I'll never finance another vehicle.

[Cajungaltx]

Originally Posted by toverman

I absolutely agree there's a problem with the way most people use credit. But having credit and using it doesn't mean going into debt.

In college, I had my own credit card, used it only for *important* things and paid off the balance every month. When I went to finance my first car (the third car I'd owned), I found one in my price range and qualified for a killer interest rate. In fact the finance guy nearly fainted.

Based on maintaining my excellent credit, qualifying for a home loan was easy (we bought a house for well less than what we qualified for). However, my wife, who had never had her own credit card or financed a car, would not have qualified on her own.

If she had a strong employment history, and earned enough income to satisfy the debt to income ratio - she could qualify with a manual underwriting process. It's how they were done 'old school' - and there are mortgage companies that do it today.

Obviously it's WAY easier if a mortgage company can just print your FICO score, and be done with it... yup, he qualifies... sign him up. ;-)

I agree with you on the 'if you can use it responsibly aspect'... but I've known (and been) way to many of those who 'oh, it's just for emergencies!'...which turn into $4 starbucks stops... I'll pay it off at the end of the month.... type issues...

But I think it's a culture issue... 'most' people know they shouldn't spend more than they make... just like 'most' people know they should eat less than they need... but we still have a really obese population... who is in debt up to their eyeballs... lol...

I'm not trying to be argumentative for the sake of arguing... it's really more about caring for the people I associate with. I used to think having a car note, was just what you did... I stated, multiple times, I'll have a car note from now til the end of time, cause I want the reliability of having a working, non-breaking down car... My position has changed...

Part of it is realizing how quickly things can change income wise... our situation fortunately was not horrid... we have kept our outgo under our income level... so my husband being terminated from his job - while it makes things tight, we can make our bills.... and part of it is watching my MIL as she gets older... with NO retirement savings... and knowing eventually she's going to maybe, possibly be living with us... if I can't put her off on my SIL... lol...