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Posts posted by AboveAverage

  1. It's their right to be that picky, though. I'll just use other cards; nobody really needs those huge-bank cards. Although it's fine to make it a goal if it makes you feel good. Personally I'm making it my goal to get that E*Trade card someday.

    I agree with you....I personally don't need anymore right now, and I'm just focusing on growing the limits on what I got.

    What is so special about the E*Trade card though? AMEX I understand, as folks seem to like getting fluffed for having an AMEX in their wallet.

  2. peronally i couldnt agree more. however the vast majority of US car buyers arent in a position to pay cash for the vehicles the desire. notice i said desire and not need. each person has their own individual reasons for the vehicle they need/desire so i cant say that a "nicer" vehicle isnt always needed. i mean afterall do you want an outside sales rep that works for you driving a P.O.S.?

    My friend, I couldn't care any less if I was driving a Pinto. I can afford to finance a Mercedes E Class such-and-such, but I'm happy driving my GM car (although the way things are going with GM, I am kind of regretting that HARD).

    I had a need to drive after I realized that going to my friend's wedding and reception via public transportation and bumming a ride from a bridesmaid's boyfriend...I got into impulse mode and bought a car then and there. This was the beginning of '08. Anyhow, I originally had Drive Financial. So that should tell you right there I got the "F"orget-You rate. I refied about 5 months later to HSBC for a slightly better rate. You are right about one thing though, I am at the rate that I earned...no question about that. I hope to earn a better rate.

    I guess my whole point is, after 6 years of walking, bussing it, and getting on a train, I had had enough. The sad thing is about all of that...even though I have the freedom to drive where I please, I don't have to freedom to park where I pleased. I'm waiting for my loveable slumlord to raise rent by so much as a penny for me to give my notice (a penny is all I need for break of contract... :D ) and find a place with adequate parking.

  3. 99% of all car loans are simple interest with no prepay penalties.

    next, if a car salesman is talking he is probably not telling the truth.

    a) "its a one owner that old miss smith kept in a garage and wiped down with a diaper everyday"-B*#@SH!t. have the dealer pull a carfax on all used vehicles.

    B) "the dealer will make you a better deal on this one"- its an old age unit and the salesman gets a big bonus for switching you to that vehicle.

    c)"ill sell it to you for $300 over our invoice"- this only pertains to new vehicles. the truth is that the 'dealer invoice' does not include what is known as holdback. holdback is an additional $800-$2400 profit that is calculated into the invoice price. ie all the friends and family and employee discounts still make money=)


    guys the fact of the matter is none of you will ever buy a car from me so i dont mind educating you guys. always do your homework. when buying a new or used car ALWAYS go home and pull that EXACT vehicle on edmonds.com. WE HATE EDMONDS!!!! we make less money on educated buyers. not ones that think they are educated but the ones that actually leave the dealership and go home and do their research. odds are in your favor that nobody is coming to buy that car while you do your research.

    GL folks


    I like Edmunds, Cars.com, even autos.yahoo.com...

    My next trick would definitely be getting a list of quotes from all of them, pretending I would buy via financing, wait until he (the "friendly" j-o...errr, I mean car salesman :D ) asks me for my social, then say you know what, I'm going to pay in cash. (no check, no money order...just straight up cash money). If he tried to take back so much as a penny back, I would have the testicular fortitude to walk away. I would even tell him the same thing I told a manager when he spot financed me and telling me I need a co-signer. "Your jedi mindtricks will not work on me, I am not going to get a cosigner and I have no problem walking out." When they see you're serious, they change their tone quick.

    If and when my car gets successfully lemon lawed, between the money I get back for the car, and the money I get from my income tax, I should be able to get a decent car (used or new...haven't decided but not one penny will be financed) and have the dealer kiss my behind, instead of the other way around.

    BTW, the dealer I bought my car from....I won't be using him again...no "loyalty" here..... :D

  4. When it comes to rent, I dealt with private landlords because they usually never checked credit scores. The flip-side to that, of course, is that they are slumlords when it comes to just basic things such as mowing the lawn. But that's the tradeoff I guess.

    Auto Insurance is another scam. In NJ, there are some insurers like NJ Cure that will not base you rate on the score...but when compared to Geico, it comes about the same for me. I've been driving since I was 17 and knock on head-for-wood, never got into an accident, and hardly ever got moving violations.

    My credit has dramatically improved, so maybe that's why it's not hurting as much but because my insurance is toward they beginning of the month and not the end, I always have to put it on the card. Insurance is definitely one bill I am never late on....rent I can kinda play with but I tend not to. Gas/Electric same deal and cable as well. But if it relates to credit/insurance...that gets priority #1 always.

  5. Cav,

    I had gotten a similar card in the beginning (Rewards 660) and I fired it after 6 months. A complete waste of money and time.

    I started in addition to that with Macys and CJ. CJ helped out a lot, and that was with the initial $1500 (now they're hooking up with $2500).

    I would try a HSBC card as they were able to give me love initially. I opened up with them in 1/08.

    I also hear Crap 1 likes giving people love. Otherwise, with those scores, I would take the secured.

    Honestly, and I'm guilty of this myself, I don't know why secured cards get such a bad rep. Yeah, the bad thing is that you're short x amount of dollars, but if you use it properly, you get it back after a year (and sometimes with interest, but in my case, I won't...but I wanted to strengthen my relationship with BOA so I didn't mind it in the end).

    I would definitely get a secured, IMHO.

  6. The Cost of living here in Ct in my opinion is worst than NJ. The taxes on real estate are SICK!! I don't want to buy a home here ever, Way to much $ and way to little of a home. Car Taxes are Sick, I have to Pay town car taxes, plus county and state...I can get on a list for my town so I dont have to pay it anymore cause I am a vet but it is only if you have a 2000$ or less valued car. I only make 19.45 PH here as a Diesel Mechanic.

    I eventually would like to transfer to one of the Carolinas and buy a home there instead of here. A mortgage for me here in Ct. Hartford County on a 250K home is like 2k month!!!! AND You cant buy a decent home here for less than that...I dont even qualify because of my income to even think of trying to buy a home here in Ct.And the Governor wonders why nobody stays here....

    The most I qualify for is 120K with my income and that wont get you S$%T, Maybe a 2 bedroom condo...I would never buy that...It is damn near impossible to get rid of one of those, Esp. here.

    Bottom line...With what I pay for in rent and just staying alive, living here I am lucky if I can save 50.00 a month LOL I need to find a new career, or become a Permanent student....:mrgreen:

    You know I am inclined to agree with you, however based on what I remembered reading, at one time NJ had the highest COL with CT following at number two. Just for S&G, I looked at what the current COL by states were. While NJ and CT are now longer 1 and 2, NJ still has a higher COL (but I have always contended that North NJ/Metro NYC was the case...south Jersey is very cheap, but it's also very rural, so there lies the rub.).


    CT is ridiculous though...while you are envious that I don't have to fill my own tank of gas (:D)), you guys have to pay property taxes on your car....I learned that working in Greenwich....wow, I will never envy you. :)

    A good deal of the Northeast (from New England to MidAtlantic) is terribly expensive. The South is pretty much where it is, but to move there pre-retirement means you gotta find a job that will equal the pay you got up here...a lateral move like that (or even a pay cut of $5k) will still have you come up ahead.

    As I have said though, times really are getting rough. My sister and I spent some time at one of the local "rich man's mall" yesterday (a mall that having $1k in your pocket will make you seem like you're broke and the cars on displays are Aston Martins, Bentleys, stuff like that... :D) . The place was empty. On a saturday late afternoon. Places were closing at 7 instead of 9. I was a bit shocked but I am guessing retail must be taking a hit because of the economy.

  7. Well dang. When I think nice steakhouse, I'm thinking like Outback or Roadhouse. American Express must equate those places to the Wafflehouse.........:lol:

    Wafflehouse....the South's answer to IHOP.... :lol:

    I've personally never been to Peter Lugies but from what folks have told me, the steaks are worth every penny. Then you got places with their Kobe beef (no, not Kobe Bryant....) that really make you go :shock:


  8. Not for nothing, but if you participated in no criminal activity, why spend money on a lawyer just to pal around with you?

    If you didn't do anything wrong, I would just show up to the police station. Then if the police arrest you for whatever reason or even if they want to question you, you invoke your right to be silent and your right to an attorney. Even in PR, they have to Mirandize you. Once you say the magic word "lawyer", they have to ST(x)U and leave you alone until your attorney comes...oh sure they will book you and send you to a nasty jail....but if you did nothing wrong, nothing bad will happen to you.

    So rather than have an attorney come with you, just have his number handy in case you need it.

  9. There are mixed opinions about a providian blacklist, which suggests they don't really have one. Plus, WAMU is gone so you would have a Chase card now, so really their policy will count as well.

    Why don't you just call and find out? I found out the next day...

    Don't bet on that. I had a talk with a Wamu supervisor who flat out told me I would never get a Wamu card, even if my scores were 800 because I burned providian back in 2001.

    I am truly hoping that Chase plays ball....and I even hope Chase fired that POS.

  10. Government may ban some practices

    The Senate isn't expected to vote on the matter until early next year. The Fed's proposed rules, currently being reviewed by the industry, could take effect around that same time. But lenders seem to be preparing for the worst-case scenario: an outright ban on some practices.

    To get ahead of rules that would hamper their ability to re-price accounts, for example, many companies are jacking up interest rates. A survey of major issuers by advocacy group Consumer Action found that 37% of companies had raised rates across the board, even for borrowers with relatively pristine credit records. "In anticipation of a federal crackdown, card companies are scouring their portfolios and tightening credit," says Tower Group's Moroney.

    Even consumers like Michael Polemeni, who miss only a single payment, can find themselves in the crosshairs of credit card companies. The independent computer specialist relied heavily on his credit cards for child-support payments and business expenses. Polemeni generally made more than the minimum payment each month, carrying a balance of about $2,000. But in July he missed a payment, and Providian, owned by Washington Mutual, jacked up his rate from 9% to 30%. "I was shocked because I am a very good customer," say Polemeni, who paid off the full balance immediately. WaMu didn't return calls for comment.

    Not everyone will be able to pay down their debts like Polemeni. And that could make for a vicious cycle: As credit-card companies raise rates, more consumers fall behind on their payments, which then hurts the issuers. Says Innovest's Larkin, "We are going to see the banks massively hit."

    This article was reported and written by Jessica Silver-Greenberg for BusinessWeek.

    Published Oct. 17, 2008


  11. Bad credit factors into subprime equation

    Making matters worse, the subprime threat is also greater in credit card land. Risky borrowers with low credit scores account for roughly 30% of outstanding credit card debt, compared with 11% of mortgage debt. More than 45% of Washington Mutual's credit card portfolio is subprime, according to Innovest.

    That could become a headache for JPMorgan, which agreed on Sept. 25 to buy the troubled thrift's credit card business and other assets for $1.9 billion. Says a JPMorgan spokeswoman: "We are aware of the credit quality of (WaMu's) portfolios and will manage risk appropriately."

    Credit card losses are already taking a bite out of lenders' balance sheets. Bank of America, the nation's second-largest issuer behind JPMorgan, revealed on Oct. 6 that roughly $3 billion of its $184 billion credit card portfolio had soured, a 50% increase from a year ago. At the same time, the bank, which is also dealing with the broader financial tumult, said it would have to cut its dividend by 50% and raise $10 billion in fresh capital. The stock stumbled more than 25% the next day when investors largely scoffed at the new shares B of A was offering.

    "The good news for us is that we have the strength to get through this, but the bad news is that the earnings recovery does take a while," says Bank of America spokesman Bob Stickler. "We are prudently adjusting our underwriting standards to adapt to changing economic conditions."

    Likewise, American Express, which caters to wealthier borrowers, upped its provisions for credit card losses from $810 million to $1.5 billion in the latest quarter, a sign that even upscale consumers are having trouble.

    "We have enhanced our credit models and continue to prudently manage our risk by scaling back some card acquisition efforts and reducing credit lines where appropriate," an American Express spokeswoman says.

    The industry's practices during the lending boom are coming back to haunt many credit card lenders. Cate Colombo, a former call center staffer at MBNA, a big issuer bought by Bank of America in 2005, says her job was to develop a rapport with credit card customers and advise them to use more of their available credit. Colleagues would often gather around her chair when she was on the phone with a consumer and chant: "Sell, sell."

    "It was like 'Boiler Room,'" says Colombo, referring to a 2000 movie about unscrupulous stockbrokers. "I knew that they would probably be in debt for the rest of their lives."

    Unless, of course, they default. Responds Bank of America spokeswoman Betty Riess: "The allegations do not reflect our practices. The bank has nothing to gain by extending credit to people who do not have the ability to pay us back."

    Regulators and politicians are trying to curb some of the industry's abusive practices by limiting interest rate increases, abolishing certain fees and cracking down on questionable billing practices. Under rules proposed by the Federal Reserve, a borrower would have a 21-day grace period before being hit with a late fee, instead of the few days offered by some companies now.

    A similar plan working its way through Congress would allow banks to increase rates only on consumers' future purchases -- not existing balances. And under both proposals, credit card companies would have to allocate account holders' payments equally to balances with different interest rates. Currently, companies first apply payments to the debt with the lowest rate, which means it takes longer and makes it costlier for consumers to pay off their debt.

    (Continued on next post)

  12. Card issuers are struggling to defuse a consumer-debt bomb that could blow an estimated $41 billion hole in their businesses this year -- and even more in 2009.

    By BusinessWeek

    The troubles sound familiar:

    Borrowers falling behind on their payments. Defaults rising. Huge swaths of loans souring. Investors getting burned.

    But forget the now-familiar tales of mortgages gone bad. The next horror for beaten-down financial company is the $950 billion worth of outstanding credit card debt -- much of it toxic.

    That's bad news for players such as JPMorgan Chase and Bank of America that have largely sidestepped -- and even benefited from -- the mortgage mess but have major credit card operations. They're hardly alone. The consumer-debt bomb is already beginning to spray shrapnel throughout the financial markets, further weakening the U.S. economy.

    "The next meltdown will be in credit cards," says Gregory Larkin, a senior analyst at research firm Innovest Strategic Value Advisors.

    Adds William Black, the senior vice president of Moody's Investors Service's structured finance team: "We still haven't hit the post-recessionary peaks (in credit card losses), so things will get worse before they get better."

    What's more, the Treasury Department's $700 billion mortgage bailout won't be a lifeline for credit card issuers.

    The big companies say they're prepared for the storm. Early last year, JPMorgan started reaching out to troubled borrowers, setting up payment programs and making other adjustments to accounts.

    "We have seen higher credit card losses," acknowledges JPMorgan spokeswoman Tanya Madison. "We are concerned about (it) but believe we are taking the right steps to help our customers and manage our risk."

    How would raising interest rates help?

    Some banks and credit card companies may be exacerbating their problems. To boost profits and get ahead of coming regulation, they're increasing interest rates. But that's making it harder for consumers to keep up and will make tomorrow's pain worse.

    Innovest estimates that credit card issuers will take a $41 billion hit from rotten debt this year and a $96 billion blow in 2009.

    Those losses, in turn, will wend their way through the $365 billion market for securities backed by credit card debt. As with mortgages, banks bundle groups of so-called credit card receivables, essentially consumers' outstanding balances, and sell them to big investors such as hedge funds and pension funds. Big issuers offload roughly 70% of their credit card debt.

    But it's getting harder for banks to find buyers for that debt. Interest rates have been rising on credit card securities, a sign that investor appetite is waning. To help entice buyers, credit card companies are having to put up more money as collateral, a guarantee in case something goes wrong with the securities. Mortgage lenders, in sharp contrast, typically aren't asked to do this -- at least not yet. With consumers so shaky, now isn't a good time to put more skin in the game.

    "Costs will go up for issuers," warns Dennis Moroney of Tower Group, a consulting firm.

    Sure, the credit card market is just a fraction of the $11.9 trillion mortgage market. But sometimes the losses can be more painful. That's because most credit card debt is unsecured, meaning consumers don't have to make down payments when opening their accounts. If they stop making monthly payments and the account goes bad, there are no underlying assets for credit card companies to recoup.

    With mortgages, in contrast, some banks are protected both by down payments and by the ability to recover at least some of the money by selling the property.

    (Continued next post)

  13. Incidentally, how many of those accounts of yours, even though you pay them off each month, carry annual fees? You may as well light a Jackson or two on fire for each account once a year to achieve the same effect.

    Three...HSBC, Hooters and BOA. I don't get any interest for the BOA, but I rationalized that if I had that $2k in my pocket, it would have been gone. It's out of sight/out of mind and I know I'll get it back in between December and May. I may do my taxes expecting a refund by April 15th just so that it coincides with me getting the $2k, but I am not sure.

    BOA I am hoping will give me a card with no AF because I've been good with them and from what I read primarily here and the other places, they pretty may hook me up with no AF. But assuming because of the economy that's not the case, $59+$36+$29 (HSBC, Hooters and BOA, respectively)=$124. You'd be amazed what I used to spend $150, $300 on....but I'll say it was the equivalent to taking my money and burning it.

    I never wanted credit; I was happy without it. But I also wanted to own a house....and I hope within the next year I do that. I can't do that without having positive credit and I should be near 700+ hopefully by year's end or if not definitely by mid year. I'm not opening up any more cards and I'm trying to economize my cash...I have to now and have no choice. Things are not getting any cheaper in the PRNJ, I might have to seriously consider leaving while the getting is good.

    Ultimately, I plan on coming out ahead...it's just going to take some terribly-long planning...but it's going to happen.

  14. Turns out this is absolutely TRUE. It's not something someone "discovered", they just come right out and tell you this!

    In perusing my statement online, it encouraged me to apply for a preselected card so I bit.

    Here's the denial:

    Your consumer credit report indicates too many requests for credit during the last six months

    The length of time you have been a customer with Amercian Express is too short

    Our credit experience with customers who have made purchases at establishments where you have recently used your card.

    Your present balance/spending levels have exceeded your demonstrated ability to pay

    I've only had the card for 3 weeks, I've paid my rent, cable/internet/phone, Cell phone, and a trip each to walgreens and Burger King.

    Tell me it's not the one trip to BURGER KING???? So what do I do? Should I call in for a brief tutorial on how to use my AMEX?

    I told you guys, this is not surprising. Try getting denied for an AMEX based on where you went to school?! AMEX was passing out applications and t-shirts just like the rest of them, but denied me based on defaults that came from prior students. This was back in '95....

  15. How much interest and fees do you pay on all those credit lines each month? If you paid all those off and closed them (getting back your secured deposits on at least one of them) could you get to 3-6 months cash on hand? Not immediately but I think you could.

    If you had just $500 cash on hand, you would have been able to do your car maintenance and replace the pots...right? How about if you had $1000? Could you buffer yourself from most life events with a grand? I bet you could.

    So start there. Cut up the cards so you can't use them. Stop your retirement deductions if you have any right now. Budget your monthly expenses. Especially food - treat it as fuel, not pleasure for now. Pay minimums on everything until you get $500 to $1000 cash in the bank, then don't touch it unless it is an emergency. I dunno about the pots/pans being an 'emergency' but I got my Wolfgang Puck SS set for $80 at Sam's Club a few months back.

    Then start pounding out the credit cards starting with the smallest. I know some people say pay the one with the highest rate, but I don't advise that. Pay as much as you can to the smallest balance first so you get some instant feedback that you are accomplishing something. Then when you no longer have that payment roll that money into the next smallest account and keep rolling the snowball over to each account including cars until they are all paid off.

    When all the debts except the house are paid off you take all that money that was going out to them and focus it on your 3-6 months cash fund. Which builds up very fast when you're plugging that much in each month. Then begin/restart your retirement funding and attack the house payment.

    I won't kid around, this is not a quick plan, but it does work over time every time. Nor is it pleasant in the beginning...you must make a short term sacrifice in your fun factor to get this ball rolling if you're living the paycheck-to-paycheck game. But I've seen people making a total family income of less than $30,000 with two adults and two kids do this program and pay off all their debt (including their house), now they can afford to do the fun stuff with cash.

    What you do is up to you. I'm just passing out the information. It's up to you to decide if you have had enough of the credit hamster-wheel or not.

    Your advice is sound, as always.

    I pay no interest...CCs are paid in full each and everytime. In almost a year since I have gotten credit, I have never paid interest to CCs, (only the car).

    The pots had to be done because the non-stick pans we had were looking nasty and unhealthy, but DF was supposed to handwash those and she justs throws them in the dishwasher. Now I have to get stainless steel. (We rent and we don't pay for water, so it's all good with me... :D ). Macys had a nice columbus day sale and I got a cuisinart set that gave me 3 mixing bowls for free, plus a bread knife that I have to mail for.

    I am trying to go back to the days of cash but I have to start with groceries. If I can go back to cash with groceries, then everything else is good.

    As for stopping retirement deductions, that's not a hot idea. In fact I just increased my deductions to take advantage of the low-cost assets...when the economy rebounds, I'll have made back my losses and hopefully be up (from what the pundits tell me). I will use my cost-of-living raise to fund those increases until I'm at $15.5k, which will be in about 4-5 years (or maybe sooner). Social Security will be a fairytale by the time I can collect it, and I need to be sure my pension and 457b will be enough to carry me without working at Walmart.

    I'm gonna shoot for $1k and see how long it takes me to get that. Stuff is just so rough right now.

  16. This month was a killer to me.

    I found myself spending money on stuff that, while needed, irritated me because the stuff that I replaced (pots and pans) could have been avoided had my DF not use the dishwasher! I had to get stainless steel pots and pans to replace the pots I had bought 3 years ago. On top of that, I had to get an oil change and the balance of tires and clear some rust from my rear brakes. That was a cute $142.

    Stuff always comes up though, and it doesn't make me broke, but it makes it difficult for me to stock up cash. The only way I can save 3-6 months of my net salary without living like I'm poor is getting a second job and saving those paychecks.

    I will always advocate responsible credit use. If I can't pay for something by the next paycheck, I won't buy it, unless it's a true emergency, and even then I will sit down and plan out how I am going to deal with it so that there isn't much financial pain. But the key word is "responsible." If we were all responsible users of credit, none of us would be here (and in that sense, I'm kinda glad I was irresponsible; I do like it here... :D )

    I will try to find a way to sock money away though...but it just seems that stuff always pops up. I told my DF that I cannot get a second dog. She wants one, but I'm adamant about not buying one now. The expense, the vet visits and shots, the toys, etc., etc., etc.,.

    My other option is getting another job that will pay me more, but we all see how the economy is. Plus, I am fine (for now) where I'm at.

  17. SB,

    Thank you. You definitely were helpful with one of my issues in the credit repair process and I definitely tip my hat to not just your help and advice, but to your deserved success as well.

    I hope you aren't too much of a stranger, and if you are, I hope to be not too far behind you. 11/27/08 is the anniversary of my rebuild (when I got my Macys card), so it is my hope that I'm not terribly behind you in homeownership. But I'm thinking summer '09 is when I'll be both ready AND still have a buyer's market.

    Much continued success, congratulations on both the house and wedding, and please...don't be a stranger.

  18. The way the application process works with them and the APR you start with, I would guess that if you are approved with the primary card it's considered a prime and if you move on to Wamu for secondary consideration then it's a subprime.

    If they move me to Wamu I will get instant denial....all because Providian got burned i 2001.....(sigh...)

    It's cool though because hopefully Chase will play ball with me and as-much-as-I-would-like-to...I really don't want to apply for more credit right now.

    I think the hardest thing about this whole process for me (rebuild and repair) is letting the stuff you do have marinate for sometime before applying for new stuff. I think by next May, I should be ok. In the beginning, I was content with getting my foot back in the door...now, I want 4 digits left of the decimal when I apply for stuff.

    I look forward though to continue reading this thread though. Especially when Chase starts getting involved (if at all).

  19. My point on the copies is that if you are only making 2 0r 3 at 9cents each I think it is really stupid to use a credit card to finance that. If you are making a lot of copies yeah I can understand somewhat, but I just don't like swiping my card everywhere....:)

    My post office got rid of their self serve machines too. Now I have to wait in line to buy stamps. I am lucky though in that sense I work nights so when I do go there and buy stamps there are hardly any people there at all. :)

    If you find yourself going to staples more than 3-5 times a year for a few copies, consider getting yourself an all-in-one printer. Scan, copies, print and (optionally though I took the option) fax. Newegg's got some awesome deals.

    I spent $60 on such a device that was brand new (not $100, $200..sixty dollars...very cheap). Oh yeah, you will spend money every few months on INK, but when I saw the convenience of having this device in my home instead of waiting until a work day to make copies, or, Heaven Forbid I was on vacation, SCHLEPING to Staples to make those copies....I have never been happier.

    Then you won't need to spend waking nights why you'd need a Visa or Mastercard to spend 36 cents making copies. 8-)