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Why in the world wouldn't you want to do it.
by wetpaws 5y ago
Why in the world wouldn't you want to do it.
- DJBunnies 5y agoCan <> want.
- iratewizard 5y agoWith or without a credit card it's still spending what you don't have. The credit card just makes it easier to ignore the fact that you're in dire financial straights.
- reaperducer 5y agoSounds like you've never had a car break down. Or a relative get hurt on the other side of the country. Or been seriously ill. Or unemployed. Or had a major appliance break. Or a million other things that happen to people every single day.
- oneplane 5y agoPretty much all of that is handled by the social safety that the government is there for or by your own savings that you build up because you are an adult and look ahead to make sure you can deal with such events. One of those things is planning and specifically financial planning.
- c22 5y agoA full quarter of adults in the US have no savings at all. It can be hard to build up your reserves when more than half the money you make from your two jobs goes to rent. Did I mention those jobs are both "part time" so no benefits either.
- wetpaws 5y agoThe discussion was about debit card vs credit card, not about the credit.
- just-ok 5y agoHow does this change with a debit card?
- Lammy 5y agoMy credit score goes down unless I carry some revolving balance.
- Spooky23 5y agoNo, that’s not how it works.
- tata71 5y agoUsing a very, very low, or no percentage of your available credit for ages makes you just as bad of an investment for these companies as customers who run off on the bill. In both cases, higher risk of default, less chance of profiting from interest, lower creditworthiness score!
- singlow 5y agoI have never once carried a credit card balance or paid a cent in interest. My credit score is over 800 which is pretty much maxed out. The only things on my credit history are a few credit cards that I got to establish credit history, and my mortgage, which is why I needed a credit history. So I got 3 credit cards and used them each during each month so that I would established on-time payments on all three and boom, I had perfect credit after a couple years and qualified for a mortgage. I didn't use any credit before I decided to buy a house in my 30s so I had a completely empty credit history prior to that, apart from a library that reported a lost book. So it just took a little while to get my average account age up and my number of on-time payments above some threshold. Now if you don't use the card at all, it is less effective at establishing credit because you don't get the on-time payment history or balance. The credit bureaus just get reports of on-time or late payments, balances, and delinquencies/defaults, etc. You will be given the best rating at a small non-zero percentage of your total available credit being used each month, but it doesn't have to be carried. All you have to do is make sure you don't pay it off too early. Just wait until the due date, and pay off the statement balance, not the full balance. If you pay it off mid-month, before the end of the statement, or paid the full balance instead of what is due, you may get a zero balance reported which is a slight temporary hit to your score, but not that significant. I found that it was best to have a few cards with a total available credit at least 5 times my monthly spending. That way the reported balance ends up being <20% of my total available credit which is near the sweet spot. If I am going to do a refi on my house i might try to micromanage it to somewhere close to 5% for a few months ahead of time and get a few points added to my score, but once you get your score up around 800 it doesn't really matter if it is up or down 10pts or so. I found that as my average account age increased, the swings from slight differences in balance were smaller.
- smabie 5y agoYou can earn higher interest than the APR on your cc by yield farming stablecoin pools
- wmf 5y agoPlease don't do this; it's really dangerous.
- CuriousCosmic 5y agoThat... is a terrible idea for literally every reason.
- throwaway98797 5y agoI would but tax implications scare me.