Current Events > Opening a line of credit and not using it - is there any reason NOT to do this?

(+) Yeah! (+)

It seems like a fairly easy way to have low credit utilization percentage and perfect "payback window" rates, improving your credit score with basically no downside.


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Some credit card companies, if not most, will close accounts that arent used at least somewhat regularly. It also wont help your score because they want to see responsible usage of your credit.

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There are so many fucked up rules around credit that that wouldnt surprise me if it hurt your credit.

Theft is the only thing that comes to mind though.

Credit is a fucking scam.

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divot1338 posted...

Credit is a fucking scam.

This, people living well beyond their mean, and having a 'score' for it, is a scourge on society.
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Imagine not using a credit card. It literally gives you free money.

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sutree posted...

Imagine not using a credit card. It literally gives you free money.

The tv commercial told me so!

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SiO4 posted...

This, people living well beyond their mean, and having a 'score' for it, is a scourge on society.

This mentality stems from an archaic belief that things such a automobiles, refrigerators, washers and dryers, which absolutely cannot be purchased with cash by the average person but must be financed, were at one point considered non-essential, luxury items. That is categorically just NOT the case today.

I agree that the credit industry as a whole is kind of a scam, but the people who are forced into using it with no choice are not the problem.

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If you have a credit card and use it smartly, you can build credit and literally helps you with things like getting lower interest rates for car loans and mortgages, plus rewards.

I got a credit card and just used it for normal spending and pay it off in full every month >_> Credit card companies make money by banking on people who overspend and pay interest off payments from mindlessly using it. If you game the system by not falling for that, you can make out.

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Phantom36 posted...

This mentality stems from an archaic belief that things such a automobiles, refrigerators, washers and dryers, which absolutely cannot be purchased with cash by the average person but must be financed, were at one point considered non-essential, luxury items. That is categorically just NOT the case today.

I agree that the credit industry as a whole is kind of a scam, but the people who are forced into using it with no choice are not the problem.

That shit where they stand outside of college bookstores for the first two weeks of class giving away free credit cards to drunken idiots with zero money should be illegal.

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divot1338 posted...

That shit where they stand outside of college bookstores for the first two weeks of class giving away free credit cards to drunken idiots with zero money should be illegal.

Now this, I agree with.

In fact most of those card offers come with a pre-postage paid envelopes to mail your application. Fill it with rocks and make their postage bill ridiculous

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My credit score at 21 is 630 and nobody will let me open a credit card

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divot1338 posted...

The tv commercial told me so!

No, I literally get free money every month just from using a credit card.

Doe posted...

My credit score at 21 is 630 and nobody will let me open a credit card

Get a secured card to build credit. You pay a security deposit to open an account and they give you the deposit back after a while.

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You'd probably have to wait a few years for it to have a positive effect since at first it will hurt your score due to the credit check + lowering your average account age.

Though once you're in the high 700s range, there isn't much point going out your way to increase it since you're going to qualify for the best interest rates at that level.

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