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And building no credit rating.

• gpvos 10y ago
  This also puzzles me. Paying directly should inspire more trust than taking out credit and paying it off a few weeks later.
  • rizwank 10y ago
    It's a reality in the states. But, yes, it's weird. We model credit worthiness largely on past payments of credit; which means that we are incented to use the system. I don't see using my credit card as really "using credit." I use it as a charge card and pay every bill as it comes; so it's merely a (30-59 day) float. I, of course, have a difference financial capability than much of the US, and recognize that privilege. For many people, CC float is what let's them live paycheck to paycheck and is the first brick in Americans penchant for debt. That being said; there is a huge benefit to many consumers having a short term credit facility. It's as if the CC industry made a micro loans initiative. (And then proceeded to abuse it).
• jasonkostempski 10y ago
  Making it even easier to keep yourself out of debt, at least until you fall for one of those payday loan scams.
  • op00to 10y ago
    Debt isn't bad. I recently purchased a car. Given my credit, I was offered 1.8% financing with first months interest paid for. If I took it, they would throw in a bunch of perks like lifetime oil changes, loaner cars for repairs, etc. I did, drove home, immediately paid off the loan, and continue to enjoy the benefits. No worrying about bank checks or cash or whatever. Credit makes my life so much easier. Credit and even debt is not the problem - it's living beyond your means.
    • kstenerud 10y ago
      What I did was take the money I would have used to pay the car off, and instead put it into a term deposit for the same duration as the loan payments, thus earning myself a couple percent above the loan rate with no risk.