Swimming In My Head…

diving in the deep end…

Does Good Credit Even Matter Anymore?

We’ve been discussing how frustrated we are with our inability to work with Chase in any way, shape or form to get a little bit of relief for a condo that we own in Philadelphia.  Despite our consistently being on-time for every payment, Chase has told us that unless we’re default on our loan, there’s nothing they can do to help us.  Funny thing is, we’re only asking for a slight interest rate reduction or an extension of the term to lessen the monthly principle.  We’re not asking to be relieved of our obligation, just some consideration for doing a good job of taking care of our obligation when so many others aren’t or can’t.

How is that even right?  The only ones that they’ll pay attention to are the ones that aren’t paying them at all.  So Chase would rather not stave off a situation, but instead create a new bad one.  Makes no sense to me.

We don’t own the second property because we’re investors – it used to be our primary residence until we moved out of state.  Unfortunately, we didn’t know that when we put it on the market in September of 2006, that the housing bubble was in the midst of starting to burst.  So, we’re not a part of the group that was tagged as “greedy” or people that “got into ARM’s that they couldn’t afford”.

We just believed like every other American did that we would put our house up for sale, people would look at it, someone would love it, and then someone would buy it.  Not the case.

So, here we sit with 2 mortgages and a business that’s taken a huge income hit due to the economy and we’re wondering everyday how we’re going to continue.  We’re wondering if it really matters whether we maintain our good credit anymore?  Is it worth it?  After all, there are plenty of people out there now that are in the same or worse situation.

My guess is that the entire country is going to change as we know it due to necessity.  I guess all we can do is wait and see.

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October 26, 2008 - Posted by | Finances | , , , , ,

5 Comments »

  1. I just paid off my Chase card this weekend. Chase refused to lower my interest rate (which was 20.49%) even though I had been making on-time payments for a long time. Now I am credit card and credit card debt free. Whew.

    I have friends that are in much the same boat as you. They moved here from Pennsylvania and own their own business. They still own their previous house and can’t sell it in the current market. Their trucking business is also taking a terrible hit from high gas prices and a bad economy.

    Good luck with everything. I’m afraid we haven’t seen the worst of this downturn yet. 😦

    Comment by Brian | October 26, 2008

  2. Brian, definitely happy for you for being debt-free! Congrats!

    But 20.49%? Chase should be ashamed of themselves, but I’m sure that they’re not. That’s a ridiculous rate and should be illegal!

    Re: your friends from PA – must be a curse from that state because we moved from Philadelphia to Tampa and found out that Philadelphia is losing population annually somewhere to the tune of 4% per year.

    So I guess between your friends and us, we have a bad economy, high gas prices, lower business income, and a dwindling pool of buyers from which to purchase our homes…

    Sounds like a new television show to me…do you want to write or star in it?

    Laugh…that’s all we can do to maintain any level of sanity.

    Comment by Derek | October 27, 2008

  3. Where do I audition for that show? 😛

    A friend that I had lunch with today suggested that if the next president were really serious about helping the economy and the working class, perhaps he should freeze credit card rates at 10% or lower for everyone. Imagine how much money the American public would save in a single month on interest alone!

    Comment by Brian | October 27, 2008

  4. Auditions are being held in Tampa…lol

    You know what’s funny? We own a video production company…it wouldn’t be such a stretch to start filming. Tell you what…we’ll work on the storyboards, script it and present it to Fox – my favorite media company (Fox is so NOT my favorite).

    Now, onto work – what an interesting idea about freezing credit card rates! I love the idea but my guess is that the banks would find some way to lobby that thought right out of anyone’s head. What do you think?

    Comment by deek1973 | October 27, 2008

  5. I think you’re right. The big banks are way too powerful in Washington, and I’m pretty sure they would fight tooth-and-nail to prevent such legislation from becoming law. It’s a good idea, anyway…

    Comment by Brian | October 28, 2008


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