/biz/ - Business & Finance

[Anonymous No.14185194]

how does credit work?

[Anonymous No.14185206]

>>14185194
Banks create it out of thin air then lend it out and charge interest

[Anonymous No.14185223]

>>14185194
You can buy shit without having the money based on the fact that you will have the money in the future and are responsible enough to pay it back

[Anonymous No.14185288]

>>14185223
I have no debt but I have bad credit
why?

[Anonymous No.14185304]

>>14185288
Build your credit by taking loans out

[Anonymous No.14185318]

>>14185288
Idk. Do you have a job that pays an annual salary?

[Anonymous No.14185334]

>>14185304
that seems retarded

[Anonymous No.14185335]

>>14185288
because you've never demonstrated your ability to handle credit

and there is nothing wrong with that

[Anonymous No.14185496]

who will give me a loan with bad credit?
I don't think I'm a bad person I would pay back the loan as quickly as possible so I don't have to pay much interest
should I tell them that?
would they believe me?

[Anonymous No.14185533]

>>14185496
What do you want the loan for

[Anonymous No.14185540]

>>14185206
basically you sign a contract with a bank saying you'll start paying them interest and they make a ledger transaction in your name creating 'x' amount of dollars. essentially the endgame is getting you to pay interest on all of the purchases you make, forever.

[Anonymous No.14185798]

>>14185533
to buy a credit card to improve my credit

[Anonymous No.14186403]

>>14185288
You have no history

[Anonymous No.14186432]

>>14186403
I have some books

[Anonymous No.14186436]

>>14185194
usury is a sin

[Anonymous No.14186444]

>>14185334
Just because it IS

[Anonymous No.14186488]

>>14185798
>>14185318
Only viable options
Also you don’t even want to take a big loan for long term investment (e. g. boomer mortgage)
If it really has to be one episodic necessity don’t even bother having bad credit: just pay off the loan the faster you can and start saving in order not to need consumer credit anymore

[Anonymous No.14186551]

Historically money was only loaned with collateral, aka, "I'll lend you up to 80% of the value of your house with your deed as a guarantee". Even a huge interest % of profit is wiped out if one person refuses to pay so SOMETHING is needed to put skin in the game.

"Credit" has existed in some degree since the Roman times, certified "bonafide" people would carry around a credit card of sorts signed by a bank guaranteeing the person is good for the IOU, but these were only for the wealthiest and most fiscally responsible of people. In the late 80s, credit became popular initially in the US for the masses (and later to the rest of the developed world). This credit uses the "good name" of the person as collateral (which can be elevated or lowered based on a "score" by credit bureaus). Credit is the greatest thing ever for the few people responsible enough to wield it... fuck the people without self control.

[Anonymous No.14187118]

>>14185334
It's not, it proves the bank that you can handle credit and pay it off. Remember the bank's business model is to give you just enough rope to hang yourself... barely. So by taking out loans and paying them, you prove the bank they can lend you even MORE money at better rates... hoping you'll fall behind on your debts but not bad enough to default on your loans.

[Anonymous No.14187180]

>>14185496
save up $100-500 and get a secured credit card. you give them the money to hold in case u don't pay. Then pay regularly all the time and they'll increase the limits and u start building credit

[Anonymous No.14188118]

>>14187118
I have 80k in shares at 21, isn't that enough for them? Why do I need to pay shares to prove I'm not retarded with my money

[Anonymous No.14188204]

>>14186551
underrated post
thanks for the contribution

[Anonymous No.14188215]

>>14188118
No. It only proves you can attain revenue... not that you can be trusted with credit. You have to prove you can handle economic temptation. There's plenty of moronic niggers that MAKE plenty of money and lose it all due to poor fiscal responsibility.

[Anonymous No.14188268]

>>14185194
>bank creates money out of thin air for you
>if you pay your full balance every month, they get 1-3% of all your purchases
>if you pay minimum payments every month, they collect big interest
>if you just dont pay, after 3 months they quickly sell the debt to a partner
Its free money and the banks never lose money on credit lending. They only ever lose money making stupid bets on nonsensical financial products.

[Anonymous No.14188280]

>>14185194
idk they just give me a card and say it has credit
how do they put the credit in the card? is it made from plastic too? I don't know

[Anonymous No.14188711]

>>14188215
Investing demonstrates fiscal responsibility

I need to take out loans with interest instead of paying for things with saving to "demonstrate fiscal responsibility" - do you know how dumb that is

[Anonymous No.14188743]

>>14188711
You never need to pay a single penny of interest payments. Get credit/charge cards buy stuff during the month and pay off the balance in full, keep climbing the credit card ranks until your credit score is high enough.

[Anonymous No.14188832]

>>14186551
The People are the credit of the Nation. Your ssn, and berth certificate are financial instruments on deposit with the FED. Credit is secured by this straw man. The DOJ now persecutes attempts to access this private system, which used to be possible. Pay yo bills with your account at the fed. This is why muds are so valuable to attorneys, here and not in turd world. Each person secures the State millions per year of credit for the State. The FED is a bucket shop for securities.

[Anonymous No.14189269]

they press the button and *VRRRRRRRRRRRRRRRRRRRR* money comes out

[Anonymous No.14189286]

>>14188832
imagine actually believing this

[Anonymous No.14189496]

>>14189286
1933 Congressman Mc Fadden Floor Speech