Do people really not understand credit anymore?

[Lason]

Just another example of finances needing to be taught in schools.

Just talking to a coworker and congratulating her on paying off her vehicle. She, along with her husband, are Ramseynites. Although I dont agree, they have been doing real good getting rid of debt.

The thing that got me was she thinks if she pays cash for everything then credit score is null.

She refused to believe that car insurance rates were based on score along with the deposits for everything from electric companies to cell phone companies. Stuff like the insurance rates is just money your throwing out the window all in the name of living out of debt.

[Forever_frost]

No, most people don't understand it. They don't understand car rates, home insurance rates and everything else is based on your credit score and they're not being taught either. Economics in HS? A joke. They don't even teach you to balance a checkbook

[Alex]

Be nice to the sophomore nieves

[Lason]

No, most people don't understand it. They don't understand car rates, home insurance rates and everything else is based on your credit score and they're not being taught either. Economics in HS? A joke. They don't even teach you to balance a checkbook

Well her thought process is the typical Ramsey thought. "If I want it Ill save up for it" which is a great way to think of stuff but not always feasible. So according to her interest rates matter no longer.

[Rafa]

I wonder who that could be??

[347Mike]

I never understood that whole credit score argument. I buy just about everything with my credit card and use balance transfer promotions (0%) all the time and have under $1000 on my credit card at all times. It is strictly for accumulating airline points.

It gets paid every month but then It goes right back up. I don't have a lot of credit history but my score is near 800. If it wasn't for my score I wouldn't have my house or car, so to me that argument is odd. Besides my house, car, and regular bills (cell, electric, etc) I have no debt.

My grandfather paid cash for everything, new cars, houses, everything. He never wanted a credit score too. However, there is a point in time I remember him not wanting to pay cash for a car he was looking at (he was getting older and didn't want to fork out the cash I guess) and he got denied a car at 60 years old.

I don't want to be that way, in the sense of credit score. Witht hat being said, credit cards aren't the problem. The user is.

[Broncojohnny]

If you think about it, it really is best that she follows Dave Ramsey, otherwise she would be fucked. Dave's reasoning is tailored for people who don't understand that money is capital. I don't agree with what he says but I think it is appropriate for his target audience which is a group that is not sophisticated when it comes to money.

[Lason]

I wonder who that could be??

Not who your thinking of Im sure. You do know her though.

I never understood that whole credit score argument. I buy just about everything with my credit card and use balance transfer promotions (0%) all the time and have under $1000 on my credit card at all times. It is strictly for accumulating airline points.

It gets paid every month but then It goes right back up. I don't have a lot of credit history but my score is near 800. If it wasn't for my score I wouldn't have my house or car, so to me that argument is odd. Besides my house, car, and regular bills (cell, electric, etc) I have no debt.

My grandfather paid cash for everything, new cars, houses, everything. He never wanted a credit score too. However, there is a point in time I remember him not wanting to pay cash for a car he was looking at (he was getting older and didn't want to fork out the cash I guess) and he got denied a car at 60 years old.

I don't want to be that way, in the sense of credit score. Witht hat being said, credit cards aren't the problem. The user is.

Yep same with my step dad. He went his whole life with cash in his pocket paying cash for everything. Then one day he decided to get a harley but just sank some serious cash into his buisness so he applied for a loan and they denied him based on no credit. He couldnt believe it.

[slow99]

People who have to rely on DR for finance and money management inherently suck at it. Don't expect much.

[347Mike]

One touchy topic for me is money. I am by no means a pro at it but I know the basics of money, how to avoid debt and the one thing I can't stand is hearing people flap their gums about not having money, or I have so much debt, and blah blah blah..

I recently found out my uncle is a huge Dave Ramsey follower and he is far from the general DR population.

[8mpg]

I never understood that whole credit score argument. I buy just about everything with my credit card and use balance transfer promotions (0%) all the time and have under $1000 on my credit card at all times. It is strictly for accumulating airline points.

It gets paid every month but then It goes right back up. I don't have a lot of credit history but my score is near 800. If it wasn't for my score I wouldn't have my house or car, so to me that argument is odd. Besides my house, car, and regular bills (cell, electric, etc) I have no debt.

My grandfather paid cash for everything, new cars, houses, everything. He never wanted a credit score too. However, there is a point in time I remember him not wanting to pay cash for a car he was looking at (he was getting older and didn't want to fork out the cash I guess) and he got denied a car at 60 years old.

I don't want to be that way, in the sense of credit score. Witht hat being said, credit cards aren't the problem. The user is.

x 100.. Im all about credit card points and miles. Hell, Im making a website about it. The fiance and I are going around the world in April for 4 weeks based on credit card miles. Something to the tune of $35000 in airfare (first class flights)

[Alex]

Who needs credit when I got chooooooooo$$$$$$$$ choooooo$$$$$$$$

[Forever_frost]

I routinely run a couple hundred dollars a month on my CC's but pay them off every month and about once a year I run up several grand to pay off to keep my history running. I've had to explain credit to my grandparents and it's always interesting

[Lason]

One touchy topic for me is money. I am by no means a pro at it but I know the basics of money, how to avoid debt and the one thing I can't stand is hearing people flap their gums about not having money, or I have so much debt, and blah blah blah..

I recently found out my uncle is a huge Dave Ramsey follower and he is far from the general DR population.

I think the problem is the schools dont teach kids about finances so when they turn 18 and get that first credit card they think they are rich. I had one credit card, screwed it up years ago and never got another because I didnt trust myself enough.

I was in my late 20's before I finally decided to learn about finances and force myself to save. I just recently got my 2nd credit card for credit building reasons and my score jumped 25 points over night because I just didnt have any credit cards. I wish I had the jump start by learning it all in school and had been more aware of how it all worked.

[347Mike]

I think the problem is the schools dont teach kids about finances so when they turn 18 and get that first credit card they think they are rich. I had one credit card, screwed it up years ago and never got another because I didnt trust myself enough.

I was in my late 20's before I finally decided to learn about finances and force myself to save. I just recently got my 2nd credit card for credit building reasons and my score jumped 25 points over night because I just didnt have any credit cards. I wish I had the jump start by learning it all in school and had been more aware of how it all worked.

I avoided them and quickly found out that I needed one. My first car was paid in cash, my second one the best rate I could get was 18%! LOL That was the eye opener that made me realize I needed to get a CC.

While I agree something should be in the schools, I believe the onus is on the parents. My grandfather taught me everything I know about money. He was the cheapest man I knew but he retired in his early 40's and traveled all over the US. I say that because everyone I knew (even my siblings) always wanted to spend, spend spend. Ive been diligently saving since I was 8.