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[Chef Sk1llz]

3 minutes ago, Jordy said:

Yeah but until my vehicle is paid off its a 300$/month payment right there so idk i have like 500$/month going to cc's 2 paid off 3 with a balance almost done

Making progress then.

3 minutes ago, Howest said:

I know it's good, you can apply for lower taxes etc.

That's why I said I can understand people having mortgages.

I just don't know why people would get more than 1 credit card (e.g. a Visa card here in Belgium).

Never understood that, I've always been taught never to buy something (besides a car / house) which you can't afford.

 

EDIT: afford being equal to be able to buy the product you want atleast 2-3x

If you treat a credit card like a debit card you can build your credit efficiently. I purchased a car 2 years ago, I had enough to pay upfront, but why pay for a car upfront? Charged it to my credit card had a 0% interest rate for 12 months, just paid it off within the 12 months with the money I had for the initial purchase. Although now on my credit score it shows I've paid off X amount of credit in X period of time making it easy and efficient to build my credit score. 

2 minutes ago, Abuse said:

Well, things work differently in europe than america when it comes to credit. Europe has a completely different mentality regarding the subject. It's much more common to have multiple credits in the US (and UK) than most countries in Europe

Didn't know that. 

[RoomScape]

1 minute ago, Abuse said:

Well, things work differently in europe than america when it comes to credit. Europe has a completely different mentality regarding the subject. It's much more common to have multiple credits in the US (and UK) than most countries in Europe

I don't know how credit is there but people have the same mentality here. There are those idiots that decide to go on a shopping spree and spend everything that they don't have and end up ruining their credit and losing their money. Those people then tell others how credit is such a horrible thing and how they can't do anything because of their bad credit and so others get scared of credit and tell people to only have one card or only use debit cards instead of credit cards.

 

It's just like anything in life. If you don't know what you're doing you're going to mess it up. You try to be smart and work on your own car only to mess it up and so a mechanic will charge you more than normal since you messed it up. You then go telling your friends mechanics are crooks because they charged you so much for a simple job (that you messed up and couldn't do) so now people are scared of mechanics.

 

Stuff like that.

[Fratem]

Just now, Chef Sk1llz said:

Making progress then.

If you treat a credit card like a debit card you can build your credit efficiently. I purchased a car 2 years ago, I had enough to pay upfront, but why pay for a car upfront? Charged it to my credit card had a 0% interest rate for 12 months, just paid it off within the 12 months with the money I had for the initial purchase. Although now on my credit score it shows I've paid off X amount of credit in X period of time making it easy and efficient to build my credit score. 

Yeah I feel you, I think it just comes down to a different mentality where I live and where you live.
 

[Abuse]

1 minute ago, RoomScape said:

I don't know how credit is there but people have the same mentality here. There are those idiots that decide to go on a shopping spree and spend everything that they don't have and end up ruining their credit and losing their money. Those people then tell others how credit is such a horrible thing and how they can't do anything because of their bad credit and so others get scared of credit and tell people to only have one card or only use debit cards instead of credit cards.

 

It's just like anything in life. If you don't know what you're doing you're going to mess it up. You try to be smart and work on your own car only to mess it up and so a mechanic will charge you more than normal since you messed it up. You then go telling your friends mechanics are crooks because they charged you so much for a simple job (that you messed up and couldn't do) so now people are scared of mechanics.

 

Stuff like that.

Credit scores are basically non existent here, there is no such thing as 0% apr. You go to a bank, ask for a credit and agree on a certain APR.

The APR is insanely high for small purchases, only worth when purchasing a house, and in some occasions a car

[Chef Sk1llz]

2 minutes ago, Abuse said:

Credit scores are basically non existent here, there is no such thing as 0% apr. You go to a bank, ask for a credit and agree on a certain APR.

The APR is insanely high for small purchases, only worth when purchasing a house, and in some occasions a car

So do you guys negotiate on your APR? or is there a different reference a bank would use equivalent to a credit score in US? 

[Abuse]

Just now, Chef Sk1llz said:

So do you guys negotiate on your APR? or is there a different reference a bank would use equivalent to a credit score in US? 

Their main reference is your wage and the % of the initial amount you are able to lay down in cash

[Fratem]

15 minutes ago, Chef Sk1llz said:

So do you guys negotiate on your APR? or is there a different reference a bank would use equivalent to a credit score in US? 

You can go to bank x with proposal from bank y, if bank Y can match the offer, you can return to bank X, you can visit as many banks as you want and you can tell them what other banks offered you.

Currently, where I live, if you want to grab a loan to purchase a house, you need to have 20% of the amount you want to lend, before most banks will even consider handing out a loan.
This has only become the standard the last years, hasn't always been that way.

Edited February 13, 2017 by Howest

[Chef Sk1llz]

1 minute ago, Howest said:

You can go to bank x with proposal from bank y, if bank Y can match the offer, you can return to bank X, you can visit as many banks as you want and you can tell them what other banks offered you.

Currently, where I live, if you want to grab a loan to purchase a house, you need to have 20% of the amount you want to loan, before most banks will even consider handing out a loan.
This has only become the standard the last years, hasn't always been that way.

When I was looking to purchase a house most of the banks didn't care if i had 5% or 20% to put down, but they did increase the interest accordingly which makes sense I was just shocked that they'll give anyone a house loan in the states, but when I went in for a property loan they wouldn't talk to me unless I had 20% down for them. The system is fucked up none the less. 

[Jordy]

Yeah credit definitely didn't make sense to me 7 years ago since they really didn't teach it in school and they're only still dropping it off the classes. They'll teach you how to balance a check or your bills but nothing about credit, it's fucked.

[BrainDeadGenius]

You keep mentioning credit being great for mortgages, and it is. I'm not saying the average person can simply buy a house with cash, because let's face it. The average person can't.

 

HOWEVER, have any of you actually calculated the amount of money you ACTUALLY spent when you purchase a house? And from that, derive the time value of money to see what you actually lose? Because it's absurd. And that's why I'm going to rent while I can and save money (also become an electrician). And build a house instead of buying one.

[akssnipe]

10 hours ago, Chef Sk1llz said:

For those who actively use OSBot & PayPal given you're not a 12 year old and have established a good credit score and know what a credit score is. You can essentially get your lifetime sponsor paying $25 a month to PayPal essentially being cheaper then doing the non-lifetime Sponsor. Just a tip for anyone who does other digital shopping the no interest 6 months through PayPal can be rather useful. 

i don't get it. please explain