3 ms·
Post paid plans are credit. It’s allowing you to consume goods, then pay for them after the fact. Sure, it’s short term credit (sub 30 days), but it’s still cr
by true_religion 5y ago
Post paid plans are credit. It’s allowing you to consume goods, then pay for them after the fact.
Sure, it’s short term credit (sub 30 days), but it’s still credit.
- acka 5y agoI believe that grandparents point was that by not taking on any debt they don't have a credit score which can be verified. You can't verify something that doesn't exist in the first place.
- true_religion 5y agoI thought their complaint was that without a credit score, businesses don't see them as 'trustworthy'. The OP separated 'trust' from 'credit score', and says they shouldn't be conflated. However since all of the OP's examples involved credit (car rental post-pay, phone usage post-pay, etc.) then in those cases trust===credit score. Without a credit score, you're basically asking someone to trust blindly that you'll pay back a debt since there's no track record of your ever paying back debts.
- errantspark 5y agoThe problem is that I don't have an alternative method of proving my trustworthiness and as a result lose access to some products. Often times prepaid plans are not equivalent to postpaid plans, I can't just put a security deposit on a rental car to offset risk, etc.
- b3morales 5y agoIt's not goods, though, it's a service. And in general services are not paid up front.