Quote:
Originally Posted by V_RocKs
1) Charging $300 a month and paying it off each month before incurring interest doesn't do anything to "build" your credit. Having a card is only beneficial on how much money you have available to you. Your daily balance, payments, etc aren't individually reported to the credit agencies. So they have no way of knowing if your $300 balance is carried, charged and paid monthly, etc. They just know one number that is reported by the issuer and whether or not you are late. Your score is adjusted according to a ratio of how much credit in total is available to you and how much you are currently using. In this example having a $2000 limit and $300 balance makes you worse off than the guy that doesn't use it at all and have $2000 out of $2000 available.
|
Credit card companies report available balance, I'm using it to avoid paying fees on it, I'm paying it off in full to avoid paying interest. Now my credit score is 718, I don't know how they come up with that number but it is
Quote:
Originally Posted by V_RocKs
2) You can do all kinds of shit with bad credit in America. It is called.... wait.... wait for it... Make a shitload of money! Then you can buy cars in cash. Or at a higher interest rate and pay it off on an accelerated payment plan to avoid actually having to pay the interest while still showing your ability to pay a loan. Rent. Done correctly it provides the same monetary advantages as owning a home in the long run. Put down a cash deposit. When I first got started on my own I had shitty credit. It didn't stop me from doing anything because I made plenty of cash. I didn't need credit.
So your statement is false...
|
That's what I thought too, I came to the USA when the credit crisis hit. You can do a lot but there is still tons of things you can't do.
For our office I had to put down extra cash deposit, had to drop an extra month of rent for the rental house I currently live in, for my payroll plan to our employees I had to go with corporate account paying more rather than a small biz plan as I had no credit history, at first there was no "miles debit cards" so I couldn't get airline miles / points etc, credit cards provided insurance on rental cars debit cards didn't.
Ohh and a shitty credit is better than no credit.