1. Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

beware of banks

Discussion in 'General Nonsense' started by imperialreign, Jan 29, 2009.

  1. imperialreign

    imperialreign New Member

    Joined:
    Jul 19, 2007
    Messages:
    7,043 (2.74/day)
    Thanks Received:
    909
    Location:
    Sector ZZ₉ Plural Z Alpha
    seriously - it seems quite a few banks are trying to get away with whatever crap they can pull out of a magic hat.

    My primary credit card (issued through a *name witheld* bank), was quite good for the last 5 years I've had the account open. It had a APR of 11%, no fees of any sort, I've payed my bills on time, never defaulted, never over limit . . . and for the last three months, the account has been payed in full (balance of $0 due).

    Well, early this week I recieved a letter from said bank, claiming the were raising my interest rate to 26.3% (which is a complete, effin joke). After calling them, they couldn't give me any more details other than "you're a high risk account."

    Yeah, I guess my credit report is that friggin excellent they were afraid they'd never make any money off of me . . . and guess what, they're still not going to.

    Went to my credit union today (same credit union I handle any loans, savings and checking accounts, etc. with) and opened a VISA credit account with them, to now act as my primary card . . . I was given a fixed APR of 8.99%, no fees, with a limit twice that of my other card. Called up the bank and told them they can screw it. I'll keep the account open for credit standings (instead of just closing out), but will only use it once every 3-6 months for something stoopid (like a bottle of soda), just to keep it active.

    beware, banks are trying to get away with highway robbery right now. It's time to take a closer look at credit unions. :toast:
  2. FordGT90Concept

    FordGT90Concept "I go fast!1!11!1!"

    Joined:
    Oct 13, 2008
    Messages:
    13,343 (6.31/day)
    Thanks Received:
    3,362
    Location:
    IA, USA
    I noticed my rates went up too (got those letters saying you accept or you cancel your card). I have yet to pay interest or a fee so I really don't care but yeah, it's a nationwide trend with all the banks that dealt in sub-prime mortgages (nearly) going bankrupt. If you want a low rate card, you'll have to get it from a smaller bank that deal in those bad mortgages.
    Crunching for Team TPU
  3. imperialreign

    imperialreign New Member

    Joined:
    Jul 19, 2007
    Messages:
    7,043 (2.74/day)
    Thanks Received:
    909
    Location:
    Sector ZZ₉ Plural Z Alpha
    yep - although, I'm recommending people go to a credit union instead. None of the credit unions were impacted from the caustic economy we had at the end of last year. Besides, they're a lot stricter in their lending practices as well.
  4. blkhogan

    blkhogan New Member

    Joined:
    Aug 11, 2007
    Messages:
    2,315 (0.91/day)
    Thanks Received:
    648
    Location:
    If I told u.. I'd have to kill u
    I have 2 cards that have shot up. One was @ 8.99% they upped it to 24.99%, the other was @ 11.99% they upped it to 29.5%. Both cards have $0 on them. I guess I am a "high risk" customer also. :shadedshu
  5. farlex85

    farlex85 New Member

    Joined:
    Mar 29, 2007
    Messages:
    4,830 (1.80/day)
    Thanks Received:
    638
    Yep I got some of that too. I've been on time w/ my payments for the length of the cards but they raised the rates. What do you expect, they're in trouble so who do they look to to bail them out, the one's who keep em in business in the first place. I rejected it on one account which effectively froze the card, the other I'm gonna have to keep though or they'll close it, hurting my credit. I asked the customer service person why the bank thought it more profitable to piss off a good customer than to keep them in good standing for future purchases, of course she didn't know. :laugh:

    I'll tell you the whole credit thing really pisses me off. I have a rating that I have to sneak around to find out (check out this site, only place I found that gives you your credit score for free, a score is not a report), I shouldn't have anything on record that I myself can not know. And sure you could just say save before you buy, well that's all fine and good but I don't know when I'm going to have $20,000 laying around to buy a new car or $100,000 to buy a house or any of the other over-priced crap that I need. This isn't toys, these are needs, and I gotta let others control it. I won't be using Chase or Bank of America Credit cards any more though. Bastards. /rant :)
  6. RevengE

    RevengE

    Joined:
    Dec 31, 2008
    Messages:
    2,661 (1.31/day)
    Thanks Received:
    211
    Location:
    Ohio
    Yeah banks are a bunch of idiots i hate them. my old bank tried to screw me over and i closed my account with them and opened a new one with another bank HAHA screw them.
  7. DanTheBanjoman Señor Moderator

    Joined:
    May 20, 2004
    Messages:
    10,553 (2.83/day)
    Thanks Received:
    1,383
    The time to take a closer look at credit unions/banks was many years ago, before the American, before the average debt was over $10K. The whole loan-mentality simply doesn't work. Unfortunately it's slowly moving that way here as well. "buy now, pay in 2030", current youth loves consuming and impressing each other with their new gadgets, which they obviously can't afford. When they're done with school they start their lives with all kinds of debts. Oh well, I'm just glad I don't owe anyone anything :)
    lemonadesoda says thanks.
  8. farlex85

    farlex85 New Member

    Joined:
    Mar 29, 2007
    Messages:
    4,830 (1.80/day)
    Thanks Received:
    638
    I know everyone loves to blame the silly kids who always try to live outside their means, I'd rather blame the silly cost of things that easily and far outpaces income of the average person providing average mundane run-o-the-mill needed services (we can't all be Bill Gates or Donald Trump). Your not in any debt? You don't own a house then or are in the top 1%. Silly.
  9. Thermopylae_480

    Thermopylae_480 New Member

    Joined:
    May 27, 2005
    Messages:
    3,685 (1.10/day)
    Thanks Received:
    393
    Location:
    Little Rock Arkansas, United States
    All my debt is student loans. I don't even have a credit card, only a debit card. People need to stop buying things they don't need with money they don't have.
  10. Thermopylae_480

    Thermopylae_480 New Member

    Joined:
    May 27, 2005
    Messages:
    3,685 (1.10/day)
    Thanks Received:
    393
    Location:
    Little Rock Arkansas, United States
    To many people live in 100k houses that make 20k. They don't need to do that and they aren't entitled to it.
    lemonadesoda says thanks.
  11. farlex85

    farlex85 New Member

    Joined:
    Mar 29, 2007
    Messages:
    4,830 (1.80/day)
    Thanks Received:
    638
    Who is, those who make 200k (who can spend half their yearly income on one thing anyway)? Obviously one shouldn't buy a house when they can't make the mortgage payment, one shouldn't have to take out a mortgage to buy a house anyway though. Try to find a house under 50K.

    And here's the funny thing about people, we like to enjoy our lives. It's so easy apparently for so many to simply look at everyone else as dumb assholes who aren't entitled to monetary pleasures of life b/c they don't make enough to enjoy it. Nobody is entitled to anything. That doesn't mean they aren't going to want it.

    Did you really need that education? Are you entitled to it? My debt has gone to bills to put me through college (and I have very low rent, no car, my bills are low, had scholarships). Now I'm a skilled educated worker with nowhere to go. Thinking about going back to school but for what? More debt? No guarantee for a job (supposedly college was to give me a leg up)? It's silly see, I'm discouraged from becoming a better worker.
  12. DanTheBanjoman Señor Moderator

    Joined:
    May 20, 2004
    Messages:
    10,553 (2.83/day)
    Thanks Received:
    1,383
    A mortgage isn't a debt, as the value of the house should cover what you owe.
    Claiming everything is so damn expensive is of course not true. If you work full time you can rent a home, buy food clothing and pay for utilities. And it's not like you'll have nothing left to do anything fun or buy some luxury. Then again I could be wrong, in that case America must be a really poor country. And saying economy is bad right now does not change anything about the past 20 years. My point wasn't about economy but about credit cards.
  13. farlex85

    farlex85 New Member

    Joined:
    Mar 29, 2007
    Messages:
    4,830 (1.80/day)
    Thanks Received:
    638
    The value of the house can sometimes cover what you owe and sometimes not. Same as a loan for a car or anything else one buys with borrowed money (admittedly not quite the same as the prospect for re-claiming full value is non-existent on the other things, but still). I didn't say anything about the economy being bad, capitalism is simply erred imo and credit would not be an issue if cost/income ratio was not.
  14. lemonadesoda

    lemonadesoda

    Joined:
    Aug 30, 2006
    Messages:
    6,245 (2.16/day)
    Thanks Received:
    963
    Dont live off credit. Use it for one months liquidity only.

    Rent dont buy a house. Rent too high? No. You can find a cheaper rent. Why are rents so high? Because house prices went up too much over the last 10 years due to an asset price bubble AND BECAUSE it was driven high through demand... too many people buying BECAUSE credit was too available and too cheap.

    The UK is "defending" house prices as much as possible (because politically its the clever thing to do to keep home owning voters happy), but the price that is paid is:

    1./ Interest rates are too low.
    2./ People with money who fund the banks (and government securities) are NOT interested in those investments if all they yield is 1% or 2%.
    3./ Capital flight... capital is leaving the UK fast
    4./ UK house prices are (were) 100% too high given average earnings of people. Gvt tries to prop up the market... house prices go down 10% but currency (exchange rate) goes down 30%

    Businesses DO NOT NEED interest rates this low. A healthy business can happily cover the cost of debt financing at 6-8%. The danger is interest rates > 10% that means interest expense is too high (just like YOU AND ME now see on credit cards).

    Over leveraged businesses shouldnt be in business. A company that cannot make an operating profit to cover even a very low interest rate shouldnt be in business at all. It will perpetuate inefficient businesses. There is a LEFT WING agenda. Get all the economy back into state control.

    Right now the UK govt is destroying the value of sterling (the majority of voters dont care... only those with an international perspective who are a minority) to have interest rates so unnaturally low in an attempt to prop up house prices and the stock market.

    Bah, you think the UK bail out has cost a lot? NOTHING compared to the asset depreciation and damage to the economy.
    Last edited: Jan 30, 2009
  15. TheMailMan78

    TheMailMan78 Big Member

    Joined:
    Jun 3, 2007
    Messages:
    20,901 (8.00/day)
    Thanks Received:
    7,487
    They had a thing on 60 min. about this a while back. Sadly its completely legal by federal standards. They tried to raise mine also and I use it for everything. I told them "Put it where it was or you lose a customer." Note that I financed MANY things with them. Hundreds of thousands of dollars. They told me the same thing "You're high risk. We have to." So I dropped them on the spot and transfered my balance to another bank. Three days later I get a call from the first bank asking me to return and it was all a big mistake on a "trainees" first day. I informed them they need better trainers because they lost a customer and his interest.

    Next to leasing a car, renting a house is one of the WORST financial mistakes you can make. Sorry lemonadesoda but you're dead wrong in this case.
  16. lemonadesoda

    lemonadesoda

    Joined:
    Aug 30, 2006
    Messages:
    6,245 (2.16/day)
    Thanks Received:
    963
    Buy high, sell low? LOL

    "Renting a house is one of the WORST financial mistakes you can make."

    Any idea what the cost of turning a property is? Are you going to stay in that same shack all your life? What is the value increase of that property, per year, in a boom, and what is the value decrease, in a recession? Now calculate the cost of your mortgage debt service. Calculate the net net in good times and bad times. And the risk of insolvency and losing whatever you may have... I think you will be surprised. Property is a great investment "just before the boom" and is a great business if you are in construction "during the boom". But dont be fooled that because prices went up yesterday, they will also go up tomorrow. Buying a property now could be one of the worst financial mistakes you could make... depending on your income and the mortgage leverage... and what happens to the property market. The US might have cleaned itself up (although I think there is more to give up), but in Europe and Asia it has only just started. Watch this space.

    A statement like "renting a house is one of the WORST financial mistakes you can make" is actually one of the worst pieces of financial advice I have ever heard. Because if you believe it to be always true then you are guaranteed to make a mistake. There are times (and locations) when property might be a good investment. Equally, there are times when it is not. If you move frequently (or what to keep your life and employment options open) then being able to move without significant financial burden may be a deciding factor.

    I do like the expression "get on the property ladder". Especially when it is wobbling and there is a long way to fall down.
    Last edited: Jan 30, 2009
  17. TheMailMan78

    TheMailMan78 Big Member

    Joined:
    Jun 3, 2007
    Messages:
    20,901 (8.00/day)
    Thanks Received:
    7,487
    No. Buy low and sell high. If you bought a house that was appraised lower than what you paid thats your own damn fault.
  18. hat

    hat Maximum Overclocker

    Joined:
    Nov 20, 2006
    Messages:
    16,891 (6.02/day)
    Thanks Received:
    2,060
    Location:
    Ohio
    there are other reasons for renting and not buying. if you buy a house, you are locked-in so to say. you don't want to move because you own the house and don't want to go though all the bs of selling. what if your neighbourhood goes to shit (gang/drug activity creeps in etc) and you want out?
    Crunching for Team TPU
  19. TheMailMan78

    TheMailMan78 Big Member

    Joined:
    Jun 3, 2007
    Messages:
    20,901 (8.00/day)
    Thanks Received:
    7,487
    You sell it. Make profit. Or you buy into an association. Sorry but renting is for very low income people who cant afford a house. Renting is just burning money otherwise.
  20. imperialreign

    imperialreign New Member

    Joined:
    Jul 19, 2007
    Messages:
    7,043 (2.74/day)
    Thanks Received:
    909
    Location:
    Sector ZZ₉ Plural Z Alpha
    I agree that it's a wise idea not to live off credit and to live within your means . . .

    most people don't seem to grasp that.


    But - at least in the US, if you don't have credit, many doors close for you.

    My belief has been to have the credit available, but not use it except for occasionally (keeps accounts active). I have my primary card for online or large item purchases - but, I don't make a purchase unless I have the cash to cover the purchase already sitting in my savings account. This way, I get the next month's bill, and the credit account is then payed in-full. Only other use of a credit card, IMO, is for emergencies - something that pops up unexpected (car blew out a tire 100 miles from home, etc.).


    There's nothing wrong with having credit accounts, or credit cards . . . the key to it all is being responsible (and that's where the vast majority of people screw up).
  21. ascstinger

    ascstinger New Member

    Joined:
    Apr 10, 2008
    Messages:
    544 (0.24/day)
    Thanks Received:
    76
    Location:
    In a house
    renting a house makes as much sense as leasing a car... sure you have a place to live/car to drive, but neither is really yours and when it expires, you're left with nothing.
    Last edited: Jan 31, 2009
  22. Deusxmachina

    Deusxmachina New Member

    Joined:
    Jan 21, 2008
    Messages:
    526 (0.22/day)
    Thanks Received:
    55
    My good buddy, Jim Rogers, is on some new youtube clips lately talking about the UK. Pretty much comes right out and says Britain is bankrupt, amongst other truths. Another guy on the show, I think a big-bank buffoon, literally laughs at him. Where do they find these people? Anyone who thinks these bailouts are helpful must own a bank, because for everyone else they are doom for generations to come.

    These clowns defending high home prices... home prices NEED to fall to get back in line to where they should be. Want less vacant houses for sale? Sell them for what they're worth for a change. This is what is supposed to happen in a "free market economy" anyway. ...which we don't have, but it's nice to pretend.

    I know, let's ban short-selling again. :rolleyes:

    Renting. In some areas, renting is actually cheaper than owning a house there. Some areas are like that. In MOST cases, I'd say you're better off owning, (unless you think you might move and don't want the hassle), but there are indeed areas where the cost of owning is simply crazy compared to renting.

    Imperialreign, I wonder if you have to purchase even a bottle of soda every six months on your card to keep it active. I have a few cards I haven't touched in years, and they're still good. I mean, doesn't hurt to buy a $1 item on there just in case, though, especially if that requires them to spend a little time and postage mailing you the bill. Chalk it up to spite. :)

    If the government really wanted people to put their money into banks and to save, they'd raise interest rates to make it worth the bother. And, who knows, maybe banks would then have more money to loan out and wouldn't need a government handout anymore, either.

    Banks privatized the profits but socialized the losses. And I can't even fully blame the banks because the government is right there helping them do it. Unreal. Taxpayers are getting scammed so hard, and half of them actually think it's a good thing.
  23. KainXS

    KainXS

    Joined:
    Sep 25, 2007
    Messages:
    5,600 (2.24/day)
    Thanks Received:
    501
    watch out if you have wachovia, they're going on an overdraft spree, they got me last week
  24. Wile E

    Wile E Power User

    Joined:
    Oct 1, 2006
    Messages:
    24,324 (8.51/day)
    Thanks Received:
    3,777
    Renting is a bad financial decision because no matter how many payments you make, they'll never stop. If you are a wise house buyer, you hold out for a house that you can buy for less than it's value, and you pay extra on the mortgage when you can. Pay it off early, and you never have to pay "rent" again in your life.
  25. TheMailMan78

    TheMailMan78 Big Member

    Joined:
    Jun 3, 2007
    Messages:
    20,901 (8.00/day)
    Thanks Received:
    7,487
    Um yeah I do know what it costs to turn a property. I own two properties currently and have sold three. And you know what? I made profit on all of them. One of them was after the "bottom" fell out of the economy too. Its called smart investigating. If I had an emergency I could have borrow against any of them too. However if I had rented I would have zero equity in anything and zero credit. You can ask any financial planner also if renting is bad. Ten to one he/she will tell you its the worst you can do. But then again if you think renting is better than buying you might not be the best investor. ;)

    Anyway I need people like you to rent my second property. It pays for its mortgage and boosts MY equity/profit :laugh: So sure keep renting. My bank account needs people like you.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guest)

Share This Page