How should I begin building Credit?

[mad dudy]

jay did a vlog video on why you shouldnt use a credit card

 

[Trik'Stari]

Here's a good answer.

 

 

DON'T.

 

Save your money, invest wisely, buy property that can generate revenue while you save up money to build a house. Just...whatever you do, do not fall into the trap that is "credit". It's complete, total, utter bullshit. It's meant to enslave you and make you pay more for things than you would otherwise.

 

Learn to create your own wealth, not "acquire stuff by going into financial slavery". Credit, debt, otherwise known as "usery" is the single largest problem with the world economy, and possibly mankind, to date.

[cjm86]

When I was 18 I got a Capitol One credit card. They give damn near anyone a credit card. Try with them if you haven't tried yet.

[cjm86]

All those people that say "you don't need credit" are full of shit. If you want to buy a car and not save up for several years, you need credit. If you want to buy a house and not save up forever, you need credit. Sorry but it's true.

[Trik'Stari]

When I was 18 I got a Capitol One credit card. They give damn near anyone a credit card. Try with them if you haven't tried yet.

No. Worst company ever, they got sued for trying to foreclose on a couple that didn't have any debt, or a mortgage, ended up losing a branch to the couple when that couple counter-sued. Funniest thing ever, a repo team repo'ing a bank.

 

All those people that say "you don't need credit" are full of shit. If you want to buy a car and not save up for several years, you need credit. If you want to buy a house and not save up forever, you need credit. Sorry but it's true.

 

You are so wrong that it's not even funny. Credit is the single largest cause of economic problems since it was introduced. It's fake money, and a direct cause of what we call "inflation"

 

[moppop]

jay did a vlog video on why you shouldnt use a credit card

 

 

That's not why you shouldn't use a credit card. It's a lesson that you shouldn't have 11 and max them all out. Heck, he even states that he kept one around because many hotels in the US require a credit card to be able to book.

[13CA350]

This may sound silly but I started building credit by using my credit card for gas and simply putting the money I would've used in my safe untill the end of the month

 

It's a solid reliable way to build credit

[Trik'Stari]

This may sound silly but I started building credit by using my credit card for gas and simply putting the money I would've used in my safe untill the end of the month

 

It's a solid reliable way to build credit

That does work, but I still would say there is absolutely no reason to ever worry about credit, people need to be more patient and personally responsible for their finances.

 

Credit is saying this: "I would like to pay 25% to 50% more than the cost of this product or item, and would like to do so under a contract that means if I lose my job, have an unexpected financial need, or other unforeseen problem, lose everything I have, and as a result cannot make any large purchase until I pay off this completely unnecessary and ridiculous debt."

 

Credit is a scam. You make rich people more rich, and contribute to the devaluation of your own currency (and thus your own poverty)

 

Also, checking your credit somehow hurts your credit. I've never understood why, but it does. Yet further evidence that credit is a scam. "oh, you want to know how we see your worthiness to borrow money? well that lowers your worthiness to borrow our money, even though we make money off of you either way"

[moppop]

 

Save your money, invest wisely, buy property that can generate revenue while you save up money to build a house. Just...whatever you do, do not fall into the trap that is "credit". It's complete, total, utter bullshit. It's meant to enslave you and make you pay more for things than you would otherwise.

 

Except there are a number of overall investment strategies that make use of credit cards (or, more specifically credit card companies) for benefits/rewards called churning. However, to do that, the user has to be very financially disciplined.

[Trik'Stari]

Except there are a number of overall investment strategies that make use of credit cards (or, more specifically credit card companies) for benefits/rewards called churning. However, to do that, the user has to be very financially disciplined.

Not worth it at all. Wealthy people get wealthy by either making smart investments, or being born into it, rich people lose everything by relying on credit, Trust me, I know this, my parents used to make 200k USD  a year combined, ended up losing everything, including a very nice house on the river, which I believe was estimated at around 380K USD in value. Why? Because one of them lost their job, and we couldn't afford the payments, now my parents are in their 60's, and in all likelihood won't own another house or property in their lifetime.

 

Credit is a scam, end of story.

[moppop]

Not worth it at all. Wealthy people get wealthy by either making smart investments, or being born into it, rich people lose everything by relying on credit, Trust me, I know this, my parents used to make 200k USD  a year combined, ended up losing everything, including a very nice house on the river, which I believe was estimated at around 380K USD in value. Why? Because one of them lost their job, and we couldn't afford the payments, now my parents at in their 60's, and in all likelihood won't own another house or property in their lifetime.

 

Credit is a scam, end of story.

 

Your personal anecdote injects bias and really has no relevancy. Your parents losing their house sucks and all, but being rich has zero to do with how credit can be a tool. Your parents had poor financial discipline that's completely separate from simply having a credit card. Credit is no different than a firearm; it's a tool that when misused can be deadly, but in itself is a tool.

 

Bear in mind, churning is not 'relying' on credit but rather taking advantage of the companies. 

[WillFromGA]

This may sound silly but I started building credit by using my credit card for gas and simply putting the money I would've used in my safe untill the end of the month

 

It's a solid reliable way to build credit

Same thing I do too. Already gonna pay for gas anyway so might as well build some credit while doing it.

[WillFromGA]

Not worth it at all. Wealthy people get wealthy by either making smart investments, or being born into it, rich people lose everything by relying on credit, Trust me, I know this, my parents used to make 200k USD  a year combined, ended up losing everything, including a very nice house on the river, which I believe was estimated at around 380K USD in value. Why? Because one of them lost their job, and we couldn't afford the payments, now my parents are in their 60's, and in all likelihood won't own another house or property in their lifetime.

 

Credit is a scam, end of story.

The credit card is not the problem, it's the user. Yes, a lot people buy shit they can't afford with it but the key word is PEOPLE. Guns don't kill people, people kill people. Credit cards don't put people in debt, people who make mistakes put them selves and others in debt.

[cjm86]

No. Worst company ever, they got sued for trying to foreclose on a couple that didn't have any debt, or a mortgage, ended up losing a branch to the couple when that couple counter-sued. Funniest thing ever, a repo team repo'ing a bank.

You are so wrong that it's not even funny. Credit is the single largest cause of economic problems since it was introduced. It's fake money, and a direct cause of what we call "inflation"

So how are you going to buy a house without good credit, without paying upfront cash? Enlighten me. All mortgage companies will say is, "oh sorry, your credit isn't good enough, I need half right now."

[Yoinkerman]

My wife started with a secured card.  They're guaranteed because you're giving them the entire balance of the card upfront.  It's great.  And if the limit it $500 or $1000, you can't get into deep trouble because it's easy to pay off entirely then cancel it.

[moppop]

So how are you going to buy a house without good credit, without paying upfront cash? Enlighten me. All mortgage companies will say is, "oh sorry, your credit isn't good enough, I need half right now."

 

He has anti-credit bias because his parents fucked up.

[WillFromGA]

So how are you going to buy a house without good credit, without paying upfront cash? Enlighten me. All mortgage companies will say is, "oh sorry, your credit isn't good enough, I need half right now."

Exactly, last time I checked, not many people have a couple hundred thousand in their pockets waiting to buy a house...

[Wulfgar]

Head over here for solid advice on building credit;

 

www.reddit.com/r/personalfinance

[cjm86]

He has anti-credit bias because his parents fucked up.

Lol. That's what it seems like.

[cjm86]

My wife started with a secured card. They're guaranteed because you're giving them the entire balance of the card upfront. It's great. And if the limit it $500 or $1000, you can't get into deep trouble because it's easy to pay off entirely then cancel it.

This is another good idea. My wife is doing the same thing.

[Trik'Stari]

The credit card is not the problem, it's the user. Yes, a lot people buy shit they can't afford with it but the key word is PEOPLE. Guns don't kill people, people kill people. Credit cards don't put people in debt, people who make mistakes put them selves and others in debt.

Your personal anecdote injects bias and really has no relevancy. Your parents losing their house sucks and all, but being rich has zero to do with how credit can be a tool. Your parents had poor financial discipline that's completely separate from simply having a credit card. Credit is no different than a firearm; it's a tool that when misused can be deadly, but in itself is a tool.

 

Bear in mind, churning is not 'relying' on credit but rather taking advantage of the companies. 

So how are you going to buy a house without good credit, without paying upfront cash? Enlighten me. All mortgage companies will say is, "oh sorry, your credit isn't good enough, I need half right now."

1. You don't buy a house on credit, you buy in cash (if you're smart)

2. While my own personal anecdote does inject bias, it is MORE than representative of the average person buying a house, or car, on credit, as represented by the housing/banking crash during the bush administration, which started long before then.

 

People suddenly didn't have to put a 30% down-payment on something to buy it with credit, instead they might have put 3% down, resulting in WAY higher interest rates, meaning it would take them far longer to actually pay off that debt, when the banks realized this, they started selling each other debt, and eventually the "trust" in that debt fell through, and we experienced a crash, and devaluation of our currency.

 

Debt, or credit, is representative of financial laziness. It's saying "I want it now, and I will agree to pay more than the item is worth in the long run, if I can have it now even though I don't have the money for it at this point in time".

 

You want a house and property? do what I am going to do. live cheap, save money, buy some land (I plan on 50 acres) with trees on it. Then rent it out to a tree farmer (or regular agricultural farmer if you can't get land with trees on it to begin with) and save the money from renting it out until you can afford to build a house. Generate your own wealth via smart investing and fiscal responsibility, instead of saying "FUCK IT, CREDIT CARD BITCH" and then going broke at 60.

 

As for living in the city....well that's a whole other discussion.

[cjm86]

1. You don't buy a house on credit, you buy in cash (if you're smart)

2. While my own personal anecdote does inject bias, it is MORE than representative of the average person buying a house, or car, on credit, as represented by the housing/banking crash during the bush administration, which started long before then.

People suddenly didn't have to put a 30% down-payment on something to buy it with credit, instead they might have put 3% down, resulting in WAY higher interest rates, meaning it would take them far longer to actually pay off that debt, when the banks realized this, they started selling each other debt, and eventually the "trust" in that debt fell through, and we experienced a crash, and devaluation of our currency.

Debt, or credit, is representative of financial laziness. It's saying "I want it now, and I will agree to pay more than the item is worth in the long run, if I can have it now even though I don't have the money for it at this point in time".

You want a house and property? do what I am going to do. live cheap, save money, buy some land (I plan on 50 acres) with trees on it. Then rent it out to a tree farmer (or regular agricultural farmer if you can't get land with trees on it to begin with) and save the money from renting it out until you can afford to build a house. Generate your own wealth via smart investing and fiscal responsibility, instead of saying "FUCK IT, CREDIT CARD BITCH" and then going broke at 60.

As for living in the city....well that's a whole other discussion.

Credit has nothing to do with laziness. And the people that say "fuck it, credit card bitch!!!" are the idiots that are bad with money. From the story about your parents, maybe that was them. So your "living cheap," I'm assuming renting. Renting is wasting money that could go into the mortgage of a house you got with good credit. I'd rather build my credit and get a house in 10 years, than save for 20-30 years and pay cash for one.

[Trik'Stari]

Credit has nothing to do with laziness. And the people that say "fuck it, credit card bitch!!!" are the idiots that are bad with money. From the story about your parents, maybe that was them. So your "living cheap," I'm assuming renting. Renting is wasting money that could go into the mortgage of a house you got with good credit. I'd rather build my credit and get a house in 10 years, than save for 20-30 years and pay cash for one.

The difference being that in 20-30 years you have that house outright and it's your's. As opposed to getting that house in 10 years, and losing it because you lost your job, got sick, had to move, etc.

 

Credit is for lazy people, end of story.

[cjm86]

The difference being that in 20-30 years you have that house outright and it's your's. As opposed to getting that house in 10 years, and losing it because you lost your job, got sick, had to move, etc.

Credit is for lazy people, end of story.

You wouldn't have to lose the house if you're good with money. Don't get a payment that's rediculiously high, and still save money as your paying for the house.

Lets move it over to cars. Say me and you both had cars that broke down, I have good credit and 1000 bucks saved up. You have no credit and 1000 saved up. I'm getting the better car cause of my good credit and my 1000 bucks down payment. Your getting a piece of shit 1000 dollar car.

[Yoinkerman]

The difference being that in 20-30 years you have that house outright and it's your's. As opposed to getting that house in 10 years, and losing it because you lost your job, got sick, had to move, etc.

 

Credit is for lazy people, end of story.

 

Credit is for responsible people.  That your parents bought a house they didn't have a backup plan for if one of them lost their job isn't credits fault.  If you want to blame the bank some for selling them a house at the top of their limit, sure there's some blame there, but personal responsibility reigns supreme.  Credit is a tool, the same as any other tool.