10,000 cash or good credit?

[ricoace]

Below is a forum transcript of a topic I am involved with in a credit repai Forum. I thought it would be interesting to hear some of your thoughts about this topic and credit in general.

Topic Starter: Alex Topic: What would you pick? Good credit or $10,000?
Author: Alex Posted: Thu Apr 15 00:29 AM

Just curious, if someone offered you $10,000 in cash, tax exempt, or a fresh, clean, credit history with an 800 credit score to go with it. What would you pick???


Author: DerekJR321 Posted: Thu Apr 15 05:36 AM

I'd take the fresh clean credit history no doubt.

I make 10k in a month... it would take me a few years to get an 800.


Derek


Author: BadBean Posted: Thu Apr 15 05:49 AM

Hell I'll take the good credit. No doubt about it. With that good credit I could get the $10,000 if I needed it!

Author: nikilax24 Posted: Thu Apr 15 12:30 PM

I would definitely take the 800 credit score. That'd make it a lot easier to get a house than 10,000 which would probably only be like 5% of a down payment around here.

Author: Buns Posted: Thu Apr 15 2:42 PM

I agree with the rest of you guys. I would pick the clean credit any old time. You can earn and save $10,000 pretty quick, but an 800 score can take years!!

What would you choose Alex?

Author: Alex Posted: Fri Apr 16 04:56 AM

Just as I thought. I'd definitely take the good credit as well. Knowing what I know now about the consequences of bad credit, and what a pain it is to deal with debt collectors, it would have to be a hell of alot more than $10K to make me choose otherwise.

Thanks for responding to my little survey. :-)

Alex

Author: lb59 Posted: Sat Apr 17 12:41 PM

Better take the good credit.
Bad credit could cost you tens of thousands of dollars in the form of getting bilked with jacked rates on insurance and loans

Author: Alex Posted: Sun Apr 18 05:57 AM

Tell me about it. I'm sure I paid someone's yearly salary with all the fees I paid creditors back in the days.

Discover card alone got $2500 in fees alone from me. This was from late fees, OTL fees and interest. This was before I learned to negotiate.

I'm telling you, now that I have decent credit, and my debt has signifincantly decreased, I have learned to appreciate my credit as if it was gold.

It's amazing how a creditor can go from kissing your butt for being a "preferred" customer to your worst nightmare for missing a payment or two due to life situations.

ALex

Author: ricoace Posted: Sat Apr 24 09:20 AM

I would take the 10 grand. A 800 credit score would just get me into more trouble. The credit monster is only a last chance option for me in my life. If I cant pay cash or save for it, I really dont need it.

Author: lb59 Posted: Sun Apr 25 06:22 AM

I would take the 10 grand. A 800 credit score would just get me into more trouble. The credit monster is only a last chance option for me in my life.
* If I cant pay cash or save for it, I really dont need it.
Author: ricoace
=========================
*How much you gonna have to save to keep paying jacked insurance premiums. year in and year out because of bad credit and low scores.
How much are you gonna loose because these over charges went to the insurers rather than to a side fund earning you a return.

Your plan sounds good in theory but not so great in pratice.

Yes bad credit is financially damaging to you even when working on a cash basis.





Author: ricoace Posted: Sun Apr 25 1:22 PM

Your correct, I guess its dependent on your personal situation. My Insurance is locked in to a fair rate before my credit went bad. I already have a house. Bad credit in one way has been a blessing to me in that it forced me to become more disciplined with my finances. As a result, I can go out and buy a car cash(used) I can go on vacation...with cash. Emergencies are no longer a hidden worry.

I am no longer a slave to the plastic monster. I wake up at 5.30am in the morning and go to work for me...and me only

Except for maybe buying a house, Credit is not one of the fundamental neccesities of life like we have all been told...you want financial freedom? Keep ONE credit card around with a thousand dollar max limit and buy something every now and then, but most importantly...SAVE!
IT WORKS!

YOU SAID: Your plan sounds good in theory but not so great in pratice.Yes bad credit is financially damaging to you even when working on a cash basis.

IMO, as long as you empower credit with statements like that, and if you are like me, your destined to repeat the past. I am not totally denouncing credit, I just refuse to be a slave anymore.




Sorry, not trying to preach, because my credit right now is JACKED Just trying to pass along some knowledge that is working for me.


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[ReddOak]

I gave up on credit years ago, I would deffinitly take the cash.

Some of those replies really leave me shaking my head. 10K a month and bad credit. Yeah I beat his clean record would last a long time. And those post about how if they had good credit they could get the 10K. Wrong that is 10k plus interest and charges to pay back. Also if you stuck the 10K in the bank I wounder if the interest would offset any higher insurance costs?

[ricoace]

I thought the same thing Red...Couldnt do anything but shake my head.

[logs]

I'd take the $10,000 because I haven't owed anyone any money for years, never been late for a payment when I did have a house payment, always paid cash for everything except my house and have an excellent credit rating. Now, I charge everything and have the full amount debited from an account every month. Not positive of the credit score but it has to be near prefect.
As a result of that I also get lower home owners insurance and auto insurance just to mention a few
Oh, Im not lucky in this, I just have always been a hard worker and always lived within my means. If I couldn't pay for it when I wanted it, I didn't buy it.

[ricoace]

Logs, Assume for a moment that you had bad Credit. Would your answer be the same?

[Cougar Mag]

I'll tell you upfront..........I'd take the $10,000 and good credit.[8D]

Its crazy a person making $120,000 a year has bad credit, but I've seen it. Seems like the more people make the more they spend......and the funny thing is some people still feel they need to borrow!

[Dave590]

At this point in my life I would gladly take the ten grand, but then again, I have good credit.

Having a good credit rating can not be underestimated.

One can never tell what tomorrow will bring. The events of sept.11th are a good example. One day the cotton is tall and rubbing your backside, the next day, you might be wondering if that old tent in the attic will hold all your stuff when you have lost the "farm" so to speak.

In todays society, good credit is not an absolute "must", but it's a good friend to have.

[stealthycat]

I'll take the cash ... my last rating (4 years ago when I bought my house) was 720

[logs]

Rico, no. A good credit rating is priceless. If one has gotten himself for whatever reason backed into a corner financially this should be one of their top priorities. There are many ways to earn $10,000 but it is a lot easier to do that with a good credit rating.

[akbound]

I'm at the point in my life I'm through with borrowing money. Not only am I finished with working for others, but I'm finished with working except for, or at things I actually enjoy!

If a situation in my life turned me into a medical basket case, and my current insurance wouldn't be sufficient, I'll sign myself into the old soldier's home......and be done with it once and for all!

My only concern with credit.......is how the important people in my life see my character! As for any other reasons, or individuals, credit is inconsequential to me. Anything I can't pay outright for from this point forward.....I don't need, want, or desire. Neither it, nor money can buy back the one thing in life that made me most happy! And I will never be a slave to money, credit, or the material things either represent again! For me at least.....it's a matter of priorities.

Dave