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Young Americans Are Ditching Credit Cards

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#46 TheAncientOne

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Posted 24 June 2013 - 14:08

Erm say what why the hell would I need credit im not American but its a similar thing here in the UK older people all have credit us young people im 22 nearly (long an adult in this country) don't and won't ever have one. Why would I need a credit card or good credit ill just live with what I earn.... seriously enlighten me I don't expect to need a credit history to get a mortgage should I even want one.

 

Having a credit card and good credit is very important in the U.S.  I'm not sure how it is where you live, but if you want a good paying job in the U.S., you'd need a good credit history.  Having bad credit could potentially disqualify a person from being considered for a job.  

 

Having a credit card or two isn't a bad thing.  You don't have to use it at all.  someone else here mentioned that it's very convenient when renting a car, booking a hotel, etc.  In my twenties, I got a few credit and misused it until I got bad credit.  Now that I have a family, it's very hard to do anything without credit--even renting a house requires good credit.




#47 Sylar0

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Posted 24 June 2013 - 17:40

Having a credit card and good credit is very important in the U.S.  I'm not sure how it is where you live, but if you want a good paying job in the U.S., you'd need a good credit history.  Having bad credit could potentially disqualify a person from being considered for a job.  

 

Having a credit card or two isn't a bad thing.  You don't have to use it at all.  someone else here mentioned that it's very convenient when renting a car, booking a hotel, etc.  In my twenties, I got a few credit and misused it until I got bad credit.  Now that I have a family, it's very hard to do anything without credit--even renting a house requires good credit.

 

Fascinating to me what is the rational with that why does ones credit score have anything to do with employment not something I have heard of.



#48 tsupersonic

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Posted 24 June 2013 - 17:54

I can't imagine not having a credit card. I didn't want one when I was 18, but my dad forced it on me. I have excellent credit, got my score a month ago, and it was better than 90% of all Americans, so I'm happy. Just be responsible with your money! 

 

Anyways, yeah, it's important to have a credit card and start building credit while you're young. I just forced a friend I know to open her first credit card at 28 years old, and with no other credit history.  :o



#49 ILikeTobacco

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Posted 24 June 2013 - 17:56

People seem to be ignorant to how credit works in the US. If you want to get electricity and water turned on, step one, check your credit. Don't have a credit history, that's fine. Just pay 2 to 3 months worth of bills as a nonrefundable deposit that never gets applied to your account. What's a few hundred dollars. Want a phone, cell or land line? That's fine to, pay another non refundable, non usable deposit. Want a buy a house, no problem, just pay a 20% down payment to qualify for a high interest home loan. Can't afford it? That's fine, just rent. But first, pay a few months rent up front, assuming they allow you to move in at all with no credit. The fact is that without a credit history in the USA, you will loss thousands upon thousands of dollars even though it costs nothing and has no risk involved to built a credit history. Fun fact of the day, get a credit card with rewards. Use it to buy everything and pay it off that same day with cash in your bank account. You never pay a dime of interest and get both a credit history and free stuff. But hey, ignore the facts, and screw yourself over if you want to remain ignorant to being a responsible adult.



#50 Mikee4fun

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Posted 24 June 2013 - 18:00

Some of these post just make me laugh. Everyone in the states needs some form of credit if they want to have a successful career and life. Like others have said in this thread, do not carry a balance and you can have credit cards work for you. Some examples are dividend cards, airline miles cards, and others. I get cash back on my credit cards and pay zero interest on them as I pay my credit cards off monthly. Why in the world would I want to pay in cash when I can get more for my money. Also with credit cards, it is easier to track your purchases than paying with cash. If a vendor rips you off, you have recourse with credit cards, not with cash. 

 

If your credit card limit keeps getting increased and you do not want that, just ask your credit card company to cap it at the amount you want. 

 

Anyways thought I would chime in on my thoughts...



#51 moloko

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Posted 24 June 2013 - 18:15

Yes you do need to build credit this day and age but this is still good news to read. I got rid of all my credit debt a few years ago.  Now we only pay cash for items.  I only use a credit card when i travel and pay it off as soon as i get back home. 



#52 +Audien

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Posted 24 June 2013 - 18:27

I don't need a credit card but I have one to build credit score.  Simple as that.  Needing a credit history for some things is a fact of life.



#53 remus_lupin

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Posted 24 June 2013 - 18:32

I am 21 now, I have used my debit card maybe... once? No... Twice!

 

I have had three credit cards for the past few years, never paid any annual fees nor any interest. EVERYTHING I buy is with credit cards and I pay it off every month.

 

Why do I have three credit cards?

 

Well because Credit Card #1 gives me 2% back on gas & groceries (was 5% for the first 6 months) - so I use it for... Gas and groceries! https://www.applyonl...c=COMP&lc=en_CA

 

Credit Card #2 is an SPC (student price card) there are a bunch of places that give you various discounts (such as 15% etc.) so if I am shopping at a place with SPC benefits... I use my SPC card http://www.bmo.com/h...nt-credit-cards

 

Credit Card #3 gives me 1% back on everything. So if I am not buying gas/groceries or getting anything from an SPC location then I use this credit card.

(Standard CC no point in me providing a link - pretty much everyone offers one similar to this)

 

None of the above have annual fees, and I probably get about $150 back per year. It's not a whole lot... but why not? What do I pay in annual fees? $0 What do I pay in interest? $0...

 

If I wanted to use my debit card how many free transactions do I get? 10

If I want to use more than 10 transactions on my debit card, what do I pay? $1/transaction.

 

However the debit card argument is null since there are obviously other debit card plans I could be on. I just chose the one I have because I never use it.

 

This said, some people have credit cards so they can get things they can not afford right now, and they just make the minimum monthly payments. Which is obviously not a good thing, as long as you pay off your credit cards on time every time, there is no disadvantages to having one, again, unless you happen to splurge and buy more than you can afford.

 

Edit: I actually have a fourth credit card. Again no annual fees... It's a Scene Visa Card... I got it because it came with 3 or 4 free movie theater tickets (in the form of scene points)... Then whenever I go to the movies I use that credit card because I get added benefits... I rarely go to the movies though, but hey, if I do, it's there. 



#54 +devHead

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Posted 24 June 2013 - 18:50

This is a general message to everyone I quoted and in general. I am horrified to hear some of the comments so I am replying belatedly. 1. I am not poor nor is my family my father drives a taxi. 2: See point one nor am I rich I am amazed my comments got miss interpreted, if we can't afford something we save or don't buy it point blank. This seems an unknown idea in America very odd. However my family could be odd since none of us have ever had a credit card or a phone contract. Just wanted to clear up some miss conceptions.

 

A couple things to keep in mind when posting, bro:

 

1. MultiQuote is a great feature, but putting that many comments above your post is a little overboard, especially since you aren't really responding to any particular comments. 

2. Frankly, which of the comments you used above are you horrified about?  None of the comments are really horrifying. Now, if someone said something like, 'I applied for a credit card and was declined, so I decided to explode my bank', that would be horrifying.  But really, people talking about their stand on credit and making purchases isn't really worthy of a word as strong as 'horrifying'.

3. I realize English is likely not your first language, but misinterpreted is one word and misconception is one word.  Actually, "miss conception" sounds like a beauty pageant contestant that had to drop out due to pregnancy. 

4. Never having a phone is odd; never having a phone contract isn't really that odd.  Buying something 'point blank' is odd.



#55 suprNOVA

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Posted 24 June 2013 - 18:59

100% Incorrect. That's not how credit scores are determined.

 

One of the determining factors is credit utilization (percentage). If you are using $500 of a $5000 limit, that's 10%.If you are using $500 of a 10,000 limit, that's 5% which is better.

 

No one is forcing you to use your available credit. 

 

I make a yearly salary (pre-tax) of under $50,000. 'Yet I have about $25,000 in available credit. I pay off each card every month in full. Rarely use more than 5% of my credit limit. 

exactly! just use it. Even if you spend $20 and you pay it off right away, your still getting good credit. It's just utilization. You never know when you're going to need it.



#56 Mr Nom Nom's

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Posted 24 June 2013 - 19:09

For people talking about 'building up a good credit record' - at least where i live you don't need to a credit card to build it up - pay your bills on time, no debt collectors, maybe have some savings, a good employment track record etc. all contribute to whether you're credit worthy or not. Regarding debit cards, I don't know what the cost is in the US but where I bank all my accounts are online where I pay no monthly or transaction fee with the Visa Debit card costing me $10 per year. When ever I hear about banking in the US it sounds like my own country 30+ years ago with people manually cashing their cheque given to them by their employer! good lord - that kind of crap still happens in apparently the 'most advanced economy in the world'?



#57 TheAncientOne

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Posted 24 June 2013 - 19:14

Fascinating to me what is the rational with that why does ones credit score have anything to do with employment not something I have heard of.


I believe companies, at least in the U.S., uses credit history to gauge how financially responsible a person is, and that somehow can offer them insight into how responsible a person can be in other things. This practice is common when applying for a white collar job.

Unfair, I know.

#58 ILikeTobacco

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Posted 24 June 2013 - 19:16

For people talking about 'building up a good credit record' - at least where i live you don't need to a credit card to build it up - pay your bills on time, no debt collectors, maybe have some savings, a good employment track record etc. all contribute to whether you're credit worthy or not. Regarding debit cards, I don't know what the cost is in the US but where I bank all my accounts are online where I pay no monthly or transaction fee with the Visa Debit card costing me $10 per year. When ever I hear about banking in the US it sounds like my own country 30+ years ago with people manually cashing their cheque given to them by their employer! good lord - that kind of crap still happens in apparently the 'most advanced economy in the world'?

What are you babbling on about? We use direct deposit, no charge, no manual cashing of checks. Debit cards cost nothing. Using them costs nothing, well unless you are stupid and use it with a rival bank. When I say nothing, I mean nothing. Not even the $10 you are being charged with is the dumbest thing I've heard. You pay to use your own money? Are you really judging a nation based on your ridiculous assumptions after admitting to that you use that kind of backwards system?



#59 tsupersonic

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Posted 24 June 2013 - 19:19

For people talking about 'building up a good credit record' - at least where i live you don't need to a credit card to build it up - pay your bills on time, no debt collectors, maybe have some savings, a good employment track record etc. all contribute to whether you're credit worthy or not. Regarding debit cards, I don't know what the cost is in the US but where I bank all my accounts are online where I pay no monthly or transaction fee with the Visa Debit card costing me $10 per year. When ever I hear about banking in the US it sounds like my own country 30+ years ago with people manually cashing their cheque given to them by their employer! good lord - that kind of crap still happens in apparently the 'most advanced economy in the world'?

Yes, there are plenty of ways of building credit, but having a credit card is an excellent way to build credit. Depends on the bank, my bank doesn't charge me anything to have a debit card - as long as I maintain a certain amount. Most people (actually everyone) I know of have direct deposit. I have no idea what you're getting it, but you have it all wrong...



#60 ILikeTobacco

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Posted 24 June 2013 - 19:22

I believe companies, at least in the U.S., uses credit history to gauge how financially responsible a person is, and that somehow can offer them insight into how responsible a person can be in other things. This practice is common when applying for a white collar job.

Unfair, I know.

Depends on the job. People with access to things like trade secrets or accounts. Someone who is financially irresponsible or in a bad spot financially can be exploited. However, in some cases, I agree and it is unfair.