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They’re not even subtle about it. The system directly rewards you for being in enough debt to always be paying someone interest but not enough that you might file for bankruptcy.
You don’t have to be in debt, but you do need open credit lines. Having debt on them actually makes your score worse.
Her score likely went down because she closed out a credit line, i.e the open loan, so technically the “i have an open 5yr loan ive been paying on diligently” is no longer part of her score. The fact that she did pay it off is part of that score, but its weighted differently.
If she instead had 40k of credit cards she had open for 5yrs, with zero debt on them, her score would have gone up. Just having the account open, even not using them, shows a high “credit to debt usage” ratio and “a long time open loan.” Both of those make up about 45% of your “credit score.”
So no, you dont have to use a CC every month to keep a high credit score. If you want a high score, you want to open a credit card or 2 for their max value until you get about 30k-40k of total credit, and then don’t use them at all. Not a bit. Never close them. The “long time accounts” + “high amount of debt not in use” + “never delinquent” is roughly 80% of your score. You can sail into the 700s/800s if you dont have any other credit hit.
While this is all technically correct it’s still dogshit that your score goes down when you do the thing you are supposed to do with a loan.
Your options are:
Take out a loan and pay it off: score goes down
Take out a loan and don’t pay it off/default: score goes down
Remember that your credit score doesn’t exist for you. It’s not for your benefit. It’s for the benefit of lenders, and they don’t give a damn how unfair the system is.
This is what people are missing. Credit score is a completely valid metric, but it’s just a measure of how likely lenders are to make money off of you.
What I don’t get is: since she paid off her car loan, she’d have more disposal income now…? Shouldn’t that increase her credit score?
There’s a mess of things that go into their formula, but as I recall one of them is actively paying on things. We had our daughter get a credit card and told her that, instead of using her ATM all the time, she should use the credit card, but pay it off every month. Doesn’t cost her anything to do that, and it builds a credit rating way more than having a card with a zero balance. Doing that, they’ll also end up raising your limit, which increases your rating too. Oh, and if you pay your credit bills as soon as they come due instead of just before the deadline, that also increases your rating.
Ah! I get it. So it’s a valid metric in theory. It’s shit for everyone in practice.
Seriously. “I rarely take on debt, regularly save aggressively, and pay off my debts as quickly as is convenient” means I’m bad to loan to in their eyes when if you had evidence of all that as an ordinary person I’m exactly who you’d want to loan money to.
That’s how I’ve tried to be (and currently have no debt!).
When I needed to buy a car a few years ago, they gave me a terrible rate because I had a bad score. I had paid off a couple of personal loans AND all my student loans…but it’d been a few years so my credit score had dropped. So fuck me for not borrowing money every day.
I ended up doing a co-sign for a better rate. And guess what? I paid off that car loan a couple years early and got dinged on my credit just like the original post.
But I know they don’t care about any of that and are actually mad I didn’t pay the minimum for the entirety of the loan.
If I would loan money to people, I want them to pay me back as soon as they can. But if I wanted to make money with loans, I’d want my customers to pay their loans as slowly as possible to put a lot of interest rates in my pocket.
You do have to use them a little bit though. It wasn’t a great surprise to learn that my credit score evaporated right when I was looking to buy a house because a credit card I hadn’t used in 7 years was turned off due to not using it. Having no debt, lots of savings, and decent income apparently counts for nothing.
Having no debt,
This is the only part the credit reporting agency sees. In that situation they have to make the lending score base on your history, which tells them nothing of your current situation.
lots of savings, and decent income apparently counts for nothing.
The credit reporting agencies don’t see any of this. There is no component in a credit score for your savings or income.
Sure, the credit agency doesn’t see it, but the person I’m talking to at the bank to get a loan can see it when I show it to them. But it doesn’t matter and they only really seem to care about the credit score.
My guess is that the bank may start with the credit score, and if its below a threshold the bank is willing to lend to, then they don’t look any further. Unless you have a truly egregious credit history, you’ll likely find other lenders more interested in your business.
Most companies don’t want every customer. There are those that only want the safest customers because they have the lowest risk, and that may mean you might get declined even if you would otherwise have the means to service the debt.
I don’t know why this dude is getting downvoted. This is basically what I do. And I have a great score.
Yeah I dug into all this a while back while I was trying to raise my score. Turns out the most productive thing I did was just ask my current cards to up my limit. A couple of them doubled, so it dropped my utilization way down, which shot my score way up. I think I was around 675 and went up to 750 just with that trick. I got into the 800s by paying off the credit cards.
Its an annoying metagame you have to play to get the “good interest rates,” but those little tricks can save you a fuckton of money over time.
Yep, find credit cards with no monthly fee and open them. I have 3 lines of credit and only use the one with the highest benefits. I pay off the bill after it hits my statement, and my credit is always 780-790. Also, like you said, up your limit if you can to get a lower debt to available credit ratio.
Edit: I bet the people down voting me have terrible credit lol.
Try paying it off before it hits the bill. I bet you can squeeze a few points out of it. A friend and I both do that and I’ve been at 804 since summer and his sits between 810 and 815. Although in truth there’s no real difference between your lowest and my friend’s highest in terms of what interest rates you’ll get.
Every time I’ve done that it seems to tank my score by like 10 points. No idea what that’s about, the whole system is so convoluted its hard to tell what really makes it go down when it does sometimes.
It’s fucking weird for sure. If it works for you, do it.
I think the only way we will know this is real is if you post your social security number too. You know, for science.
So I should get five more credit cards and not use them?
The credit score is based on how much money the banks think they can make off of you, not your moral standing.
I should partner up with someone who does that while I do the consistent thing and we cover each other.
Wait.
That’s illegal.
Is it? Why?
Reasons.
The system directly rewards you for being in enough debt to always be paying someone interest but not enough that you might file for bankruptcy.
The only interest I pay is a mortgage, but my score is over 800. It must be rewarding for something else too.
It’s been a bit since I took personal finance, but I think it takes into account your assets too.
Sorry for the negative vote, but credit score does not take into account your assets. I just dont want folks to think that might be the case. Personal assets will come into play when a creditor considers you for a loan/line of credit/etc along side your actual credit score.
Edit: Well. This is turning into a wall of text.
Credit score is based on several things:
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Ratio of debt available to debt used. I’m trying to remember where the sweet spot is, but it’s somewhere around 10% to 20%. If your credit cards have a cumulative limit of $20k, aim for a maximum use of $2-4k. Pay off your previous balance so you don’t get hit with interest and you’ll gain credit.
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On time payments. At the very least, pay the minimum each month, but really one should be budgeting to pay it off each month to avoid interest.
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Oldest account. I don’t like or use my first credit card, but I still have it. Note: cards must be used periodically to keep them active otherwise they won’t be considered, I want to say every 3 months. So even for my oldest card, I have a small subscription on it that hits monthly. This gives me an active, old credit line.
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There are “good” forms of debt where on time payments is the name of the game. These are car loans, mortgages, etc. If you have the resources, set up auto pay on these so you never have to worry. Paying them off asap will save you on interest, but it could harm your credit as that is no longer an active line. It’s likely still in one’s benefit to pay them off, but then we get into a discussion of interest vs cost of money. That’s a different rabbit hole.
Uh, there’s other stuff, but my thumbs are tired. Hope this helps someone.
I have played around a bit credit score estimators on the credit agencies sites. If they are not lying, a few things found interesting.
The largest jumps in credit come from increasing the credit limit on existing credit cards. Opening a new card is a slight decrease in the score.
Mortgage and cars loans combined (installments) are how you get to “excellent credit”. When I was renting my credit was always 60 points lower. When I bought my first home my credit hit excellent for the first time 3 months later. When I paid off my cars my credit dropped by 20 points each time.
Late payments or missed payments on any account decrease the credit card the most.
Credit scores are designed to discourage you from taking out lots of loans in short amount of time. Buy a car, your score decreases for 3 months then bounces back up.
Just a note, but your credit score went up when you got a mortgage because it takes into account “mixed loan types” like unsecured credit (credit cards) where there is no collateral and secured loans (home/boay/auto) where there is.
When you have more mixed loans that you pay without issue, your score goes up.
It helped me recall all these facts!!
Thank you!
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To play devil’s advocate, I wouldn’t trust a parachute that’s never been deployed or one that’s deployed every day for the last year. I want the parachute that was used maybe a dozen times over the last few months so that it’s not brand new but not overused so I know it works but isn’t a significant risk.
I have no idea how to calculate reliability, that’s just what monke brain thinks.
Yes, lenders lend to make money.
I paid a credit card down from $1700 to $1200. My score went from 795 to 763. Fuck 'em and their fake money.
You’re still carrying a balance of $1200 though. Pay it off and it should go up.
Believe it or not, it is better for your credit score to carry a low balance on your credit accounts than no balance, because glue tastes yummy to the credit agencies, I assume. /s
The reality is that lenders would rather have customers that utilize their credit and pay a lot of interest than ones that aren’t lucrative and pay off their credit use immediately. They’re looking for people willing to fall into debt traps that are ALSO able to reliably pay the interest within them without ever defaulting. That is what a perfect customer/capital battery looks like to consumer lenders.
Which means that credit scores are just an arcane measure to determine the potential profitability of borrowers, NOT a metric of the most responsible borrowers at all, because that would mean utilizing the least credit.
it is better for your credit score to carry a low balance on your credit accounts than no balance
That’s a myth that credit providers like to persist because it tricks people into paying interest. Pay off your credit card every month, don’t carry a balance, and use less than 30% of your available credit. That’s what’s best for your credit score.
Please don’t spread that myth. You’re literally helping people fall for the trap you’re complaining about.
https://www.cnbc.com/select/what-is-a-good-credit-utilization-ratio/
"Why you shouldn’t go as low as a 0% credit utilization rate
If your CUR is 0%, it shows lenders and credit card issuers that you aren’t making any purchases on your credit card. Remember, it’s important to use your card.
“When a credit card account is reported with a zero balance, some scoring models will look at a zero balance as if the card is not being used,” Droske says. “Maybe it’s in your drawer at home, or, for whatever reason, you aren’t using it at that point. Not using it at all is not as good as using it in very small, controlled ways.”
While a 0% utilization is certainly better than having a high CUR, it’s not as good as something in the single digits. Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score."
It’s not a myth. I keep a 0 debt load because I don’t want to be bothered playing their infantile game for another 20-30 points, but a low balance increases your score a little over a 0 balance.
I despise capitalism, and I know my enemy well. Credit utilization matters beyond full or no utilization. This is how credit scores work.
You can have debt utilization while still paying off the full statement balance each month and not being charged interest. I always have a balance, but I rarely carry the balance beyond the statement due date and interest free grace period. (I just have new charges that make the balance non zero.)
Your source does not seem very definitive.
“Depending on the scoring model used, some experts recommend aiming to keep your credit utilization rate at 10% (or below) as a healthy goal to get the best credit score.”
But even if carrying a single digit CUR is the optimal way to maximize your credit score, paying off your cards is going to be the best advice for 99% of people.
And even Experian, the credit reporting agency says carrying a balance helps your score is a myth.
paying off your cards is going to be the best advice for 99% of people
No duh, this isn’t asking for financial advice though. This post was about what maximizes your credit score.
Two entirely different things.
Also, you linked to an ad for what experian wants to sell you. The credit agencies have proven time and time again they are the last source of information you want to use regarding how they generate credit scores, when they aren’t proving they can’t be trusted with your data and should be dissolved by government for their constant data breaches it’s almost impossible to opt out from while still participating in society.
“Carrying a credit card balance will not benefit your credit score, but enrolling in Experian Boost®ø has helped many people increase FICO® Scores based on their Experian credit reports, and a free credit score from Experian can help you track progress toward score improvement.”
-Your source. A sales pitch is never a valid source, unless it’s to prove someone tried to sell you something.
You only need a balance on the day the company reports to the credit bureaus. They have to and will tell you the day they do this. You can buy something the day before and pay it off the dat after and never have a balance on your statement and still appear to be using credit.
Or, hear me out, he could go all Tyler Durden.
That’s probably not a good long term decision.
Your face is not a good long term decision.
That man had a family!
Also probably not the best decision.
Some institutions deserve to die.
It’s a good long term decision for the rest of us. I’d appreciate it if someone took that sacrifice sooner rather than later.
It won’t, necessarily. They don’t want people who will pay off their debt, they don’t make money off of interest if you pay your debt off. They want people constantly in debt making monthly payments.
Source: I paid off lots of debt and my score plummeted.
Your score could have gone down because closing the account effected the length of your credit history, or because the credit mix (types of accounts) was changed, or because the account showed the entire loan amount as available credit which was removed when the account was closed. Yes they make money off of people who carry some balance but they track credit scores to attempt to predict whether a person will repay credit that is offered to them.
deleted by creator
They like their little debt slaves
Credit rating measures your profitability to the credit industry, if you pay off your loan early, they make in interest, thus less profit.
That would imply people who constantly carry credit card debt would have high credit ratings, which is false as far as I understand.
no it wouldn’t, due to the higher risk of them not peying it back
There is a lot of misunderstanding about credit scores posted here.
The purpose of credit scores is to answer only one question:
How good are you at pay back a debt if someone were to loan you some money?
Thats it. Everything on how the score is calculated is weights and measures to service that question.
The reason that making payments on an active loan improves your score, is because it is real proof you are getting money from somewhere (the credit score doesn’t care where) and you’re choosing to spend that money on an agreed payment on the debt. Lets say I’m a lender and I’m considering giving you money, and I see that someone prior to me make a similar agreement, and you’re honoring that agreement to pay, then it gives me a good reason to think you’ll also pay on debts you have with me. The reason your score goes down when you pay off your last loan, is because I can’t see you still have the money to pay on a new loan. It means you’re a (slightly) higher risk because I’ll have to take it on faith that where ever you got the money to pay off the last one, you’ll also be able to get that money to pay off the one to me. There’s no guarantee for that, so its a risk to me, a lender.
Another thing I’m seeing missing in the discussion here is:
“Doing X makes your credit score go down”
Technically true, but many of those things that make it go down only do so for a short time. Maybe a month or two (using modern FICO score system).
There can be arguments as to which inputs they use, and how much each of those inputs affects the score. So much so, rating agencies themselves even change their minds over time. They update what they think is important and downgrade what they think matters less. You’ve likely heard of a FICO score. Over time there have been SIXTEEN DIFFERENT VERSIONS of what makes a FICO score source. Some of the variation you see when you get your score from different places is those places using slightly newer or older versions of the scoring system.
Unfortunately lots of organizations that have nothing to do with lending you money are choosing to use your credit score for their own systems. I’ve heard of insurance companies using FICO scores as inputs to how they calculate premiums, which they shouldn’t do. Some employers are using these now to filter applicants. Those employers are perverting the credit score system (again, a system just for loaning money) as a measure of trustworthiness or fidelity. I wouldn’t mind laws that prevent that as that isn’t what credit scores are designed for, and doesn’t answer that question.
How good are you at pay back a debt if someone were to loan you some money?
That’s the point!!!
The only information we are given is that the OP paid off a debt and the credit score went down. You claimed that maybe it is only temporary. But that still goes against your giant text claim.
Why does paying back a debt announce that you are bad at paying back a debt?
It doesn’t say that. You’re drawing your own conclusion from the score decrease. Also, I didn’t downvote you.
The only information we are given is that the OP paid off a debt and the credit score went down.
If that was the OPs only long term debt being serviced, (credit cards don’t count), the credit agency now has no proof you can CURRENTLY pay off a new debt. Meaning OP is a slightly higher risk.
Credit agency has no idea where the money came from that paid off the debt. It only knows that OP was regularly finding money somewhere, and that OP was putting that money toward debt as agreed. Did OP lose their job after paying off the debt and doesn’t have income anymore? Did OP have someone else helping them pay that that person won’t help in the future? The credit agency has no idea. It only knows that in the past they were able to service the debt, and today they have no way to measure if they can. So it is a slight increase in risk, meaning slight decrease in credit score.
All of that is technically true, but still kind of a shit policy as it consequently raises the cost of borrowing on someone who paid back the full loan plus interest.
You can rationalize all these shit policies with any number of talking points. Some of them might even be actuarially sound. But they’re still shit.
Who would you rather give a loan to? A person who you know is currently able to pay you back or a person you know was able to pay back the loan 10 years ago?
The grade dropped as soon as the account was closed, not ten years later.
So this is
- Person who is currently carrying a loan
- Person who just successfully discharged a loan
And the answer would definitely be 2).
The person who just paid me back, because they can obviously pay me back.
Exactly, so that answers the question. When you finish paying your loan, you stop paying back money and thus your credit score is slightly lower than when you were actively paying back.
That’s the opposite of my point. Let me correct myself here. The person who just *finished paying me back because they can obviously *make every payment until it is paid back again, as they have obviously demonstrated.
All of that is technically true, but still kind of a shit policy
Your complaint is with lenders then, not credit agencies. If someone misuses a tool, its not the fault of the toolmaker, but the person using the tool. Would you blame a hammer manufacturer because it is really crappy at driving in screws? I would hope not. You’d be upset at the person using the hammer to try to hammer in screws.
Your complaint is with lenders then, not credit agencies.
If the credit agency adjusts your score downward and then reports me out as “less credit worth” then my beef is the business that is effectively slandering me.
If someone misuses a tool, its not the fault of the toolmaker
If the tool reports inaccurate information, the toolmaker is at fault.
it consequently raises the cost of borrowing on someone who paid back the full loan plus interest
This is mostly likely untrue because she was paying off her debt the whole time she had the loan, and her credit score and history were probably improving that whole time. Maybe her score went up 300 points over the years of that loan, and then dropped 35 points.
her credit score and history were probably improving that whole time
Until she paid it off, at which point it dropped.
Maybe her score went up 300 points over the years of that loan
Maybe, but I highly doubt it. And 35 points is a big drop when you’re already in the 700-range. That can be worth a quarter point on a mortgage loan, which will end up costing you tens of thousands of dollars over the life of the note.
And 35 points is a big drop when you’re already in the 700-range.
Which means the tons of points she likely gained by paying off the debt for years saved her at least a point.
I’m not arguing that a lower credit score isn’t worse, I’m pointing out that cherry picking a single month movement to claim that she got screwed for doing something that actually likely helped her doesn’t make any sense.
Which means the tons of points she likely gained
No. Because there’s a soft ceiling. If she started in the 700s, she wasn’t going to get a 1000 credit score by the end of the loan. Those don’t exist. She wasn’t going to hit 850 for carrying a single small commercial loan, either.
cherry picking a single month movement
This isn’t cherry picking, its about incentives.
If I’m carrying a car note and I don’t want to be saddled with debt, I’m forced to take a credit hit because I’m finished paying my loan. This impacts the cost of a future loan when my car needs to be replaced.
By contrast, if I’m loose with my money, I’m effectively rewarded for refinancing or rotating out my vehicle before my loan expires and remaining in debt indefinitely.
The credit score becomes a means of penalizing people for failing to carry these burdensome loans uninterrupted.
The first part of what you say is still off even. Its based on other factors like debt to income, income amount and credit utilization. different lenders also use different calculations depending on the type of loan. For example a mortgage wont be the same as an auto loan and theres even a system for renters the scores can vary wildly and really the numbers dont even mean fuck all half the time. Underwriting is a whole career and a company doing lending that knows anything will look at how well you actually pay your obligations and weight it with how much you make, practically ignoring the score itself. Ive seen people with 350s get top tier financing and people with 700s without even a thin file (low history) get completely denied or stupid interest rates.
For reference I havent missed a single payment in my entire life, my credit is damn straight outside of some credit utilization on low limit cards and because of that my score is “mid” i dont really care at all though cause chasing the number will stress you out and you wont benefit much from it if you just make your payments anyways. Ive still gotten approved for most things ive applied for because of making my payments
Its based on other factors like debt to income, income amount and credit utilization.
You’re off on some of your measurements. FICO scores are based on only 5 inputs:
- payment history (35%)
- amounts owed (30%)
- length of credit history (15%)
- new credit (10%)
- credit mix (10%).
different lenders also use different calculations depending on the type of loan.
I already touched on that with the 16 different types of credit scores: source
Underwriting is a whole career and a company doing lending that knows anything will look at how well you actually pay your obligations and weight it with how much you make, practically ignoring the score itself.
You’re right that underwriting is a whole career, but we’re not talking about underwriting. We’re talking about FICO credit scores. You’re bringing in things that aren’t credit score, but are factors that lenders use for determining loan worthiness and interest they charge, but that isn’t FICO credit scores.
Myself and OP are talking about the price of apples here. You’re asking me why an apple pie costs so much. Yes, apples are an ingredient in apple pies but not the only thing that influence the cost of the pie.
You are correct, I misinterpreted a bit. Sorry for confusion
“…we base our entire lives on”
The vast majority of people barely think about their credit score
I mean where you are allowed to live is impacted by credit score a lot.
As long as you’re in the middle you’re okayish. But how you live is impacted by it in the US.
Well yes, but also no. Buying a house or getting a mobile phone (a car too, but less so) are pretty essential parts of functioning in society.
Who the fuck needs credit to get a mobile phone? lmfao
That Android better be gold plated, able to use every network possible in the world with satellite without roaming, and shit out by Taylor Swift herself.
As a brit who moved to America with a company sponsored visa and half decent full time job I could only get a 250 dollar credit card and a pay as you go phone.
and a pay as you go phone.
Murica
I’d settle for an android that’s fully functional and programmed in multiple techniques.
It’s even being involved in job interviews and renting a house. I’m sure a bunch of others as well.
Oh God, I forgot checking credit scores for applicants was legal
Sorry, we can’t just hire someone who’s in debt. Maybe come back in a few weeks when you’re in better shape financially.
My wife and I both have shit credit score, we still got a mortgage at a preferable rate based on our income and job stability alone.
Sorry to say, credit score is a meme
why do you need to take out a loan for a phone?
just go and buy one outright if you need it?
Yeah you only care about credit score when you’re young. I dont base shit off my credit score
Or when you’re american.
It’s categorically ridiculous how the credit system in good ol’ 'Murica is based on you getting into debt so you can be deemed “trustworthy” by the banks.
A system designed to keep you tight om a leash, forever selling your labor to pay off that first debt.
Categorically ridiculous? Try systemic evil.
It’s even more “funny” if you think it’s the very opposite of how old fashioned bank managers used to judge people’s creditworthiness in order to decide if they should get a loan or not, back in the day (and not even that much back: algorithmic loan decisions only became a thing in the late 80s and 90s.).
My uhm, social score… cough, I mean credit score is very good right now. I’ve been a good little capitalist.
*score goes down 17 points for coughing*
Honestly, after 700, it doesn’t matter if you’re 765 or 800. You’re already approved.
Bunch of rentals in Seattle are requiring credit of 750+. I thought my 740 credit wasn’t half bad for only being in the credit game for like 6 months but it still can’t get me shit here
I just had to check… I’ve been paying bills and shit on time for 15+ years and I am barely at 748. I even have like 60k USD in available credit. How the fuck do they have a minimum of 750 like wtf.
On another note, something also crazy is that I noticed that when I bought my first home my credit dropped 100 points. The banks actually lowered my credit score on buying a house…
Age of accounts and utilization are huge factors, so if you’ve opened and closed a lot of accounts, and if you’re over 10% utilization then your score will come down. Leave accounts open even if you don’t use them. The age will help.
740 is great, don’t let those fuckers get you down.
The easiest way to get an 800+ credit score is with a mortgage. If you have marginal credit taking the crappy mortgage will make your score better and you can refinance in 12-18 months and get a better deal.
To get a car financed I think above 715 is the best place to be.
Credit history length was shortened, lowering the score. Just give it another 5-7 years it’ll build back up!
I shat my credit into single digit range threeish decades ago (yeah, I’m a boomer puke). I couldn’t even get a bank account until about eight years ago. I finally was able to get an acct, got a secured card, and built my credit up to 729. ‘Upgraded’ my secured card to unsecured, but left the limit at $300 to keep me in check.
Then I made the mistake for applying for a modest credit line with my bank. Not only did I get denied, but the hard credit hit put me under 700. Then my credit took another major hit because I used that card for more than 31% of its limit. Never once made a late payment, neither.
As I hoped that a line of credit could afford me access to an oral surgeon (which I really need to even consider dentures, as I have mucho malo in my mouth), and as I have no interest in writing a grant to cover it, I’m fucked, as oral surgeons don’t seem to take Medicaid in my shit state.
If I survive another yearish, Medicare might be helpful, but the problems in my pie-hole might not wait that long.
I do not want a handout. I want the chance to pay it off and not leave it to Medicare…and not die of the infections spreading to either my brain (such as it is) or my heart.
(Yaay, America!)
Have you considered committing a crime and getting caught so that you can go to prison for a year or two and get free dental?
As much as I can see the appeal of gaming the system, I don’t look good in orange.
Also, I have gigs to attend to (filthy bass player here), as well as taking care of my sweetheart, who has wicked mobility issues. I don’t think I can do that from a cell.
I like the cut of your jib, tho’.
Best of luck then, friend 🙏
Even though we Australians get mostly free healthcare, teeth are still considered luxury bones that we have to pay for out of pocket too.
Imagine a country for which this sounds even remotely viable.
It’s ok, rich people don’t have to play by this system, so that makes it all better, right?
I have made the “stupid” decision to never get a credit card because I have, in the past, not been great at remembering to pay things off.
Because of that, I have virtually no credit rating.
How dare I choose to not get into credit card debt!
I’ve never seen the need either, and it’s never caused me any problems. I’ve bought cars, a house, etc., and nobody has told me no yet, so I haven’t worried about it.
What do you mean, pay things off? My credit card account is linked to my bank account and it’s automatically balanced on the 20th of each month. Do you have to perform manual labour to send money from one account to the other one? Genuinely curious.
It wasn’t always like that. Once upon a time, you had to send checks through the mail.
Use to not be able to get a credit card through your bank without having a significant amount in the bank or a home loan
They say that it’s better to have bad than to have no credit.
In any case, autopayments are surely your friend, and not just for credit cards.
Everything is on autopay now, but I’m in my 40s and there was no autopay back when I was having trouble remembering to pay bills. Then I was self-employed for years and the money was variable from month to month and I didn’t feel like it was a safe bet to get a card if I couldn’t be sure I’d have enough in my account to pay it back. And then when I got other jobs, I just never got around to getting a card. Now I’m not working (putting my daughter through online school) and my wife essentially gives me an allowance and it doesn’t really make sense to get one.
Thankfully, my wife of 23 years has excellent credit.
I’m fucked if she leaves me.
I’ve gone through a bit of what you said but never really made enough money to get into real trouble. Things are very stable now and we really don’t spend much so our credit has really gotten good over the years.
How dare I choose to not get into credit card debt!
Having/using a credit card needn’t cause you to pay a cent more than not using one.
If you just put on a credit card what you’d be buying in another way anyway, and then pay off your statement balance each month on your due date, not only do you not spend a single cent more (you’ll never get charged interest this way), but you continuously build credit. The only difference will be that instead of paying for stuff the moment you buy it, you pay for all of your month’s purchases all at once, at a later date.
I’ve never paid a cent of interest on any of my credit cards because I’ve done the above, and my credit score is over 800 as a result, today.
I get that and if automatic payments had been a thing when I was younger, I would have gotten a credit card back then. At this point, it’s moot because I won’t be working for the foreseeable future as I work with my daughter who is going through online school.
Yes, you are incentivized to stay in debt, because creditors want to know that you are both willing to take on debt AND pay it off. The sweet spot for them is someone who never really pays it off but still makes minimum payments while interest piles on. This is the system working as intended.
+35 social credit
