Caution . . . Credit

[Randyonr3]

Just a word of wisdom from experance.....
About 10 years ago we sold our two homes, put the other in my sons name and paid off all our bills, owning no-one and headed out for the high seas..
With the goal that we were dropping off the grid.. a common goal for cruisers..
So for over the last 10 years we've toured the west coast of the US, Canada and Mexico..
Been back for a year or so now and havent given it much thought but recently we stopped in a local car dealership to purchase a car......
"SURPRISE, SURPRISE"
Over the last few years weve dropped off the grid, our credit has also dropped..
Being its only on the papers for 7 years, we've found ourselves at the point where we need a co-signer tp purchase a piece of buble gum..
We were told that our credit is worse than Bad as we have none, and were told we were Ghosts....and it dosent look good when you're 60 years old and have no credit history............
So up until 10 years ago, our credit was perfect and had the credit to pick up a signiture loan for 50K, today its de-funk and we have to start all over..

Even thou we plan on going out again, we're finding the hardships of starting over once you get back.......
With those dreaming of heading out for any length of time, you might concider the pitfalls of the point where you come back..

[Cheechako]

Good point... good thread....You should have used a Visa or etc card while you were away! The other issue is Car insurance. I learned the hard way, that even if you dont own a car for a few years, when you return, you are lumped into a category of "no prior insurance". That means you will pay like a teenager or DUI person! You can avoid this by buying some insurance... forget what it's called.... its like $20 per year...

[Blue Stocking]

Isn't it gratifying to know that we have reached a stage whereby one's credibility is based on his aquisition of things which he could afford to pay for.

[capngeo]

I run into that all the time.... I owe nothing to anybody, and have no loans. I pay out the arse for insurance, cable, cell phone. EVEN WHEN I OFFER TO PAY IN FULL A YEAR IN ADVANCE!

[zeehag]

talk about corporate rule!!!! i thinhk i would rathr be a ghost than a slave to corporate policy. dont care which corporation.....

[Gaucho Marino]

These entities without a soul called corporations, do not like it when their peons/slaves tells them to get loss, and panish you once you need them again. They are the scam of the earth and the source of so much suffering all over the world. Look at Wall Street during the meltdown, just to point the latest doings of the evildoers. Some of us boaters are so lucky to have the oportunity to almost totally say sayonara to them.

[DeepFrz]

I ran into this myself a few years ago. The bank that I had dealt with for over 30 yrs would not help me. I found a credit union that had a program to rebuild credit ratings. It is not an immediate process, but one has to start somewhere. I now have A1 credit rating again and the bank is pestering me to get one of their Visa cards....

[S/V_Surya]

Interesting thread in which people should pay attention. I want to bitch slap the bankers (read lawyers) that came up with these silly rules but you got to play the game. Keep the car insurance even if you have no car. Use or keep a credit card when you travel. Unless your Amish you may have to return to this fantasy (corporate) world. I have read blogs where the cruiser was weighing pro and cons of both approaches but for me the cost of and hassle of starting over with no credit or insurance is not worth.

[MarkSF]

Originally Posted by capngeo

I run into that all the time.... I owe nothing to anybody, and have no loans. I pay out the arse for insurance, cable, cell phone. EVEN WHEN I OFFER TO PAY IN FULL A YEAR IN ADVANCE!

The true nature of the credit rating system is that you get the best one for having lots of debts that you make payments on. Those who do not get into debt and pay for things up front are penalised.

[svpattyd]

I was a senior loan officer. We asked our bank for a line of credit before we started cruising. We asked for it as a VISA card. We kept our old car and let our kids drive it. Have coverage on the storage room. Minimal cost. Maximum benefit.

[rebel heart]

Originally Posted by Blue Stocking

Isn't it gratifying to know that we have reached a stage whereby one's credibility is based on his aquisition of things which he could afford to pay for.

Sad world when people tout the desirability of banks to loan them money with interest.

[minaret]

Ghost status is where it's at. I have never had a single credit card in my life, never took out a loan for a car or anything else, the only plastic I have is my driver's liscence and a debit card or two. I pay cash up front for everything I own. If I can't buy it outright I don't want it. And that has worked out very well for me. Most Americans I know are buried under a mountain of debt; credit cards, mortgages, it's crazy. I don't owe anyone a dime. Don't drink the kool-aid and become a wage slave.
Sometimes it is a PITA to do this. Traveling can be difficult, renting a car is a pain, etc. They find new ways to make this difficult all the time. But it's worth it not to play their game, after all the house always wins. The only way for you to win is to become the house. And there are ways around the difficulties that lifestyle presents, after a few years you catch on. I will never ask someone I've never met to loan me money at usurious rates, it's just foolish. And I was brought up to believe it's embarrassing as well...

[bangkaboat]

I've never had, nor applied for a credit card & - after going through a serious debt situation in the early 1990s - pay for everything in cash or buy non-reloadable visa cards to book/buy things on-line. Yes, it is a pain in the butt when some service only takes credit cards(car rentals) or your bank debit card doesn't work in an ATM in some other part of the world, but I'd rather have those few inconveniences than cave to the pressure by carrying plastic. My father, who only had a gas card for his business, used to say: "If you don't have the cash to buy something, you can't afford it." Yes, awkward when you're at West Marine & drop $7,000 in cash in front of the cashier, but that seems to be the alternative. I've seen so many buried in credit card debt & know that I would join their ranks if I had one. Ounce of prevention over a pound of cure?

[minaret]

Originally Posted by Gaucho Marino

These entities without a soul called corporations, do not like it when their peons/slaves tells them to get loss, and panish you once you need them again. They are the scam of the earth and the source of so much suffering all over the world. Look at Wall Street during the meltdown, just to point the latest doings of the evildoers. Some of us boaters are so lucky to have the oportunity to almost totally say sayonara to them.

I LOVE "the scam of the Earth"! What an appropriate typo!

[minaret]

Originally Posted by bangkaboat

I've never had, nor applied for a credit card & - after going through a serious debt situation in the early 1990s - pay for everything in cash or buy non-reloadable visa cards to book/buy things on-line. Yes, it is a pain in the butt when some service only takes credit cards(car rentals) or your bank debit card doesn't work in an ATM in some other part of the world, but I'd rather have those few inconveniences than cave to the pressure by carrying plastic. My father, who only had a gas card for his business, used to say: "If you don't have the cash to buy something, you can't afford it." Yes, awkward when you're at West Marine & drop $7,000 in cash in front of the cashier, but that seems to be the alternative. I've seen so many buried in credit card debt & know that I would join their ranks if I had one. Ounce of prevention over a pound of cure?

Glad to see I'm not alone Bangka! By the way, Dollar Rentals will rent you a car almost anywhere without a credit card, and as far as I can tell without even looking at your drivers liscence. Sometimes you end up somewhere where there is no Dollar and you end up cabbing it, but they are almost everywhere. Sounds like you are even more hardcore about it than me. I use a credit union because I like to be able to purchase online, and to avoid the 7k cash at WM thing.