You would have to have a few thousand in a bank account

If you haven’t a card, then I guess you would have to have a few thousand in a bank account. What if your home burned down and you have NO family? No card for a motel room, for food, for an extra set of clothing?

How would you meet the deductible on your house insurance to rebuild?

It isn’t always best to not have one at all, I feel the point is to be responsible and NOT use it for anything other than a real fat emergency.

I don’t think having a credit card is necessarily a bad thing, it is what we DO with the card.

When a family friend came down with a “hygienic problem”, my mother said: “It isn’t a disgrace to GET it, but it is a disgrace to KEEP it” and we helped her with it. Same with credit cards. I have one I will not use at all until we in CA get ‘The Big One’ or something major happens to my home.

No, I don’t have a few thousand in my bank account, and I guess if my house burned down, I would have to rent another one, which is what I am doing now. I don’t want a credit card, quite simply for the fact that I believe that if I don’t have the money, then I don’t get what I want. I have what I need already, and a credit card is not one of them.

I did file disputes on that credit card on the basis that it was not mine and I did not sign any papers nor request the card. I also disputed one of the medical bills that had been combined with older ones so that the 7 year thing would start later. Still waiting on the results of those.

I am hoping that (a) the credit card will be removed, and (b) that the medical bill will come down to the original amount of the original debt. It looks as though they are trying to charge penalties and interest on a medical bill, but when looking at my history and finding bills on the creditor, they have combined accounts.

I have to agree with this. I own my home, and my deductible is $1,000. If I had to, I can borrow the money to meet that from family or get help from the community and my church. Having a credit card got me in trouble a few years ago, and I’ve decided since then it’s cash for everything. Then I can’t go any further into debt than my mortgage and my student loans. We have no car loans, just previous bills we’re slowly catching up on. But if one has already had issues with credit cards and have learned they are better off without them, then one learns how to manage in emergencies without them. Not that long ago, this country functioned very well on the goodness and kindness of neighbors, not on credit cards. Thankfully, in my community, we still do. 🙂

How to increase FICO Score?

My FICO is currently 542, which knocked me out of a mortgage loan. There are 2 debts in debt collection I can pay off, and a credit card that was not mine. However, when I called to make pymt on cc for my spouse, they would not accept pymt unless I was put on account. Thus I am stuck with a cc on my report that I used one time ($20.00) and paid my part in full. I would make offer to cc company for 1/2 to see if they accept, but can’t find paperwork on them and no phone number. The rest of the collection accounts are medical bills that mortgage consulatant said would not count against me for a long.

Here is the question of my day…….If I pay those 3 things off, do you really think my score would improve, and, he also said that another problem is a lack of credit since I have not applied for new credit in over 5 years, but how can I justify getting a secured card when I don’t want a credit card to begin with???

Any help would be greatly appreciated!

I started with a FICO of 520. After a year and a half of paying down and such, I looked into a home loan for the ‘halibut’, and my FICO was up to 670.

Now that I’ve paid off 5-6 debts and closed other accounts, I can imagine it is up more now in the last year.

You can justify getting the SECURED card as this is something for real emergencies. Not for luxuries, new clothes, iPods, meals out or such. Think of it this way: If your home had a leak, a fire, termites…. something, you’d need money for the repair/insurance deductible/hotel accommodations during times of real trouble. That is one way *I* would justify having such a card. Yes, your score would indeed improve.

There are mortgage companies out there that do something called manual underwriting and they in no way look at your fico score to determine if your get the mortgage or not. They actually do the leg work to see if you paid your rent on time, paid your phone bill, your electric, etc. So if everything is good there, you can be approved. One company I know of is Churchill Mortgage which is advertised and endorsed by Dave Ramsey, a favorite of this blog.

churchillmortgage.com

As for the secured card, I have to disagree with wyldceltic, this is not a good idea for emergencies.. The last thing you want to do in an emergency is borrow money against your own account and then have to pay interest on the amount you borrowed from yourself….. Instead of getting one of those high interest, high fee cards, it’s better to just build up an emergency fund and have it sitting in an account somewhere.. Just my 2 cents..

BUT… if you cannot get any other card, because your income is low and you have a ‘past’ and no one will let you take up their offer, THEN what? On the card that is not yours, file a dispute with the the credit agency that you pulled your credit, Experian, Trans Union or ?? (I forget the 3rd)

At best they will remove it from your report, or they will research it and send you contact information so you can get it resolved.