wallets

[Imran Siddiqui]

Your inexperience is showing again, HC. In the real world, there are times when conditions conspire to force overspending. Ever have a hospital visit, car accident, and furnace go out in the same month? Of course not. In your world, all is provided.

Get a grip.

Seriously. It's like the guy lives in some strange bubble in which the real world doesn't exist.

[-Jrabbit]

He got a good gig before graduation, so he thinks he's got his whole life dialed in.

Even in the unlikely event that, 60 years from now, he turns out to have been right, there's still no reason to be a pompous ass about it.

[Lorizael]

Also, in practice, most people who have credit card debt are living paycheck to paycheck. There's no reason to do that. People don't have self control and overspend and then when their furnace breaks, have an ER visit and a car accident they have no savings to pull from (or better, just not saving that month, which is equivalent). These situations are almost always avoidable if you act like a responsible adult. Sure, once in a while they happen to responsible people. Then, get a normal loan. Don't use a credit card.

Did HC just claim there's no reason to live paycheck to paycheck? That's awesome.

[I AM MOBIUS]

Seriously. It's like the guy lives in some strange bubble in which the real world doesn't exist.

It doesn't. Reg Collider only has to stub his toe and he's straight on the phone to daddy...

I'm betting they didn't have to pay a single penny towards their education, for example.

He got a good gig before graduation, so he thinks he's got his whole life dialed in.

And that is only because he was automatically handed a massive advantage that I doubt your average American gets to begin with.

[rah]

When I was younger and just starting out I got into a little credit card problem. When you're living paycheck to paycheck and crap happens.... I learned from it.
Now I usually don't even wait to the end of the month, I just do electronic transfers and pay off any balance as it occurs. You would think this would make me appear responsible but in reality if you do this your credit rating takes a hit.
While I have a good score the negatives listed are that I don't have enough credit cards and I don't carry any balances. The fact that those are negatives always makes me laugh.

And yeah, HC has no clue what less privileged have to struggle with.

[Sava]

Click the ****ing link.

Unless your wallet is empty or its size is unaffected by the contents, that does me no good.

Genius.

[Hauldren Collider]

Your credit rating basically has to do with only two things: How much loan principle you have paid off on time, and how much you are late. I've seen the distributions for credit ratings. In practice, virtually everyone either has nearly perfect credit or terrible credit. You're either always late or always on time. Rarely do people fall in the middle. Basically, you have idiots and responsible adults. That's the data.

Again, there's no reason to go into credit card debt because if you need the money you can get a cheaper loan. Credit cards have a totally arbitrary interest markup.

[Sava]

I'm betting they didn't have to pay a single penny towards their education, for example.

I know you're trying to rich-shame (which I fully endorse)... but they shouldn't have to directly pay a single penny towards their education.

And I'm pretty sure you agree with that.

[Imran Siddiqui]

While I have a good score the negatives listed are that I don't have enough credit cards and I don't carry any balances. The fact that those are negatives always makes me laugh.

When I had high balances, a banker at Wells Fargo told me that my credit score (which was like at 720, which is fine) would be higher if I opened more credit cards, even if I never ever used them - because the percentage of my credit balance to available credit would be lower. It was pretty amusing - and not a bad 'cheat' to get a higher credit score right before getting a mortgage . Though I'm sure getting them all at once would ding you.

[Hauldren Collider]

Yeah, there are a lot of stupid tricks with credit scores just starting out. But once you establish a credit history it's mostly just how much principle you've paid off.

[I AM MOBIUS]

I know you're trying to rich-shame (which I fully endorse)... but they shouldn't have to directly pay a single penny towards their education.

And I'm pretty sure you agree with that.

I do agree, but that happens to be the current model in the US? To be tens of thousands of dollars in debt just to get a decent education.

My point is that he and his silver spooned ilk don't need to do even that. One of the major reasons the rich are rich is simply because they don't need to pay interest on loans/credit etc...

[-Jrabbit]

Again, there's no reason to go into credit card debt because if you need the money you can get a cheaper loan.

Yes, just about anyone can wander into their bank without collateral and get a low-interest loan, anytime.

[rah]

I've seen the distributions for credit ratings. In practice, virtually everyone either has nearly perfect credit or terrible credit. You're either always late or always on time. Rarely do people fall in the middle.

As always you have no idea what you're talking about.

http://www.fico.com/en/blogs/risk-compliance/fico-score-distribution-remains-mixed/

[Sava]

you have idiots and responsible adults

Uhm. No.

Unforeseen medical expenses exist and can have a massive impact on household finances. In fact, they are the top contributor to personal bankruptcies.

http://www.cnbc.com/id/100840148

on a personal note, my father had a stroke when I was 5... for much of the rest of his life, enormous medical expenses loomed...

actually, going into massive credit card debt in that situation was the best possible course of action

when my dad died, all his balances on personal accounts were discharged

Providing universal health care solves so many problems.

[Sava]

Yes, just about anyone can wander into their bank without collateral and get a low-interest loan, anytime.

I know, right?

I don't know what's worse... the ignorance of privilege or the raw lack of life experience