Current Events > Having good credit makes life easier

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Carlbertomfg posted...

KiwiTerraRizing posted...

Carlbertomfg posted...

littlebro07 posted...

Isn't there a catch to zero percent interest loans?

Like it just sounds too good to be true. "Here's a $40,000 loan for free!"

It actually factors out to be less than 1 percent but for the most part it really is just that easy.

No, if its from the manufacturer its legit.

Yes - speaking from the manufacturers point of view it literally comes out to be less than one percent. To answer other questions - if you miss a payment they will not jack up your rate (can only speak from TFS and FMCC experience) yes it is less than profitable. Yes the finance managers job is to up sell you warranties. Yes they will tell you it is conditional to get the specialized rate. No it is not true - if you're qualified for the rate you're good. No additional warranty necessary.

I meant no as in its not a scam
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KiwiTerraRizing posted...

Carlbertomfg posted...

KiwiTerraRizing posted...

Carlbertomfg posted...

littlebro07 posted...

Isn't there a catch to zero percent interest loans?

Like it just sounds too good to be true. "Here's a $40,000 loan for free!"

It actually factors out to be less than 1 percent but for the most part it really is just that easy.

No, if its from the manufacturer its legit.

Yes - speaking from the manufacturers point of view it literally comes out to be less than one percent. To answer other questions - if you miss a payment they will not jack up your rate (can only speak from TFS and FMCC experience) yes it is less than profitable. Yes the finance managers job is to up sell you warranties. Yes they will tell you it is conditional to get the specialized rate. No it is not true - if you're qualified for the rate you're good. No additional warranty necessary.

I meant no as in its not a scam

Word. You had the right of it.
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I have great credit but I never really capitalized on it. There were instances where I didnt have to pay a deposit for a bill, but thats about it.

I never tried to get a loan from a bank or buy a car. Should probably get a loan from Chase just because and see what I can get.

Now that I think about it, a car company did want to have me walk out the lot with a car wth no down payment, but a 10% interest (lol) Im young, but not stupid.
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littlebro07 posted...

Isn't there a catch to zero percent interest loans?

Like it just sounds too good to be true. "Here's a $40,000 loan for free!"

For an open-ended loan, it will have an interest rate associated with it. And if you don't pay it off in the set time limit (12 months for instance), then all of the interest off that "true" interest rate will compound and get added to the balance for those 12 months. So it's sort of like a bomb where if you defuse it in time you're safe, but if you don't defuse it in time it'll blow up in your face.

Anisoptera posted...

I want an Amazon card, but I don't want it if it doesn't make my credit score go up.

There are two Amazon cards - the Prime Rewards Visa card (managed through Chase and backed by Visa) and the Amazon Prime Store Card. Both will help build credit but in reality you probably want the more general Visa-branded card (or if you're going through the bank, a MasterCard or Visa-branded card) since you can actually use it for other things than just in-store purchases.

littlebro07 posted...

Anisoptera posted...

I want an Amazon card, but I don't want it if it doesn't make my credit score go up.

I'm actually pissed about my Amazon card. It was the second credit card I ever opened so the limit was only $1000.

5 years later my second lowest credit limit of 12 accounts is $4000.

That Amazon card which is now the fancy metal Prime card is still at $1000.

Have you ever specifically requested a credit line increase, though? Sometimes it's automatic, sometimes it's not.
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Hexenherz posted...

Have you ever specifically requested a credit line increase, though? Sometimes it's automatic, sometimes it's not.

Yeah.

They turn me down because I don't use it enough.

I'd use it as my daily driver if they gave me more damn credit.
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CableZL posted...

Bet!

I need more CableZL saying Bet.
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It really fucking does. Good luck renting literally anything anywhere without good credit.
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Wait, you're telling me i can spend like $1000 and only have to pay like $100 a month with a credit card?
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Two_Dee posted...

Wait, you're telling me i can spend like $1000 and only have to pay like $100 a month with a credit card?

No. Do not do this, because you will wind up spending more than $1,000 if you don't pay it off...
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Two_Dee posted...

Wait, you're telling me i can spend like $1000 and only have to pay like $100 a month with a credit card?

Seriously, don't do that. That's how you end up in a hole that's hard to get out of.
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So only use my credit card for purchases I can pay off in a single billing cycle?
Like, one weekend dinner with my gf, and the other weekends just continue to pay using my debit?
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A lot of folks would say keep roughly 10% of your max on your card. Can't build credit on a zero balance.
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Flockaveli posted...

So only use my credit card for purchases I can pay off in a single billing cycle?
Like, one weekend dinner with my gf, and the other weekends just continue to pay using my debit?

What I do is just use my credit card for daily expenses, then just pay the balance off once the charges show up a couple days later.
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Flockaveli posted...

So only use my credit card for purchases I can pay off in a single billing cycle?

Yes. If you are ever paying more than the cost of an item as a result of a credit card, you're doing it wrong. Used correctly, credit cards are free money (because of rewards).

I.e. if you buy a $500 TV and end up paying $525 because you missed the payment on your credit card and got hit with a late fee, then you're doing it wrong.

Doing it correctly is buying the TV and paying it off in the same billing cycle. As a result, you pay $500 (the same you'd be paying with a debit card/straight cash), and also get rewards points.

Flockaveli posted...

Like, one weekend dinner with my gf, and the other weekends just continue to pay using my debit?

Depends on the card. Assuming you have something with rewards (which is what I have, 1.5% cash back on every purchase), then use the credit card just like your debit card. Use it for every purchase and just pay it off.

Like every day or every other day at work, I log onto my bank and credit card website and pay it all off. I always carry a zero balance at the end of every month, and as a result, I come out ahead every month based on the 1.5% rewards for using it.

Credit cards are great if used properly. But if you don't trust yourself to manage your balances, or forget payments, or overspend when given the opportunity, then don't risk it. As TC said, getting scammed into a credit card with "oh only pay $50 now for a $500 TV" and then forget to pay it off - can absolutely destroy you.

Surprised @_BlueMonk @_BIueMonk hasn't made an appearance ITT
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Carlbertomfg posted...

A lot of folks would say keep roughly 10% of your max on your card. Can't build credit on a zero balance.

those people would be wrong
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So glad I've never had credit issues. I always knew how credit cards worked.

Carlbertomfg posted...

A lot of folks would say keep roughly 10% of your max on your card. Can't build credit on a zero balance.

I can tell you from experience that this is simply not true. I've had a credit card since my early 20's. I've always paid for everything on it and then paid the bill off in full on the last day of every month without fail. My credit score shot up still and to this day it's in the 800's
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The 800 beacon master race has spoken. I will now take this moment to apologize for my egregious lies.
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Yeah dont listen to anybody that will tell you to keep a balance on your CC. Once you get the bill statement and they say you owe x amount then you pay off the x amount.

Dont fall for the oh you can just pay the minimum of y amount

ALWAYS pay it off in full.
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Flockaveli posted...

So only use my credit card for purchases I can pay off in a single billing cycle?
Like, one weekend dinner with my gf, and the other weekends just continue to pay using my debit?

If you were going to go out to dinner anyway then yes that's fine, but if you're going out to dinner because you got a credit card then no, don't do it. Again, it's fine to use the card, especially if you're paying it off regularly (a couple times a month or at least once a month), and especially since you do get some sort of perk (be it gift cards or cash back) for using your credit card that you would not get with cash or debit. But don't start going out to dinner every other night just because you got a credit card.

Carlbertomfg posted...

A lot of folks would say keep roughly 10% of your max on your card. Can't build credit on a zero balance.

lmao as has already been said this is so wrong.
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Carlbertomfg posted...

The 800 beacon master race has spoken. I will now take this moment to apologize for my egregious lies.

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