Interest Rate and Credit Score

[DCLMP]

It’s angry news designed to create an emotional response.

Is that a new term like fake news. Now we have angry news?

 

[RamblingMad]

Is that a new term like fake news. Now we have angry news?

Lots of research has been done with how to write news stories to maximize the number of views. Negativity works.

 

[DCLMP]

Lots of research has been done with how to write news stories to maximize the number of views. Negativity works.

So are you saying the media has an agenda and tries to manipulate people. Who would of thunk it?

Media aside what’s your motivation for supporting this?

 

[RamblingMad]

So are you saying the media has an agenda and tries to manipulate people. Who would of thunk it?

Media aside what’s your motivation for supporting this?

I never said I supported it.

 

[Colleen27]

I don't think your comment in bold is correct. Please see Credit.com, the number one thing that affects your credit score is your payment history per this website.

The 5 Main Factors That Impact Your Credit Score​

The main factors that go into how your credit score is calculated are:

1. Payment history
2. Amount of debt, also known as your credit utilization ratio
3. Age of credit accounts or history
4. Mix of credit accounts
5. New credit inquiries

Yes, in a very broad sense. But a negative payment history traditionally makes it challenging to get a mortgage at all, and maintaining a good payment history on a thin credit file - say, only having one starter credit card or no credit cards but making timely payments on a car or student loan - is enough to keep you in sub-prime territory with many lenders. Payment history has the largest impact but unless you're playing the credit game "right" - that is to say, often and in a number of ways - you won't get to a good score. You'll be stuck in that average range, getting denials for lack of a more diverse file.

The tightening of credit right now is a story that I don't think is getting the attention it deserves; right now, even store financing offers are rejecting applicants with scores that traditionally fall into the "good" range. If nothing is done to intervene, it is going to choke off homebuying, car buying, and to a lesser extent, consumer spending. Which will certainly make those rooting for a recession to weaken labor's leverage happy, but isn't likely to be good for most people.

As far as whether I'd voluntarily pay into such a program, it is a moot point for a few reasons - I don't have a mortgage (which is part of why I know the limits of good payment history on keeping up a good score), and even when we did, that $400K example is many times more expensive than any home we've ever owned and we weren't prime borrowers back then either.

 

[RamblingMad]

Yes, in a very broad sense. But a negative payment history traditionally makes it challenging to get a mortgage at all, and maintaining a good payment history on a thin credit file - say, only having one starter credit card or no credit cards but making timely payments on a car or student loan - is enough to keep you in sub-prime territory with many lenders. Payment history has the largest impact but unless you're playing the credit game "right" - that is to say, often and in a number of ways - you won't get to a good score. You'll be stuck in that average range, getting denials for lack of a more diverse file.

The tightening of credit right now is a story that I don't think is getting the attention it deserves; right now, even store financing offers are rejecting applicants with scores that traditionally fall into the "good" range. If nothing is done to intervene, it is going to choke off homebuying, car buying, and to a lesser extent, consumer spending. Which will certainly make those rooting for a recession to weaken labor's leverage happy, but isn't likely to be good for most people.

As far as whether I'd voluntarily pay into such a program, it is a moot point for a few reasons - I don't have a mortgage (which is part of why I know the limits of good payment history on keeping up a good score), and even when we did, that $400K example is many times more expensive than any home we've ever owned and we weren't prime borrowers back then either.

Credit tightening is the bigger story. It will slow down the economy, which will lower inflation. But it will also put a lot of people out of work.

 

[DCLMP]

Yes, in a very broad sense. But a negative payment history traditionally makes it challenging to get a mortgage at all, and maintaining a good payment history on a thin credit file - say, only having one starter credit card or no credit cards but making timely payments on a car or student loan - is enough to keep you in sub-prime territory with many lenders. Payment history has the largest impact but unless you're playing the credit game "right" - that is to say, often and in a number of ways - you won't get to a good score. You'll be stuck in that average range, getting denials for lack of a more diverse file.

The tightening of credit right now is a story that I don't think is getting the attention it deserves; right now, even store financing offers are rejecting applicants with scores that traditionally fall into the "good" range. If nothing is done to intervene, it is going to choke off homebuying, car buying, and to a lesser extent, consumer spending. Which will certainly make those rooting for a recession to weaken labor's leverage happy, but isn't likely to be good for most people.

As far as whether I'd voluntarily pay into such a program, it is a moot point for a few reasons - I don't have a mortgage (which is part of why I know the limits of good payment history on keeping up a good score), and even when we did, that $400K example is many times more expensive than any home we've ever owned and we weren't prime borrowers back then either.

It will be devastating for our economy, but I don’t see another way out. I think this go around will be much worse than the last due to the vast amount of debt. Nothing was ever fixed after 2008 they just slapped a band aid on it.

 

[DCLMP]

I never said I supported it.

So you see it as what? I’m just trying to understand where your coming from. The rule seems pretty cut and dry to me.

 

[DCLMP]

This may be true, but I think the real reason it will never happen is that too many people would lose all their cushy loopholes. Can't have that happening. Why do you think Rupert Murdock pays less in taxes then his secretary? It's all legal but that doesn't make it right. A flat tax would or should eliminate the loopholes.

Editing to say the person named above should have been Warren Buffett as noted by another poster. Sorry for using the wrong name but what's the difference which rich person we use, they all have Legal loopholes to help them reduce their tax burden.

For those saying how high the mortgage rates are I have to remind you all of how high they got in the 80s. They were close to 20%, now that's crazy and talk about killing the market, that would be a market killer. The problem is that we have just gone through a period of historical low mortgage rates, and they are now adjusting themselves to a more normal lever. I hope the rates do go down again, it's good for all of us and keeps those working in the mortgage and housing markets employed.

Top 1% pay 40% of federal taxes.

 

[mom2rtk]

It’s angry news designed to create an emotional response.

People can decide all on their own whether something is fair. No talking points required.

Lots of research has been done with how to write news stories to maximize the number of views. Negativity works.

And yet some things are just negative.

 

[mom2rtk]

Credit tightening is the bigger story. It will slow down the economy, which will lower inflation. But it will also put a lot of people out of work.

History tells us you can get a similar result if you facilitate or encourage giving mortgages to people who might not be able to pay them back.

 

[Pea-n-Me]

At the expense of people with higher scores. Many are saying it's not a lot, but is believed to be around $40/month on an average mortgage.

I don’t pretend to be an expert on the subject but I did read a few articles from a few different sources when the thread popped up and the quotes were $40 to $60 a month. The $40 was for a $400,000 house with 20%down with and a score above 680. Maybe in different parts of the county you can get a decent home for under $400,000 but where I live and many other places, you can’t. $40 is not worse case scenario.

Even at $40, that is $14,400 over the coarse of the loan.

But if it costs someone $14,000 to help someone have a house... That is what a $40 per month increase represents over the life of a 30 year loan. I am not that generous.

Anyone else find it ironic that many here are ok with this but on another thread right now there is outrage over “Restaurants adding (unauthorized) tips to credit card/gift card receipts”?

 

[Traveling on cc points]

Anyone else find it ironic that many here are ok with this but on another thread right now there is outrage over “Restaurants adding (unauthorized) tips to credit card/gift card receipts”?

Haha. Right!
Recently, our electric company decided to help it’s customers “donate” to people who couldn’t afford their bill by rounding everyone’s bill to the next dollar.

People on Nextdoor and our neighborhood FB group lost their collective minds. People were not upset about the money,(at most, the donation would be $11.88 a year) they were upset that a cooperation decided for us that we should donate.

There currently is an opt out button on my account. I’m not sure if was always there or they added it after the backlash.

The point of my little story is that people don’t like to be told/forced to donate to causes others deem worthy, They like to donate to causes that important to them.

 

[RamblingMad]

So you see it as what? I’m just trying to understand where your coming from. The rule seems pretty cut and dry to me.

I ran the numbers, and it has zero impact on me. What bothers me is that it isn’t being properly reported. And it’s more complicated than news outlets make it out to be. I’m frustrated by crappy reporting to create an emotional response.

 

[RamblingMad]

It will be devastating for our economy, but I don’t see another way out. I think this go around will be much worse than the last due to the vast amount of debt. Nothing was ever fixed after 2008 they just slapped a band aid on it.

Banks are carrying far more capital. I’m not worried in the least by big banks. Smaller banks will consolidate after SVB.

What will happen is that the finances for over stretched consumer balance sheets will blow up. But even now they’re historically better than in 2008.

My best guess is that the next ten years will be more like the 90s with 3% inflation.

 

[GAN]

I never said I supported it.

You’ve touched a nerve…. Glad I didn’t

 

[DCLMP]

I ran the numbers, and it has zero impact on me. What bothers me is that it isn’t being properly reported. And it’s more complicated than news outlets make it out to be. I’m frustrated by crappy reporting to create an emotional response.

This is about 99.9% of reporting. You have to swim through all the muck to find the truth.

 

[DCLMP]

Banks are carrying far more capital. I’m not worried in the least by big banks. Smaller banks will consolidate after SVB.

What will happen is that the finances for over stretched consumer balance sheets will blow up. But even now they’re historically better than in 2008.

My best guess is that the next ten years will be more like the 90s with 3% inflation.

I'm going to disagree with all of that. I don't think consumers, corporate, or government balance sheets are better than in 2008. They are far worse.
There is way too much to unpack there and too off-topic.

 

[Tink3815]

I don’t think he’ll have a problem finding a better gig. He could start a pod cast and have 20 million in a blink of an eye.

He has not been taken off Fox nation as of tonight.

 

[DCLMP]

He has not been taken off Fox nation as of tonight.

I got rid of cable 5 years ago. We have Netflix, amazon prime, and HBO Max for entertainment on our big-screen TVs. I have a number of people I watch on youtube, rumble, and numerous podcasts.

Honestly, I think cable news is a thing of the past. If you are talented no matter what side of things you are on there are numerous ways to be successful. Some people are a brand It doesn't matter which platform they are on. Successful people always overcome. Getting fired can be a blessing trust me I know.

Love them or hate them I'm sure Don and Tucker will be just fine. They'll find a way.