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I'm about to turn 25 and I worry about when my financial situation is better (not making entry level wages, paid off debt) if my credit will not allow me to buy a home - further forcing negative financial implications on my life because I happened to get sick.
renting a place to live doesnt economically disadvantage you.
do you think your credit score shouldnt take a hit because you have a good reason for your financial problems?
renting a place to live doesnt economically disadvantage you.
It sure does when you are paying half your income on rent because you weren't able to buy ten years ago and therefore weren't able to lock in a monthly payment one-quarter of your income.
Fixed-rate mortgage means your monthly payment declines over time as a proportion of your (rising) income. Renting means rent inflation and a (rising) monthly payment that doesn't decline over time as a proportion of your income.
Not to mention that mortgage payments made timely are better for your credit score than renting.
First, it is you're responsibility to have a contingency plan in place (at least 6 months emergency fund - should have more). Hey I am healthy but I can get in my car today and have a terrible accident. I have a contingency (emergency) plan.
Bottom line is, you think with emotion. The credit card companies don't. Can you imagine if they did? That is the difference between democrats (liberals) and republican. Liberals live by emotion and republicans live by facts. Yes it seems cold to someone who lives by emotion but ....Can you imagine a company allowed for the use of health issues? Everyone would claim health issues and the company would go bankrupt.
It the bad reports are not removed automatically it is up to "you" to write the letters to get bad reports off the file. Again, you are expecting someone else to do it right?
I crunch the numbers, I ask what contingency plan do you expect a burger flipper making student loan payments to have? What do you do when the rent goes up? (I once had five rent increases in five years, had to move three times to find affordable rent, and slept in my employer's offsite storage area for four months because that's how long it took to find a pace I could afford. Having six months of liquid savings is an extravagance I couldn't afford after the student loan payments.)
Wah.
This thing no one is forcing me to use but exists for my convenience is unfair.
And I've decided it's unfair because I don't like the rules.
Wah.
Waaaaaah.
How many people do you expect to like rules that are not transparent?
My equifax score is 690.
Transunion is 800
Experian is only 640.
Wth?
Your range is even larger than mine (mine is over 100 points), and my Experian score is my highest with my TransUnion score the lowest. A big problem for a lot of people is the opaqueness - who can make sense of it all?
It sure does when you are paying half your income on rent because you weren't able to buy ten years ago and therefore weren't able to lock in a monthly payment one-quarter of your income.
Fixed-rate mortgage means your monthly payment declines over time as a proportion of your (rising) income. Renting means rent inflation and a (rising) monthly payment that doesn't decline over time as a proportion of your income.
Not to mention that mortgage payments made timely are better for your credit score than renting.
there are better investments and worse investments. it could go either way.
renting absolutely does not disadvantage someone financially.
I noticed several people who said that their credit is ruined because they couldn't afford their medical bills, and that was through no fault of theirs because catastrophic insurance was too expensive at $200/month. I would like to respond to that.
My husband and I were paying $250/month for about 4 years of our early marriage because neither of our jobs offered group plans. For that $250/month, we had nothing covered, because our deductibles were $5000/year, each. We never reached that, so we never had a single penny covered. Yet we kept paying, because it is the responsible thing to do. Even if you don't ever use it though, it offers the peace of mind from knowing it is there. During one job change, we were without insurance for a couple of weeks. I thought about the "what ifs" every single day until the new policy went into effect. Being uninsured for a longer period of time would have given me an ulcer. That is what month to month catastrophic insurance is there for...when you don't have a better choice.
Also, $200/month is pretty cheap compared to what some people pay. It only takes one major accident or illness to make up for it. My parents pay $800+/month for their catastrophic insurance, and have paid a comparable amount for all their adult lives because they have always been self employed. Their deductibles are also $5000/year each. They have reached their deductibles several times over the years. My dad fell off a roof once and was 3 weeks in the hospital, with a hospital bill that would have been easily 6 digits. As it was, their insurance covered it. Their credit scores are 800+ and have been for decades.
My point is that you have a choice. Get catastrophic insurance (at a minimum) or accept the fact that good credit is going to be nearly impossible to maintain in the long run for you. There are some situations where insurance isn't enough, and if you are in one of those situations, where you had insurance and an emergency savings account and it wasn't enough, then I feel for you, I really do. But the majority of people who have their credit damaged due to medical issues were not in that situation.
I see credit reports on rental apps every week where people let all their deductibles go to collections. Their credit wasn't ruined by a $100k medical bill. It was ruined by 10 bills, each under $100. I've seen medical bills for $25 sent to collections. You know they were just the deductible. That is poor planning. If you can't afford $500-$1000 for a true emergency, you are running close enough to the edge that good credit will never be in your grasp.
I noticed several people who said that their credit is ruined because they couldn't afford their medical bills, and that was through no fault of theirs because catastrophic insurance was too expensive at $200/month. I would like to respond to that.
My husband and I were paying $250/month for about 4 years of our early marriage because neither of our jobs offered group plans. For that $250/month, we had nothing covered, because our deductibles were $5000/year, each. We never reached that, so we never had a single penny covered. Yet we kept paying, because it is the responsible thing to do. Even if you don't ever use it though, it offers the peace of mind from knowing it is there. During one job change, we were without insurance for a couple of weeks. I thought about the "what ifs" every single day until the new policy went into effect. Being uninsured for a longer period of time would have given me an ulcer. That is what month to month catastrophic insurance is there for...when you don't have a better choice.
Also, $200/month is pretty cheap compared to what some people pay. It only takes one major accident or illness to make up for it. My parents pay $800+/month for their catastrophic insurance, and have paid a comparable amount for all their adult lives because they have always been self employed. Their deductibles are also $5000/year each. They have reached their deductibles several times over the years. My dad fell off a roof once and was 3 weeks in the hospital, with a hospital bill that would have been easily 6 digits. As it was, their insurance covered it. Their credit scores are 800+ and have been for decades.
My point is that you have a choice. Get catastrophic insurance (at a minimum) or accept the fact that good credit is going to be nearly impossible to maintain in the long run for you. There are some situations where insurance isn't enough, and if you are in one of those situations, where you had insurance and an emergency savings account and it wasn't enough, then I feel for you, I really do. But the majority of people who have their credit damaged due to medical issues were not in that situation.
I see credit reports on rental apps every week where people let all their deductibles go to collections. Their credit wasn't ruined by a $100k medical bill. It was ruined by 10 bills, each under $100. I've seen medical bills for $25 sent to collections. You know they were just the deductible. That is poor planning. If you can't afford $500-$1000 for a true emergency, you are running close enough to the edge that good credit will never be in your grasp.
Some conservatives have said that we have the best-housed poor people in the world and they are correct. But poor people are paying (through the nose) for that housing whether or not they prefer it.
I can't afford catastrophic insurance with a minimum wage income and a student loan payment to make. But maybe if I could rent a hovel I could afford insurance. Shouldn't I have that option?
Some conservatives have said that we have the best-housed poor people in the world and they are correct. But poor people are paying (through the nose) for that housing whether or not they prefer it.
I can't afford catastrophic insurance with a minimum wage income and a student loan payment to make. But maybe if I could rent a hovel I could afford insurance. Shouldn't I have that option?
who is stopping you from renting a hovel?
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