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Credit cards are the one thing I can’t wrap my head around. I am not American and most of my young U.S. friends I met early in college were so excited about hav

Credit cards are the one thing I can’t wrap my head around. I am not American and most of my young U.S. friends I met early in college were so excited about having a credit score of x which entitled them to more debt...

lotsofpulp 9y ago
Then those young US friends were idiots. I only know people who use credit cards to get 2%+ back from their purchases, plus an interest free 20 to 45 day loan. If you're spending with a credit card more than the cash you have on hand, then you're doing it wrong. Obviously, there must be some cohort of people that pay interest, but there's no reason anyone with half a brain can't setup up autopay and earn the cash back benefits and rental car/travel insurance benefits without paying any interest at all.
- tomschlick 9y ago
  Yup. I put almost everything through CCs and pay it off weekly/bi weekly. I almost never keep a balance except on 0% interest cards which are handy for large purchases. By having a few cards and keeping your utilization low (under 15%) you'll be able to make your credit score sky rocket which is crucial for when you need a car/home loan.
- ringaroundthetx 9y ago
  Why were his friends idiots? They could have been doing exactly what you described
  - lotsofpulp 9y ago
    I don't recall the comment I responded to saying anything about credit score, I thought they said their friends couldn't wait to get into credit cards just so they had access to more debt, which to me implied they were going to pay credit card interest rates. I apologize though if I read it incorrectly the first time.
ringaroundthetx 9y ago
Yes debt like cheaper homeownership via mortgage and cheaper better cars through lower cost car loans Credit cards are an efficient gateway to a higher credit score which achieves these goals It is pretty easy to wrap your head around, read a book before you finish concluding debt is irresponsible in all scenarios.

lotsofpulp 9y ago

Then those young US friends were idiots. I only know people who use credit cards to get 2%+ back from their purchases, plus an interest free 20 to 45 day loan. If you're spending with a credit card more than the cash you have on hand, then you're doing it wrong. Obviously, there must be some cohort of people that pay interest, but there's no reason anyone with half a brain can't setup up autopay and earn the cash back benefits and rental car/travel insurance benefits without paying any interest at all.

tomschlick 9y ago
Yup. I put almost everything through CCs and pay it off weekly/bi weekly. I almost never keep a balance except on 0% interest cards which are handy for large purchases. By having a few cards and keeping your utilization low (under 15%) you'll be able to make your credit score sky rocket which is crucial for when you need a car/home loan.
ringaroundthetx 9y ago
Why were his friends idiots? They could have been doing exactly what you described
- lotsofpulp 9y ago
  I don't recall the comment I responded to saying anything about credit score, I thought they said their friends couldn't wait to get into credit cards just so they had access to more debt, which to me implied they were going to pay credit card interest rates. I apologize though if I read it incorrectly the first time.

ringaroundthetx 9y ago

Yes debt like cheaper homeownership via mortgage and cheaper better cars through lower cost car loans Credit cards are an efficient gateway to a higher credit score which achieves these goals It is pretty easy to wrap your head around, read a book before you finish concluding debt is irresponsible in all scenarios.