/biz/ - Business & Finance

>>5559262
>she
Explains it all doesnt it?

>>5559262
she pays in increments so it slowly increases her credit rating

>>5559262
Depends. You should wait until you actually receive a statement to pay off your bill (I didnt realize and just kept getting $0 statements) if you want to build credit. But just doing the minimum will fuck you

>>5559296
>Credit goes up more if you pay the minimum rather than just paying the whole bill

>>5559262
What do you mean? She's making complete fucking sense.

When you're building credit you want to show that you're capable of borrowing money and making payments on time. So you borrow money on credit and pay off the required payments each month....as opposed to simply paying the whole thing at once and being done with it.

Like when you finance a car. You could pay in cash but the interest rates are so low it makes sense to buy it on lease.

>>5559262
she'd be broke if she paid it, she's a retard trying to rationalize her retarded spending habits. also carrying debt to improve credit rating is a meme.

>>5559262
this logic doesn't make any sense at all. I make surplus payments on my truck and my credit is godly

>>5559262

PAY IT OFF EVERY MONTH

>however, carrying a balance WILL increase your "credit score" because you will look like an "ideal customer" i.e. one that makes them money off of the 15% APR each month.

PAY IT OFF EACH MONTH OR YOUR DOING IT WRONG

>>5559296
Are you also a female?

Your credit rate will always be higher if you carry zero balance.

People with high credit scores are the ones that have lots of credit to their name, but do not carry balances.

>>5559350
But she said she doesn't pay it every month m8.

>>5559407
dave ramsy literally says to do the exact opposite

>>5559350
Paying in full is always better for your score. Your credit rating is a ratio between how much credit you have to your name compared to how much you are utilizing at the moment. If your balance is not ZERO your score will be lower.

>>5559350
No, it is not financing, she is just carrying a balance on a credit card and the idea that this improves your credit score is retarded due to low credit standards, popularized by the people making money off it and only marginal compared to the length of card ownership.

I feel bad for the cuck who is going to eventually pay it off to keep the wifey happy.

Wouldn't having a low debt to capacity ratio bump her credit up though? Having a card with a $10k limit and a few hundred balance on it would show that you are impulsive

Lmfao all these brainlets paying interest is everyone truly this stupid? Pay it off in full you stupid fucks i bought a car at 542, payed 11k cash and every momth payed 100 dollats over what i owed and when im 3 months away from fonishing and at 750

>>5559407
She forgot to put financial advisor in triple parentheses.

>>5559296

>>5559262
Credit Usage
When you only make the minimum payment on your credit cards, you’re not doing much to lower your credit card debt. Another major component of your credit score is your credit utilization ratio, which measures how much of your available credit you’re using. Carrying a balance that’s more than 30 percent of your credit limit may harm your score.

For example, if you have a $2000 credit limit, it may be helpful to keep your balance under $600. If you owe more than $600 but only make the minimum payment, chances are there’s not too much left over after interest payments to make a substantial dent in your debt.

>>5559375
This is how it actually works. It's an arcane calculation involving your available credit, credit utilization, and payment history. Paying off debt does way more for your score than making minimum payments. Minimum payments just means you're getting fucked on interest. The only time you want to just carry the loan and pay the interest is if you are making more money using that payoff amount somewhere else, like I've been carrying my student loans for years because the rate has been like 3% and I can pull 20-40% in stocks. Otherwise just having a few credit cards that you fully pay off after the statement is enough to establish a payment history so you can get the things you actually need a loan for (car, house).

The only reason you even need to build credit is if you're a kid and they banks have literally no idea what you've ever borrowed and relayed.

Look you fucking retards just gaining credit from just credit cards is fucking worthless
when they run your credit for a car loan or whatever the fuck and all they see is credit card payments they are going to give you a shit rate no matter your credit score
now if you have bills and loans all paid on time on your credit report a long with a high credit score, you'll get the best rates.

>credit cards

how did we let the usury get this far

>>5559336
it's true, you NEET

>>5559375
>I make surplus payments on my truck and my credit is godly
did you know there are penalties for paying off car loan early
pay off your car loan early is worthless

European here. What's a credit score?

>>5559651
>using credit at all
>not using like kind 1031 exchange with crypto

Stay poor fag

>caring about your credit score

only poorfags bother with this shit. Just always pay your full credit card balance, not the minimum

>>5559735
some bullshit meaningless number
without a payment history to back it up

>>5559683
no it isn't

never ever pay interest

>>5559262

>Taking financial advice from boomers

>"Hey anon, will you saddle yourself with $80k debt? Don't worry your job as CEO will allow you to pay it off LMAO also
Mommy and Daddy will help."

>"Hey anon, Mommy and Daddy are getting a divorce and selling the house. Good luck with your debt and wage slavery! Xoxo"

The whole "use credit to build credit" is a meme. But she isn't even understanding the meme. You myth is that if you use your credit card but pay it off every month, sometimes multiple times a month, to keep your debt utilization low this will build your credit. She isn't even doing that right, just fucking herself over with 20% apr interest.

But the thing is you don't need to "use" credit to build your credit, you need to have some sort of credit obligation, could be a credit card or loan, and actually NOT use it as much as possible, keep the utilization as low as possible and never miss a payment.

I had a 720 credit score before I even got my first credit card from just having some mall store charge card with a $500 limit I never used at all, and paying a small car loan. My first credit card had a $20k limit, I only made ~60k at the time so would never use even 10% of that a month. Now my score is 780 after it dropped when I closed a credit card because I had too many.

That's why credit scores are retarded anyway, as long as you don't habitually miss payments you will have 700+ and interest rates on loans will be based entirely on your income. If you're trying to "build credit" you're spending way to much effort on something that doesn't matter if you make sure you're being financially responsible in general.

I hope you correct her ways.
She's dumb and losing money for nothing
Pay it off every month.
t.above 800 rating.

parent has 800+ rating
parent adds kid to card
kid now has 800+ rating
kid still can't do shit with 800+ rating because no real payment history, no bills, not loans, no nothing.
worthless number is worthless without a solid payment history
ZZZZZzzzz
stupid bitches will always be stupid

Only in a fully jewified society you can be rewarded for taking a loan.
How do you burgers even allow this shit I can't believe it, it sounds so alien to me.

Just like your payday loans with a 400% interest or something.

>>5559683
its crazy how memes make people believe an alternate reality

stay poor

>>5559683
No it's not you fucking moron
That doesn't even make sense, why would they reward you more for paying them back slower?

>>5559988
My parents did this for me. Now I have a 'credit builder' card which increases my credit limit $100 a month if I pay on time.

I just have the card autopay itself from my credit union account. I have 0 loans and buy everything with money I have. I only use the card for the conveniance of not using cash or checks.

>>5560745
Unironically because they're Jewish

>>5559510
gave me a good kek

>>5559988
You don't automatically get credit for becoming a signer on your parents card. Credit scores are assigned to SS numbers. If the card isn't under your SS number, you don't get credit.

What about college loans? I was going to pay it off in a lump sum

>>5560745
It's actually true. Having more cards show your ability to manage debt. But it doesn't really help that much. It is still best to pay it all off by the end of the month.

>>5561436
PAY OFF ALL DEBT ASAP, ALWAYS. PAY DEBT WITH HIGHEST INTEREST RATE FIRST.

This is all you need to know.

What’s a good first credit card for a 25year old with no credit history entering the workforce and school in a month?

>>5561497
Your school should have some sort of credit card you can sign up for.
If you have zero history, you will probably get rejected from getting any bank credit card.
Get a school one or credit union one then build up your credit then you can apply to get a bank one.
Remember to pay off every month

How do you morons manage to get into crypto when you clearly have no idea how credit cards work? Are mommy and daddy buying for you?

Building credit is so fucking simple, all you need to do is keep the balance on your credit statement low compared to your credit limit, and pay it off every month.

Who do you think usurers want to give more opportunities to make mistakes, some stupid bitch who's already paying the minimum balance with a shitty card, or someone who's so-far been too responsible with their money?

>>5560745
>why would they reward you more for paying them back slower?
Because your GOYCO score is based on how much money you make the banks. People who never make the banks any money aren't best goyim, so they don't get the most good goy points.

Being tapped out is stupid, but holding a small balance will build you credit rating faster than always being at 0, because the jew isn't going to make any money off bad goyim that don't pay their interest shekels.

>>5561497
>be me
>18yo, 4 years ago
>still in school, never worked
>go to bank and get a free bank account and credit card.
Just move to EU senpai. We might not have Freedom(tm) but we have a lot of free stuff.

>>5559262
Giving women credit cards has got to be the easiest way to make money off of interest.

>Hey blondie, do you want $5000? Just give me, say... $300 a month for a few years and you can have it until you don't want it anymore then give it back!

>>5559506
Is Dollats on binance?

>>5559262
It’s ideal to keep your balance under 20%. She’s partially correct.

>>5559262
>what is the time-value of money
Why would you pay asap when you could wait till the last possible time to pay and save yourself some money (read:value) by doing so?

Oh since this is a credit thread

I have a stupid question

Couldn't you just take out a loan then immediately repay it and repeat to build credit?

>>5559262
normie stupidity compilation threads. best threads

>>5562590
it's risky, but if you're smart with the payments it can work.

>>5559681
The wrong people won WW1 and WW2

>>5559681
This, fuck credit cards. fuck debt

>>5559262
Shes right, if you pay it all off at once before it accrues interest your credit score wont go up. Yes it is backwards, now you understand why the credit industry is unanimously hated by anyone who has even half a brain.

>>5559681
Oh, how much I hate these massive gains I've gotten from leveraging up my crypto stack using my credit cards! Oh, the humanity!