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It's No Wonder


DucknCover
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I hope this isn't too far off topic for the board.

My 18 year old stepson will be a senior in high school when school resumes in September. He works a part time job clearing tables at a local resturant on weekends, and makes about $100 every other week. He's been deluged recently with pre-approved offers from Citi, Capital One, Discover, and several others. Thank God he's smarter than I was at his age (he throws every one in the trash)....the credit card companies seem more than willing to allow him to bury himself in debt. I wonder how many millions of these offers are acted upon, run up and never paid. And the credit card companies cry and complain about all the bad debt they get stuck with. Maybe if they were smart enough to sacrifice a small amount of profit now, they would come out ahead with a generation of smarter consumers later on.

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He will need some credit history if he wants to eventually buy a car or a house (without paying for it al in cash, anyway), and the longer his history is, the better. It sounds like he would be responsible enough to use one wisely. I know the feeling about not wanting to go into debt, but it will really help him in the long run to take a card and keep a very small balance on it. Just one is good for now. He could charge a very small monthly bill to it every month and pay it off every month, such as renting a movie or game at Blockbuster, for example. He could also make a point of using for the one thing he chooses ONLY and not carrying it around with him. I never got credit card offers at his age somehow (I guess it all got mailed to my parents' house?) and I really wish I had something with a long history like that. Oddly enough, my hubby never got those offers either. He makes a good income but his credit history is only about 3 years old so the one baddie he has keeps his score low. Not good.

I didn't mean to type that long. LOL. Just something to think about. :)

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Yes, he needs a credit history, BUT why dive in now when he's only working as a bus boy making $50/week ? He has PLENTY of time to establish credit once he has a FULL TIME job. If he's under 18, he cannot legally enter into a binding contract anyway. Getting in too deep too young is not a good thing. He may, in fact, be very responsible and not misuse the credit, but if he's going to college.. it only takes one keg party or one girlfriend to make him forget it and rack up more than he can afford.

If starting out.. get a gas card, one that is ONLY for GAS, not a Visa or MC. Fill up 1 or 2 tanks a month on the card and pay it off every single time. His limit wont' be much, maybe $250 tops on a gas card, but it's enough to get started with.

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I have twins, a son and daughter who are now 19. They both have worked since they were 17 and both were deluged with credit card offers.

These also all went into the trash. Actually, my daughter began receiving these when she was only 15 which concerned me. Since we now are allowed one free credit report per year I have been checking on the kids too, even before they were of legal age because of the offers she was getting.

However, since they were both were both behaving responsibly I did put each of them as authorized users on my VISA. I may just have been lucky but niether of them ever did anything worse than fill up at the gas station and they both asked me first.

Now they do both have a credit history, small but it's there and it's all positive since I could keep an eye on the accounts. So that's just a suggestion. I also made some really stupid mistakes and want to help them to avoid those same mistakes. Since then they have both applied for small store cards just to establish a positive credit report.

Just a suggestion. Your son sounds like a good kid :-)

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The credit card companies are a kin to vampires. They suck you in, and suck you dry and once your on hard times, they suck even harder.

It amazes me that these companies, knowning that people are on hard times, use universal default to really saft them. Your barely able to make the minimum payment each month and one of CC companies receives your payment late and BOOOM all of your credit card companies double if not triple your interest rates. All of a sudden you're no longer able to make the payments and stop paying them.

Then they tack on the late fees which push the accounts over the max credit limit resulting in even more fees. Eventually they write it off and sell it to a CA who hounds you day and night for years. Then either you get sued, and never notified thus resulting in a defualt judgment that cleans out your bank accounts and garnishes your wages, or it goes out of SOL and then the JDB's buy the account and begin to plague you years later.

The credit card companies with their predatory practices, punish the down and out, universal defualt, and now revised bankruptcy laws have caused the problem that they now have.

If they would be limit their preditory marketing or eliminate it all to gether they would avoid a lot of dead beats young creditors. If they would NOT double or triple the interest rate on your account when they know your are in dire straits and work with you, then they would get paid, keep a customer, and still make money. If they would make universal default a illegal then the pounce on the hurting would stop and people would be able to continue living and paying their bills.

Also the controller of the currency needs to get off his/her a$$ and put a stop to some of these practices by CC Companies and do his/her job. But since the COTC is paid by the fee's earned from the CC Companies, chances are they are as corrupted by them as they are by their own greed.

No politican in his/her right mind would ever go up against or suggest legislation to limit CC Companies dubious and nafarious practices, it would be fund raiser suicide.

So we have what we have and we are hopeless stuck with it. Now that the CC companies are working on having the rules in the FDCRA and FCRA changed to "better" favor them, as they did with the bankruptcy laws a year or so ago, we as consumers are facing a dark and horrible future. It is really quite depressing. So depressing that if any law maker passes legislation that gives more rights to the CA's and CCC's then that law maker should be boot the hell out of office, tard and feathered, and rode out of town on a rail road tie.

Until consumer demand becomes so great as to demand change the CCC's and the CA's, along with their lackies at the COTC and in Government, will continue to do business as usual. They know that most people will never complain or foster change on a large scale because they are weak minded slaves dependant upon the services of the CCC's that they pay dearly for.

CCC's are a kin to vampires, loan sharks, and preditors of the young. They are evil incarnate and despite the popular need for their services, do far more damage than they do good. They need to be, and we must, limit their evil and if possible, change them for the better.

End of soap box.

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C'mon Sarris.....tell us what you really think! LOL!!

I couldn't agree more with everything you've said. Their greed creates much of the problem and forces accounts in to default. That's exactly what happened to me. I honestly believe it will eventually catch up with them and you'll see a collapse of the CC industry that makes the demise of the dot com boom in the early ninety's look like nothing.

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I had a great cat as a pet all of my years growing up. He's been been gone some 20+ years by now. With just a little creativity, I bet I could could get my dearly departed pet a complete credit profile, credit cards, etc within a year or so. I bet I could even sign the credit applications with a paw print and they would still go through.

The system is so broken, I'm tempted to do this (not to charge anything off of any credit lines) and then send the whole set-up to USA Today or some national newspaper as an example of the credit industry gone mad.

Hmmm, I wonder if Petco offers a credit card... :wink:

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I had some friends in the 80s who got a credit card for their rabbit BooBoo, under the name of BB Rodentboy. They charged a few things, never paid, then laughed and laughed when the dun notices came. After they moved and the pet died, it became almost silly.

But it can be done, it's been done before.

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I wanted to chime in on this converstion. When I was 18, my grandmother showed me a way to establish credit that back then I thought was kinda hokey, but now see the beauty of it, and it works great.

You open a CD (certificate of deposit) at a bank for say $500 to $1000 or whatever amount you like or can afford. Then, you turn around and borrow against the CD for any amount. Usually they will let you borrow up to 90% I think it may vary from bank to bank. The interest on the loan is usually 2 to 4% above what you earn on the CD. You just make the payments like you would on a normal loan, and it all gets reported to the CB's. It really helps to establish your credit and the interest rate is low. No annual fees, and in the event (one would hope not though) that you have financial problems, your CD is the collateral for the remaning amount of the loan.

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