I have an idea for a new law

[trnsplntfrmohio]

Any company, organization or individual who runs a credit check as a prerequisite for services rendered, a loan, or a lease/rent on a building/apartment/house/room and has the ability to report to a collection agency for money and can file "bad" credit with a credit agency must report anyone in good standing making payments on time.

I've lived in an apartment for a year. I was subjected to a credit check. If I fail to pay my rent on time I am reported as delinquent to credit agencies. I think that is

I also feel the same for cellphone companies and the like. Anyone who runs a credit check or has the ability to report someone in bad standing, needs to report anyone in good standing.

I know this may seem like a slap in the face to landlords and such, but if you're not going to report a person in good standing, why should you be allowed to report someone in bad standing.

Anyone who thinks this is a great idea, I'll put some more effort into it and forward it to our state congress/senate.

 

[Indy_Guy_77]

Personally, I'd just as soon not have ANY new laws...

But have several stricken from the record; and the ones that aren't actually be enforced.

 

[Indy_Guy_77]

Additionally, no need to report "good standing" as "good standing" is the default. Which is why only those who don't pay, or don't pay on time are reported.

 

[Lars]

I have a great "New Law" I'd like to see.

"Any previous law passed that punishes crimes on the idea there might be a victim are now null and void. Only crimes that actually affect life, liberty and pursuit of property shall remain."

ie: wanna do something stupid with substances that impair you, no problem. You injure someone while under the influence of one of those substances.... Big Problem.

 

[360]

OP, I think it is a great idea.

 

[sj kahr k40]

I have a great "New Law" I'd like to see.

"Any previous law passed that punishes crimes on the idea there might be a victim are now null and void. Only crimes that actually affect life, liberty and pursuit of property shall remain."

ie: wanna do something stupid with substances that impair you, no problem. You injure someone while under the influence of one of those substances.... Big Problem.

+1

 

[XMil]

I have a great "New Law" I'd like to see.

"Any previous law passed that punishes crimes on the idea there might be a victim are now null and void. Only crimes that actually affect life, liberty and pursuit of property shall remain."

ie: wanna do something stupid with substances that impair you, no problem. You injure someone while under the influence of one of those substances.... Big Problem.

Perfect. Even if I'm not sure what "pursuit of property" means.

 

[trnsplntfrmohio]

way to derail the thread

it's pretty much time to stop letting cellphone companies, utility companies and landlords from acting like the mafia.

 

[Liberty's Teeth]

way to derail the thread

it's pretty much time to stop letting cellphone companies, utility companies and landlords from acting like the mafia.

Yes, cancel them all, including the landlord. This time next year I should have them all cancelled. Screw them, that is how they want you to live. Buy yourself some land (next to a stream or river), build a log cabin, use that stream or river to run a generator and just screw the cell phone. Who wants to talk to people anyway. A year or two ago this would have been sarcasm. Today it isn't.

 

[Ramen]

Credit rating is worthless.

It is just saying that you are good at managing debt so you lenders should give you more debt. The answer to the problem is not more government. The answer is to stop having and needing debt.

Cancel your debt cards and don't take loans out. Buy things with cash/checks/debit cards.

And no, you do not need a high debt rating to get a mortgage. Heck, you could even buy the house with cash. And that new truck you want, you don't need it. Buy a used one, with cash.

*I use the term "you" generally. This is not directed specifically at the OP.

 

[bigus_D]

Companies that report to credit agencies DO report all accounts. They can't just report the bad ones. I work for a company that makes commercial loans, we looked into reporting our dead-beats... this is how I discovered that we'd have to report the standings of all loans.

No law required... this is the current procedure.

 

[ATOMonkey]

Credit rating is worthless.

It is just saying that you are good at managing debt so you lenders should give you more debt. The answer to the problem is not more government. The answer is to stop having and needing debt.

Cancel your debt cards and don't take loans out. Buy things with cash/checks/debit cards.

And no, you do not need a high debt rating to get a mortgage. Heck, you could even buy the house with cash. And that new truck you want, you don't need it. Buy a used one, with cash.

*I use the term "you" generally. This is not directed specifically at the OP.

QFT!!!

Credit has nothing to do with how much you can afford.

Manual underwriting FTW.

 

[downzero]

Credit rating is worthless.

It is just saying that you are good at managing debt so you lenders should give you more debt. The answer to the problem is not more government. The answer is to stop having and needing debt.

Cancel your debt cards and don't take loans out. Buy things with cash/checks/debit cards.

And no, you do not need a high debt rating to get a mortgage. Heck, you could even buy the house with cash. And that new truck you want, you don't need it. Buy a used one, with cash.

*I use the term "you" generally. This is not directed specifically at the OP.

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

 

[ATOMonkey]

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

You've said this before, and I would really like to see a more in depth explanation of this concept. Just a student of economics...

 

[XMil]

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

If everyone thought like him, we wouldn't be having a mortgage crisis. Houses, for one thing, would be less expensive, if you actually had to come with the cash to buy one.

 

[$mooth]

The only debt acceptable in my life is my mortage and student loans. And I'm not thrilled about either of them. Wife is in med school, so that one has to be around for now.
Otherwise, I've only carried a balance on a credit card once in my life. Never had car payments. If I want something, I save up for it. I wish our gov't worked this way.

 

[dross]

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

You've said this before, and I would really like to see a more in depth explanation of this concept. Just a student of economics...

Let's say you have a business and you have 20 employees. Business is good. You're a prudent businessman, so you're taking a relatively small salary as the owner, and you've grown your business slowly. Even slow growth has to be financed. What does that mean? Well, let's say all your employees are busy, in fact, they're maxed out. Your salesman comes in with a new project that could potentially make you a lot of money. But your employees are maxed out already, and you'll have to hire ten more to be able to take the project. Where does the money come from?

Your business is worth its assets - your building if you own it, your computers, any retained earnings you have, as well as a percentage of your accounts receivable.

How do you hire those ten more employees? They each need a computer, and they each need to be paid. The hiring process itself costs money. So, you need conservatively, 20K just to hire them and get it started, and you'll need - again very conservatively - 100k in payroll before you ever see a dime from your new project. Where does the money come from without financing? Or do you just turn down all new projects until you've got enough capital to finaance it? The problem with that is that you have to make hay when the sun shines. That project may not be there next year or the year after.

Let's say you have enough retained earnings to finance it, so you spend all you have and then the company that hired you went bankrupt. Not only do you not have the safety net of your retained earnings anymore, now you CAN'T get financing because your company is worth so much less and the bank knows you have no safety net.

In the real world, a business can only grow very, very slowly without financing. This might work for barber shops, or medical practices, or other businesses more immune to cycles. If you are in a business services business, or manufacturing, if you don't have financing available, not only will you not grow, but the wolf will be constantly at the door.

 

[Ramen]

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

If everyone thought like me, we wouldn't have a debt based economy, so taking on some debt wouldn't further devalue the currency since we wouldn't have fractional reserve banking to create money out of thin air. Or, a Federal Reserve that loans the United States money with interest...

You are correct that in today's economy you are almost required to take on debt to finance a business since saving is punished by perpetual inflation. Instead of being an option to those who choose it and its possible rewards/consequences, risk is a requirement.

Also, my post was about personal finances. :P

 

[ATOMonkey]

Dross, I won't quote the whole thing, but given your scenario that you pay for growth with retained earnings and the company who you contracted with to provide product goes bankrupt, wouldn't you be in more trouble had you finanaced the growth?

In that situation, you would be without a job for 10 people, and $120k + interest in debt.

Now what do you do? Not being a smartass, just asking.

I'd probably make a terrible business man, because I'd want to finance all my growth with retained earnings. Far too conservative.

Also, I'd be much more amenable to expansion via investment rather than lines or credit.

 

[SavageEagle]

Credit rating is worthless.

It is just saying that you are good at managing debt so you lenders should give you more debt. The answer to the problem is not more government. The answer is to stop having and needing debt.

Cancel your debt cards and don't take loans out. Buy things with cash/checks/debit cards.

And no, you do not need a high debt rating to get a mortgage. Heck, you could even buy the house with cash. And that new truck you want, you don't need it. Buy a used one, with cash.

*I use the term "you" generally. This is not directed specifically at the OP.

If everyone thought like you, few would ever start a business. Financing is the crankshaft of the engine that drives our capitalist economy.

Too much debt can be a problem, but debt, in and of itself, is not a problem. Every major corporation is financed, at least in part, by debt. The alternative, financing with equity, is far more costly.

You're both right. Only, Ramen's concept holds true for the individual, and downzero's concept holds true for business.