Mecca you are either not very bright, or you dont listen to others suggestions. I dont know what else to say, you live under a rock. Kid that buys chips every month is doing it right, while your not. Without credit your nothing, no matter what you pay off every month, no one knows that you do that, so no one cares. See the light, learn how to use a CC and find many benefits it can give you.
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$500 deposit for an iPhone?!!
- Thread starter mecca
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jubalskeiki
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I can't see this going over to well at all. Technically even the gas stations that charge a different price are breaking the merchant agreements they have with CC companies which don't allow for charging extra (or even imposing a minimum purchase) for a credit card transaction. The only reason they are getting away with it is they are calling it a "discount" for paying cash. For this reason (even if their CC price is also cheaper) I refuse to buy gas at places that do that and I will send them letters (at least to the "chain" type ones) letting them know they have missed out on a customer. I am not trying to be a prick, but I don't really like the idea of doing business with people like that. I had a problem with it even when gas was high (though to a lesser degree) but when prices dropped down to close to a dollar there was no justifying it any longer as anything besides greed.
Joe Average
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Simple solution: don't get an iPhone.
If you thought the "Apple tax" was bad, look at how even the attempt to get an iPhone has completely fucked up the OP's day/week/month/etc... geez
Yes, that's called being facetious.
If you thought the "Apple tax" was bad, look at how even the attempt to get an iPhone has completely fucked up the OP's day/week/month/etc... geez
Yes, that's called being facetious.
Don't mean to steal the thread, but as a college student without a cc myself, I've always been told (at least by my folks) getting one now wasn't a great idea without a full time job. Should I do it anyways and link to my checking account just for the sake of building credit?
Ocellaris
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yes absolutely. i had a cc in college and i would use it to buy all sorts of small stuff that i had the cash for. when i got out of college, i had really good credit just from using that on my basic expensives for a few years.
+1, I'm in college right now and I use it just like a debit card. The first card you get will be crappy with a limit ~$500 and bad cashback, but you can apply for another card in ~1.5 years and get a nice rewards cashback card with a $5k limit.
Yes, banks are forced to report him paying off his balances. If you keep a balance they don't have too. There isnt a system for paying things on time without credit. Get over it, use the system. Get a card with rewards, pay it off before the monthly accrual date, not due date and you'll build credit fast. I have a 740 credit score and I declared bankruptcy just over a year ago. Why, because I learned how to use credit to my advantage. I have taken 'silly' courses on it, but you know what. I can probably get a better interest rate than you cause I have a better score. Look at the Increase Your Credit, Increase your lifestyle seminar. It's been a tremendous help in just learning how to use credit to your advantage and not going in blind when applying for credit.
What's the bonus if I order in the next 20 minutes?
AMD T-type
Supreme [H]ardness
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Just don't buy shit you can't afford. It's such a simple concept that seems to elude a lot of people for some reason.
There seems to be huge misconceptions about credit here.
Mecca, all I can say is you aren't understanding how credit works.
When you pay for something from your bank account. You have that money.
When you use a credit card, you are borrowing that money.
Simple example. If you have $0 in your bank account, and $0 in cash. You cannot buy anything because you have no money. But the credit card still lets you buy something because you are borrowing the money, even if you dont have it.
To go back to your iPhone issue. The reason ATT wants credit is because they are essentially offering you a loan they want paid back. That iPhone you are paying $99 for actually costs around $500. You pay back the cost of the phone by paying your monthly bill every month. Att factors in the cost of the phone into your monthly payment.
But before Att gives you a $500 device for only $99, they want to make sure they will get their $400 back. Nothing is free. So they look at credit history to see how reliable you are with paying your debts. Since you have no history, they don't know if you pay back debts.
Paying cash is not the same. If you pay cash you are never in debt, they want to see how you handle debt and credit.
Mecca, all I can say is you aren't understanding how credit works.
When you pay for something from your bank account. You have that money.
When you use a credit card, you are borrowing that money.
Simple example. If you have $0 in your bank account, and $0 in cash. You cannot buy anything because you have no money. But the credit card still lets you buy something because you are borrowing the money, even if you dont have it.
To go back to your iPhone issue. The reason ATT wants credit is because they are essentially offering you a loan they want paid back. That iPhone you are paying $99 for actually costs around $500. You pay back the cost of the phone by paying your monthly bill every month. Att factors in the cost of the phone into your monthly payment.
But before Att gives you a $500 device for only $99, they want to make sure they will get their $400 back. Nothing is free. So they look at credit history to see how reliable you are with paying your debts. Since you have no history, they don't know if you pay back debts.
Paying cash is not the same. If you pay cash you are never in debt, they want to see how you handle debt and credit.
Waoh buddy, that's not what I was saying at all.
I just didn't know when the right time to build credit was.
Answer: start in college.
Thanks.
AMD T-type
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Waoh buddy, that's not what I was saying at all.
I just didn't know when the right time to build credit was.
Answer: start in college.
Thanks.
lol, I wasn't trying to be mean or rude, sorry if it came out like that
I was just making a reference to the shitty economy right now because of all the money people borrowed and can't pay back.
QFT
that's the basic jist.
and it's just like a loan from a bank. You're borrowing the money. When you make the payments on time, your credit goes up, because they're not getting screwed by letting you borrow the money.
it's hard to believe how many people still don't understand the whole concept of credit and why you NEED it
Credit is a totally fucked up system.
Credit system is setup not to see whether your good for the loan or not its designed to keep you in debt. The whole credit system is designed and ran by a bunch of asshats from big banks.
The reason why cash or even direct payments are not added to credit history is because banks and loan companies wouldn't make any money of your ass.
This the same reason why the average American is so heavily in debt. Its modern day slavery.
I live in South Korea. I like the phone plans here 1000 more then shit I have to put up in Canada. I buy a phone for cash, usually under 100 dollars and these are nice phones as well. I have no contract and can cancel any time with out any penalties. My bill hardly ever exceeds 30 dollars a month. Its also nice cause I can change my phone at any time and if I don't like the company I can go and say fuck you, you XXXXs go to hell eat shit and die then walk across the street and get another provider.
Credit system is setup not to see whether your good for the loan or not its designed to keep you in debt. The whole credit system is designed and ran by a bunch of asshats from big banks.
The reason why cash or even direct payments are not added to credit history is because banks and loan companies wouldn't make any money of your ass.
This the same reason why the average American is so heavily in debt. Its modern day slavery.
I live in South Korea. I like the phone plans here 1000 more then shit I have to put up in Canada. I buy a phone for cash, usually under 100 dollars and these are nice phones as well. I have no contract and can cancel any time with out any penalties. My bill hardly ever exceeds 30 dollars a month. Its also nice cause I can change my phone at any time and if I don't like the company I can go and say fuck you, you XXXXs go to hell eat shit and die then walk across the street and get another provider.
paperwastage
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farscapesg1
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According to most people, your just stupid or ignorant. You need to convert your whole society to the magical process of the US credit/debt system. You really, really need it becuase it will make your life soooo much better.
Credit is your friend and there is nothing wrong with it. The number of people constantly in debt (as well as filing for bankruptcy, forclosure, defaulting on loans, etc.) can't mean there is anything wrong with the system, just the people...right??? /sarcasmlarryBird44
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Cash payments aren't counted toward your credit history because if they were, they'd call it 'cash history' instead of 'credit history'. As stated many times over in this thread, banks don't care how you handle your cash, they care how you handle their money.
And I really don't believe the 'the system' is out to hurt people. Yes, they are unscrupulous lenders out there, but the fact is there are people out there who don't pay back their debts. If they need money in a bind there is someone out there who is willing to lend them money, but for a hefty and well deserved finance charge.
I highly doubt a 2% or less APR auto loan is designed to keep you in needless debt. There are necessities in life, and for the average American that includes a car and a roof over your head. Most of us don't make enough to buy a car or house outright with cash, so the credit lenders provide a needed service.
I'm curious how other countries handle credit. You mention South Korea, but you didn't bring up the how little people make over there. It is all relative. CIA factbook pegs SK per capita income at $26k per year, Canada is $39k and The United States is $47k.
That $30 could be a lot of money for the average South Korean, but you make enough money so it is no big deal.
farscapesg1
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I'll agree that the 2% car loan isn't necessarily designed to keep the general population in debt. It is the ever-present mentality of "got to have it now" and the "your not normal if you don't have a mortgage/car payment" that is doing it. For those that use the cards strictly on the premise that they are basically a debit card (you already have the cash), I really don't have a problem with the system. It is the way it is marketed to the masses as a way to afford something that you don't have the cash for right now that makes the credit system turn my stomach. Just look at most of the credit card commercials. It is all about ease of use, getting in and out quick, and affording something you don't have the cash for right now. That is what traps most credit card users.
What ever happened to "good things come to those that wait"? Some say that the majority of people can't go out and buy a new car with cash... well they could if they waited and didn't feel the need to "keep up" with their neighbors/peers. We paid off both our cars a year ago and instead of running out and buying new ones we've kept driving them and putting those same payments back into savings account. At $400 a piece that is about $4800/car + interest. No change in lifestyle (a common problem when people get raises, graduate college, etc.), just taking what we used to pay someone else and managing it ourselves. If one car dies, we could pick up a pretty nice used car for cash for just under $10k... each year. Let someone else take that first year or two of depreciation and reap the benefits All it takes is telling yourself you don't need the nicest things on the block. Of course this is the [H] and we all know how members like to be on the cutting edge (even with the early-adopters cost)
So OP... I'm curious if you could just purchase the phone without contract for the full price and see how much AT&T wants as a "deposit" for their service. Considering they wouldn't be subsidizing the phone, and they could cancel your service at any time if you didn't pay your bills, I wouldn't think it should be more than $100 "safety deposit". You might even come out cheaper doing it this way in the short term, though in the long term paying the $500 deposit and getting it back after a year or two would be the better option.
What ever happened to "good things come to those that wait"? Some say that the majority of people can't go out and buy a new car with cash... well they could if they waited and didn't feel the need to "keep up" with their neighbors/peers. We paid off both our cars a year ago and instead of running out and buying new ones we've kept driving them and putting those same payments back into savings account. At $400 a piece that is about $4800/car + interest. No change in lifestyle (a common problem when people get raises, graduate college, etc.), just taking what we used to pay someone else and managing it ourselves. If one car dies, we could pick up a pretty nice used car for cash for just under $10k... each year. Let someone else take that first year or two of depreciation and reap the benefits
All it takes is telling yourself you don't need the nicest things on the block. Of course this is the [H] and we all know how members like to be on the cutting edge (even with the early-adopters cost) So OP... I'm curious if you could just purchase the phone without contract for the full price and see how much AT&T wants as a "deposit" for their service. Considering they wouldn't be subsidizing the phone, and they could cancel your service at any time if you didn't pay your bills, I wouldn't think it should be more than $100 "safety deposit". You might even come out cheaper doing it this way in the short term, though in the long term paying the $500 deposit and getting it back after a year or two would be the better option.
Blazestorm
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Yea, I'm 20 and that's pretty much how it is with me... I think last I checked I had a credit score of high 700's...
Only had 2 Cc's, and they've been paid in full every month since I've gotten them... (One was my parents account but got a card in my name, used mainly to buy gas / food for the family, then about 6 months later got my own card through BoA which was who my checking account was with).
I put anywhere from $50 to the most recent (this month) was $1750 which I just paid yesterday... but still paying it off in full every month. I treat it exactly like my debit card, I never have spent more than what is in my checking account (or even close to it). and pay it in full each month.
It just seemed like the logical thing to do... heh... and it seems to be working...
I think the only thing I'll ever take a loan out for is going to be a house, My parents have paid for every car we currently own in cash, and paid off our house already (was $450k when we got it 14 years ago)
What traps most people is ignorance about credit. Of course the credit card companies are going to market their cards to look attractive. They are a business, in it to make money. But you cannot blame the evils on debt on them. No one has ever in the history of credit held a gun up to your head and said, take this debt or I will shoot. It is your choice to get credit, it is your responsibility to use it wisely. Buy now, pay later isnt a bad thing. I just bought $2000 worth of HT equipment on a credit card. Why? because it makes me money.
5% cashback of $2000 is $100.
I have 1 year 0% interest on my discover card currently. So making min payments for 10 months and letting the $2000 still sit in a CD generates an extra $23.
Discover also extends my warranty by 1 year.
Because of my high credit limit since I have an excellent credit score and manage my debt well, my credit score will not go down since $2000 is considered a low balance for me. Therefore I will not pay extra on other loans I wish to take out during this time.
So by paying with my Credit Card, I gain $123, and 1 year extra of warranty for no additional cost. And at the end of the time frame, I pay off the remaining balance with the money I have saved aside and I owe nothing.
Credit used wisely can make life much much much easier. The only demons involed with credit are within the people who dont know how to control their habbits.
paperwastage
[H]ard|Gawd
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thought discover doesn't have extra warranty coverage
Apallohadas
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Wow. You couldn't possibly be more wrong.
First of all, by your comparing credit card debt to slavery, you don't really appreciate your own words.
Secondly, many americans are in debt because of poor spending habits, not because they were tricked, coerced, or dragged kicking and screaming into an AT&T store to buy an iPhone or a credit card commercial pulled the wool over their eyes.
I just commented last night about seeing fellow students complaining about not having any money to eat or catch a movie, all while poking away on their iPhones.
Don't forget using your debt card for regular purchases is much more dangerous than a credit card. With a credit card if you are victim of fraud you are protected and never had to pay for the fraudulent charges. Debit/Bank cards the money is taken out of your account instantly and most banks will just cancel the card and you are out the money the criminal took.
Another plus to credit cards is if a business doesn't deliver a product or service to an expected satisfaction and they refuse to do anything about it your credit card company will allow you to perform a charge back or work with you and the company to find an appropriate resolution for both sides.
Pay your entire credit card off each month or more and you'll NEVER have a problem. Don't spend more money then you have. If you buy something big pay it off that day.
Another plus to credit cards is if a business doesn't deliver a product or service to an expected satisfaction and they refuse to do anything about it your credit card company will allow you to perform a charge back or work with you and the company to find an appropriate resolution for both sides.
Pay your entire credit card off each month or more and you'll NEVER have a problem. Don't spend more money then you have. If you buy something big pay it off that day.
Zardoz
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Take out small loans put in high intrest account then pay the loan back in 3 to 6 months. open a secured credit card at your bank and use it for at least 1 year.
beleave it or not it's better to have some bad credit then to have none at all. Anyways it's going to take you at least 6 months to 1 year to build up some kind of credit.
beleave it or not it's better to have some bad credit then to have none at all. Anyways it's going to take you at least 6 months to 1 year to build up some kind of credit.
i cant see the point of this argument
if the phone company wants $500 deposit for a $500 phone, buy it outright and screw monthly repayment
the world doesn't revolve around a piece of plastic thou it can be a powerful tool if used correctly
ether way you can refuse to take part in this credit conspiracy and still have plenty of options ie prepaid
if the phone company wants $500 deposit for a $500 phone, buy it outright and screw monthly repayment
the world doesn't revolve around a piece of plastic thou it can be a powerful tool if used correctly
ether way you can refuse to take part in this credit conspiracy and still have plenty of options ie prepaid