• Pay day loan company Wonga to write off debts of 330,000 customers (£220m)
    35 replies, posted
[QUOTE=Demache;46136283]If your responsible with them, they are actually extremely handy. Many have rewards programs so its essentially free stuff/money if you pay it off at the end of each month. I've made a couple hundred bucks off Wells Fargo these past few years just for using the card and I haven't given them a penny in interest or fees. They also offer better consumer protection than debit transactions do. You can reverse any charge up to 30 days later if it becomes compromised and such, as opposed to just 3 with debit. That's the law in the US anyway. And naturally gives you a credit history, so you can take out ACTUAL loans with far better rates if you ever need one. Obviously, if your really bad at managing money and keeping track of different accounts, by all means, do not get one.[/QUOTE] Although if you're paying off your credit card bills within the interest free period, you're not doing much to your credit score at all. On the other hand, if you all you do is make the minimum payments on it then your credit score will go through the roof because not only will you actually pay back your debts, but in a creditor's eyes you'll pay it back in the most profitable way i.e. slowly.
[video=youtube;PDylgzybWAw]http://www.youtube.com/watch?v=PDylgzybWAw[/video]
[QUOTE=Camundongo;46136705]Although if you're paying off your credit card bills within the interest free period, you're not doing much to your credit score at all. On the other hand, if you all you do is make the minimum payments on it then your credit score will go through the roof because not only will you actually pay back your debts, but in a creditor's eyes you'll pay it back in the most profitable way i.e. slowly.[/QUOTE] This is not correct and dangerous advice. You should never [I]ever[/I] be paying minimum payments on a credit card to try and increase credit score. If you're only making minimum payments there is a problem, it is not something you want to aim for. What does increase credit score is paying in full on time and keeping a low utilization percentage. The two big factors that and make or break credit score are: 1. Paying your bill in full and on time 2. Credit utilization percentage The first point is a no-brainer. In a perfect world everyone would pay their bill in full and on time but credit card companies wouldn't exist in a perfect world. Making minimum payments should be considered as an extreme last resort. By making minimum payments you are not only incurring ridiculously high interest on the balance (usually 21%+) but you are also increasing your utilization percentage. Your utilization percentage, in short, is just how much you put on your card. There is no way around keeping this out of your credit score calculation, it is taken into account even if you pay your balance in full and on time. The best way to keep a low utilization percentage is by paying your balance early or having a high credit limit and not utilizing it. By paying your card before the due date you are getting around when the credit bureau takes a "snapshot" of your current utilization each month. You can combine that with having a high credit limit and only using a small about. The reasoning being that it makes you more appealing to a bank/lender since you do not appear to be constantly relying on credit. People who do constantly rely on credit and have high utilization like 50%-100% typically can't apply for long term loans like mortgages and car loans - the ones these companies [I]want[/I] you to be able to qualify for. So having a high limit doesn't mean you should max it out, it means you should use your card as you normally would. The classic example is a $1000 limit and you're putting normal things on it like a cell phone bill, groceries, gas etc let's say you use maybe an average of $300 a month. Your utilization percentage would be 30%. That's okay but if you want to build credit you can do better. By paying your bill in full and on time after a few months you can usually have your credit limit increased, either by asking your company or sometimes they'll even ask you if you'd like it increased. Now lets say your credit limit is $6000 but you're still only putting about $300 on the card each month, that's only about [B]5%[/B] utilization. That's great! Your usage hasn't changed but your credit score will get a decent boost compared to the 30% utilization. Credit utilization is one of the easiest ways to boost credit - making minimum payments is not and definitely ill advised. [URL]http://www.doughroller.net/credit-cards/reader-tip-pay-credit-card-bills-theyre-due/[/URL] [URL]https://www.mint.com/blog/goals/credit-utilization-02282011/[/URL]
[QUOTE=M2k3;46138228]This is not correct and dangerous advice. You should never [I]ever[/I] be paying minimum payments on a credit card to try and increase credit score. If you're only making minimum payments there is a problem, it is not something you want to aim for. What does increase credit score is paying in full on time and keeping a low utilization percentage. The two big factors that and make or break credit score are: 1. Paying your bill in full and on time 2. Credit utilization percentage The first point is a no-brainer. In a perfect world everyone would pay their bill in full and on time but credit card companies wouldn't exist in a perfect world. Making minimum payments should be considered as an extreme last resort. By making minimum payments you are not only incurring ridiculously high interest on the balance (usually 21%+) but you are also increasing your utilization percentage. Your utilization percentage, in short, is just how much you put on your card. There is no way around keeping this out of your credit score calculation, it is taken into account even if you pay your balance in full and on time. The best way to keep a low utilization percentage is by paying your balance early or having a high credit limit and not utilizing it. By paying your card before the due date you are getting around when the credit bureau takes a "snapshot" of your current utilization each month. You can combine that with having a high credit limit and only using a small about. The reasoning being that it makes you more appealing to a bank/lender since you do not appear to be constantly relying on credit. People who do constantly rely on credit and have high utilization like 50%-100% typically can't apply for long term loans like mortgages and car loans - the ones these companies [I]want[/I] you to be able to qualify for. So having a high limit doesn't mean you should max it out, it means you should use your card as you normally would. The classic example is a $1000 limit and you're putting normal things on it like a cell phone bill, groceries, gas etc let's say you use maybe an average of $300 a month. Your utilization percentage would be 30%. That's okay but if you want to build credit you can do better. By paying your bill in full and on time after a few months you can usually have your credit limit increased, either by asking your company or sometimes they'll even ask you if you'd like it increased. Now lets say your credit limit is $6000 but you're still only putting about $300 on the card each month, that's only about [B]5%[/B] utilization. That's great! Your usage hasn't changed but your credit score will get a decent boost compared to the 30% utilization. Credit utilization is one of the easiest ways to boost credit - making minimum payments is not and definitely ill advised. [URL]http://www.doughroller.net/credit-cards/reader-tip-pay-credit-card-bills-theyre-due/[/URL] [URL]https://www.mint.com/blog/goals/credit-utilization-02282011/[/URL][/QUOTE] Sorry, it did come across like I was suggesting that was a good idea - it really isn't. I think I was trying to get across that a good credit score doesn't necessarily mean you're in a good financial state, it just means that companies see you as a safe way to make money via the interest on credit, although since the financial crisis they are much more cautious.
[QUOTE=Antdawg;46135755]If you ever have to get a payday loan, you're probably a fucking idiot. It's not hard to keep a few thousand in savings just in case of a rainy day.[/QUOTE] [QUOTE=Antdawg;46135947]So they can instead pay back twice as much as the initial loan itself when they get their next pay check? Sounds great! Sounds like they need to learn how to budget![/QUOTE] Are you even faintly fucking aware of how much of an absolutely despicable person and an absolute idiot you sound right now? Are you capable of any empathy? [editline]3rd October 2014[/editline] Also, if you want any more confirmation of what kinds of carrion feeders these insufferably vile cunts are: [quote]In May 2012 the company was required by the Office of Fair Trading (OFT) to improve its debt collection practices, after it is was found that it had sent letters to customers in 2010 accusing them of committing fraud and saying that the police might be informed. Telephone scripts used by Wonga warned borrowers working in the public or financial sectors that their terms of employment said they should not be in debt. [/quote] Yeah, you read that right. They [B]blackmailed[/B] people who had unpaid debts.
[QUOTE=Antdawg;46136254]I can go on anecdotes as well, because I only work part-time yet I live by myself and so have no one to split my bills with (eg I have rent to the effect of $180 per week, and an Internet connection that costs $80 per month). But I was still able to build up savings that went into five figures and a bit after around 18 months. Maybe think about the different situations people have before making dumb posts. [editline]3rd October 2014[/editline] [QUOTE]As I said, if you ever get a payday loan you're probably a fucking idiot. Ahahaha. Yeah, try losing your job in a recession and having kids. Good. Fucking. Luck.[/QUOTE] Yeah, because the first thing I'd do if I lose my job is to get a payday loan! Is that brain in your head still working??[/QUOTE] Well, many aren't don't have the luxury of having such cheap living costs now. Around here, an average 2-bedroom, 1bath house goes from $290 - $375 depending on how close you are to the city. A cheap 3-bedroom, 2 bathroom house is a rarity now. Most being built so close to their neighbours, that you may unintentionally listen in on their lives. Rising energy prices, growing living costs, public transport costs add additional fuel to the fire (with my home city having the most expensive public transit system in the southern hemisphere), government subsidies from renewable energy products (such as solar panels) have been scrapped, increasing inflation which renders wage increases useless, plus many real estate agents where I live tend to discriminate against those who don't have a lengthy rental history. Not to forget many aren't including electricity, water and landline / internet connection costs in their advertisements for houses. You're lucky to have a part time job, there's nothing left but casual jobs now because all of the permanent full-time jobs are gone. Here in Queensland, right now, 1 job offer / ad has spawned as much as [U][B]6,000[/B][/U] applications, just for that one job placement. Both the Federal & State governments have failed to ensure there are enough entry-level full-time jobs available for job seekers. Not to forget the unemployed ([I]excluding[/I] those who outright reject looking for work) and the elderly, who some are still paying off house mortgages. Not to forget, no real public policy on investing in industries that could and can provide many entry-level tier jobs So how can you tell me it's easy to save money at this current situation? Not every job pays $1,000 +, nor does every household have two incomes to sustain cash flow (as you said, you live alone)
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