/biz/ - Business & Finance

1. - Building credit is broken. Your credit score is unironically one of the most important things about you. You should use a credit card for literally everything; you essentially get a discount on everything you buy, because just about every credit card has a cash-back percentage on it.

2. - As you said, using credit is amazing, because you aren't actually fronting the cost of anything with your money. You are using someone else's money - meaning your money is earning maximum interest in a high-yield fund all the time. If someone steals my wallet, I lose nothing.

>>55414176
But I thought using a card often is bad and makes you look desperate for money? Aren't you only supposed to use 5% of the total limit per month? I don't even understand how cashback on everything cards work, I might apply for one at Costco. Do you get it at the end of the month or is it deducted from your costs?

evey time a bank gives you a credit they're just creating money out of thin and make you repay interest on it.
It doesn't eve matter if some people can't repay because they never used their actual money in the first place.
Credit cards are great for the (((banking system)))

>>55414190
>But I thought using a card often is bad and makes you look desperate for money?
5 things factor into your credit score -

Credit Utilization
Payment history
Length of credit history
Hard Inquiries
Variety of credit accounts open

- Basically, your credit score is best if your utilization is beneath 10% - BUT - credit utilization has no memory, meaning I can use like 80% of it - and as long as I pay it down to 10% by the next statement, it'll be as if I always used 10%.
- If you apply for too many cards at one time, your score will go down, because firms will think you're tying to take out massive amounts of debt at once
- Cashback is calculated by every statement; you can use it as a statement credit, or you can use it in other ways, depending on card.

>>55414228
Yeah I applied for 2 cards and got approved for both and my score dropped down 20 points, it should go back up though right? I wanna apply for another one (at Costco) but maybe that's a bad idea huh

>>55414130
I prefer debit cards to be honest, I don't like to be indebted ngl
Also Sora is launching their own decentralized debit card soon and I'm getting it as soon as they release it

>>55414256
>hmm yes I will store money in a private corporation with no fdic assurance and no collateral keeping them honest

Anon no...

>>55414255
Yeah, your score will go back up
When you get a new card, something called a hard inquiry is preformed; the firm pulls your financial information - too many of these in a short period makes them think you are desperate for money

Instead, open like 2-3 cards and request limit increases every 6 months - those don't hard pull.
If your score is 750+. you're excellent. Anything past 800 is really just a useless flex

Having good credit is pretty much everything for the average person in America

>>55414290
It was 740 ish, I haven't had credit until like december of last year and it was 0 before then my whole life apparently

thank you I wasn't sure if I needed 800+ to be considered good or not

thanks so much buddy, the only good frog poster

>>55414130
I get 5% back on every dollar I spend wtf is the point of these retarded threads.

>>55414318
Oh you're in a really good spot.
Be consistent with paying off the statement balance every month, and your score will be really high in like 3-5 years.

Get your utilization beneath 10% whenever you need to buy something like a house, car, apartment, get a new job etc - and you'll be looked at favorably

>>55414331
it dropped down to like 720 though :(

thanks buddy, is it ok to just leave cards at home and never use them or should i use them for like 2 dollars a month or something? does asking for limit increases negatively affect my credit? one of the cards they only gave me a $300 limit but another one was way higher lol

>>55414341
It only dropped because of the hard inquiries, that doesnt take long to fall off

Asking for limit increases does not hard pull - every 6 months is standard for a really high chance of being approved; my rule of thumb is ask for 1.5x your current limit on the card

> one of the cards they only gave me a $300 limit but another one was way higher lol
Yeah, some companies are known for being stingy, others are known for being very generous, others are known for being "relationship banks" (Bank of America, cough cough)

>is it ok to just leave cards at home and never use them or should i use them for like 2 dollars a month or something?
Yeah, you don't have to use every card you open, I don't use my first Bank of America card at all anymore because it doesn't give cash back, but don't close it, because it contributes to a longer length of accounts

>>55414376
Thanks bestie, you're my new financial dad

>>55414290
wrong
lenders no longer look solely at the (FICO) score even if it's over 800
they look at the entire report, they want to see an extensive and varied debt profile including lots of revolving cause that's where the real debt slavery is
>mortgage/rent payment
>other properties
>car loan(s)
>other loans for toys like RV or boat
>utilities
>shit like phones on payment plans
>monthly subscriptions
>loans
>unpaid balances
>the shit (Klarna, et al) on every merchant website now where you can finance nearly anything over $20
if you ever try to get a mortgage or other serious loan, have an 850 score, but only cc debt on record, they will not even talk to you
I already mentioned why this is - debt slavery

>>55414318
except he's wrong
he meant well but he is wrong
there have been threads about this where anons say they live debt-free but use ccs, pay the cards as they go, and lenders won't talk to them

>>55414327
look at this retard
doesn't know that all PoS businesses have to pay a merchant fee to the credit card networks which was historically 3-5%
doesn't know that all PoS businesses simply pass this cost on to the consumer
you don't get any % back you mongrel
you're paying more for everything because there's no more cash discount except at (some) gas stations

>>55414400
O-oh... so then credit is useless?.........

>>55414403
I clearly explained at length what they want to see
>excellent score
>lots of debt of many types for a long period
e.g. the perfect debt slave

>useless
debt is the only way 99% of people will ever buy anything that costs more than 1 week's pay
whether you like it or not

>>55414430
But... from the POV of a lender wouldn't seeing tons of debt be a bad thing and show it could be a financial risk to take on that person?

>>55414400
>you're paying more for everything because there's no more cash discount except at (some) gas stations
meaning that if you aren't paying with credit you are still paying the fees and getting nothing back

>>55414190
>But I thought using a card often is bad and makes you look desperate for money?

lmao

>Aren't you only supposed to use 5% of the total limit per month?

it's 10% dummy, 9% optimum nowadays.

>>55415934
Don't call me a dummy I'll cry

>>55414400
>they charge you more
They charge YOU more.
If they don't do a credit card surcharge higher than your cashback then you save more money than you would otherwise. If they raise prices for everyone then you pay it and credit card holders don't.
Just use cash or debit at places with a cc surcharge (most places don't have them anymore or apply them to debit cards as well)

something big is coming today, this teams past project hit 12m mcap last month, dont want to spill the beans but its like 12hrs from now

how does credit score work in japan?
most japan jews won't give me a credit card even though i make more than avg

>>55414130
>Do credit cards have any real purpose
Shits doesn't have utilities other than making a hell of gains off your transactions. Aside CryptMi card I've used that offered me cash backs, other ones charge me monthly even if I didn't use the card.

Sign on bonuses
Cash back rewards
0% apr periods

Besides that idk

>>55414228
>and as long as I pay it down to 10% by the next statement, it'll be as if I always used 10%
This is not true, there is a factor called the "High Balance" on your credit report that will show the most you've had taken out per statement cycle. This is used in credit calculations.

>>55417679
looool

>>55414263
Banks issue debit cards nowadays, you financially illiterate swine.

>>55414130
my cards give me cashback. It's free money for non-stupid people as I never pay any interest.