, boats all nice stuff and all paid for. Went to get a cell phone and they denied his application.....

Same thing here never had credit in my life but you need a credit card these days, just try and rent a car without one. Denied Couldn't even get one of those store credit cards . Finally had a sit down with a bank represenative and they pushed it through, he actually found it quite amusing.

[DVD_Ripper]

america is so screwed up it's disappeared up it's own arse hole. emigrate to the UK or Australia.....

Hmmm... interesting proposition. Before I pack my bags and head east:

1. What is your current unemployment rate?
2. What is your goverment tax rate for a family income of, say, 75,000 pounds? (10%, 15%, 20%, 40%)
3. What does a liter of gasoline cost?
4. Is housing reasonable in and around larger metro locals.

[Craig Tucker]

I was waiting for the punchline

[Capmaster]

Credit is too easy to get here. That man must have defaulted on a loan or two to get a bad rating. Being constantly late with payments will get you a low score too. Like vitualis said, if you can't handle it, then maybe you shouldn't use it. You can always get a credit card for car rentals and online purchases as long as you limit its uses, and pay cash the rest of the time.

Every day I get two or three pre-approved platinum cards in the mail, pre-approved second mortgages, Sears cards, oil company cards, etc. I throw all of them away, muttering under my breath that I wish my credit wasn't as good as it is, so they'd stop sending me all this crap. I usually send back their empty postage-paid return envelope

[flaninacupboard]

Credit is too easy to get here. That man must have defaulted on a loan or two to get a bad rating. Being constantly late with payments will get you a low score too. Like vitualis said, if you can't handle it, then maybe you shouldn't use it. You can always get a credit card for car rentals and online purchases as long as you limit its uses, and pay cash the rest of the time.

Every day I get two or three pre-approved platinum cards in the mail, pre-approved second mortgages, Sears cards, oil company cards, etc. I throw all of them away, muttering under my breath that I wish my credit wasn't as good as it is, so they'd stop sending me all this crap. I usually send back their empty postage-paid return envelope

See over here the poorer you are the more credit you're offered!

Can't tell you how many "swamped with bills for your credit and store cards? problems with repayments on your car, or home imporvements? need cash for a holiday or home entertainment system? CALL US -NOW- TO CONSOLIDATE ALL YOUR LOANS INTO -ONE- EASY MONTHLY PAYMENT! all repayments subject to 29% interest charge"

My faourite is one which says "90% of our customers said our services had a positive impact on their lives!!!" what about the other 10%

[Capmaster]

Credit is too easy to get here. That man must have defaulted on a loan or two to get a bad rating. Being constantly late with payments will get you a low score too. Like vitualis said, if you can't handle it, then maybe you shouldn't use it. You can always get a credit card for car rentals and online purchases as long as you limit its uses, and pay cash the rest of the time.

Every day I get two or three pre-approved platinum cards in the mail, pre-approved second mortgages, Sears cards, oil company cards, etc. I throw all of them away, muttering under my breath that I wish my credit wasn't as good as it is, so they'd stop sending me all this crap. I usually send back their empty postage-paid return envelope

See over here the poorer you are the more credit you're offered!

Can't tell you how many "swamped with bills for your credit and store cards? problems with repayments on your car, or home imporvements? need cash for a holiday or home entertainment system? CALL US -NOW- TO CONSOLIDATE ALL YOUR LOANS INTO -ONE- EASY MONTHLY PAYMENT! all repayments subject to 29% interest charge"

My faourite is one which says "90% of our customers said our services had a positive impact on their lives!!!" what about the other 10%

On my days off that I'm watching a ball game or the news I notice the huge number of ads on TV for easy loans to consolidate bills, for tuition, etc., ads for attorneys to handle your bankruptcy, ads for get-rich-quick mall Wi-Fi franchises, etc. Also ads for car title loans, when you take them the title to your paid-for car and borrow against it until your next payday

These are put on during the day when there is a higher percentage of unemployed folks watching. Now the get-rich schemes I can understand putting on then, but the loans? If you were a lending institution would you really want to solicit applications from the unemployed???

[flaninacupboard]

See over here the poorer you are the more credit you're offered!

Can't tell you how many "swamped with bills for your credit and store cards? problems with repayments on your car, or home imporvements? need cash for a holiday or home entertainment system? CALL US -NOW- TO CONSOLIDATE ALL YOUR LOANS INTO -ONE- EASY MONTHLY PAYMENT! all repayments subject to 29% interest charge"

My faourite is one which says "90% of our customers said our services had a positive impact on their lives!!!" what about the other 10%

On my days off that I'm watching a ball game or the news I notice the huge number of ads on TV for easy loans to consolidate bills, for tuition, etc., ads for attorneys to handle your bankruptcy, ads for get-rich-quick mall Wi-Fi franchises, etc. Also ads for car title loans, when you take them the title to your paid-for car and borrow against it until your next payday

These are put on during the day when there is a higher percentage of unemployed folks watching. Now the get-rich schemes I can understand putting on then, but the loans? If you were a lending institution would you really want to solicit applications from the unemployed??? [/quote]

Hell yeah! those guys are desperate, and no-one else will lend them cash. i can charge 200% interest and some sucker will pay it. and if they don't, i've got such a team of crack laywers that not only will i reposses their house, cars, belongings and pets, i'll reposses their god damned children.

[thecoalman]

On my days off that I'm watching a ball game or the news I notice the huge number of ads on TV for easy loans to consolidate bills, for tuition, etc., ads for attorneys to handle your bankruptcy, ads for get-rich-quick mall Wi-Fi franchises, etc. Also ads for car title loans, when you take them the title to your paid-for car and borrow against it until your next payday

These are put on during the day when there is a higher percentage of unemployed folks watching. Now the get-rich schemes I can understand putting on then, but the loans? If you were a lending institution would you really want to solicit applications from the unemployed???

I think a lot of them are service companies that don't actually loan you anything but charge for there services to show you how to consolidate your debt.....putting you further into debt Or there fishing for people with homes, cars greater than the value of the debt.....

[Capmaster]

On my days off that I'm watching a ball game or the news I notice the huge number of ads on TV for easy loans to consolidate bills, for tuition, etc., ads for attorneys to handle your bankruptcy, ads for get-rich-quick mall Wi-Fi franchises, etc. Also ads for car title loans, when you take them the title to your paid-for car and borrow against it until your next payday

These are put on during the day when there is a higher percentage of unemployed folks watching. Now the get-rich schemes I can understand putting on then, but the loans? If you were a lending institution would you really want to solicit applications from the unemployed???

I think a lot of them are service companies that don't actually loan you anything but charge for there services to show you how to consolidate your debt.....putting you further into debt Or there fishing for people with homes, cars greater than the value of the debt.....

Maybe I underestimated the depths to which they would stoop :P Preying on the credit-addicted What's next ......a sin tax on CD blanks? Wait ....they're already doing that

[tweedledee]

I haven't met anyone with any REAL money who doesn't have credit cards. I use cards all the time, even though I could pay cash. The reason being that it gives me a good record of my purchases, if there is a problem with receiving the goods the credit card company will reimburse me, and one of my cards will extend the warranty period, plus insure against loss for, I think, 12 months

[thayne]

repairing credit isn't that hard. It just takes time. I've done it. I had about the absolute worst credt you can have. Took me about 7-10 years to fix it, but now I have excellent credit. About the only company who won't give me credit no is American Express, oh well thier loss... Buying a house helps....

[Cobra]

I have a Barclaycard and I spend about £50 on it every month, then pay it off before the set date. I never pay interest for my purchases, but I'm told that doing that will build up a good credit history.

I'm sure I will need to take credit at some point - I have a student loan just now (unused so far) but that's low-interest at about 3%. I aim to pay it off as soon as possible. I'm working hard at Sainsbury's just now to try to get money for next year. I hate being in debt.

Cobra

[VCDHunter]

I usually send back their empty postage-paid return envelope

Don't send the prepaid envelopes back empty, get the other application forms and send them back, so you send American Express to Visa, Visa to Barclaycard, Barclaycard to Mastercard etc etc.

[Capmaster]

I usually send back their empty postage-paid return envelope

Don't send the prepaid envelopes back empty, get the other application forms and send them back, so you send American Express to Visa, Visa to Barclaycard, Barclaycard to Mastercard etc etc.

I forgot
I think it was flan who suggested emptying an ashtray (ash bin?) and sending the contents back to them I never think of these neat little tricks when I need them ... Damn memory ....damn ...what?