Reply to I feel like I am doing money management wrong

Forum Index » Money and Finances

Reply to "I feel like I am doing money management wrong"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Because you don't understand that the American financial system works on this completely stupid idea of judging people's financial reliability by their use of credit cards.

It shouldn't work like this, but it does.

So you are deeply damaging yourself by not exploiting this completely stupid system.

What you should have done since your early adult years is to have one or two credit cards and ONLY SPEND between 1-10%, max, of the credit limit, every month. If you don't use your cards, you won't have a credit score, and your chances of getting loans in the future are small (for cars, housing, etc). You will be a RISK for banks and landlords, who will not want to deal with you. The closer to your credit limit you get, even if you pay it off every month, the worse your score will be. And of course, never, ever, forget to pay it off every month!

So you've got to be in that sweet spot of:
1. Having a salary to prove you are employed.
2. Having a good credit score to prove you know how to use credit responsibly.

And then the world is your oyster.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics