One issue is that credit card spending is tracked as consumer debt, but these schemes largely aren’t, so the rosy economic picture that has been painted by official numbers could be undermined by these hidden numbers.
I use my credit cards for points only. I budget exactly how much to spend on the credit cards and pay it off every month. Then I hop around different credit card companies to rack up more points.
Still borrowing money, but they ain’t making a dime off me.
I mean responsible card owners pay their statement in full every month. It’s a great way to get purchase protection and cash back or reward miles. This is more like splitting payments over multiple months, and if you do that with a credit card APR you’re getting a terrible bargain.
I was told to carry a small balance to improve my credit and it works.
*Claim it’s a myth but I saw an improvement from paying off my balance every month. My broker told me to do it in advance of applying for a mortgage, I did try to fact check him but couldn’t find anything definitive one way or the other. When it came down to it though, my score improved by changing literally only that.
Common myth. You do not need to pay interest ever to have good credit. Your accounts should show activity, ie your balance on your statement should be non-zero, but you can pay off that entire balance (and thereby pay no interest) and still improve your score.
Don’t bother unless you know you’re going to need a loan. You’re paying a % interest to kiss the credit monitoring companies’ ass. I mean, don’t sabotage your credit, but if you know you are going to apply for a loan or something affected by your credit score, fine, bump it up with whatever works. We pay ours off monthly, score be damned.
It doesn’t improve your credit. Source: my memory of various articles saying that, and my own 800+ credit score and having never carried a balance in my life.
Lenders like clients who are slightly in debt, because they are viewed as more lucrative over the long term. Making timely payments is good. Making timely payments with a big interest component is even better, since that’s how creditors make their money.
Whomever is downvoting you has never worked the back end of the financial sector. Those double-digit APYs aren’t just for show. The primary goal of the business is to get you to pay them. That’s why people who do pay off their loans are constantly getting notes in the mail about how their max credit is increasing and personal loans are available and please, please, please borrow more money on a longer time scale.
I just got a credit card to build credit. I’ve never had a loan or card prior to this. The whole thing is so gross.
I hate to get biblical but I’m reminded of the story Jesus fucking up those finance bros with a rake. Shit stays the same apparently. 2k years on and it’s the same shit. I’m not religious AT ALL but if Jesus did come back and immediately started beating wall Street bros about the head and face with landscaping tools…
90% of everyone else does too. **With credit cards. **
One issue is that credit card spending is tracked as consumer debt, but these schemes largely aren’t, so the rosy economic picture that has been painted by official numbers could be undermined by these hidden numbers.
Lol what? Who puts groceries on a ccard??? This is fucking nuts.
People without money for food at the moment?
Do Crime
(Don’t do crime. Unless you’re good at it.)
I put everything on credit cards, love those cash back rewards. I also pay them off in full each month.
That is not fucking nuts, but smart.
Playing a more powerful person’s game and breaking even for now is truly galaxy brain plays
my card gets me 3% back on groceries and 5% back on restaurants. i get back $30 each month back in rewards.
5% on restaurants! Fees? Where does one get a card like this.
I use my credit cards for points only. I budget exactly how much to spend on the credit cards and pay it off every month. Then I hop around different credit card companies to rack up more points.
Still borrowing money, but they ain’t making a dime off me.
I mean responsible card owners pay their statement in full every month. It’s a great way to get purchase protection and cash back or reward miles. This is more like splitting payments over multiple months, and if you do that with a credit card APR you’re getting a terrible bargain.
Most people aren’t reasonable card owners lol
I was told to carry a small balance to improve my credit and it works.
*Claim it’s a myth but I saw an improvement from paying off my balance every month. My broker told me to do it in advance of applying for a mortgage, I did try to fact check him but couldn’t find anything definitive one way or the other. When it came down to it though, my score improved by changing literally only that.
Common myth. You do not need to pay interest ever to have good credit. Your accounts should show activity, ie your balance on your statement should be non-zero, but you can pay off that entire balance (and thereby pay no interest) and still improve your score.
Don’t bother unless you know you’re going to need a loan. You’re paying a % interest to kiss the credit monitoring companies’ ass. I mean, don’t sabotage your credit, but if you know you are going to apply for a loan or something affected by your credit score, fine, bump it up with whatever works. We pay ours off monthly, score be damned.
It doesn’t improve your credit. Source: my memory of various articles saying that, and my own 800+ credit score and having never carried a balance in my life.
Anecdotally, I pay off my full balance every month and have an 830 credit score.
Lenders like clients who are slightly in debt, because they are viewed as more lucrative over the long term. Making timely payments is good. Making timely payments with a big interest component is even better, since that’s how creditors make their money.
Whomever is downvoting you has never worked the back end of the financial sector. Those double-digit APYs aren’t just for show. The primary goal of the business is to get you to pay them. That’s why people who do pay off their loans are constantly getting notes in the mail about how their max credit is increasing and personal loans are available and please, please, please borrow more money on a longer time scale.
I just got a credit card to build credit. I’ve never had a loan or card prior to this. The whole thing is so gross.
I hate to get biblical but I’m reminded of the story Jesus fucking up those finance bros with a rake. Shit stays the same apparently. 2k years on and it’s the same shit. I’m not religious AT ALL but if Jesus did come back and immediately started beating wall Street bros about the head and face with landscaping tools…