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> I've lived most of my life without a credit card > This is all a result of me living responsibly within my means. Implying that not using credit cards is ho

> I've lived most of my life without a credit card > This is all a result of me living responsibly within my means. Implying that not using credit cards is how one lives responsibly within their means is kinda weird and wrong. Yes, you can live irresponsibly with a credit card. You can also live responsibly with it too. And it will give you extra consumer purchase protection (in case of a fraud or a bad fair vendor), as well as 1-5% return on purchases. Some would argue that missing out on that 1-5% return and extra consumer protections is the irresponsible move. But either way, the whole "using credit cards means living irresponsibly and outside of their means" is absolutely nothing but a complete lack of understanding of how credit works.

klyrs 6y ago
Yep, children of poverty are less fiscally literate and exhibit different cost-benefit analysis than folks raised in relative privilege. In my brief experience with credit cards, whatever 1-5% opportunity cost you think I'm paying is overwhelmed by the 20% interest rate if I forget to pay the bill. The preceeding is a statement about most of my life. I've gotten better at such stuff and my lifestyle has changed after grad school -- and since I didn't have credit cards while living below the poverty line and generally being a schlub, I didn't fuck up my credit, so a few months of having a credit card as a de facto adult earned me a near-perfect credit score when I needed it.
- filoleg 6y ago
  I get that financial literacy is an issue in underprivileged and low-income groups. But it doesn't take much brainpower or financial knowledge to treat your credit card like your debit card and not spend more than you have in your checking account. Functionally, a credit card would work exactly like your debit card or cash, except you would also be reaping all the benefits of credit cards and improved credit scores. But overall, I agree with your point about cost-benefit analysis and impulse control being difficult to overcome.
  - klyrs 6y ago
    Anyway, my original comment responded to > I often wonder how people on the verge of eviction think about this kind of thing — whether it is salient or even understandable My answer is that people in those situations think about these things very differently than people who have never encountered them. Or, flip it -- if dings on your credit score are the worst speedbump that society has thrown in your path, you probably don't have the skills necessary to live broke. I didn't come for financial advice, but thanks

klyrs 6y ago

Yep, children of poverty are less fiscally literate and exhibit different cost-benefit analysis than folks raised in relative privilege. In my brief experience with credit cards, whatever 1-5% opportunity cost you think I'm paying is overwhelmed by the 20% interest rate if I forget to pay the bill. The preceeding is a statement about most of my life. I've gotten better at such stuff and my lifestyle has changed after grad school -- and since I didn't have credit cards while living below the poverty line and generally being a schlub, I didn't fuck up my credit, so a few months of having a credit card as a de facto adult earned me a near-perfect credit score when I needed it.

filoleg 6y ago
I get that financial literacy is an issue in underprivileged and low-income groups. But it doesn't take much brainpower or financial knowledge to treat your credit card like your debit card and not spend more than you have in your checking account. Functionally, a credit card would work exactly like your debit card or cash, except you would also be reaping all the benefits of credit cards and improved credit scores. But overall, I agree with your point about cost-benefit analysis and impulse control being difficult to overcome.
- klyrs 6y ago
  Anyway, my original comment responded to > I often wonder how people on the verge of eviction think about this kind of thing — whether it is salient or even understandable My answer is that people in those situations think about these things very differently than people who have never encountered them. Or, flip it -- if dings on your credit score are the worst speedbump that society has thrown in your path, you probably don't have the skills necessary to live broke. I didn't come for financial advice, but thanks