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Something about secured credit cards.....
Posted: Sun Jul 12, 2020 8:46 am
by AngryIVer
So, loan decisions are sometimes based on your available credit, right? What's to stop me from opening, say, $10,000 worth of secured credit cards? Wouldn't it basically be like buying a better credit score?
Re: Something about secured credit cards.....
Posted: Sun Jul 12, 2020 11:51 am
by Das Troll
You can do that, they want you to do that and will gladly give you the credit line if your credit score isn't terrible. They're a lot like casino owners. They know if they give you enough rope, you'll hang yourself with it. If I remember correctly credit score basically boils down to available credit against used credit so if you don't have a lot of used credit, they will give you credit lines until you do. At that point you're on the hook.
Re: Something about secured credit cards.....
Posted: Sun Jul 12, 2020 6:20 pm
by AngryIVer
I picture it like this:
1) I get a $1000 secure credit line by putting a $1000 deposit
2a) A few months later I get another credit card with better rates because they see I have a $1000 line of credit
2b) I wait a year, get that $1000 back as more credit, and have $2000 "credit" on paper
Re: Something about secured credit cards.....
Posted: Sun Jul 12, 2020 8:01 pm
by Das Troll
You generally wont even need to do that if you keep a decent payment schedule. A lot of times the credit companies extend me lines of credit I didn't ask for in a vain hope that I'll run my credit up and they'll have me on the line forever.
To quote Norm Franz:
“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.”
Re: Something about secured credit cards.....
Posted: Mon Jul 13, 2020 5:19 am
by AngryIVer
I'm not trying to wait per-say.
Re: Something about secured credit cards.....
Posted: Tue Jul 14, 2020 1:53 pm
by FuckKiKi
You could cheat by building a CPN and adding yourself as an authorized user. Thats sort less than legal though so your idea is better.