41 People Helped
Member Since: February 2009
Enter Your ReplyA lot of what you say is true, but I believe the rating system keeps the average scores lower, so the banks make more money in interest. I see credit for most people, is just a trap to lock you into making monthly payments to the banks each month. I have taken on $8,000 in credit card debt over the last 8 years, after a bankruptcy, high medical bills. I have never missed a payment and have watched my credit score yo-yo. I received credit card ofers of 14-18% right after bankruptcy. Now the best I get is 22%, most are 24-27%. even thought my score is 100 points higher @ 635. The only car loan I can get is 17%, are they crazy on a secured loan? No way. I have not had a car loan since 1986 and I am sure that is hurting me, but the banks do not care. I have purchased 8 cars since 1986, all for cash. I will be paying off the credit card debt over the next 18 montrhs and will never have more than 0 to 20%. My advice is keep CC debt below 20% and only use credit for a car or house period. That will allow me to bank 50% of my social security when I start drawing in 2.5 years and live on my pension. Experts say wait until age 70 to get SS, because you get a bigger check. I will get $60,000 from age 62-66 and have $30,000 in the bank. And from age 66-76 I will be saving another $75,000. Then I will not need credit for anything.
jls53's reply was:
Enter Your Reply I believe it is all done to justify charging the consumer the highest interest rates possible. I filed a chapter 7 bankruptcy 8 years ago and recirved credit cards after with 14% interest rate. I have not missed a payment in 8 years and they all want to charge me 22-27% now. Bankruptcy used to drop off after 7 years now it is 10, so they can charge you higher interest rates for 3 more years now. My advice for everyone, pay off credit card debt and only use credit for a car or house. That is what I am doing, I will have no credit card debt by 08/2016 and will use my credit cards each month and pay off the balance each month.
I received a $7,200 loan at 19.96%, it is better than the 27% interest credit cards I paid off, from Avant through Webbank in March. The money was deposited in my account in 3 days. I do not know what is wrong with some saying you cannot make additional payments to help you save interest., but I can go online and add a payment anytime. just did one for $200 on July 5, 2016. Credited $185 to principle and $15 to interest, 5 days after my regular monthly payment. You can also go in and increase your regular monthly payment if you want, I just increased my Aug 1, 2016 payment from $267.74 to $468, that way I will not have to add an additional payment. Also, my credit score went up 70 points to 701 after paying down the credit cards. I qualified for a $3,500 Discover Card with 12 months zero interest and a $2,000 American Express with 12 months zero interest. I will now be able to pay off the Avant loan 12 months early and save $1000 in interest. I know people are denined loans for many reasons, I filed bankruptcy in 2007 and many will not extend me credit because of it, Avant and Webbank have helped me greatly. People need to realize they cannot help everyone and if you think the interest rate is to high do not borrow the money.
jls53's response was:
I just received a $7,200 loan at 19.96%, it is better than the 27% interest credit cards I paid off, from Avant through Webbank in March. I do not know what is wrong with your account, but I can go online and add a payment anytime. just did one for $200 on July 5, 2016. Credited $185 to principle and $15 to interest. Also, my credit score went up 50 points to 701 after paying down the credit cards. I qualified for a $3,500 Discover Card with 12 months zero interest and a $2,000 American Express with 12 months zero interest. I will now be able to pay off the Avant loan 12 months early and save $1000 in interest.
I had problems with Credit One Bank doing unauthorized payments from my bank account. Went to bank and paid them $20 to stop payment and block all future ach from COB. Just make sure you send AVANT the payment by mail before it is due.
I have a 701 credit score, if I had a 784 credit score I would go to my local credit union for a loan. You would get a better deal I am sure.
Enter Your ReplyYou might be able to contact the old credit card company, get the history and send it to the credit reporting companies to add it back to your report.
The money was in my bank account in 3 days. Yes the interest rate is high, but not as high as the credit cards that I paid off. My credit score jumped 70 points and I then qualified for 2 credit cards with zero percent interest for 12 months. You will really get soaked if you let the loan go for 36 months, I will be paying it off in 18 months by paying double each month. Still less than I was sending the credit cards each month.