I would love for each person living in the USA to reach zero debt. It would probably collapse the damn system. It’s ridiculous how much of it relies on you having debt and some stupid credit score.
It’s not stupid, it’s actually an ingenious way to rig the system to keep the siphon tapped into poor people’s bank accounts.
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Can you please not repost X content on lemmy?
I have only one credit card which I charge everything to (credit limit is more than enough at over $10k) and which I pay off in full each month and have no absolutely debt, therefore my credit score is absolute dogshit.
The shitt9est thing about credit is that payments that don’t improve your credit can still hurt it when you miss.
Late on rent or your cell phone plan? That’s a ding on your credit report. You can’t get a loan because you haven’t established that you’ll pay your debts.
Pay your rent on time for 30 years straight? No credit history. You can’t get a loan because you haven’t established that you’ll pay your debts.
Stop trying to max your credit score. You don’t win any extra prizes for having an 850.
Having a good credit score (>670) isn’t difficult. Have a couple of cards, keep your balance under 1/3 of the limit, and pay it on time. That’s it. You’ll have a 700 in short order. Getting it above 750 is just more of the same.
I get that there are perfectly responsible people who don’t leverage credit to gain their needs and then are rejected by the banks when they go looking for a 200k loan. But that’s not the world we live in. Bill the Banker isn’t the guy whose lived in your community for twenty years and goes to your church. That world is gone and had problems too.
This impersonal world sorta sucks, but I’m not close friends with my neighbors and some of them seem like people I wouldn’t get along with anyways.
The real rub of it, in my opinion, is we are subject to these standards without being consulted or, really, considered.
But honestly, don’t worry about maxing your credit score.
Credit Score exists to sell you more Credit Score. This seems to have come about as a natural extension of them being required to let you see your Credit History.
It’s Credit History that you want, and that lenders check. They may turn it into a score, but that score varies by lender and what you’re borrowing for, and frankly they may want more than just credit history anyway if you’re borrowing enough to buy a house.
If you don’t have any credit history, use a credit card for your day to day spending, pay it off in full each month. As a bonus, you often get extra consumer protections that debit card boys don’t get.
Credit scores include credit history and more. Credit scores are used by many lending industries. Credit history is one of the two major factors in determining a credit score. There are two less than major ones and two minor ones. But to reduce credit scores to just history is wrong.
Problem is that those “non-persons” can’t stay in their lane, and have to pollute and disrupt society with their predatory tactics, instead of going to some forest and “pulling themselves by their bootstraps” alone.
These are strangers asking for money. They have no objective evidence that they are a good bet. Why would the bank give them a large loan for a long time?
I wouldn’t give that person money and you wouldn’t either. Hell, I wouldn’t give a lot of people I know that loan. Less about them and more about me.
Getting above 700 is quite easy but going above 800 without a car loan or mortgage has been pretty difficult for me and my partner. Credit cards alone even with high limits doesn’t look the same to the Bureau’s as a mortgage or auto loan for whatever reason.
This post is about insurance premiums and has nothing to do with credit scores.
Credit-based insurance score is applicable though with relevant overlap.
Think Lexisnexis instead of equifax/transunion etc.
An insurance score is calculated by insurance companies based on information in your credit report as well as your claims history.
The rest of the comments, on the other hand.
The post is about insurance premiums, but OPs title is very clearly about credit scores
Oh I see that now.
After reading a good number of replies the thing that amazes me is that US banks aren’t on fire right now.
I’m trying but those sprinklers are really strong.
You have to get the molotov behind the curtain
Anecdotally I haven’t found this to be true. I’ve had mortgages, car loans, etc and times in between without debt. Credit score never really wavered more than 10-15 points.
My dad paid off his mortgage and owned his vehicles outright. He had been that way for about 10 or 12 years when he tried to buy a small cabin. Even though his finances said he could buy it outright, he tried to get a small mortgage…the banks REFUSED to give him a mortgage. They said he basically didn’t have a credit history. Its all made up bull excrement that screws with peoples lives for the fun of it.
“damn this guys responsible, we won’t make a buck!”
If you took 10 loans, paid them all off and never missed a payment on any of them, then you have proven you are safe to lend money to.
If you never took a loan, who knows if you can pay one back.
Yes, it’s stupid that being responsible means you are untrustworthy, but it does make logical sense that paying back loans proves you can pay back loans, and not doing so, well, doesn’t.
And for anyone in the US, just know that State Farm is one of the worst companies for Homeowners Insurance. They will pay the bare minimum. All insurance sucks, but State Farm is on a whole other level of suck. If you are with State Farm don’t make the mistake I made and quickly find another company.
Seriously, leave State Farm. By not leaving I am now paying $20k that they should have covered.
I just left a job with State Farm. They also the most expensive and go out their way to fuck you hard.
Someone t-boned (and totaled) my truck and they had State Farm for car insurance. Everyone involved acknowledged I was not at fault, except State Farm. They wanted to write it off as a mutual fault, which would mean they wouldn’t have to pay for my damages. They also never told my insurance company, because it was news to them when I mentioned it. I just hope my insurance doesn’t go up because of their ineptitude.
Yeah fuck that. Make sure your insurance company is going to bat for you, that’s part of what they are paid for. Make it clear you dont expect this to count against you at all because the other driver is at 100% fault.
Shouldn’t take much push from them for state farm to fall into line.
Good time to mention my wife had State Farm when she was run off the road. We had the guy on dashcam with clear as day video of his face, and license plate. State Farm couldn’t find the driver or the car, and said that we should just pay to have the wheels repaired (got curbed hard during the incident). The “repairs” were the same amount as the deductible. Then one of their reps let slip that they not only knew who the guy was, and who owned the car, but that he was covered with their insurance. So SF was pretending not to find they guy so they wouldn’t have to pay our deductible… Shady as fuck.
Remember Katrina?
Like a grim reaper state farm is there
I don’t have state farm but get their offers in the mail all the time. I have a different agency that has covered our home and autos since 1998. That said, when we removed our pool I called to see if we could get a downward adjustment on our home insurance since… we not only removed the pool, we also had a 4.5 foot chainlink fence surrounding our property. They laughed at me.
I got them to replace my roof like 4 years ago, but it was an argument that took a couple of months because they wanted to go around and spot replaced only the damaged shingles. I stayed nice and held my ground that doing so would look bad and thus diminish the value of my home. It was like pulling teeth, but I was able to talk with someone at state farm who felt like wanting me to get my way by speaking nicely without myself being a pushover.
I had them when we bought our house. A tornado game around the second year. They sent me a check for 6k and expected me to get someone to do only half my roof. Took me little over a year and half. Found a guy who did the whole roof for the 6k. I turned in the recipient and pics and they sent me another check for 7k. I said what’s this? They said thats what the claim was for. They estimated 12k. I told them if they paid that up front I would have gotten job done a year earlier. Because I gave them a quote I had gotten for 11k. Joke on them I got pocket that 7k, because whole roof was done for 6.
Of course they raised my rates for filling a claim. Which is one of the biggest scams on earth. Insurance is supposed to be the transfer of risk. They are supposed to protect you. But if you file they raise your rate.
Reminds of the story of this old guy. Had AllState for 20 years. Always paid, never had a claim. He gets into a fender bender and he said they raised his rate. He was pissed. Twenty years of monthly payments. Paid in way more than the wreak cost, and they fuck you.
Also State Farm supposed to be a mutual Insurer which means your supposed to get a check at the end of the year for any unused money. Has anyone ever gotten a refund or money off the renewal?
just know that State Farm is one of the worst companies for
HomeownersInsurance.I wouldn’t get any state farm insurance. We had to sue to get the very coverage outlined in the policy for uninsured/underinsured driver coverage.
Just the worst.
Who are some of the best? And not USAA. I’m talking ones anyone can apply for.
Yeah, unfortunately they are the only company that offers insurance in my area. Some times bare minimum is better than nothing.
I have had trial lawyers tell me that State Farm is a pain to deal with even when claims get serious enough to involve them.
I have been using Allstate for a long time, and to their credit they have been good about approving my claims and paying fair amounts.
In the 2010s I had a totaled car one year, then another year I had two homeowners claims: a moderate one to get new siding after damage from some insane winds, then a bigass claim that ended up replacing plumbing and flooring while we ran up months of hotel bills they paid.
I’m not going to delude myself into thinking they’re a good company or give a shit, but my personal experience has been consistently decent.
Its crazy, the only debt I’ve held is student loan debt and I have paid the bill every single month. Otherwise I use checks and a debit card, I had money to buy a used car upfront.
Went to get a credit card. My credit score is below 700, and I was deemed “unqualified” because, get this, I don’t have a history of paying off debt, because I have not held enough debt to prove I can pay it off.
Yeah, it’s dumb, but you should be using a credit card for all your purchases and paying it off every month. I do this, and my credit score is over 800. Make sure you get a card that has cash back rewards so you can get paid for having to do this. Just be extra sure to budget it accordingly and not go into debt.
Now they want you to pay a secure credit card the privilege of having you as a customer, always with a high annual fee and absurd interest rate, and then after a couple years of bleeding maybe they’ll give you actual credit. Meh. If you’re above 620 you should qualify for FHA first time buyer’s loan, which is honestly one of the few ways to not get fucked right now. We’re going to do (housing crisis) indefinitely so even shit property goes up.
My credit rating is so bad that I had to have my brother co-sign a lease for me fifteen years ago. The landlord told him his credit rating was the highest he’s ever seen. My brother (and his wife) were in debt up to their eyeballs - over $100K in credit card debt and a mortgage they were deeply underwater on. They’re still in bad shape financially; meanwhile I now own my own home outright (having paid cash for a fixer-upper after saving up for a few decades). I still have shitty credit and it’s not affecting me negatively in any way.
been playing their game a long time. basically add up credit limit on all your cards. divide by usage %. on time payments and years with good credit, net worth, are factors too. i don’t know their equation. sitting about 820 with no debt and 7 lightly used cards. used to play balance transfer until they quit offering incentives. 10k until finally paid down. always pay down principle as fast as you can. saves years of payments/interest. https://www.investopedia.com/ has lots of good reading. think they also sell stuff so.
I use a rewards card to pay for things like service calls/repaires (latest was $650 for a AC repair) I pay it off over a couple months. I could have paid it right away but the rewards give me free protein and gas and that is something these days. I do it in halves to spread it out and leave me extra liquid cash I can withdraw if I need it. I am considering holding about 500 or double that in small bills in case the financial system shits the bed for a few weeks in winter due to the tariffs and economy. Right now, nothing makes sense irt to the markets so I think it is all vibes and denial happening.
Just dealt with this. I didn’t even exist in the credit system. I’ve even been told if I had BAD credit I would qualify for something.
Eventually I did get connected to a small local credit union and got a pretty good deal on interest as a 'first time buyer’s program.
That’s a personal issue…
If the insurance determines you as an adult individual to be less responsible than you and the lender, then you’re gonna pay more.
In rare cases you pay less
But it’s likely more to do with them getting the house reappraised at a higher value once it sold. But there’s a lot of things that effect it.
things
Yeah. capitalism is a disease
You know, you don’t have to pretend that the obviously bad things of the thing you like is actually good because you like the thing?
The value of the house is not gonna go up because a few decades went by by which time they paid it off; it would only decrease by that fact! And the only thing we know about her is, that she paid her debt off… You find that irresponsible of her?
The value of the house is not gonna go up because a few decades went by by which time they paid it off; it would only decrease by that fact! And the only thing we know about her is, that she paid her debt off… You find that irresponsible of her?
I honestly can’t tell if you’re trying to be sarcastic, or genuine…
The value of the house is not gonna go up because a few decades went by by which time they paid it off; it would only decrease by that fact!
Nearly all houses that are maintained well appreciate if they weren’t overpriced when you bought them (or world crisis doesn’t intervene). I bought my small starter house at $135k and sold it 17 years later for $245k.
But not because your house is 17 years old but because of the ongoing housing crisis! I am sure that adjusted for inflation and the then average house prices then then and now a new house would be worth exponentially more…
But not because your house is 17 years old but because of the ongoing housing crisis!
I’m not sure I understand what you’re trying to say with this. Existing housing rises in costs for all kinds of reasons, certainly not just one. Yes, demand for housing is one of those factors…but it was a factor back then too.
I am sure that adjusted for inflation and the then average house prices then then and now a new house would be worth exponentially more…
The adjusted for inflation value of my house when I sold it was $193k while the selling price was $245k.
-I can try rephrasing it, but you should either use external help if this is not your first language… Because your house turned 17, it did not become more valuable! It became more valuable because of the ever more worsening housing crisis! A new house relative to the then and now house prices would cost exponentially more than that of a 15-60-110… one
Superb! If you sold it new you would have gotten more for it
The value of the house is not gonna go up because a few decades went by by which time they paid it off; it would only decrease by that fact
That’s hilarious
The real death of America is everyone drowning to death in made up fees.
Junk fees have been lurking for years but post covid, they took a life of their own…
The sad reality most plebs just accept it because they must consoom🤡
You say that like it’s an option chosen by idiots, but we literally must consume, as in people have to fucking eat, and we don’t have the option to just nope out of capitalism and grow your own food on your own land unless you have a stupid amount of capital.
Only my experience, but I’ve worked both as a teller and as back office in financial institutions for over a decade. Out of all of the people who were chronically overdrawing their accounts, I honestly can’t remember a single one who was doing so off of buying essentials, it was always frivolous luxuries.
Hell, over the years I’ve even heard a coworker talk about how they have no money until their next paycheck at the end of that week, and then later that same day, talk about what designer sneakers they want to buy when they get their tax return.
There are definitely people who struggle to make ends meet, but the fact is, the majority of the times ends aren’t met, it’s deliberate. People in the US are more likely to have a problem with overspending than underearning, on average.
Most of my exposure to junk fees have been at restaurants which can be avoided followed by some forced bulls shit service which can’t be avoided.
Point being there still places don’t try this shit, they should be rewarded for it.
If you are paying fees on discretionary consumption, you are the problem.
That’s one example practical example of how inflation works.
Gorcery stores don’t have fees or haven’t seen them do it yet at least.
Maybe don’t condescendingly blame people living under capitalism for the cruelty inflicted by the ownership class, you fucking pleb.
Y’all so easily give agency to fight. Day in, day out same limp dick retorts about how you cant be bothered to make better consumption choices.
Got forbid you are old to take action and fight the regime
Ohh well keep consuming, boy, I am sorry you can’t be bothered to take any direct action to hurt the parasite class profit.
Refer to my previous comment.
Comment is non sequitur
Now get back to paying junk fees, daddy counts on you being complacent 🤡
No kidding! Way back in the 80s I had a US Bank account called “The Only Account”. It was a checking and savings account where checking always had a balance of zero. When I wrote a check or withdrew money from an ATM, they automatically transferred money from savings to checking to cover it, and then the checking balance immediately went back to zero and that was that. No overdrafts. Ever. There was an annual fee of I think $20/year.
I don’t know where that idea went, but banks and even credit unions now act like they never heard of such wacky nonsense. “Overdraft protection” consists of loaning you the money, no matter how much you have right there in your savings acct, and they charge a fee each time and of course also charge interest on the loan. Ridiculous.
“Overdraft protection” consists of loaning you the money, no matter how much you have right there in your savings acct
That is not universal, many financial institutions let you set it up so that your savings automatically covers overdrafts.
I’ve had that be the case in my Ally accounts since like 2010 at least, for no fee. Hell, Ally doesn’t even charge overdraft fees at all anymore, apparently.
Srsly? When I had the Only Account it was in Oregon, then I moved to Seattle and couldn’t find a bank with that feature. Even US Bank, where I had the account in Portland, didn’t have it in Seattle. The clerk gave me a kindergarten explanation of how it’s not one company, it’s more like a family with lots of cousins all over. I LOL’d mentally because I knew it for a fact was and is one company (I had even traded their stock in the past, symbol USB). But anyway apparently their accounts and features varied by state and Washington state didn’t offer thar type of account. I will have to look around again now, thanks!
My credit union has this. That feature has kicked in for me a few times for me just this year.
You didn’t explain what would happen if your checking account had a $0.00 balance and your savings account had a $0.00 balance.
Seriously can someone tell me what happens? Because money keeps coming out of my savings…
If you flat out had no money I believe the check would bounce. At least I don’t remember ever hearing of the automatic loan scheme until I moved to Seattle and merged into my wife’s credit union. If your CU has an only-account type feature you should check your statement to make sure money that moves out of savings is to cover checks or debit transactions that would have come out of the checking account.
Some finttech cash management accounts offering this.
I didn’t realize it was a thing before. 2000s was peak fuck the pleb over draft fee bullshit.
“You can’t make this up”
-Someone who wants you to take them at their word for an outrageous claim while providing no supporting evidence whatsoever
What are you talking about? Its not outrageous at all. There’s countless stories of exactly this happening and yes others have provided proof some even have videos about it im sure.
Maybe I don’t like people imposing on my freedom to make things up by telling me that I can’t make this up. God, this is like MC Hammer all over again!
Gotta g get that $ somehow
