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How is my credit rating

how is my credit rating

1 Answer

It would be nice to think the premise of the question details have viability as a plan but losing your credit rating for e.g. 7 years isn't worth anything. Your return on investment would be negative.

The credit card companies can - and will - sell your debt - to a debt recovery agency who can - and will, depending on your local laws - call in the bailiffs to seize your property up to and including your house.

Or, in the unlikely event they are more patient and again depending on the laws in your jurisdiction, they can take you to court and have a judgement registered against you, the outcome of which (if it goes against you obviously) may result in your paycheck or other sources of income being garnished until you have repaid the debt with interest.

Now - and I'm not a lawyer anyway but here I am really out of my depth - this assumes you don't hit the nuclear button and declare yourself bankrupt. But even if you do, that is not a fun state of being.

In short, if your credit rating would allow you to 'get away' with a

small amount (say <10k) amount of money, it won't be worth the hassle - over 7 years that's a poxy 1428 dollars p.a. - you'd make more doing a half-assed job of selling Avon door-to-door.

If your credit rating allows you to get away with serious coin, say 250k then you are just guaranteed to have every 2-bit schlub recovery agency on your behind from now until the debt is recovered. And repo men. And bounty hunters.

One possible exception - you take the money (and it would want to be big money) and then skip the country. Even then, the cost to you looking over your shoulder - is it worth it? Also, beware, the world is a much smaller place these days as these people found out [1].

In summary, crime generally pays like crap (see also the chapter in Freakonomics where it is asserted that a drug dealer makes less than a server in McDonalds: [2]). And plus, you don't think the credit card companies have thought of all this?

Your credit rating is worth what you can and will pay back. That is it.

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Category: Credit

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