a credit card. I asked her if she had the money to pay for all these things and she said no and that it was the credit card company's fault for sending out a a $3,000 limit to a 19 year old. She said she has no intention of paying the bill when it comes in. Can't this hurt her, I mean this will hurt her credit right?? She said that it will but by the time she needs her credit, it wont matter. She said actually her economics teacher told her this but I am still worried about how this could affect her later on. Is she right about it not hurting her or is she in the run of a lot of trouble later?
2006-11-21 06:21:30 · 17 answers · asked by sourstraws 3 in Business & Finance ➔ Credit
She's heading for trouble. She'll either have to work really hard to pay off that credit card debt, or she'll learn the meaning of "personal bankruptcy" firsthand.
It takes at least 7 years to rebuild your credit rating after a bankruptcy, which means she won't be able to buy/lease a car or buy a house until she's 30. Some landlords won't even rent to people who have bankruptcies on their records.
2006-11-21 06:22:46 · answer #1 · answered by Anonymous · 3⤊ 1⤋
for all of you calling her friend an idiot, you are being way too kind! She is also a crook, thief, fraud. She is going to learn a hard, bad lesson. Yes it will destroy the non-existent credit she already has. I work in lending in a large credit union in the DC area.
If this is her 1st card (I assume that it is from what you are saying), her credit score does not exist yet until she begins to use credit. Sorry to the one who said you are not obligated to a debt if you don't pay. You must have had the same eco teacher who graduated from Sans School. But all the posts here will not change her mind. She has already decided to willfully commit fraud. I think it was her fault for applying for a card she had no intention of paying, not the card companies fault for thinking & making the mistake that she may be responsible.
In a way though the teacher is right, as long as she wont need to: have a job, rent or buy a car, appartment, but a house, another credit card, get a phone turned on, have utilities, open a bank account, or anything else that is credit driven for the next 10 years, she will be fine!
I know people that have such bad credit that they cant even qualify for a $500 SECURED loan! And they make over $100K a year! She will be in that pack very soon. She doesnt take it seriously, & wont, until after it is too late & she has to run & scramble to beg borrow & steal (--oops! shes already done that!) in order to get anything she needs. Then of course it will be bank/credit card company that is keeping her from doing things, it wont be her fault!
2006-11-21 14:53:41 · answer #2 · answered by ricks 5 · 0⤊ 0⤋
You friend is wrong! Lemme tell you why. I was a 18 yr old with a mastercard that had a $5000 credit limit. And on top of that i got it aroundprom time...oh lord...you know I went crazy and I am paying for it 10 yrs later. I have horrible credit! Even though she THINKS it won't matter because she doesnt need credit now, IT DOES MATTER. Stuff stays on your credit report for years and everything now a days goes by your credit. I was so deep in debt that I had to file for bancrupcy at age 21 and now 7 yrs later, it's still on my credit report. Credit is very important to have, especially if you plan on having any type of assets. Tell you friend to be careful and make sure she pays her bills because if not she will get herself into a hole that will take her forever to get out of. She needs to be smart about it and use this card to establish credit instead of ruining her credit. My new philosophy is...If you can't buy it cash don't buy it at all. The only credit card I have in my bag now is my debit card from my bank account, not because I can't get credit cards but because I chose not to.
2006-11-21 14:34:12 · answer #3 · answered by SexyMommy2B 4 · 0⤊ 0⤋
It will seriously hurt her especially if she maxes it out. I bet there is a huge interest rate and by the time a court makes her pay it it might be up to $6000 or more w/ interest. With a bad credit rating you can' t get a job, a loan for a car or house, you can't get any more credit cards...it will seriously screw her over! Teach her show her this is not good! Oh and did she fail economics? If she passed that teacher should be fired!
2006-11-21 14:24:45 · answer #4 · answered by Lovely Lady 27 5 · 1⤊ 0⤋
She is wrong, it could seriously damage her credit. She will not get car loans, home loans. It could effect her being able to rent an apartment. Credit reports don't just go away, or start fresh, and every month she doesn't pay a bill is points against her. Plus does she think the credit card companies are going to let her just get away with not paying the bills? She's only screwing herself.
2006-11-21 14:25:16 · answer #5 · answered by strtat2 5 · 1⤊ 0⤋
I wish I could thump Scorpio in the head.
OK, if you read my past answers you will note how I mock people who say you can go to jail over debts........unless they can prove fraud.
If you friend doesn't lean to shut up it's going to be very easy. Tell her to save a few dollars on her credit card to by smokes. She'll need them.
Then ask your friend what here plans are for 4 years from now. Plan to get a loan for college? Hang it up. Want a car? Hope she can afford cash. Apartment? The slums don't do credit checks.
Lets hope she wakes up soon.
2006-11-21 20:16:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
She'll have to pay it back eventually - these days, EVEN IF you file bankruptcy you STILL have to pay it back. The law has changed...there's no easy way out of it now. And hypothetically speaking if she does file bankruptcy, her credit will still be screwed for 7 years PLUS her wages will be garnished and all monies earned will be sent to an agency to manage her debt for her. Not to mention that in order to file bankruptcy, she will have to retain a lawyer, which will cost her a good deal...
If she doesn't pay, she could go to jail. It is against the law.
She is going to ruin her credit - which means she can't finance a car, buy a house or even rent an apartment.
Good Luck. Your friend is an idiot. Make new friends.
2006-11-21 14:24:28 · answer #7 · answered by Corn_Flake 6 · 2⤊ 1⤋
This will definitely hurt her credit. The worst part is her immature irresponsible attitude regarding her financial responsibilities. She needs to realize that her credit score/history is not only used to qualify for auto/home loans, but many and I do mean MANY employers use credit as a way to weed out undesireable candidates competing for jobs. So she's not only jeopardizing her ability to qualify for auto loans, home loans, student loans, business loans but she is also jeapordizing her ability to land a job in the near and far future.
It takes about seven years to REBUILD credit, that means if she started now she would be 26 when her credit might be decent again, but from what you said she is happily in the process of destroying it, so its seven years from when she starts making payments on time and once you become entrenched in bad spending habits its very difficult to work your way out of them. She is setting herself up for a lot of financial hardship.
In these days and times its far more important to have good credit than a little cash in the bank.
2006-11-21 14:33:08 · answer #8 · answered by Zari A 2 · 1⤊ 0⤋
It sounds like your friend is an idiot. It will hurt her. But, hey if she don't care why should you or anyone else. And it is not the credit cards company's fault. They do that on purpose. Your friend will eventually get thrown into collections and she may even go to jail.
2006-11-21 14:30:41 · answer #9 · answered by sarah 4 · 2⤊ 0⤋
Yes she is ruining her credit and possibly her life. Tell her parents what she's done. and have your parents check on that Economics teacher....
2006-11-21 14:55:43 · answer #10 · answered by chibminshiy 2 · 0⤊ 0⤋