Are Credit Cards Worth it?

[BLoCKANDLOADED ⭕⃤]

Are Credit Cards Worth it?

[kbiz]

Oprindeligt skrevet af RRW359:

Oprindeligt skrevet af kbiz:

I argue don't try to beat the law of long-run averages. Don't gamble against the house (casino). The house always wins. Only gamble against other people. Personally, I don't like casinos, but I'll bet with most people on most things. Why? Cuz I'll win.

A loan is a contract. Don't agree to it unless you plan to pay it back. I wouldn't compare indentured servitude to a simple loan.

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it. -Einstein

I advise everyone here to understand compound interest over time.

I'm not directly comparing the two I'm just saying that most countries have decided that there's a point where even if all parties agree to the terms it still isn't right if they agree to it by contract. As for remembering to pay, if you are rewarded for all your purchases you will be tempted to keep purchasing using it. The more you purchase, the more likely you are to forget about a purchase you made with it and then you get interest.

Are you talking about usury interest rates? If so, don't get a credit card. The interest rates suck even if they are not usury. Don't get a credit card to borrow money. Dumbest thing ever.

I'm not tempted to make purchases even though I'm rewarded when making purchases with my credit card.

A credit card has good value for those that use it properly.

[LQIM]

Oprindeligt skrevet af Eld3r:

Oprindeligt skrevet af SAOP:

The advantage is convince & the ability to buy now pay later. If you don't care about convince & don't need to buy now pay later, it's useless

convenience when paying for everything without the need for cash

the pay later part is part of the convenience too

Yes

[Alliesaurus]

Yes, using credit cards boosts ur credit score, allowing u to get better rate mortgages and loan amounts lower than the set minimum amounts from banks for buying things like a car etc.

So I'd advise using a credit card on things like coffee and food from takeaways, gas etc, paying it all off on time and it will boost ur credit score.

Do not listen to these tinfoil hatters saying it's evil, it's a good thing when u use it correctly like I have explained. Don't go with a no name credit card, go with a bank or known name. Best of luck.

[Alliesaurus]

Oprindeligt skrevet af Butt Connoisseur:

Oprindeligt skrevet af Eld3r:

the only interest i have ever paid was for mortgages and even those were paid off early

ah but morthgages can be cheaper than paying rent therefore saving money and you have an asset for your money as well

If u have a good credit score u are more likely to get a good rate mortgage from a reputable bank and more leverage when negotiating a loan amount u want rather than a set minimum from a bank, always use a credit card when u get ur first job and use it for small purchases, it shows on ur credit history that u are a trustworthy person who can pay credit back.

[Tommy Salami]

Only if you get cash back on purchases and if you pay the statement balance every month. Never pay those greedy goblins any interest. Ever.

[Xero_Daxter]

That feeling when I'm born with a negative credit score.

[UmmUmBurst]

Oprindeligt skrevet af Xero_Daxter:

That feeling when I'm born with a negative credit score.

That's seriously a thing?

[Q-T_3.14.exe]

Oprindeligt skrevet af Shakey:

Oprindeligt skrevet af Xero_Daxter:

That feeling when I'm born with a negative credit score.

That's seriously a thing?

Sounds unreal. Don't give them any ideas.

[kilésengati]

Oprindeligt skrevet af Shakey:

Oprindeligt skrevet af Xero_Daxter:

That feeling when I'm born with a negative credit score.

That's seriously a thing?

Your credit score can also take into account where you live and even who you do business with. It is theoretically possible to be born into a bad credit score.

Living in a place with a bunch of people with bad credit can also drag down your credit score.

[craigsters]

Hey Fairstone a Canadian loan company offered me a line of credit of three thousand dollars well I'm in the meddle of bankruptcy at 28% pay back per month, the sales lady said it would help me out during my bad situation, I said no thanks, it's a trap

[UmmUmBurst]

Oprindeligt skrevet af kilésengati:

It is theoretically possible to be born into a bad credit score.

It's really illegal where I live. Same thing with people acquiring debt before the age of adulthood. Banks need parents to co-sign stuff because of that.

[kilésengati]

Oprindeligt skrevet af Eld3r:

Oprindeligt skrevet af kilésengati:

Your credit score can also take into account where you live and even who you do business with. It is theoretically possible to be born into a bad credit score.

Living in a place with a bunch of people with bad credit can also drag down your credit score.

not how it works

Oprindeligt skrevet af Shakey:

Oprindeligt skrevet af kilésengati:

It is theoretically possible to be born into a bad credit score.

It's really illegal where I live. Same thing with people acquiring debt before the age of adulthood. Banks need parents to co-sign stuff because of that.

It is technical illegal, but there are ways to circumvent that.

Now, I'm no expert, but here's something to read.

https://www.minneapolisfed.org/article/2015/using-credit-risk-scores-to-understand-neighborhood-change

https://www.bostonfed.org/-/media/Documents/cddp/cddp1303.pdf

https://www.badcredit.org/credit-scoring-law-reinforces-inequality-thinktanks-say/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6231232/

I can also remember a video about neighbourhood scoring, but can't find it anymore.

If you live in a poor neighbour, it will affect the credit offers you receive negatively.

You are naive if you think lenders would let such data go to waste.

Solution: Move to a neighbourhood with better credit. Problem: You are not getting the credit to move immediately.

[nullpo]

Depends. If you're already stable using it and paying it in time increase your trustworthiness in bank eyes and opens access to lots of promos that saves money. Note that I say paying it in time. It means use it if you have the money to pay it. If you're struggling with money it's contract with the devil.

[pasa]

Depends on what conditions you get. Mine is definitely worth it, I pay back everything in full every month that takes like 3 minutes. The only expense is the yearly card cost, but the refund I get covers that 3 times over. Actually it covers the bank cost of my debit accounts and cards too. And the mastercard gives some benefits on top like basic travel insurance.

But if you remain in debt, it would accure some 40%. The fools going that way feed the banks.

[kilésengati]

A

Oprindeligt skrevet af kilésengati:

Oprindeligt skrevet af Eld3r:

not how it works

Oprindeligt skrevet af Shakey:

It's really illegal where I live. Same thing with people acquiring debt before the age of adulthood. Banks need parents to co-sign stuff because of that.

It is technical illegal, but there are ways to circumvent that.

Now, I'm no expert, but here's something to read.

https://www.minneapolisfed.org/article/2015/using-credit-risk-scores-to-understand-neighborhood-change

https://www.bostonfed.org/-/media/Documents/cddp/cddp1303.pdf

https://www.badcredit.org/credit-scoring-law-reinforces-inequality-thinktanks-say/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6231232/

I can also remember a video about neighbourhood scoring, but can't find it anymore.

If you live in a poor neighbour, it will affect the credit offers you receive negatively.

You are naive if you think lenders would let such data go to waste.

Solution: Move to a neighbourhood with better credit. Problem: You are not getting the credit to move immediately.

After some research, I've found what I was looking for: Geo-scoring.

https://de.wikipedia.org/wiki/Geoscoring

https://www.bankenblatt.de/geoscoring-wie-mein-wohnort-meine-bonitaet-beeinflussen-kann/

https://www.welt.de/wirtschaft/article141192184/Wenn-Ihr-Wohnort-Ihre-Kreditwuerdigkeit-bestimmt.html

https://www.welt.de/finanzen/verbraucher/article13255357/Wer-am-falschen-Ort-wohnt-bekommt-keinen-Kredit.html

https://www.stern.de/wirtschaft/news/bonitaet--warum-ganze-stadtteile-keine-kredite-mehr-bekommen-koennten-6834222.html

https://creditsun.de/schufa/geoscoring/

But given how readily available articles from German outlets are compared to American ones, I suppose it's a problem not (as) present in the U.S. of A?