I don't understand

[Nealithi]

Thread title says it. What things don't you understand and others here might be able to illuminate for you?

Me: Credit. If you never pay back a loan you can get loans and credit cards just with high interest. Despite never paying back a dime. But if you live within your means and pay your bills every month you have no credit and no one trusts you? I don't get it.

[Yukaphile]

I can't answer that, sadly. Not a financial expert. At all. Hopefully someone else.

One thing I don't understand. What the hell is life, the universe? Really. I mean, life seems to have patterns enough if you look for it, but what does it all mean? What is outside the universe? I dunno.

[TGLS]

Thread title says it. What things don't you understand and others here might be able to illuminate for you?

Me: Credit. If you never pay back a loan you can get loans and credit cards just with high interest. Despite never paying back a dime. But if you live within your means and pay your bills every month you have no credit and no one trusts you? I don't get it.

Well, I don't have the context of the anecdote you're pulling from but basically the difference between bad credit and no credit, as I understand it, is that lenders know that people with bad credit are risks. People with no credit could very well be as much of a risk, so they are treated more or less the same.

Now a lot of things that many might not think of as credit can help build credit. For example, paying rent and utilities on time can help build a credit score, and can be more costly with poor credit. These days, it's probably very difficult to have no credit unless you are young, or live off the grid. If you are young, you should apply for a credit card as soon as you are spending money regularly, if you think you can keep your spending in check, so you can grow your credit rating.

[Darth Wedgius]

Thread title says it. What things don't you understand and others here might be able to illuminate for you?

Me: Credit. If you never pay back a loan you can get loans and credit cards just with high interest. Despite never paying back a dime. But if you live within your means and pay your bills every month you have no credit and no one trusts you? I don't get it.

Inb4 this turns into a political thread along the lines of, "What I don't understand is how nobody sees how right I am."

My understanding of credit rating is limited, but if you don't take out loans then they don't know how good you are at paying back loans. I've seen one of the negative factors in my credit rating is that I don't have long-term loans other than my mortgage, and I haven't in over a decade.

However, another negative was my high credit card charge for a few months relative to my income, even though I always pay that card off in full every month.

I think both dings against a credit rating will result in higher interest rates, but if you borrow enough and never pay it back you're likely to get loan applications denied.

[Yukaphile]

Another thing I will NEVER understand is the view of the popcorn-movie masses. Never.

[BridgeConsoleMasher]

I like popcorn at the movies

[Robovski]

I routinely get a popcorn and soda when I go to a movie, but I have a refillable bucket and cup so I can get it cheaper. Fun fact, my father was a popcorn farmer.

[King Green]

For me, putting a damn price tag on a concept and social que. Why do marketers and social experts create fascinating ideas only to get literally nickels out of our wallets every time we say it or improve upon it, much like mobile data, cell network are physical entities but the information of an indescribable data takes 15 buck per gig?! When did we fuck up voting whom?!

[Nealithi]

Thread title says it. What things don't you understand and others here might be able to illuminate for you?

Me: Credit. If you never pay back a loan you can get loans and credit cards just with high interest. Despite never paying back a dime. But if you live within your means and pay your bills every month you have no credit and no one trusts you? I don't get it.

Well, I don't have the context of the anecdote you're pulling from but basically the difference between bad credit and no credit, as I understand it, is that lenders know that people with bad credit are risks. People with no credit could very well be as much of a risk, so they are treated more or less the same.

Now a lot of things that many might not think of as credit can help build credit. For example, paying rent and utilities on time can help build a credit score, and can be more costly with poor credit. These days, it's probably very difficult to have no credit unless you are young, or live off the grid. If you are young, you should apply for a credit card as soon as you are spending money regularly, if you think you can keep your spending in check, so you can grow your credit rating.

I don't really want to argue the point. But I have been denied credit or loans for having no credit. Not given a bad interest rate. And I paid my rent and utilities on time for twenty years and was told that does not count. Hence why the byzantine nature just mystifies me. If I just got bad interest rates I could assume okay they need to see you are unknown and thus a risk. Once they know you (built credit) it will get better. But it seems living within my means is horrifyingly wrong.

[Nealithi]

Another thing I will NEVER understand is the view of the popcorn-movie masses. Never.

Well as someone that gets popcorn at movies. I have bought ready made, used an air popper, even the stove top version. None of them taste like movie popcorn. So it is a little treat for when out. Also I tried candy and not only does it run out far faster than popcorn. It can make you feel sick if you try and get enough to last.
Hopefully that sheds at least some light.