TAKING YOUR CREDIT BACK

It's pretty obvious that we are in some kind/form of recession. I just didn't think it would come to me, or come to me so soon.

You see, several weeks ago, I received a letter from my mortgage company telling me that my home equity line of credit no longer exists. The letter continued, stating something about if I can prove my home is worth my loan value, then they would consider returning my line of credit.

Interesting.

Then last week, I received a letter from American Express telling me that they were going to reduce my credit line $15,000.00.

Then this week, I recveived my AT&T bill stating that my interest rate was going to go up from 9.9% to 24.99%.

All of this happened even though I have maintained an unblemished credit report. So, the way I see it, the financial institutions are taking credit back from the consumers in order to stay in the black (or to minimize the red).

I do understand what lending institutions are going through. I have been lending money on Prosper.com for the past couple of years. In those years, I have gambled on loaning money to all credit grades. Granted, the lower the credit rating, the higher the interest I would receive, but that's because of the higher default rate. After earning $584.24 in interest, I have lost $541.35 in defaulted loans! That does still leave me in the black, but by only $42.89! If I were a financial institution, it would not be enough of a return to stay in business. Several months ago I quit lending to credit grades other than AA, A, B and I have not lost a penny on those loans! Guess what? If you don't have a credit score worthy of a B or better, than you will probably NEVER get a bank loan again!!!

So, having good credit is more important than ever before. If you want to check your credit reports for free (no gimicks), log on to http://www.annualcreditreport.com/. I don't believe you can get your credit SCORE for free, but you can get your credit REPORT for free.

Well, sit back and enjoy the ride. It's going to be a bumpy one!!!

Happy Holidays! NOT! Merry Christmas!!!

I have a personal gripe. Something I have always taken for granted has been taken away from me. Many years ago it started to become "offensive" to say Christmas or Merry Christmas in public places such as schools and department stores at... well, Christmas time! What!!!???

When my kids were in school several years ago, they used to have an annual choral dinner program called "Christmas with Charisma". They had to change it to "Holidays with Charisma" because a parent complained. What was so ironic about it was that during the dinner, the show choir would sing to the dining audience... and sing CHRISTMAS songs!!! No one complained about that, and many of them mentioned the baby Jesus, etc.

I have been listening to television commercials for the past few years more closely than in the past. If they mention "Holiday" sale - I tell my wife to avoid shopping there. If they mention "Christmas" sale - I tell my wife to try to shop there.

Pirates? In the 21st century?

What in the world is the deal with pirates hijacking humongous ships??? This is the 21st century, and there are still active pirates in the world???

Ok, I realize that this is happening elsewhere in the world, but come on! You mean there are no defenses against a small boat with a few pirates on board? Now, I know they have weapons, including RPG's, but isn't there any technology out there to prevent this from happening??? How about firing a RPG into their boat??? Would that be so bad... with sufficient warning of course.

Now, in the news, I am hearing that ships may have to take the long way around to avoid the pirates...and pass the cost on to YOU!!! What???

This is it. Don't get scared now!!!

This is it. Don't get scared now!

Who will be the next President???

UPDATE!!! OBAMA WINS!!!