100 sats \ 1 reply \ @03arrival_plops 6 May 2023 freebie \ on: How US banking system pushes people into debt bitcoin
The sentiment here is correct, the US consumer economy is very much built on the back of convincing people that the 1) need a credit score, and 2) the best way to do that is to have multiple credit cards and use them as if there’s no consequences.
But I’d say you’re a bit hyperbolic on the practical side of things.
- it’s subjectively easy to set up automatic payments on most major credit cards, and equally easy to set up warnings if you’re approaching limits. Your mileage may vary but it’s relatively doable.
- you get sent cards in the mail, and they go right to the trash
- most credit cards integrate with budgeting tools to give you real time status on how much you owe
- you really just need 1 credit card and about 18 months of regular usage for it to no longer be a hindrance on your credit score, at least that was my experience. The people who have 5 credit cards chose to have 5 credit cards.
But ultimately yes, the American culture around finance and purchasing is one of “why pay for it now when I could pay it back later?”. And it’s for sure going hand in hand with major government decisions to put off inevitable collapse in exchange for short term convenience. And hopefully Bitcoin can be an escape route for people, but it’ll take a long time and likely a generation change to re-educate everyone about the realities of money.
I agree with you that as soon as you are conscientious, careful and pay attention then you are fine and the system works for you.
But the numbers don't lie and what you are saying does not apply to majority of americans: Credit card debt explodes at 2nd fastest pace on record.
Now specifically for credit score, here are the factors that go into it:
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Different factors have different "weight" in the final score, the weight depends on which company do you use for the score. Here are the rough weights:
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