Redpill me on credit cards /biz/. I've always just used

Yep. Use a credit card just like you use your debit card, and COMPLETELY PAY IT OFF EVERY MONTH

If you do this you build credit, plus any of the credit card rewards are free money.

Look for one that gets you 2-5% cash back on various things. Redeem it monthly and put it in savings to earn interest. Free money

>>1798955
Yes. Get a credit card. Just make sure there are absolutely no recurring fees. Don't just trust the person at the bank either. Read the paperwork. Make sure there are no recurring fees. Also, never close the account. If you close your account you will basically lose the credit you built. I had above average credit, but cancelled my credit card because I found a better one with no recurring fees. The end result was that my credit dropped by almost 200 points! I did finally recover, but it negatively impacted my life because I was unable to move out of my shithole apartment into something nicer because of my bad credit.

Never ever use credit cards. They force you into debt. The banks charge you ridiculous overdraft fees on them even if you don't use them. Only buy things with cash and if you can't pay cash don't buy it. Fees will only go up under Drumpf. For more advice check us out on /r/personalfinance.

>>1798955
Not a big deal in UK. Only a big deal in USA.

>>1799345
kek

>>1799345
You are an idiot. Credit cards objectively build credit and don't cost you anything unless you have a bad credit card or fail to pay off 100% of it consistently.

>>1798955
No idea on you fucks accross the pond.

Good luck.

Solid in america.

Near 800 credit score after suffering 400s most of my life.

Understand basic financing for any us cucks that need to bump or start another to not shitup you cUcK threads.

>>1799365

You don't need credit.

When you commit to a no-debt lifestyle.

>>1799383
Have fun buying a house you retard. Living debt free you'll have to wait far longer before you can afford a house. Only retards think debt is a bad thing.

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>>1799345
>I maxed my credit card and spent all my cash
>stuck paying minimum payment
>DURR CREDIT IS EVIL

>>1799345
>They force you into debt. The banks charge you ridiculous overdraft fees on them even if you don't use them.

No, you force yourself into debt by being stupid. That second part is just a straight-up lie, so I'm not even going to talk about it.

>>1799383
There is nothing wrong with leveraging debt. You 'all or nothing" assholes don't get it do you? Just because most people are shit with credit cards and debt in general doesn't mean you have to follow that same retarded path.

Learn some self-control and credit cards are a major boon for anyone looking to be financially "fit."

>>1798965
nothing is free.

>>1799417
>There is nothing wrong with leveraging debt.
what the fuck am i reading? you dont leverage debt mong debt is called leverage as it multiplies your winnings or losses per invested own capital. consumer debt tho can only result in net loss unless literally 0% apr.

>>1799345
>/r/personalfinance

You had me until the reddit drop. Trying too hard.


...Unless you're serious, in which case you're dumb.

I have a ton of available credit and did just what an anon above recommended: Use the card for gas and your electric bill and pay it off every month. This built enough credit to get me a car. Paying off the car got me enough credit to buy a house.

To buy this house CASH, I would have had to wait until I was almost retired. In the mean time I would be having to rent which is horseshit, while ALSO saving enough for a house, which would be much more expensive by time of purchase than the pittance I got it for in the recession.

By doing so I would have limited my ability to start a side business or make equity investments.

Instead, I make only a mortgage payment which is less than rent would be for an apartment in town, and it will be paid off completely before I'm even retired. Credit is good to have available.


I have used my line of credit to buy some equipment and do renovations, as well as build an orchard because I wanted to get all of these things done early on. So I am paying interest. But it's not like I had to. I just don't want to stretch this shit out over decades, nor did I want to wait until I was 35 before my orchard was producing.

Oh, and my credit card rewards ARE free money. Pay the card off at the end of the month, no interest charged. No fee for the rewards program. Cash in points every so often for a $25 dollar credit...rinse, repeat. Easy peasy as long as you manage it properly.

>>1799594
>free money
ya blew it there. cc reward is paid by custoners in thd end. you cant possibly expect vendors to lose money on your cc purchase. you are also the pruduct in this service. they collect your shopping habits as analytical data and push gheir products (loans) on you.

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Hurr Google
https://youtu.be/VuvNDPjFXVs
https://youtu.be/AqernIAhCNA
https://youtu.be/A47e1oxBYlU

>>1799599
They are expecting I will over-charge my credit card and pay interest, feeling like the rewards justify it. The 'free' part comes from not falling for that. Everyone else does, which drives the program; the key is to be the exception.

And sure they collect my spending habits, but they do that anyway, and I have no established infrastructure -or time- to realistically sell that data myself. So fine. And so what if they push loans on me? It's not like I have to accept them.

What's going to happen, I wake up one day and somehow have a loan issued to me? The closest I've come to this was when they doubled my credit card limit without telling me. Guess what? Still no fees. Still not maxing it.

Your entire argument is based on this assumption that I am little babby who has weak will and uses credit like it's the end of days, only to wake up and pay 30% interest on every available account.

Reality: I pay a business loan and a small line of credit (the product of which has almost doubled my property value and saved my energy bill), and I haven't taken a new loan product in years aside from the new business unless it's been to reduce an interest rate and pay less in the long run.

>>1799621
>Your entire argument is based on this assumption that I am little babby who has weak will and uses credit like it's the end of days,
then you didn't read it nigga. i said cc are not free the vendors are charged more ghan your rewards after a purchase which is built into their prices. you basically pay your self and seem happy about it.

>>1799628
Oh, I kind of see what you're saying. Merchant service fees. Yeah, but we're all kind of getting fucked with that anyways even if I pay cash. I have a small side business and processing fees are shit.

I'm not saying CC's aren't the ultimate jew overall. I guess my point is that credit does have utility and can be used right by the consumer, and that it is possible to get a better deal out of a credit card if you know what to look for and how to use it.

>>1799633
>Yeah, but we're all kind of getting fucked with that anyways
its kind of a prisoner dilemma or what where individual maximalization of profit leads to collective dick in butt.

>>1799583
>what is the time value of money

And it sounds odd, but there's nothing incorrect about 'leveraging leverage'. Two different meanings are in play.

>>1799675
>leveraging leverage
well that sounds weird to say the least

>>1799345
Good bait lad. Very funny.

>>1798955
Fellow bong here.

Go on your banks website and apply for a credit card there. If you have a history of positive balances or paying off overdrafts they'll likely accept you.

After some time, consider cashback cards. Made £80 on my Amex last year. Paid no interest by paying off in full each month.

Yes, goy! You need to get good credit!

it might seem silly but in my country there is no credit score system thus everyone gets the same shit offer. there is a blacklist but thats it.

Amerifats giving useless advice.

I invest in lendingclub p2p loans so I can be the Jew, rather than the banks

>>1799594
/r/personalfinance is a good board with way better advice than here. Their wiki explains credit cards very well. Not sure what the other guy is on about though.

>>1798965
How do you pay it?

Sounds so tedious and like a scam. Why wouldn't I just pay with money I actually have

>>1800409
Are you retarded? You pay it like any other bill. Or just set it to auto-pay (the full balance) and check your statements for any thing that looks off. It's pretty fucking easy.

>>1800409
W...what?

Is this a real question?

You log in to your online banking, click whatever it is in your particular bank's layout that lets you move money around, and you move money from 'checking' to 'credit card'. Or if its an outside card you just use your bill pay feature.

Just like any other bill. If you can transfer money from checking to savings without fucking up, or initiate a brokerage transfer without somehow amputating your arm at the elbow, then you shouldnt have too hard of a time paying off your card and avoiding the interest.

The interest compounds monthly which is why this works.

>>1800409
And the reason you dont just 'pay with what you have' is this, which ive already explained under another id last night:

1. It starts your credit history so you can do shit like buy a house without saving cash for 15 to 30 years during which you have to rent a shithole appartment, and then pay a HIGHER price for the house because the market has probably gone up in those two or three decades of you beating off to the thought of no debt. Or start a business which will then (hopefully) pay for itself until the debt is gone. Whatever your big goal is.

2. Properly selected, you can get a card to pay you cash back or rewards points for use even without allowing interest to accrue. I cash rewards in for $25 payments on my personal card a couple times a year.

I also use my business card to purchase inventory instead of cash because it gives cash back once a year. This one does have a fee, but the fee is less than what I make so it adds to my profit margin slightly.

The only way 'just paying cash' for everything works is if you are in a job making serious pay and keep your bills low. For most of us doing that is stupid because you miss out on both opportunistic pricing (market pull backs, or at least 'just' paying 135k instead of that same house being 210k or something in twenty years) as well as avoiding payment of rent in those years. Not to mention the associated, indirect costs of not having land or real property for yourself for a large portion of your life.

>>1800668
I don't think this applies to Europe tho

They don't really have a credit score so their interest rates are all the same and banks only lend to people with vetted incomes (or brown people)

>>1799345
you are a faggot.

I use credit cards for points, and churn signup bonuses. 2016 I earned over 1,000,000 AMEX points valued at approx $20,000 in travel. I never went into debt and it was profitable for me to do.

>>1799599
the stores charge everyone the same fee. I may as well recoup mine in part.

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Where do i go/how do i get an interest free credit card as a college student with no credit history? The purpose would be to build credit like the other people in this thread have stated.

>tfw all these idiots tanking the economy using credit like fucking dumbasses

Goys, the lot of you

>tfw $1700 credit card debt

Mulligan

>>1801087
Go to a bank and say what you just said

Are you retarded

>>1800305
Wtf I hate 4chan now

>>1800922
Well in the UK we have credit scores, how could you not have credit scores?

>>1801852
simply not have them and offer everyone shit loans.

>>1801854
basically you take a gross average on risk and price it in so you can still make money on a hundred thousand loans even if 5-10% will fail to pay on schedule.

>>1799386
i have good credit
but only retards think buying a house is a good thing

>>1801883
LOL you must say that to feel better about your awful situation. Keep renting and never owning.

>>1801883
>but only retards think buying a house is a good thing
how could owning a house as opposed to renting be a bad thing...?

Get an American Express Gold on one of the deals where you get the first year free, cancel every year before the fees come around. Reap the rewards and enjoy free holidays galore.

>src: 996 credit score master race reporting in

>>1802301
>Keep renting and never owning.
i'm not that anon but i hope to god i can do that till the end of my days.
it costs almost twice as much to own than to rent here and demographics will only get worse as population shrinks.

>>1802348
when rents are cheap you actually lose money on buying and maintaining a home.

compare cost of ownership (not including what you pay into equity) to cost of rent.

see what comes out make decision! weigh in your preferences of stability or flexibility.

>>1800409
to build your credit dumb dumb