[Dolmen 2.0]

I was seriously considering taking a loan from my bank to pay my father for the car he wants to give me at below market costs.

Why? to build my non-existent credit score so I can start building the loan-ful life I've always wanted.

Then I watched political videos on finance in the USA and a few suggestions later I ended up on this:




Entertainment and bug eyed cartoons aside I am actually quite angry.

Money isn't evil, I know this. its something humanity needs to thrive as we currently do and banking is necessary in its own way but the systems in place are just...GRRRRRR .

We sell resources off so we can afford the benefits of international development.

This is acceptable. What's not acceptable is the adoption of Taxing and regulatory interest rates on vastly inflated items. So vastly overpriced we get less and less for more work, greater produce, sharper ideas.

I am just so annoyed. so naturally I thought I'd share the feeling. Money is a frustrating subject and I thought maybe the more enlightened minds might help me understand how much of this video accurately portrays finance.

[ /]

[Aptorian]

Credit scores is a thing I've never understood about America.

The idea that you have to spend money, borrow money, to get a credit score, which will incentivise companies to lend you more money is crazy to me. I guess ideologically it makes sense in a hyper capitalistic consumer society, that you want people to spend as much money as possible. But logically you'd think a person being thrifty and saving money, not taking out multiple credit cards, etc. would be a laudable characteristic. It shows the borrower of money is not irresponsible and can manage his finances, meaning you're certain to get a return on the money you lend.

[Dolmen 2.0]

Apt, on 08 November 2016 - 07:54 AM, said:

Credit scores is a thing I've never understood about America.

The idea that you have to spend money, borrow money, to get a credit score, which will incentivise companies to lend you more money is crazy to me. I guess ideologically it makes sense in a hyper capitalistic consumer society, that you want people to spend as much money as possible. But logically you'd think a person being thrifty and saving money, not taking out multiple credit cards, etc. would be a laudable characteristic. It shows the borrower of money is not irresponsible and can manage his finances, meaning you're certain to get a return on the money you lend.

I think its rooted in the fact they don't want to encourage thrifty characteristics as much as they do mindless largess. The more you think about the affordability of an item the less likely they'll have you coming in asking for the loan they need you to ask for so they get to profit from all that interest you end up paying them for the lend.

[D'rek]

Apt, on 08 November 2016 - 07:54 AM, said:

Credit scores is a thing I've never understood about America.

The idea that you have to spend money, borrow money, to get a credit score, which will incentivise companies to lend you more money is crazy to me. I guess ideologically it makes sense in a hyper capitalistic consumer society, that you want people to spend as much money as possible. But logically you'd think a person being thrifty and saving money, not taking out multiple credit cards, etc. would be a laudable characteristic. It shows the borrower of money is not irresponsible and can manage his finances, meaning you're certain to get a return on the money you lend.

I think the hyper-mentality of it might be largely made up, or at least followed by people who don't actually need to do it but are uninformed.

Granted I'm in Canada, but I don't imagine it's much different from the US. I've got 1 credit card (that I almost never carry any balance past the first bill), am making good progress on student loans, and I've never defaulted on rent or anything like that so never had a collections agency have to go after me. That's my entire credit history, and last time we checked I was apparently relatively close to the highest possible score you can get for someone who doesn't have a mortgage (like, at least 85th percentile or so).

I have to wonder if the people who are financially stable and fine but decide to proactively borrow money they don't need just to increase their credit score are actually gaining anything from it, or have just been duped into doing it by ads and that one relative that re-finances their newest truck in order to trade in their boat for a "better" boat every month.

[Vengeance]

D, on 08 November 2016 - 03:52 PM, said:

Apt, on 08 November 2016 - 07:54 AM, said:

Credit scores is a thing I've never understood about America.

The idea that you have to spend money, borrow money, to get a credit score, which will incentivise companies to lend you more money is crazy to me. I guess ideologically it makes sense in a hyper capitalistic consumer society, that you want people to spend as much money as possible. But logically you'd think a person being thrifty and saving money, not taking out multiple credit cards, etc. would be a laudable characteristic. It shows the borrower of money is not irresponsible and can manage his finances, meaning you're certain to get a return on the money you lend.

I think the hyper-mentality of it might be largely made up, or at least followed by people who don't actually need to do it but are uninformed.

Granted I'm in Canada, but I don't imagine it's much different from the US. I've got 1 credit card (that I almost never carry any balance past the first bill), am making good progress on student loans, and I've never defaulted on rent or anything like that so never had a collections agency have to go after me. That's my entire credit history, and last time we checked I was apparently relatively close to the highest possible score you can get for someone who doesn't have a mortgage (like, at least 85th percentile or so).

I have to wonder if the people who are financially stable and fine but decide to proactively borrow money they don't need just to increase their credit score are actually gaining anything from it, or have just been duped into doing it by ads and that one relative that re-finances their newest truck in order to trade in their boat for a "better" boat every month.

Drek while that may be the case for some people. Most people who try to bump up there scores are looking to buy a house or refi. Then having a high credit score will mean the difference between an interest rate of 4.25 percent or 3.5 percent rate and depending on the cost of the house that can be serious money per month in savings.

[Traveller]

Apt, on 08 November 2016 - 07:54 AM, said:

Credit scores is a thing I've never understood about America.

The idea that you have to spend money, borrow money, to get a credit score, which will incentivise companies to lend you more money is crazy to me. I guess ideologically it makes sense in a hyper capitalistic consumer society, that you want people to spend as much money as possible. But logically you'd think a person being thrifty and saving money, not taking out multiple credit cards, etc. would be a laudable characteristic. It shows the borrower of money is not irresponsible and can manage his finances, meaning you're certain to get a return on the money you lend.

Not just America, sadly. Years ago I had credit cards, loans and lived off my overdraft. The credit card companies sent me cheque books and the banks kept extending my overdraft.

When I got a decent job, I paid off the credit cards and ditched them, cleared loans and lived on what I was earning, with a pay-as-you-go phone and no store cards or anything. When I decided to get a mobile contract... I was refused. I couldn't get my head round the fact that someone who had paid everything off and had no debt wasn't entitled to get a phone contract, whereas if I'd had all the debt it would have been no problem at all.

And apparently even having a mortgage 'doesn't count'.

This post has been edited by Traveller: 08 November 2016 - 05:18 PM

[Cause]

That video knows just enough to make a disgusting anti-Semitic conspiracy seem plausible while hiding so much else. My country also has a reserve bank that is owned by private share holders. If I was given the option to buy those shares I would refuse. There are 2 million shares but a private individual cannot own more than 10000 shares at once and the maximum dividend is 10 c a share or a maximum potential of R1000 per shareholder a year! Pathetic. Any money higher than R2000000 ($20 000) gets returned to the South African Government. There are conspiracy nuts in my country too! One political party (the Ubuntu party) wants to just have the reserve bank print millions of Rands for everyone so we can all be rich. A little knowledge is a very dangerous thing.

Banking, notes of credit, Fiat Currency and fractional banking are some of the most important discoveries the world ever made towards improving our lives. Its not the bank faults if you apply for money you don't need to live beyond your means (Yes government should regulate), We are all responsible for our own fiscal security.