this post was submitted on 21 Mar 2024
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Mine is 667. I have never used credit cards, and I don't have any debt. My partner, whose FICO score is 780, currently has about twice their annual salary in debt.

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[–] [email protected] 3 points 8 months ago (6 children)

All true points. A pot of our parents grew up terrified of using credit or using it too much for everything and going into debt.

Credit is a tool to use. All the credit score does is show how good you are at using that tool. Can you use it responsibly, without abusing it out going into debt? They can't score you on how well you use credit if you don't use it at all.

[–] [email protected] 8 points 8 months ago* (last edited 8 months ago) (5 children)

Slight caveat, while credit is a valuable tool to use, studies have shown that credit cards absolutely increase spending, regardless of if it's paid off each month.

For this reason I encourage people looking to build credit but afraid of debt to use credit cards only for non-flexible spending. Gas, utilities, subscriptions, etc.

[–] [email protected] 2 points 8 months ago (1 children)

Starting with only autopaid non-flexible spending is a good bet, and there are credit cars that will de facto get you an ~3% discount on those categories just for using them.

Remember, all cash rewards / points systems exist to make you spend more money, though. Like the cards, they're designed to increase your spending. So it's the same advice -- only think hard about it for fixed costs.

[–] [email protected] 1 points 8 months ago

Yep. Banks are not in the business of losing money.

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