What is better.Credit card?Debit card?Or ATM card?Or just cash in your pants?

[Subduction Zone]

I should have a solid answer for this thread in a day or so. I just invested a total of 4 bucks in both the Power Ball and Mega Millions lotteries. The way that I figure it I will either win or lose each one. Two lotteries two possible outcomes, that sounds like 50/50. Between the two of them I have to win at least one.

 

[Heyo]

In front of City Hall. Home could double as a political statement.

:creative:

 

[Heyo]

That hasn't been my experience at all. Even applying for cell phone contracts that are cheaper than burner phone plans require credit checks. Hell... getting into my new apartment, which is cheaper than any other apartment in my area, required a credit check too

I'm thinking about why that is so - and why that is so only in the US (and probably other third world countries?)
1. The US is dirt poor. I heard recently that 60% of people live pay check to pay check with no reserves for emergencies. I.e. the risk that people get behind on rent or cell phone plan is so high that landlords and telcos have to be very cautious.
2. (Conspiracy theory) It's all a ruse by the banks. They want you to live on credit because that's how they make money.
3. Structural racism. Credit scores are a continuation of red lining by other means. (Your address affects your credit score.)

My guess is all of the above, what do you think?

 

[exchemist]

That hasn't been my experience at all. Even applying for cell phone contracts that are cheaper than burner phone plans require credit checks. Hell... getting into my new apartment, which is cheaper than any other apartment in my area, required a credit check too

The phone one surprised me, I admit. Does that also apply to utility companies?

 

[exchemist]

I can't afford all those RVs!

I think a mansion would be more economical.

@Soandso is right, for many services over here you risk a credit check anymore. And few of us can afford to buy a home out of pocket. Home ownership is often part of getting/staying out of poverty, at least where I am. I have a decent sized 3 bedroom house(I think I may have shown you a picture once), but for the price I pay each month for my mortgage, I likely couldn't even rent a studio apartment in the area.

When we first went to the bank(well, credit union), for a home loan, we were told no way, you have no credit. Sign up for this credit card, use it to pay basic bills, and we'll see you back in a year. We did that, but they still turned us down because our credit was average instead of great(we had only had the card a year, and it was our only one). We found a loan with another credit union, thankfully. But without the home loan, we'd be paying a lot more for a lot less.

Sure. But then a home loan is an instance of not just buying what you can pay for.

 

[Mock Turtle]

Not sure if this has been mentioned - as to credit ratings - but perhaps bank loans were more used in the past rather than using credit cards - so as to raise one's credit rating. I have had at least two bank loans - not sure of any earlier ones but possibly for HiFi equipment, whilst one was for a marine mortgage - so as to purchase a yacht. Given that I managed all of these fine and have never defaulted on any credit cards (have had several), my credit rating must be quite reasonable, given that I seem to be offered loans much of the time by my bank. Which I might take them up on shortly.

 

[Soandso]

The phone one surprised me, I admit. Does that also apply to utility companies?

Not that I've noticed, thankfully!

 

[exchemist]

Not that I've noticed, thankfully!

Hmm so why a phone? Surely that is, like a utility, provision of a continuous service that one pays for in arrears, periodically. Dunno. But then I'm past all this, having paid off my mortgage years ago and having no more aspirations to make large purchases that I can't fund out of my own cash.

 

[Soandso]

I'm thinking about why that is so - and why that is so only in the US (and probably other third world countries?)
1. The US is dirt poor. I heard recently that 60% of people live pay check to pay check with no reserves for emergencies. I.e. the risk that people get behind on rent or cell phone plan is so high that landlords and telcos have to be very cautious.
2. (Conspiracy theory) It's all a ruse by the banks. They want you to live on credit because that's how they make money.
3. Structural racism. Credit scores are a continuation of red lining by other means. (Your address affects your credit score.)

My guess is all of the above, what do you think?

Eh... Racism is very real in the united states, and that certainly plays a factor, but I feel that a larger factor is the growing dispiraty of wealth. If your parents are financially ok, you will be too. If your parents have some kind of financial issues, that hits heavier on your future as a growing child now than it used to, seems to me. There's job deserts where the only way to make money is working at minimum wage jobs, and there's no way to escape that when moving costs so much and the cost of living is as high as it is

While it's true that banks certainly aren't the heroes, they aren't doing anything different than they always have, seems to me. This growing disparity is new - this is something else entirely

It's weird, though. Some things have gotten cheaper over time, like technology, but the basic necessities of life have shot through the roof, like housing, education, and transportation. It's not even like this is some new thing - it's been going on for quite some time and it keeps getting worse. The gradual wage increase just isn't matching the growing cost of living. I wonder what could be done to change this trend that has been set in stone for so long?

 

[Soandso]

Hmm so why a phone? Surely that is, like a utility, provision of a continuous service that one pays for in arrears, periodically. Dunno. But then I'm past all this, having paid off my mortgage years ago and having no more aspirations to make large purchases that I can't fund out of my own cash.

True, but cell phone plans also usually require the purchase of a cell phone - I think that's where the credit check comes in. Carrying over one's old cell phone to a new plan doesn't always work

I don't think you're alone in your sentiments. Most folks who have already established themselves won't have to be confronted with these growing issues, seems to me. Then again, I think this might be more of an Amerocentric issue as well