Reply With QuoteThey look at your credit score when you take out a loan. Credit scores are also important when buying a home. I don't expect many people to be able to afford to pay for one directly with cash.
I found it common sense not to use one. Period.Originally Posted by Sayo
If you're starting a business, sure take out a loan. Only, once you do, whoever you loan with effectively owns the company, and until you make not only enough to pay back (with interest) but also enough to do all the expenses of the business you'll always be behind the eightball. Or rather, unless you're a pro, and can make decent profit when restaurants/businesses often LOSE money, you're doomed. And even then, all it takes is one bit of bad luck to turn things for the worse. And then what? You'll loan again.
The only other time is if you're stuck somewhere with a broken down car, and using it to pay off since you don't have the money. But you'd better be damn sure that once the car is fixed you can earn the money.
Nasty habit. Better to be patient, and make do with money you have than it is to get in debt up to your eyeballs. Also this.
Spoiler!
Yay for debt "relief" via payday loans. Brilliant. (Also, I'm sure this is an actual human talking)
Last edited by bulmabriefs144; 14th October 2012 at 11:24 AM.
They look at your credit score when you take out a loan. Credit scores are also important when buying a home. I don't expect many people to be able to afford to pay for one directly with cash.
Spoiler!
Spoiler!
HOLY **** MERCI IS BACK: So yeah, I got bored with the other parts of the internet and decided to see what was going on here.
1. Credit cards in the USA, unfortunately are horrible things that you must use if you ever wish to get a house, loan, or even in some instances, a well-paying job.
2. Here in the US, your credit score pretty much determines your life style.
3. The best way to get your credit score up is to get a card from a bank (like wells fargo, chase, etc). These bank cards are pretty good (especially for college students) with low limits. My current card has a $1000 limit. Simply use your card for one thing (gas, groceries) and pay it off when it is due (don't pay it off right away). Over the course of a year, your credit will build and build. Mine is probably in the 600's and only after a few months.
so yeah, Credit cards are awful things that we have to use if we ever want a good life (in the US anyway).
Why is paying it off right away a bad thing?
by Cryopon
If I am not mistaken, something about your credit being only sent in once per cycle (usually once per month). Therefore it doesn't help you at all to pay it off right away, as your credit score will only change monthly. An analogy would be like paying your electricity bill daily. You just don't do that.
Secondly, I have also looked that creditors will look at your history and When you actually paid your credit card. Your credit score isn't just how fast, often, or how much you pay off, but also when you pay off your card. I have heard from my bank and several others that paying off your credit card after every purchase may actually negatively reflect upon your credit score. The credit score isn't just some mathematical formula, but is a gauge of the creditworthiness of a person.
Best thing to do is pay off your card after your statement comes in.
For example, I don't pay off my card until I get my statement (which is actually today or tomorrow).
You'd be surprised to find out that there are tiny homes that can be built for like $11k. If you can afford a nice car, you can afford one of these suckers.
Or as another option. Screw it. Buy the land, and live in an RV (for that price you get twice the "house").
If you buy under a certain minimum and pay in cash, the bank never enters the picture. My parents were just short, and the banks kept talking about comparables (the houses here were for a lower price, so we won't allow you to buy it because it doesn't match up to what they had in their area). What?
To buy a huge house outright is about a ten-year investment with a good salary. 15-20 with a bad salary. (With my salary, nope, not unless I construct it entirely myself from found parts) In other words, the bigger house is more for your retirement, than to buy it easily by going way into debt. The smaller one is to help give you a spot to stay so you aren't getting price-gouged by an apartment landlord and can (hopefully) save up. Also, if you buy with enough debt, you can risk having an underwater house.
If you want to live in a tiny home in the rural ass of a mountain like Son Goku be my guest. Her house looks like my neighbor's ****ing tool shed.
Last edited by Omar Ranger; 14th October 2012 at 01:46 PM.
Spoiler!
Spoiler!
so what you are saying is that everyone should just get a 168sqft house or trailer home, not use banks, but if they have to, get an underwater house because obviously you can manage the debt and afford it.
Getting into a loan DOES NOT MEAN you are getting into a debt that you cannot pay off. Just like getting a car, it simply means that you pay off your house in monthly installments plus interest.
I, Joe Public, earn $13,000 a year. I have expenses out of this like food and board. I then proceed to enter a ten-year agreement on a $260,000 house, because I am a ****ing idiot and do not understand that $13k x 10 is $130k not $260k. From day one, my house is doomed to be underwater. I'm ******** that within 10 years I'll be promoted and have a much better job, which is a sucker bet.
I'm not saying get a trailer. I'm saying the reason houses are so expensive is that people can get away with it. They're spending more funny money than the US govt, and the fact they don't pay at the end raises the cost of housing, like any other high risk prospect. Why does schooling cost so much? It's built on student loans. Why does housing cost so much? Because people want a dream home at a nightmare price. If people bought houses that were 5 year's worth (forget the trailer-size, that's okay for me, but that's because I make $60 a week) instead of 10+ worth, we'd have a much better economy...
Also, houses is a boring chat topic. Therefore, I enact the thread of ages past.
It comes...
Last edited by bulmabriefs144; 14th October 2012 at 03:51 PM.
Late WELCOME BACK MERCILESS.
NO RICE 4 U.
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