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"U.S. consumers are deeply wedded to credit cards," says CyberCash's Melton. In the US we are forced into using credit cards in order to participate in society
by SyzygistSix 5y ago
"U.S. consumers are deeply wedded to credit cards," says CyberCash's Melton.
In the US we are forced into using credit cards in order to participate in society. People get credit checks to even rent an apartment now. And not being in debt is not good enough criteria to have "good credit". It's an example of rent-seeking behavior that has been grafted onto our economic culture while not providing any kind of benefit.
- cheschire 5y agoI've had a few american friends scoff at the chinese social score system, and then turn humbly quiet when I point out america has been under a similar system for years already. In true american spirit though, it's privatized.
- truth_ 5y agoApples and oranges. Being forced to be in debt which you can manage if you are mature enough is nowehere comparable to having to agree to and behave in the line the autocratic rulers want. Having good credit and paying bills in time is only a small part the Chinese social score system. These two are, in no way, meaningfully comparable.
- becquerel 5y agoDebt is a reality of modern life, not something you can opt-out of by reading the right self-help books. Control is bad, whether it's direct control by state actors or indirect societal control by credit agencies.
- truth_ 5y agoYour comment is so convoluted. Not really related to what is said. I am just talking about paying your credit card bills on time. Many people I know do this successfully without fail. I am not writing a thesis on bigger implications of debt.
- perilunar 5y ago> Debt is a reality of modern life, not something you can opt-out of It's quite easy to live debt-free. All it takes is to rent a house instead of getting a mortgage, and keeping a positive balance on 'credit' cards.
- Chris2048 5y ago> People get credit checks to even rent an apartment now Why wouldn't they? If you are entrusted with any asset, people want to know you can pay for damages. > not being in debt is not good enough criteria to have "good credit" A history of no debt is meaningless if you've never borrowed anything - I've never once failed to return a million dollars in cash when given to me; I've also never been entrusted with a million dollars in cash. Truth is, the best assurance that someone will pay, is they have assets you could go after, and no other creditors that might come first. The more you limit the ways creditors can recover their losses, the more upfront assurance they will demand to cover the risk.
- SyzygistSix 5y agoIf this were the case, one would think that having a well-paying job and not having to borrow money would give one a good credit score. But it doesn't. References from previous landlords, criminal history, and a lack of debtors would be a better indication of whether one would be a good tenant than if one financed a car and other things.
- Chris2048 5y agoWhy would it? Never having to borrow money means you've never had to; not that you can be trusted to pay it back.