New credit card law kicks in today

[StageLeft]

Never, ever worth paying cash unless you are extremely loaded

I agree. I doubt we'll agree on what "extremely loaded" is, though, as I'm not sure myself. I am currently paying interest on a car I could pay off and I'm not because the 1.4% I get in a savings account means more to me as readily available cash than the 6.5% on the car note, especially in an economy so risky as this one.

 

[OCGuy]

Originally posted by: Dissipate

Originally posted by: OCguy

^ This is an example of poor education.


With great credit, you can get a brand new car with 0-1% financing. Free money. You could have put most of that $13,500 in an account where you were making 5%+ on it. Instead, you tie up your cash in something that is going to depreciate.

The "save up and buy everything cash because credit is evil" is fear brought about by ignorance.

Apartments check your credit now, as do employers.

Not only did I not have great credit, but I had almost no credit history, so I probably wouldn't have been able to get a car loan without a cosigner. I just moved into my 3rd apartment, so I have not had any problem there. If I have a poor education, then someone who is paying interest on something that depreciates in value must be on the short bus.

Exactly. If you had gotten a CC or two when you were younger and been smart with it (I am assuming you are over 18 here, so my bad if I am wrong), you would have had good credit, and wouldnt have needed a co-signer. You could have kept your $13K for a rainy day in an account that would have been paying more interest on it than you would be paying on the car.

 

[OCGuy]

Originally posted by: jonks

True enough. But since the reality is that we don't offer such educational courses in middle school, preventing the $3k in debt the avg college student accumulates seems like a well intentioned step. When we institute credit classes for 13 year olds we can lower the barriers to entry.

Note this doesn't ban teens from getting credit, it merely requires they have a verified co-signer on the acct, or take a certification class on credit.

Im not a fan of limiting anything for 18 year olds, but I like your cert idea.

 

[jonks]

Originally posted by: OCguy

Originally posted by: jonks

True enough. But since the reality is that we don't offer such educational courses in middle school, preventing the $3k in debt the avg college student accumulates seems like a well intentioned step. When we institute credit classes for 13 year olds we can lower the barriers to entry.

Note this doesn't ban teens from getting credit, it merely requires they have a verified co-signer on the acct, or take a certification class on credit.

Im not a fan of limiting anything for 18 year olds, but I like your cert idea.

it's not my idea, it's part of the law that went into effect

 

[OCGuy]

Originally posted by: jonks

Originally posted by: OCguy

Originally posted by: jonks

True enough. But since the reality is that we don't offer such educational courses in middle school, preventing the $3k in debt the avg college student accumulates seems like a well intentioned step. When we institute credit classes for 13 year olds we can lower the barriers to entry.

Note this doesn't ban teens from getting credit, it merely requires they have a verified co-signer on the acct, or take a certification class on credit.

Im not a fan of limiting anything for 18 year olds, but I like your cert idea.

it's not my idea, it's part of the law that went into effect

Hmmm.....I should probably read that. Thanks.

 

[StageLeft]

Originally posted by: jonks

Originally posted by: OCguy

Originally posted by: jonks

True enough. But since the reality is that we don't offer such educational courses in middle school, preventing the $3k in debt the avg college student accumulates seems like a well intentioned step. When we institute credit classes for 13 year olds we can lower the barriers to entry.

Note this doesn't ban teens from getting credit, it merely requires they have a verified co-signer on the acct, or take a certification class on credit.

Im not a fan of limiting anything for 18 year olds, but I like your cert idea.

it's not my idea, it's part of the law that went into effect

I wonder how much difference it will make.

It's pretty clear that hooking kids on credit early is the financial equivalent not only to self flagellation but smoking early, thus helping to ensure a lifetime of addiction.

 

[Dissipate]

Originally posted by: OCguy
Exactly. If you had gotten a CC or two when you were younger and been smart with it (I am assuming you are over 18 here, so my bad if I am wrong), you would have had good credit, and wouldnt have needed a co-signer. You could have kept your $13K for a rainy day in an account that would have been paying more interest on it than you would be paying on the car.

You are probably right, except if I had gotten credit cards while I was in college I probably would have messed up my credit. I didn't work while I was in college and was often broke off my @ss. In fact, I had to take out extra student loans my last quarter to help pay for a huge dental bill. And yes, I admit that I screwed up big time by not getting regular dental checkups.

My friend who is still in college getting his master's works as well, and has several credit cards he pays off every month. His credit rating is 700+. He could probably do what you are talking about.

I am not saying I am financially perfect, but right now I'll have my car for at least 8 years with no payments. I have no other debt otherwise (my parents paid off my student loans fortunately), I pay all my bills on time and I save money every month. The only risk I run right now is getting laid off, but I am slowly saving up enough to help cover that problem as well.

 

[Phokus]

Oh no, more socialism, what happened to the free market? Oh that's right, this is socialism that even republicans can compromise their principles on.

 

[Robor]

Originally posted by: Patranus
Passing new laws because someone didn't take the time to read the rules before they signed up for a credit card only servers to hurt those who are responsible in the form of higher rates overall or the tightening of credit.

Do you take the 'dick' side of every debate? :roll:

 

[Infohawk]

I think to get around this trickery / customer stupidity is to mandate that agreements be limited to a certain amount of words so that the agreement will be as succinct and readable as possible. Anything over the limit should be taxed and proceeds used to investigate fraud by companies and customers.

 

[soccerballtux]

Originally posted by: Infohawk
I think to get around this trickery / customer stupidity is to mandate that agreements be limited to a certain amount of words so that the agreement will be as succinct and readable as possible. Anything over the limit should be taxed and proceeds used to investigate fraud by companies and customers.

This is an interesting idea.

 

[StageLeft]

Originally posted by: soccerballtux

Originally posted by: Infohawk
I think to get around this trickery / customer stupidity is to mandate that agreements be limited to a certain amount of words so that the agreement will be as succinct and readable as possible. Anything over the limit should be taxed and proceeds used to investigate fraud by companies and customers.

This is an interesting idea.

I thought that was upposed to be part of it. i know that bank of america (?) has advertised one page "fact sheets" to let people know simply what the heck they are signing off on.

 

[JSt0rm]

Originally posted by: OCguy
Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.


The real problem is credit education should start in middle school. We teach kids how to make brownies and cookies in some High School classes, but not once did I ever hear about one of the most important things in your life: credit.

I agree with you on this. My credit is possibly the most important thing I have. In about 10 years i plan on making some BIG purchases and intend on tapping into my value as someone who has never been late on payments.