Credit Score, How stupid.

[FathomFear]

I agree that credit scores are stupid, not only that, they are fckin pointless.

I have a flawless credit score of 999, I cannot get it any higher, but this does not make my life any easier.

I cannot get credit for anything of worth! I have direct debits (Phone/Internet/Gas/Electricity/Rent) , which I have never missed a payment on, hence the 999 credit score (along with registered polling address and long residency at the same address) but this doesn't help me one little bit. According to the bank, I have no record of paying back a sizable amount of credit so I am high risk.....ironically the only way to do this is to get a fckin credit card or loan, and its one giant circle from then on out!

As a FYI, when a person is young and just paying off bills every month but don't 1) have credit cards or other credit sources, or 2) have any major debts, a high credit score isn't going to help you much, as you haven't really developed an actual history of managing real credit well. I have a high credit score as well (around 820) but I also have around $100,000 available as credit on my credit cards (which I never carry a balance) and a history of paying back $60,000 in student loans. Proving that you can actually handle debt and credit is more important than paying a phone or electric bill every month.

[StayTuned]

Leasing is better if you can stay within mileage limitations. But it sucks to have to always be thinking about how much X trip is going to impinge on your mileage limitations. I hate not being able to decide on the weekend that I just feel like a drive out in the country.

Yeah, true. You have to negotiate a good mileage condition for something like that

[FathomFear]

Credit companies are nothing more than financial parasites.
The entire system is geared for sucking you into debt and feeding on the interest for decades.
Never use a credit card. if you do make sure you pay it all off asap.

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

[Paq]

Out of all my direct debits, Brittish Gas are the only people who never pop up on my credit history, But both mobile phones (Mine and my Fiances), BT (internet and telephone lines), My Landlord agents, electricity provider and car insurance all pop up bout once a quarter. I have one little dot on my credit rating when my ISP never changed my bank details and I never noticed the payment not coming:/ so I was late on that bill and they marked me with some orange tick for being late, rest are green ticks for being on time though

[-aiko-]

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

Agreed. Use your credit card intelligently and it's an amazing thing to have. The problem is that people treat credit cards like money they don't have, but will have in the future. Wrong. Theoretical money isn't money, and that line of thought is what will screw you with interest and get you in debt. Only spend money you actually have. Seriously.

I also use my credit card for convenience. My credit card allows me 3 months with no interest, so I sometimes like to lessen my monthly financial strain by stretching a purchase into 3 monthly payments. I already have the money to pay for it in full, I just pay it off in 3 months instead.

[ScottsdaleHokie]

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

I second this.

I put everything I possibly can on my travel rewards credit card every month. Utilities, you name it. If they let me pay with a credit card, that's how it gets paid. Then just pay off the balance each month and rack up travel points like crazy. I love the free plane tickets. Can't remember the last time I actually paid for one.

Edit:
Also, credit card companies used to offer free cash, like $2500 interest free for 3 - 6 months or so. I'd take that money and put it into a matching time length CD and then just pay it all back at the end of the term and keep my interest.

[Kujako]

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

That's one reason I like my AMEX card, it's not really a line of credit as it is due by next month (ok, you CAN apply monthly payments but its optional). But it gives me a lot of benefits and lets me make purchases without lugging around thousands in case.

[Seirith]

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

I do that too. I charge most things and then pay my bills at the end of the month. I never carry a balance and end up getting rewards a few times a year. I can choose gift card, airline tickets, or cash back.

[Toxigen]

In addition to your credit score, loaners often look at debt to income ratio as well (especially for car and home loans).

I've been hovering around 780 for a couple of years. I have one credit card. I've never missed a loan, car, or CC payment in my life.

Will it go any higher? Probably not, but I already qualify for the best possible interest rates.

[Kujako]

Just as an FYI, https://www.annualcreditreport.com is where you can get a free yearly credit report from all three agencies. Note that this is NOT your credit score, just the report. It's good to check every now and then to make sure nothing's there that shouldn't be due to identity theft etc (or just forgetting to pay a bill).

[melodramocracy]

I do that too. I charge most things and then pay my bills at the end of the month. I never carry a balance and end up getting rewards a few times a year. I can choose gift card, airline tickets, or cash back.

Next time you see one, remember to thank a cash user or interest bearer for subsidizing your freebies.

[tombstoner139]

Actually, if you have the discipline to treat credit like cash, it is completely stupid *not* to use a credit card for everything, simply due to the fact that credit cards offer substantial rewards. I have a credit card that I use for all of my purchases and I 1) never carry a balance or pay interest, but 2) earn about $1,200 towards travel every year, that I can spend any way I want. There are also credit cards that offer flat cashback between 1-3%.

Credit card companies make money off people who pay interest. But paying interest is a choice and something you can avoid if you have the discipline to treat it like cash. It's really the most logical choice for people who can pay the balance every month.

I completely agree. if you have the discipline. however for some pushers the first chunk of crack is free.
i just don't avail myself of those benefits because i don't travel and cash back is 1-3% of purchases.
$100-300 dollars per $10,000 spent is meh in my book. i just pay cash and keep the extra in 401k, Roth and other securities.
you do make a valid point for people who can manage credit carefully and that's the potential travel savings.

[yurano]

Next time you see one, remember to thank a cash user or interest bearer for subsidizing your freebies.

All credit card costs are paid by the merchant...

Do you even have any idea how the credit system works? If not, stop bashing the credit system with a misinformed mindset.

[melodramocracy]

All credit card costs are paid by the merchant...

Do you even have any idea how the credit system works? If not, stop bashing the credit system with a misinformed mindset.

I know exactly how it works. Do you honestly think all these cash-back systems are supported merely by merchant transaction fees? Those transaction fees are effectively baked into the price of goods, no matter if the customer uses cash or credit.

That, along with a majority of a customer base that actually DOES carry a credit balance month to month is why these perks exist. Banks don't offer these to lose money.

[Kujako]

I know exactly how it works. Do you honestly think all these cash-back systems are supported merely by merchant transaction fees?

They're supported by people who think that 1% cash back on 30% interest is a good deal.

[yurano]

I know exactly how it works. Do you honestly think all these cash-back systems are supported merely by merchant transaction fees? Those transaction fees are effectively baked into the price of goods, no matter if the customer uses cash or credit.

That, along with a majority of a customer base that actually DOES carry a credit balance month to month is why these perks exist. Banks don't offer these to lose money.

You're making it out to sound like there's a disproportionately large number of cash users that subsidize credit card rebates. In the US, this is clearly not true based solely on the fact that there are much more credit card users than cash users.

You're also ignoring the fact that its easier for merchants to get paid via credit card transactions than cash transactions. Merchants must pay for devices and employees to handle cash while running the risk of losses due to counterfeiting.

The credit card system isn't as clear cut as you make it out to be.

[Deleted]

I don't know, but just to chime in with the random suggestions, it sounds to me like you are overburdened financially or in a new situation and banks won't lend you money for a car yet? Also, you could loan with an auto dealer?

Why are you a risky customer for the bank? It sounds like you either have too little equity to put as safety for the bank or you are in too new a situation and the bank isn't sure the situation will last.

Are you skimming the cream so 3 months down the line or 6 months, you will be a much safer debitor for the bank or is there something in your finances that are off? If it's the first case, you can try loaning at a dealership or something that might be more lenient but have higher rates? If it's the last, something is going on that is making the bank not wanting to loan you money.