Interested in your Credit History or the History of Credit.

What is your interest ? (no pun intended)
Credit history or credit report is a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score.

But more importantly, What is the History of Credit ? How did it start ? Why is it so problematic ?

It All Started In The 18th Century.... But it wasn't until after the Second World War that the Banks got involved, and started charging Interest. Recognizing trends of increased travel and spending among those who held charge cards, banks became interested in credit cards... Since they were in the business of lending money, they saw the potential of gaining income by charging interest on credit cards. A LOT OF INCOME.
In 1958, the “Don’t leave home without it” card was introduced by American Express. But the first revolving-credit card was issued in the State of California by the Bank of America. The BankAmericard, marketed all across the state, was the first card to offer its cardholders payment options, where they could pay the debt in full or they could make monthly payments while the banks charged interest on the remaining balances.

And that is where the problem started..... "REMAINING BALANCES"

What do the most expensive Adword keywords tell us?

Take a look at the Top 50 most expensive Adword Search terms ? Notice a trend .... Loan Consolidation, Insurance quotes, auto insurance..... What does that tell you ? Maybe we are paying these companies a little too much. The Company that is offering "School Loan Consolidation" must be making a pretty penny on all those students to afford the #1 slot. Don't get me wrong, they are providing an important service, I recommend people consolidate high paying interest Credit Cards into a single low rate loan, but be careful you read the terms of the "Low interest rate" period on the loan. You don't want to fall into the trap that many home owners did with sub-prime mortgages. Know the terms of any agreement you sign. If these companies can afford top dollar on Adwords, it means they are making an awful lot of money. Some how......

school loan consolidation $69.16
college loan consolidation $68.35
car insurance quotes $66.88
school consolidation $66.29
auto insurance quotes $65.90
college consolidation $64.04
student loan consolidation rates $60.14
sell structured settlement $59.82
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auto quotes $58.09
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student consolidation $56.96
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student loan consolidation interest rate $56.52
consolidate student loan $54.61
san diego dui attorney $54.56
car insurance $53.16
structured settlement $52.96
consolidate school loans $52.88
student loan refinance $52.44
consolidation of student loans $52.43
consolidation loan rate $52.04
citibank student loan consolidation $51.85
car insurance quote $51.80
consolidate student loans $51.23
private student loan consolidation $51.05
lasik new york $49.86
student loans consolidation $49.82
private loan consolidation $48.95
insurance quotes $48.78
teleconference services $48.72
the art institute of seattle $48.68
federal loan consolidation $48.61
plus loan consolidation $47.74
student loan consolidation programs $47.58
bad credit equity loan $47.46
houston criminal attorney $47.44
student loan consolidation calculator $47.19
cash settlement $47.12
consolidating student loans $47.09
orlando culinary institute $46.84
student loan consolidation program $46.77
orlando culinary institute $46.69
consolidation loan $46.54
loan consolidation $46.54
orlando culinary institute $46.51
ditech $46.32
auto quote $45.77
sallie mae student loan consolidation $45.69

Forget the 1% Credit Card bonus, it's the 20 % Compound Interest you need to watch.

All these Credit Cards are offering 1 % Cash back, 1 % groceries, 1 % air miles, 1 % this, 1 % that..... They don't advertise the 20 % Compound Interest they charge you on unpaid balances. Or all the other various penalties, charges, etc etc.

Credit Cards are a Trap. Avoid them like the plague. Need a credit rating ? Why ? What for? Who has told you that you need this Good Credit Rating ? The banks ? The guys that want to charge you 20 % interest when you can't pay the balance on your Credit Cards ? The guys that walk away when you lose your job ? You want to listen to these guys ?

Why ? - Save your money and borrow from yourself.

Is Mortgage Debt bad ?

In my opinion, yes. Wait a minute.... in the US you can write off the interest you pay. That's the problem. Too many people don't realize that their mortgage is debt and end up buying way more house than they need, or can afford. And the Banks feed this concept. Sure you can afford a million dollar mortgage they say. Sure you just get it back when you do your Income Tax. Hold on, your still spending money you don't have. How is that a good thing? Not only that, it's money you won't have for another 30 years, and money that you pay interest on.... to the Bank. To the Bank. To the Bank. To the Bank. To the Bank.

The Bank is the winner here, and you are the loser. You buy more than you need, with money you do not have. If you run into problems with your job - you are on the hook. And the bank turns the screws, and you can't make mortgage payments, and you lose that house. Mortgages are debt just like any other debt, but worse since you are under the illusion that it doesn't cost you anything - until you lose your house.

There is a better way - Save. Save, save save. Stay with your parents a little longer, share the rent with some friends - but SAVE for that house. Borrow from your mom and dad with interest that you would pay to the bank, But find some other way than a "Mortgage" to buy that 1st home.

The Problem with Credit

Everyone talks about problem credit, bad credit ratings, problem obtaining credit, well I think the problem is Credit. With easy Credit comes problems. Loads and loads of problems. If we could learn to live without credit; live within our means we would all be a lot better off. From a very young age we teach our kids the wrong message about credit. Do we want our teenagers having credit cards ? Our College kids ? What does Credit teach them ?

No, we should be avoiding credit. We need to go back to the idea that if you want something you need to save for it. You do not buy things with money you do not have. I'll be spending my time on this blog trying to solve the Credit Problem. How do we get out of Debt and stay out of Debt.