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2020 Resolutions?
#21
I remember it being obscenely hard in trying to get my first credit card...it was like the college application process. Rejection after rejection! But once you get one and don't miss any payments, you are in the clear.

If you have some sort of income it gets easier, and there are definitely some starter credit cards that give a decent amount of rewards.
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#22
(2020-01-04 09:30:03)aaaaaa123456789 Wrote:
(2020-01-03 21:07:34)Ilraon Wrote: What does building up a credit mean?

Banking and financial institutions keep track of people's ability to repay borrowed money, which they use to determine whether to give them further loans, and so on. That kind of information is often consolidated into a single rating, typically called a credit scoring.

In most places around the world, that's just a value that banks use as part of their process when you ask for a loan, and it has very little relevance in people's lives otherwise, to the point most people (myself included) wouldn't even know how to find out their scoring, let alone how to read it or what it means — it's a financial technicality that nobody cares about. However, in the US, where he lives, for some reason, people have grown to care too much about credit scores — to the point even job applications will ask for them. It doesn't make much sense, but that's the way it is, and since the only way of increasing your credit score is to borrow money and repay it timely (even if you have no need to borrow it in the first place), the system forces them to do exactly that — often achieved by using credit cards for small purchases and paying them off when the statement comes (since credit card payments are essentially zero-interest short-term loans).

oh is that why they don't use debit cards there
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#23
(2020-01-13 19:17:53)Camer the Dragon Wrote:
(2020-01-04 09:30:03)aaaaaa123456789 Wrote:
(2020-01-03 21:07:34)Ilraon Wrote: What does building up a credit mean?

Banking and financial institutions keep track of people's ability to repay borrowed money, which they use to determine whether to give them further loans, and so on. That kind of information is often consolidated into a single rating, typically called a credit scoring.

In most places around the world, that's just a value that banks use as part of their process when you ask for a loan, and it has very little relevance in people's lives otherwise, to the point most people (myself included) wouldn't even know how to find out their scoring, let alone how to read it or what it means — it's a financial technicality that nobody cares about. However, in the US, where he lives, for some reason, people have grown to care too much about credit scores — to the point even job applications will ask for them. It doesn't make much sense, but that's the way it is, and since the only way of increasing your credit score is to borrow money and repay it timely (even if you have no need to borrow it in the first place), the system forces them to do exactly that — often achieved by using credit cards for small purchases and paying them off when the statement comes (since credit card payments are essentially zero-interest short-term loans).

oh is that why they don't use debit cards there

Dave Ramsey would like to have a word with you. 

Actually, a lot of people, mainly "millennials" and younger, use debit cards because they do not want to carry cash around. Almost everytime I go out to a restaurant with people of my age group (18-24 year olds), I am usually the only one that pays with cash, while my peers use debit. The mentality is, "Why go to the ATM, when i do not have to."
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#24
(2020-01-13 20:52:39)Uptight 534 Wrote:
(2020-01-13 19:17:53)Camer the Dragon Wrote:
(2020-01-04 09:30:03)aaaaaa123456789 Wrote: Banking and financial institutions keep track of people's ability to repay borrowed money, which they use to determine whether to give them further loans, and so on. That kind of information is often consolidated into a single rating, typically called a credit scoring.

In most places around the world, that's just a value that banks use as part of their process when you ask for a loan, and it has very little relevance in people's lives otherwise, to the point most people (myself included) wouldn't even know how to find out their scoring, let alone how to read it or what it means — it's a financial technicality that nobody cares about. However, in the US, where he lives, for some reason, people have grown to care too much about credit scores — to the point even job applications will ask for them. It doesn't make much sense, but that's the way it is, and since the only way of increasing your credit score is to borrow money and repay it timely (even if you have no need to borrow it in the first place), the system forces them to do exactly that — often achieved by using credit cards for small purchases and paying them off when the statement comes (since credit card payments are essentially zero-interest short-term loans).

oh is that why they don't use debit cards there

Dave Ramsey would like to have a word with you. 

Actually, a lot of people, mainly "millennials" and younger, use debit cards because they do not want to carry cash around. Almost everytime I go out to a restaurant with people of my age group (18-24 year olds), I am usually the only one that pays with cash, while my peers use debit. The mentality is, "Why go to the ATM, when i do not have to."

Ah ok
I always heard that lots of Americans use Credit Cards instead
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#25
(2020-01-13 21:22:04)Camer the Dragon Wrote:
(2020-01-13 20:52:39)Uptight 534 Wrote:
(2020-01-13 19:17:53)Camer the Dragon Wrote: oh is that why they don't use debit cards there

Dave Ramsey would like to have a word with you. 

Actually, a lot of people, mainly "millennials" and younger, use debit cards because they do not want to carry cash around. Almost everytime I go out to a restaurant with people of my age group (18-24 year olds), I am usually the only one that pays with cash, while my peers use debit. The mentality is, "Why go to the ATM, when i do not have to."

Ah ok
I always heard that lots of Americans use Credit Cards instead

Do not get my wrong, many use credit, but a lot of people also use debit in lieu of carrying physical cash.
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#26
(2020-01-13 21:44:07)Uptight 534 Wrote:
(2020-01-13 21:22:04)Camer the Dragon Wrote:
(2020-01-13 20:52:39)Uptight 534 Wrote: Dave Ramsey would like to have a word with you. 

Actually, a lot of people, mainly "millennials" and younger, use debit cards because they do not want to carry cash around. Almost everytime I go out to a restaurant with people of my age group (18-24 year olds), I am usually the only one that pays with cash, while my peers use debit. The mentality is, "Why go to the ATM, when i do not have to."

Ah ok
I always heard that lots of Americans use Credit Cards instead

Do not get my wrong, many use credit, but a lot of people also use debit in lieu of carrying physical cash.

Ah

Credit score is silly idk why it doesn't start at the maximum amount, you haven't had to borrow anything therefore you should be in a good position
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#27
(2020-01-13 19:17:53)Camer the Dragon Wrote:
(2020-01-04 09:30:03)aaaaaa123456789 Wrote:
(2020-01-03 21:07:34)Ilraon Wrote: What does building up a credit mean?

Banking and financial institutions keep track of people's ability to repay borrowed money, which they use to determine whether to give them further loans, and so on. That kind of information is often consolidated into a single rating, typically called a credit scoring.

In most places around the world, that's just a value that banks use as part of their process when you ask for a loan, and it has very little relevance in people's lives otherwise, to the point most people (myself included) wouldn't even know how to find out their scoring, let alone how to read it or what it means — it's a financial technicality that nobody cares about. However, in the US, where he lives, for some reason, people have grown to care too much about credit scores — to the point even job applications will ask for them. It doesn't make much sense, but that's the way it is, and since the only way of increasing your credit score is to borrow money and repay it timely (even if you have no need to borrow it in the first place), the system forces them to do exactly that — often achieved by using credit cards for small purchases and paying them off when the statement comes (since credit card payments are essentially zero-interest short-term loans).

oh is that why they don't use debit cards there

I already told you previously that we use debit cards in the US.

(2018-08-05 23:53:57)Camer the Dragon Wrote: Oh also something I wonder about the US, they always say "Credit card" and not Debit card, do most people have credit cards? Are debit cards even a thing over there?

(2018-08-05 23:55:31)Mystery Wrote: 157811 pheasants

We have both.

They have credit score to make sure we're reliable; they don't want someone that won't be able to make payments on time. Trusting someone with no credit is risky for them because they're not sure if they'll make payments or not. If they have a bad credit score, they can't trust them to make payments. That's why people with no credit scores have to find other ways of building one, like a low limit credit card. If I keep buying stuff with a low limit credit card and pay it on time, eventually my credit score will get in a range where they can trust me to make payments on other things, such as a house mortgage. There's probably some flaws with this system, but I don't see it changing.
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#28
(2020-01-14 12:30:42)Mystery Wrote: That's why people with no credit scores have to find other ways of building one, like a low limit credit card

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#29
In most normal places, they look at your ability to pay if you've never borrowed money in the first place — if you have enough income to pay off the loan you're requesting and you've never borrowed anything, it's safe to assume that you're financially responsible (since you've held your finances together up to this point) and that you'll repay what you borrow. Not only people don't even know their credit scores, let alone how to track them — it's perfectly normal for people to simply not borrow money when they don't have any need to do so, and banks acknowledge that.

(Also, I feel like the only one who finds cash more convenient than debit cards. I have an ATM at work, so I take money out of my account every few weeks and use that. It's not about regulating my expenses (I've never had issues with that in the first place); it's simply more convenient to pay with cash than to take out a card and my ID, wait for the transaction to clear (which sometimes takes a minute or two if the system's busy), sign the bill...)
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#30
(2020-01-15 06:27:32)aaaaaa123456789 Wrote: it's simply more convenient to pay with cash than to take out a card and my ID, wait for the transaction to clear (which sometimes takes a minute or two if the system's busy), sign the bill...)
i'd pay with cash too if i had to bother with all that to use my card, we have something in new zealand called EFTPOS (in australia too but it's not so popular) for instant card payments from your bank account. you just swipe/insert your card and enter your pin number, or you can present the RFID chip, if your card has one, for quick payments up to $50.
this means credit cards are relatively rare over here
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#31
Yeah, it's pretty similar to that here. Just insert the chip into the terminal, enter your pin, wait a couple seconds, and remove the card.

(The card also functions as ID here, but you don't need ID to pay so that doesn't really matter.)
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