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Young Americans Are Ditching Credit Cards

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#61 +Bryan R.

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Posted 24 June 2013 - 19:58

Lol. Yeah, they're great all right.

For myself, I'm proud to be debt AND credit card free! I pay as I go. Imagine that in this day and age. Delayed gratification. What a concept! The only thing I will need credit for will be a mortgage, if I even decide to buy someday. All the rest; cars, vacations, etc., I pay as I go. I tell ya, it's feels great to be off the wheel.

But for sure, you have fun with your credit cards. :woot:
 

 

A couple things:

Having and using a credit card does not automatically put you in "debt". No more debt than you have to your utilities provider every month.

There is inherent protection provided to you when using a credit card.

Paying as you go is not inherently "smart". Renting for your entire life ends up costing you more than a proper investment.

 

There's really no need to be condescending about it especially when you don't understand the basics of how credit works or how it can benefit you. I live my life pretty much pay as I go as well while using credit. I'll pay my bills, gas, groceries, etc. with a credit card and pay it off at the end of every month. I get good credit reports, free rewards, my bank statements are simpler. Why wouldn't you? It seems to me your comments are exactly the reasoning behind this trend. It's an extreme move away from the realization many kids had when they learned they could borrow without knowing it wasn't free.




#62 matt4pack

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Posted 24 June 2013 - 20:27

The fact that young Americans are ditching credit cards just shows how dumb society is becoming.  

 

So you can't manage your budget enough to buy what you can afford with a credit card and just pay it off each month?  While at the same time building credit, protecting yourself from fraud, earning free rewards, and having it in case an emergency arises where you actually might need credit.  If people really can't handle that level of personal responsibility then we are doomed.



#63 Mr Nom Nom's

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Posted 25 June 2013 - 05:26

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...

 

The way the credit system is that many only report if you don't pay but there is no record of 'good payment' meaning someone could have no record because they've always paid their bills on time - which causes problems. Many businesses I know are now opting into the 'positive reporting' system where your good behaviour is reported so that when taking on a new customer there is a record of their complete history rather than just the 'bad news'.

 

Regarding the bank - for me they charge me nothing because I opt out of paper transaction summaries at the end of each month which saves me the $3 fee. Given that I can search my transactions right back to when I first opened my account with them there is no point in having them being sent out.

 

Regarding the pay cheques, it is just my impression based on what I read on line with people actually being paid with a cheque such as welfare recipients - where I live you cannot get paid via cheque when it comes to welfare or being paid at work.

 

The fact that young Americans are ditching credit cards just shows how dumb society is becoming.  

 

So you can't manage your budget enough to buy what you can afford with a credit card and just pay it off each month?  While at the same time building credit, protecting yourself from fraud, earning free rewards, and having it in case an emergency arises where you actually might need credit.  If people really can't handle that level of personal responsibility then we are doomed.

 

 

You already get that with a Visa Debit card and your accounts area already protected under standard EFTPOS fraud protection along with other protection. The only benefit you gain out of a credit card is a line of credit which for many people is too tempting to use thus to avoid the temptation they don't have it at all.



#64 TheAncientOne

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Posted 11 July 2013 - 14:50

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.

 

I'm intrigued. Where do you live? I've lived in New York, California and Massachusetts, but for services like gas, electricity, cable, Internet, and a home phone , you don't need credit nor does credit disqualify a person from acquiring these services.



#65 vetsanctified

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Posted 11 July 2013 - 14:56

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.

 

 

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.

 

These, to me, seems for like the bleak state of capitalism you're submerged into than the advantage of benevolent credit you two seem to be promoting.



#66 +Bryan R.

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Posted 11 July 2013 - 14:56

 

I'm intrigued. Where do you live? I've lived in New York, California and Massachusetts, but for services like gas, electricity, cable, Internet, and a home phone , you don't need credit nor does credit disqualify a person from acquiring these services.

 

I can vouch for his testimony, at least for where I live. When I setup an account with FPL (electric company), they check my credit to determine if they would require a deposit. The point only being that good credit has benefits and the people who don't understand this are probably the same people who don't understand how certain people get ahead of them in the world.



#67 threetonesun

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Posted 11 July 2013 - 14:58

I'm intrigued. Where do you live? I've lived in New York, California and Massachusetts, but for services like gas, electricity, cable, Internet, and a home phone , you don't need credit nor does credit disqualify a person from acquiring these services.

 

You probably do have one, actually, it's just internal to the company. National Grid used to keep track, I only know because one roommate forgot to transfer responsibility on to the next and then their "rating" with National Grid went in the tank. It was a score reported on the monthly bill. That said, I don't know that it ever caused them any problems getting electricity turned on at their new place.

 

More to the point, I buy everything on credit. I have a card that gives me 3% back to use at my car dealership, which means that I've never paid for service on any of my cars, and I even had enough saved up to put a sizeable down payment on a car that I financed (at 0%).

 

Credit is great, if you know what you're doing.



#68 AJerman

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Posted 11 July 2013 - 15:00

Credit cards are absolutely unnecessary. But at the same time, they aren't a terrible thing, so both sides are right to an extent. Do you know how many things I pay for that go towards my credit? All of my bills, student loans, car loan, etc. You don't need a credit card to build credit in the slightest bit, so that argument is just silly. On top of that, 99% of the time you can use a debit card in place of a credit card, only difference, you just have to already have the money. That said, if you can have a credit card and pay it regularly and on time, then they aren't a bad thing at all, and do provide additional help to your credit.

 

I don't have a credit card right now because I simply don't need one. I have my Amazon store card which is basically a credit card, but I don't have a standard VISA or MasterCard. I got hit with the recession pretty hard myself. Lost my job for a while, moved back with my parents, was broke, all that good stuff. So now I am very careful about what I spend and when. I'm not scared of credit, I have a car loan and all that, but I have no need for a credit card and my credit is recovering just fine.

 

I've built more credit off paying my student loans than I have off any credit card. They are why I had a 700+ credit score at 22 or 23 years old. Too bad it's not still there after losing my job for so long, haha.



#69 TheAncientOne

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Posted 11 July 2013 - 15:13

You probably do have one, actually, it's just internal to the company. National Grid used to keep track, I only know because one roommate forgot to transfer responsibility on to the next and then their "rating" with National Grid went in the tank. It was a score reported on the monthly bill. That said, I don't know that it ever caused them any problems getting electricity turned on at their new place.

 

More to the point, I buy everything on credit. I have a card that gives me 3% back to use at my car dealership, which means that I've never paid for service on any of my cars, and I even had enough saved up to put a sizeable down payment on a car that I financed (at 0%).

 

Credit is great, if you know what you're doing.

 

I'm actually living in Massachusetts now. National Grid never disqualified me from getting services even though I did have bad credit a few years back, nor did they report me to the credit bureau when I made payments late. The only time it'll show on my credit report is if I fail to pay a bill for maybe 3-4 months, then it goes to collection which would show on the credit report.



#70 +LogicalApex

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Posted 11 July 2013 - 15:27

You already get that with a Visa Debit card and your accounts area already protected under standard EFTPOS fraud protection along with other protection. The only benefit you gain out of a credit card is a line of credit which for many people is too tempting to use thus to avoid the temptation they don't have it at all.

 

Not in the US. If you report it slower than 2 days after the incident you're liable for $500...

 

Additionally the money you may need for bills is tied up in an investigation. My CC doesn't have these issues...

 

http://www.consumer....and-debit-cards

 

Credit cards only are a problem for the undisciplined, but these persons have the same issues in an all cash environment. They will still be floating check to check.



#71 ILikeTobacco

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Posted 11 July 2013 - 15:59

I'm intrigued. Where do you live? I've lived in New York, California and Massachusetts, but for services like gas, electricity, cable, Internet, and a home phone , you don't need credit nor does credit disqualify a person from acquiring these services.

Nobody said anything about being disqualified for getting service. They still give you the service, you just have to pay a deposit for the service. When I got the water turned on at my new apartment a few months ago, they ran a credit check without even asking, then said I had to pay a $100 deposit to get the service turned on. The sad thing is, the 3 major credit companies all have me with a 700+ credit score but the water company claimed when they ran it, it was only 540 because they checked my credit from a state company, not the national ones. Of course its all about making an extra buck, however, that is not abnormal practice to check your credit for anything that requires a monthly bill.



#72 TheAncientOne

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Posted 11 July 2013 - 16:02

Nobody said anything about being disqualified for getting service. They still give you the service, you just have to pay a deposit for the service. When I got the water turned on at my new apartment a few months ago, they ran a credit check without even asking, then said I had to pay a $100 deposit to get the service turned on. The sad thing is, the 3 major credit companies all have me with a 700+ credit score but the water company claimed when they ran it, it was only 540 because they checked my credit from a state company, not the national ones. Of course its all about making an extra buck, however, that is not abnormal practice to check your credit for anything that requires a monthly bill.

 

What state/jurisdiction do you live in?  I've had bad credit up until a few years ago, but the utility, cable, and home phone companies never asked for a deposit at all.



#73 ShareShiz

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Posted 11 July 2013 - 16:03

Credit Cards are dumb. Cash and Debit for the Win.

 

And if you can't afford it. You most likely don't need it.



#74 ILikeTobacco

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Posted 11 July 2013 - 16:09

What state/jurisdiction do you live in?  I've had bad credit up until a few years ago, but the utility, cable, and home phone companies never asked for a deposit at all.

So far, had similar experiences in Kansas, Florida, Oklahoma, Mississippi and New York. These are all for apartments mind you so it may differ for a home owner since they had a major credit check just to get the house.



#75 TheAncientOne

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Posted 11 July 2013 - 16:15

So far, had similar experiences in Kansas, Florida, Oklahoma, Mississippi and New York. These are all for apartments mind you so it may differ for a home owner since they had a major credit check just to get the house.

 

Maybe that's why.  Four out of the Five states are red states, which tends to allow greater personal and economic freedom than blue states like Massachusetts.