RE: Cleaning Up My Credit Report, One Mistake at a Time
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Lol, I'm joining @anderssinho, we don't have a credit score as my county doesn't have that credit culture. People try to stay credit free as much as possible and only apply for a credit if it's a must, mostly to buy a property or a car. But we don't collect them.
Banks and financial institutions offering loans most likely have a credit score system, based on which you are evaluated but that's not publicly known, it's an internal system for them.
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@erikah yes excatly like here. Only thing people in general think it's acceptable to loan money for is house, renovation and maybe, just maybe for a car.
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For me this is a healthy thinking. Encouraging people to spend in advance is not always good. And I'm going to be contradicted on this by those living in a highly credited world :)
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@anderssinho @erikah
It's way more complex than that. It's like telling someone to eat healthy when that someone lives in a food desert.
Credit card debt today is not like the debt of the 80's. Today's debt comes from medical bills, malicious credit card companies who confuse their clients with "zero percent interest rates", companies that require a credit card on file to obtain service, and other traps.
I bought a $32 dollar dress in a credit card in 2012 - before that I hadn't used credit cards since 2003 - many people are just like me and somehow still in debt. How? It's the design.
Obviously something is not right if you don't use your credit and still paying.
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Yes, me :)
Credit can be real good for leveraging and growing. Depending on what it is used for. Opening a franchise chain, that is from day 1 profitable, can be done with a creditor buying a flat to rent and have a decent cashflow after interests and taxes is also a good credit.
Buying a TV on credit is definitely a bad thing to do.
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I agree but we were referring to buying personal items.
We specified buying a flat or a house is the exception :)
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I go on credit for every mean of production that gives a return, car is leased, but needs to overpay the monthly cost. Anything else, like clothes, electronics are paid in cash and can be sometimes refurbished or second hand.
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