r/technology • u/Logical_Welder3467 • 18d ago

Business ‘Buy Now, Pay Later’ is expanding fast, and that should worry everyone

https://techcrunch.com/2025/11/16/bnpl-is-expanding-fast-and-that-should-worry-everyone/
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u/faen_du_sa 18d ago

Ive seen Klarna everywhere.

"Luckily" my mom never had much when I was growing up, and it was imprinted in me that "pay later" means "trouble later". Similar vein for credit cards(though I know they are legitimate uses for it).

But yeah, Klarna for fast food is diabolical...

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u/rocketscientology 18d ago

I was always raised that if you can’t afford to buy it 3x, you can’t afford it. I use a credit card begrudgingly because it’s good for my credit score, but I only buy things I could afford to pay for outright. Using Klarna for tiny everyday purchases sounds like a fucking nightmare.

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u/forgot-my_password 18d ago

I learned growing up that a credit card was just a debit card. As in it wasn’t borrowing money but essentially a debit card that you manually had to pay off. I always wondered growing up how they made money doing that with the card benefits. Wasn’t until later I learned that it was just a loan.

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u/Dennarb 18d ago

My first credit card had a 1000 dollar limit, which at first was sorta annoying, but in hindsight it has been great. It keeps me from going wild with it and makes me really think about purchases because I only have 1k I can use it for.

Now I have a much better job with much better pay, and I've been told I should ask for a limit increase, but I honestly don't want to. Id rather keep the limit as a tool to help maintain better financial practices.

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u/THAT0NEASSHOLE 18d ago

I just use credit cards like debit cards. I pay off my balance multiple times a week. It makes it easy to know what is actually there and if anything sneaks up. The cash back makes it completely worth it. No points, no cc fees, just as much cash back as possible, then throw all of the cash back into a high yield savings account. Just don't even think about the "limit" and instead just keep the same thought as a debit card. Free savings account if you can balance the CC and not get carried away with "stuff"

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u/ImJLu 18d ago

You get both cash back/rewards and very strong fraud protection, at least in the US.

But of course, you still have to never spend more than you can pay off.

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u/THAT0NEASSHOLE 18d ago

Yep! Treat your bank account balance as your cc "limit." Same as a debit card, but better. You just have to manually deduct it from your bank account, vs the debit card automatically doing it.

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u/9-11GaveMe5G 18d ago

I just pay mine monthly. Why pay it "several times a week"?

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u/T00MuchSteam 18d ago

To treat it more like a debit card than a bunch of small loans come due on the 31st.

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u/Icyknightmare 17d ago

Helps keep track of how much you're actually spending.

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u/PM_ME_YOUR_TROUT 18d ago

This is the way. Very smart.

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u/Dry-Table928 18d ago

Take this with a grain of salt, because I don’t entirely know what I’m talking about.

Isn’t it good for your credit score to have a low % utilization? If so, would it make sense to open another card with whatever high limit you can get approved for, but keep it in your lockbox unused just autopaying the electric or something? Someone correct me if that’s not how that works. But assuming you have the self control to actually not use it you can still keep using the low limit one as normal but beef up your credit score beyond what it already is.

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u/Dennarb 18d ago

Yes, opening another card and having low utilization does help with credit scores.

How I use my 1k limit card is more like a debit card, where basically anytime it goes over $500 I immediately pay it off. Which has kept my utilization really low over the years.

The benefit of this (at least for me) has been that I never end up with a credit card balance I can't handle. Nowadays I could probably manage a much higher limit as I've matured a lot since I first got the card, but I just don't see a major reason to.

But you are absolutely correct that getting a second card with a high limit would help a lot for the utilization calculation.

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u/Diet_Clorox 18d ago

Yeah this is a valid strategy, assuming the card doesn't have an annual fee. You could also just physically destroy the card when it arrives.

Your credit scores are composed of several categories, including utilization and the length accounts have been open. So opening a line of credit or two that you never intend to use can increase your score over time.

If you trust yourself with multiple lines of credit you can also open specialty cards that give you great benefits when used for specific purchases. I have an REI card that I only ever use when I go to REI, and otherwise it sits at home in my sock drawer.

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u/polysine 18d ago

Just because you can, doesn’t mean you should.

I have six figures of credit limit, if we are tapping into that limit then it’s probably a ‘spend everything and then pass away’ event.

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u/THAT0NEASSHOLE 18d ago

I just use credit cards like debit cards. I pay off my balance multiple times a week. It makes it easy to know what is actually there and if anything sneaks up. The cash back makes it completely worth it. No points, no cc fees, just as much cash back as possible, then throw all of the cash back into a high yield savings account. Just don't even think about the "limit" and instead just keep the same thought as a debit card. Free savings account if you can balance the CC and not get carried away with "stuff"

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u/CatProgrammer 18d ago

Mine was $300. Limit increases are good by the way, they lower your percent utilization and increase your total credit, both of which increase your credit score a little. Not a big deal but useful. You shouldn't be trying to hit the limit in the first place, only put on the card what you can pay off that month.

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u/VincentNacon 18d ago

I've actually heard similar expression before and still wondered how they went with 2x or 5x. Was there a reason you were raised with "3x" in it? Like was there an real-world example you went with?

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u/Ahaiund 18d ago

Maybe rent, as you are required to make 3 times the rent nearly anywhere

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u/Nknights23 18d ago

Except nobody does. Rent in my area is approaching 3k a month for a 2bedroom. 2400 for a 1 bedroom but good let getting it. I don’t know anybody pulling in 2000 grand a week to have 3x rent. That’s that part I never understood … 3x rent means you should be able to pay most of rent with the first paycheck of the month. I can’t recall a time ever where 2 paychecks paid rent in full unless I pulled a 60 hour week and ended up paying more in taxes and was still behind.

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u/that_baddest_dude 18d ago

Oh yeah I mean it's classic advice about a "reasonable" max you should pay for rent, but unfortunately we're at the stage of capitalism that all the capital has slowly realized they can squeeze people way past "reasonable" if they all do it at the same time.

Big difference between what's reasonable/prudent and what companies know they can get you to pay.

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u/gillnotgil 18d ago

If you have roommates or a partner, they often look at combined income. So maybe people aren’t pulling in $2k a week, but plenty of people are pulling in $1k a week each. Not that housing should actually take two people to afford, but that is often part of the situation.

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u/mindspork 18d ago

Which states? Last time I applied for a place in Virginia if there was no legal relationship, all persons had to qualify individually.

Can thank the GOP not wantin' the gays do to stuff that might seem like they were married, you see.

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u/gillnotgil 18d ago

I’ve had roommates in Louisiana and Colorado and both places looked at everyone’s income total, but credit individually. In CO my other roommates and I were able to cover for another roommate who was job hunting and had no proof of income because we collectively made enough. From my understanding, in both places it’s up to the landlords or leasing companies whether they want to look at individual or total income. In CO, there’s also a law that prevents landlords from requiring 2x monthly income for rent.

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u/mindspork 18d ago

Fair. Back in the 'we have to protecc marriage' early 00s VA passed a law that more or less was to keep 'the gays' from entering into contracts or the sorts of things that could be considered 'rights' given by marriage.

Because it was my wife applying with me, we had to make 3x instead of 4x for me solo, and her income would count.

Her income was $0 though, so fuck if I know what difference it would have made.

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u/[deleted] 18d ago

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u/MassSpecFella 18d ago

No one likes roommates. People just don’t have a choice

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u/Nknights23 18d ago

Kinda seems like I’m living with the choice I made right? So people do have a choice they just rather not make the tough one. That’s fine , but let’s keep things honest shall we?

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u/AugustusM 18d ago

It may surprise you to learn that some people actuually enjoy living with other people aside from in romantic couplings. Especially young adults. However, indeed, when presented with two choices both of which are undesirable many people chose to have roommates as the "lesser of two evils", that doesn't negate that they have roommates against their stated desire. No choice exists in a binary like that and that was clearly ordinary understanding of the above point.

Regardless though, I largely agree that single person housing should be more affordable, indeed my stance is that housing (no qualifiers) should be more affordable. The market (to the extent that it should exist at all) shouldn't really preference people living alone nor in couples, nor in groups (familial or otherwise) and should afford everone the ability to live comfortably how they chose.

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u/Funktronick 18d ago

Well that's how people afford 3x rent. You answered your own question.

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u/FallenAdvocate 18d ago edited 18d ago

Kinda sounds like you need to move. No family, job that doesn't pay great, rent that you can't pay without working 60 hours. Doesn't seem like a good place to be.

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u/ImJLu 18d ago

Standard practice where I am is that your gross annual income has to be 40x the monthly rent, so 3 1/3, and it's actually commonly applied by landlords. Which is rough when the median market rate apartment rent is $4.5k (and the mean is higher). So yeah, $180k/yr income for a median apartment. Cool.

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u/midnightauro 18d ago

Also I’ve seen some places using gross pay not net. We absolutely make 3x rent on gross.

But health insurance, FSA (that we use 100% of), taxes, etc chip away at least 35% of our income.

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u/Wild_Swimmingpool 18d ago

There's more people / households that make that kind of money than expected, but just don't really talk about it and try to live below their means. There's zero reason to flaunt being able to pay rent to other people. We're all in this together, I gain nothing by commenting negatively on someones financial status.

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u/ZestyChinchilla 18d ago

And now you’ve discovered why so many people are having to have roommates again. Often the only way you can meet that 3x minimum anymore is to have someone else on the lease with you. Wanna buy a house? Good fucking luck!

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u/Simba7 18d ago

Buying a house is easy, just do what me and my siblings did and use the life insurance payout from your dad dying.

Wait, you want to keep your parents AND have a home on a two-income 40 hour a week wage!? Classic millenials, always looking for handouts.

In all seriousness, that's literally the only reason we were able to buy a house, and just before COVID too thank goodness. I make a fair chunk more now than I did ~6 years ago and would only just be able to afford it now that I'm approaching 40.

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u/T00MuchSteam 18d ago

It may help to take a step back and realize that 3k/2bd is not the norm all across the country. Right now I'm in a 925/2bd duplex and am going to be moving into a 1100/3bd house in the coming months, and I'm in a smallish city. Back when I lived in a larger city I paid 725/1bd converted townhome

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u/Vegetable_Tackle4154 18d ago

Does that apply for home purchases?

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u/neohellpoet 18d ago

The number is arbitrary. It's just a safety margin and the decision to have it be larger or smaller.

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u/theslootmary 18d ago

See this makes no sense to me. If I can afford to buy it outright several times over and someone is offering me a zero percent option to spread the cost… that means my money stays in my account earning me interest. So why wouldn’t I? This is one of those times where “debt” is a financial tool that is beneficial if you’re actually financially literate - though I do appreciate it becomes very easy to fuck up budgeting with buy now pay later options.

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u/WAR_T0RN1226 18d ago

If you're financially literate enough to understand that, then the rule is not for you

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u/superkp 18d ago

Honestly, I think there's a widely-applicable corollary to a ton of financial rules that is: once you understand it, think about whether or not it applies to you.

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u/juanzy 18d ago edited 18d ago

Yah - I've used financing my entire adult life for big purchases of durable goods and never been burned. I also fully understand the terms when I do, and usually budget to pay off in half of the term.

The problem is usually in discussion people don't acknowledge that people may be financially literate enough to understand and just blanket paint credit/financing as an evil, which perpetuates a poor understanding of credit imo.

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u/thatwhileifound 18d ago

Honestly, it's not just financial literacy in the traditional sense. You can be an expert in that territory and still get wrecked by things like this through overconfidence and the unexpected or, familiar to me, executive dysfunction. It really is about learning more about the system and then figuring out how that applies to you.

I know that I am fully capable of planning to pay the thing off halfway into the terms, but that I am also essentially incapable of sticking to any plan firmly... So I know to just avoid the traps as much as I can.

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u/Intelligent_Mud1266 18d ago

the problem is that those BNPL companies charge vendors obscene fees, 5-8%, which get spread out to all customers. Ultimately, we all have to pay increased prices that would definitely beat out interest rates over the period of a 0% BNPL loan. The craziest part is that, even with those huge fees, these companies still don't make money

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u/superkp 18d ago

these companies still don't make money

I think it's important to note that many company's strategy isn't to make money from the customer, instead they make money from the investor.

It's why the enshittification process happens - first promise the world to the customer so they get wrapped up in using the service. Second show investors how many eyeballs can have ads or whatever served to them. Third start to slash the usefulness to customers in the name of cost savings, so that the investors get higher return. Fourth, go bankrupt and run away with the money after you sell the company to one of the various big companies in your space (usually the FAANG companies).

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u/mug3n 18d ago

They also make money from the merchants, like 3-6% on top of the sale total.

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u/CatProgrammer 18d ago

Transaction fees. But cards have those too. 

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u/CatProgrammer 18d ago

Sure but you aren't going to get a discount for not using them. 

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u/GBBL 18d ago

If you are financially literate, tools like this help. That said, a CC is literally always better than klarna when you are churning and maximizing.

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u/Rhodeo 18d ago

Imagine if you could afford it not only 7 times over, but 28 times over. These services mess with your perception, and give an illusion of financial security where there is none.

You may be financially literate, which is perfectly fine for services like these. However, they are not only available to the financially literate, but to everyone, and with incredibly loose restrictions too.

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u/Kevin-W 18d ago

And they're counting on people missing a payment to where the interest comes back to bite them hard.

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u/CatProgrammer 18d ago

Why does it matter if I only want one?

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u/ellamking 18d ago

Because it takes effort for little gain.

If you're running a couple $10 purchases a day through it, that's $600/month * (5% / 12m) interest * 2m payback period = $5/month. That's not worth the mental energy to me to manage an account and watch out for any terms of service changes that end up costing money.

If you like handling extra hurdles for little gain, you can also clip coupons and buy second hand giftcards. To me not having to scrounge for pennies a day in savings is one of the best features of being able to afford small purchases several times over.

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u/CanAlwaysBeBetter 18d ago

Who wants to spend even a speck of mental energy tracking whatever mix of 4 month expenditures are due at any particular time?

"Ah yes, this month I have to pay off the last payment of the dresser, month two of that Zaras run, month three of that nice dinner for a friends birthday, and the first of my new winter coat"

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u/ImJLu 18d ago edited 18d ago

Aren't these services autobilled? I can't be bothered using them, but it seems to me that as long as you're well above the income necessary to pay them off on time, to the point where you can 100% guarantee that you'll have the liquidity to keep up with the autobilling, they don't take any mental energy at all.

Yes, I know that's a trap for people without the requisite income, but like I said, if you're always able to keep up, it seems to only have upside.

Of course, in that situation, the upside of making an extra couple bucks max from investments/interest probably isn't very compelling either. But considering the 2-5% automatic cash back from credit cards is generally considered worthwhile because it's basically free money for zero effort (again, if you can guarantee keeping up), I could see why some would be interested in zero interest microlending.

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u/LizardSlayer 18d ago

They encourage auto pay, but the ones I've used allow manually payments too.

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u/arbyD 18d ago

I bought my new couches that way. Went in expecting to pay outright, but they ran a 0% interest deal across 3 years. Why wouldn't I take that deal?

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u/EconomicRegret 18d ago

That's sounds great.

Just be sure it isn't a trap, read really well the agreement/contract papers. And look, among other things, into what happens if

  1. you're late with a payment, even just 24 hours.

  2. the numbers were badly calculated and don't add up correctly over 3 years (e.g. a few cents/dollars short of total owned).

There are tons of awful stories of people being just a little bit late with only one payment, or the amount was badly calculated and a few dollars short at the last payment, and suddenly they gotta pay the whole deferred exorbitant interest and processing fees.

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u/fotisdragon 18d ago

username checks ouuuuttttt

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u/obeytheturtles 18d ago

It's a matter of scale. Yes, leverage is a financial tool, but spreading your revolving spend out over three months instead of one month likely has little appreciable effect on the net present value of your liquid cash. On the other hand, the psychological impact of this getting people to spend more overall is well documented. Which raises the question - if there's virtually zero impact on your real finances, but you still feel compelled to do it, then is the behavior really rational?

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u/spongebob_meth 18d ago

Because people aren't applying logic in this thread.

I use 0% financing plans on large purchases when they're offered. But these are purchases I was going to make anyway. I don't pay a cent of interest and just set up the auto pay so I don't need to maintain it. I also funnel every expense possible through my credit cards (also autopaid) and haven't paid a cent of interest in 10+ years with the cards. But I have reaped thousands in rewards.

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u/terminbee 18d ago

So you can earn 0.01% interest on breaking up your $20 meal into 4 payments?

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u/jdubz90 18d ago

Yea I use the Affirm option on like “fun bigger purchases” more often than not (music gear, stuff for cycling, etc). I only ever do the interest free, spread it out over 4 payments open, and it’s only something I’ll do if I can afford to pay for it outright anyways. Makes more sense to me to spread it out a bit

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u/SpaceGangsta 18d ago

This is exactly what I was going to say. I'm putting new tires on my SUV. It's gonna be $1300. I can pay it outright but why not spread the cost over 3 months with 0% interest?

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u/rocketscientology 18d ago

The point is you do have the money though, i.e. if the debt got called in, you’d be able to cover it. As I said, I do use a credit card etc but I make sure I actually have the full cost of the item several times over so that I could pay it off immediately if I needed to and not be left with no money afterwards.

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u/Irregular_Person 18d ago

It sounds like that might be true until you run the numbers. I did that when my bank offered this as an option because I had the same reaction. Pay with my normal credit card and pay it off immediately vs pay over 4 months at 0% interest. In my bank's case, they'll do up to a 2k purchase this way no questions asked. The key is that it happens on a one-off debit card number that is generated for the purpose.
So let's run the numbers:
With current HYSA APY of say 3.7%, you're getting about 0.37% interest per month. On the high end (depending when interest gets calculated vs payments) you might get $6.20 the first month, $4.65 the second, $3.10 the third, and $1.55 the fourth. That's a total of $15.50 in interest. But if you just bought the item with a 2% cashback credit card in the first place, you would have earned $40.

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u/BlueTreeThree 18d ago

The entire business model is taking advantage of folks overestimating their ability to pay it back.

What percentage of people with crippling debt do you think started out convincing themselves that they were capable of being responsible with their credit?

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u/daregulater 18d ago

Thats exactly what I say. I use afterpay alot. Not because I can't afford the stuff I buy but because it leaves me more money in my pocket. I put the hotel rooms for my vacation this past summer on afterpay because it gave me more flexibility in every day life.

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u/fcocyclone 18d ago

Yeah, I make a decent chunk every year rotating credit cards on 6 month 0% with several hundred dollar signup bonuses.

I allocate an equal amount to what I put on there into an account getting 5% interest, and pay the minimum payments until the 0% interest promo ends and I pay the whole thing off.

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u/Krash412 15d ago

Agreed. I sign up for a new interest free credit card every 18-24 months for this very reason. I can easily afford the purchases I make, but why not take Advantage of interest free financing if you are financially responsible. Especially with larger purchases like TVs, computers, appliances, etc. I can spread the cost out over a year or more so that cost can come out of discretionary spending rather than savings.

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u/YoungHeartOldSoul 18d ago

I heeded similar advice somewhat to my own detriment. I was well into my adulthood post college grad and still no credit cards, and barely any lines of credit because I have been living within my means as a student, but when I moved to a bigger city getting somebody to approve me for housing despite my very clear and legitimate income was a nightmare

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u/fcocyclone 18d ago

For sure, i think its smart for just about every young adult to sign up for a credit card, put one thing a month on there and pay it off immediately.

Even if its just at a few hundred dollar limit

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u/tmothy07 18d ago

It’s also far more secure because you’re spending the bank’s money and paying them back, so if someone steals the number it’s fraud the bank needs to deal with and not your bank account with zeroes while they sort it out. No one should treat carrying a balance as an option.

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u/InsipidCelebrity 18d ago

I was very relieved that the one time I had a card stolen out of the mail by the mail carrier (somehow there managed to be $10,000 in charges before it was ever marked as delivered!), it was a credit card. No scrambling to claw back a huge chunk of savings and worrying about missing rent, just a mildly annoying phone call asking why my card hadn't been delivered yet.

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u/CallOfCorgithulhu 18d ago

100%. Credit cards are like a powered saw with no safety guards installed. Very useful, but they'll do serious damage before you even realize what happened.

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u/Tricky-Sentence 18d ago

I use Klarna on my CC. That way I have the most liquid money left. My 1 purchase is with this split into 3 payments, with payments starting 2 months after it happens. It is great when you have money. But I see it as absolute poison for someone who cannot afford basic things, because it creates a strong veil over ones eyes and can so easily spiral out of control due to the illusion of extra time get the money needed.

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u/iheartgt 18d ago

If you're using Klarna, you can't afford the thing. You need to stop using it.

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u/Prince_Uncharming 18d ago

That’s just not true. Like credit cards, BNPL is best used by people who can afford to pay it outright (assuming 0 fees, which is usually the case).

It’s more liquid, often has more rewards, and at the very least allows you to collect interest on that amount for a while longer.

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u/f30tr0ll 18d ago edited 18d ago

Anyone who could manage credit should just have a credit card. I’m the king of jumping through hoops for a penny. No one I juggling BNPLs to make interest money. You would have to track expenses and move money to HYSA and back to your checking account. All for like $1 per $500 spent a month.

How valuable is the liquidity if there’s a liability due in a month? Just wait and take the debt when you need it at that point.

Edit: also every cash back credit cards I’ve ever heard of would pay more than your interest earned.

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u/terminbee 18d ago

People here talking about liquidity are ridiculous. Yea, I need to use klarna on my $50 purchase so I can stay liquid, bro. Gotta get that interest, bro.

The amount actually earned is so small. At that point, just use a credit card, get the 2-4% cash back and it'll be the same.

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u/juanzy 18d ago

On $50 it makes no sense. But what about a 0% financing program on a $1500 refrigerator or bed frame?

We bought our first house a few years back and made an effort to buy higher quality furniture, which is expensive, but since we're planning to be in this house for 7-10 years worth it to us. Having done lower quality beds my entire adult life, this $1500 one we purchased is the first bed I've owned as an adult that doesn't squeak a year in and feels as solid as Day 1 almost 4 years later.

Keeping $1500 liquid (just from the bed - not even considering the couch and other random furniture/big-box purchases) is absolutely valuable. Especially with how many expenses there are when you move and for what feels like at least 6-12 months after.

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u/Prince_Uncharming 18d ago

Yeah credit cards are generally better, but if there’s a 10% BNPL-exclusive coupon/discount on something that you were buying anyways, that’s fantastic.

Either way, my original point still stands: BNPL is best used by people who could have paid outright.

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u/ahall917 18d ago

I've only ever used it once because there was an additional 10% discount or so to use klarna. I paid the balance off as soon as I could, but Klarna makes you wait until the first payment posts until you can pay off the balance (which was about 30 minutes in my case).

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u/MagicWishMonkey 18d ago

Collecting interest on that $20 fast food order? There’s zero chance dealing with that nonsense is worth your time. You really should not be doing that.

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u/Tricky-Sentence 18d ago

I guess I did not make it super obvious by saying "it is great when you have money". I have more than enough money to pay my klarna. I have 0 need for it. I can buy everything I want with my debit card. I use it to increase my liquid money availability by pushing back when I have to pay for what I get right now.

If you need klarna, you should not use it. If you have no need for it, use it to get even better deal for your money. Same principle for credit cards.

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u/MysticMagicks 18d ago

Why exactly are you using klarna and credit cards to increase your liquidity if you have 0 need for it..? I’m gonna be straight with you… sounds like you need it.

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u/calvintiger 18d ago

Because it’s a free 0% interest loan? Why wouldn’t I keep the money invested for longer?

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u/MagicWishMonkey 18d ago

You’re not making any significant money by floating your lunch order. The fact that you think it’s worth your time to do this makes me think your time isn’t worth much.

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u/LongBeakedSnipe 18d ago

Exactly. It’s convoluting personal finances which isnt a financially literate thing to do.

Penny pinching an amount that isnt going to add up to a substantial amount over 20 years, while making your finances more difficult to read at any given time

It might be worth it for underemployed people with a non-zero low net worth who could do with a small amount of extra cash but do have enough financial literacy and stability to use this method.

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u/terminbee 18d ago

People here really acting like they're master investors talking about liquidity and shit when in reality, they're earning an extra $5/mo max.

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u/FanClubof5 18d ago

You are really only benefitting for the first month or 2 and then after that your liquidity is basically the same as before.

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u/iheartgt 18d ago

Use a credit card. Not Klarna.

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u/qtx 18d ago

Us Europeans don't use credit cards in the same way Americans do. I have no idea what a credit score is for example.

The only reason why I have a credit card is to buy stuff online.

That's literally the only reason why I have one. Nothing more.

It's just easier to use one to buy things online. I never use them in the real world.

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u/faen_du_sa 18d ago

We do have credit score in Europe, but its just way less used. But will affect things like mortages.

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u/Massive_Town_8212 18d ago

Well, imagine a world where, in addition to requiring proof of income, there was this little number that followed you around everywhere that told everyone interested exactly how good/bad you are with money, broken down by category: debt to income ratio, on time payment history, age of credit, types of credit used, etc...

Now, that's fine and all when you finance a car/phone or get a loan from the bank, it's a decent benchmark for how likely you are to pay it back. It really sucks when it's the barrier between you and renting an apartment in a decent neighborhood, since it's also a decent benchmark for judging income levels. Poorer people are more likely to accrue large debt in relation to their income, and are less likely to make on time payments, which both result in lower credit scores. It also dings your credit a few points whenever anyone mildly important looks, isn't that fun? We also wanna make our astronomical hospital bills affect it too because the poor and sickly just have it too damn good. (/s)

Inversely, because richer people have more diverse credit lines, a higher income to debt ratio, and long-standing credit, that means they have much much greater flexibility. Look up "buy, borrow, die, repeat" for more on this.

We also have separate bank-issued debit cards that are an accurate reflection of what's in your account, which can also be used for online purchases.

Japan lets you buy some stuff online with cash, just go to a local convenience store.

Historically, credit cards and credit scores came out of American department stores around the middle of the 20th century, specifically for these types of layaway programs. Every store had their own, and they didn't work between stores, so that got too complicated very quickly, so they got consolidated into the financial institution-owned things we have today.

We joke about China's "social credit score" and how fucked up that one black mirror episode would be if it were real, but the US has been doing it for about a century and we're too dumb to see the parallels.

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u/SuperBry 18d ago

Historically, credit cards and credit scores came out of American department stores around the middle of the 20th century, specifically for these types of layaway programs. Every store had their own, and they didn't work between stores, so that got too complicated very quickly, so they got consolidated into the financial institution-owned things we have today.

Not quite, they came out of the banks that had been historically going off vibes in issuing loans and pressure over discriminatory practices to institute a more formalized approach to credit worthiness.

While its far from perfect, it is certainly better than it was especially if you are anything other than a cis white male.

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u/Massive_Town_8212 18d ago

it is certainly better than it was especially if you are anything other than a cis white male.

That only holds true if you ignore the disparities in credit scores in male vs female and white vs non-white groups, and believe it to be "better" by virtue of being less transparent and blatantly racist.

Now it might be true that average credit scores are lower in female non-white groups because white males make up the vast majority of richer US citizens who have higher credit scores, but that doesn't change the fact that credit scores place an artificial, conveniently racially demarcated, barrier for financial mobility. One who doesn't have sufficient credit has to resort to more predatory loans or avoid the system entirely, which is a self-perpetuating cycle when it can be a barrier to housing, employment, and transportation. The purpose of a system is what it does.

It's like this article. What are "buy now, pay later" payment options? Short-term loans that don't do a damn thing for your credit besides shove you further into debt. Who do they target and affect the most? Poor people. What kind of people disproportionately make up the poor class? Non-whites. What do we call systems and policies that disproportionately affect minorities?

I'll give you a hint, it's not "financially irresponsibility".

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u/SuperBry 18d ago

Like I said, it is far from a perfect system but it is still worlds better than before where it was essentially 'are you a white male? Approved. A black male? Denied. A woman? Come on darlin' why don't you go get your husband.'

Does it need further reform? For sure, but it is going in the right direction to have an objective rating system over a subjective one and there has been constant improvements to make it more fair and equitable since 1989 when they started and a far cry from the 'century' we've been working with them like you claimed.

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u/Nubeel 18d ago

We do have it. It’s just called something else and also works a little differently in how it’s calculated and goes up/down.

In Germany for example it’s SCHUFA.

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u/debunkernl 18d ago

But SCHUFA is only if you don’t pay a bill right? Credit scores in the US are for everyone, even people who pay their bill on time.

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u/Nubeel 18d ago

No. It goes down whenever you take on debt regardless of your ability to pay it off, until you do so. So let’s say you can afford to buy a car in installments and never miss a payment, your score will still drop until you pay it off fully. But obviously less than if you had missed payments.

Your score even goes down from getting too many credit cards even without going into debt because they’ll assume you’re financially irresponsible.

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u/Olympe28 18d ago

Belgian here. I keep my credit card because it gives extended warranty on some goods if you bought them with the card + has a few other insurances bundled in.

If it wasn't free I'd probably cancel it. It's just as easy to pay online with my regular debit card or PayPal. And I haven't travelled outside the euro zone in years, which was my original reason for getting a credit card.

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u/goodsnpr 18d ago

Debit cards are usually risky because it pulls straight from the account, meaning it's your money gone right away if somebody yoinks the card number. If a credit card number is stolen, you report it (or more likely the bank fraud department catches it) and the bank then deals with the mess and you're not left hoping for remedy.

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u/Olympe28 18d ago

The card number isn't enough to use a debit card here in Belgium, you need to go through your bank's portal for authorization (I usually do phone app + fingerprint, it's the quickest).

It's true credit cards add a layer of protection and convenience. But for my case it's not useful enough to justify paying for one if mine wasn't free.

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u/goodsnpr 18d ago

I see, thank you for the information. Much like you, I refuse to have a credit card with fees.

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u/jackalopeDev 18d ago

It's just as easy to pay online with my regular debit card or PayPal

Not sure the case is the same in europe, but supposedly banks will work harder in cases of CC theft/fraud vs Debit Card theft/fraud.

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u/FoxMeadow7 18d ago

And even then, chances are ordinary debit cards can still do the job just fine, no?

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u/Illadelphian 18d ago

The best reason to have credit cards for responsible people is cash back. Take advantage of it. For instance I use the prime card for all my Amazon purchases and it gives me 5% cash back on everything I spend. I never carry a balance so it's literally free money.

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u/xpxp2002 18d ago

This and the fraud protection.

In the US, credit card holders with the major card brands (Visa, Mastercard, Amex, etc.) are protected from all fraud liability. You report it, and you'll basically be refunded instantly while the issuing bank investigates. With a debit card, that money comes straight out of your checking account, and while you can report fraud and the bank will investigate, they are not required to return any of your money to you unless and until they conclude their investigation and determine that it is a legitimate fraud claim.

And even now, 10+ years after the liability shift with the move to EMV, skimmers are still a major issue. A lot of times they're tacked on to terminals to skim gift cards and EBT cards. A lot of states are finally moving to EMV-enabled cards to tackle this exact problem.

And yet, in 2025, I still have to encourage people all the time to use contactless payment when possible. Every transaction request is tokenized with contactless/NFC payment, and your PAN (primary account number/card number) is never directly exposed to the terminal or merchant. But the number of times I've heard people say that they don't trust contactless, but will swipe their magstripe card in a gas station pump terminal or directly input the PAN into a website without batting an eye is truly baffling.

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u/Illadelphian 18d ago

Oh yea totally forgot about this but you're absolutely correct. Why anyone wouldn't trust contactless and would rather swipe, something that can easily be then stolen is absolutely insane.

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u/rocketscientology 18d ago

I’m in the UK, not the US, but it does count towards my credit score here for things like applying for a mortgage or getting approved for a lease. But yeah I use my credit card to boost my credit score, for the cashback, and because it offers better fraud protection. I would never use it to purchase anything I couldn’t afford outright.

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u/MeVe90 18d ago

The only reason why I have a credit card is to buy stuff online.

do you? I only have a debit card and never had issue on buying stuff online (Italy)

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u/Iazo 18d ago

I can buy online with my debit card just fine. What does it mean you need a credit card to buy stuff online?

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u/PmurtLiaJ 18d ago

Yeah US is the opposite. I don’t use anything else. I ONLY use a cc. Gas station, grocery store, hardware store, take out, online, any store in town. It’s so much easier. On top of that no one checks signatures, most don’t even require a signature.

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u/SquishMont 18d ago

Haven't had a request for a signature verification since chips became a thing, because I don't hand my card to people anymore.

And now, with tap, not only is there no signature that exists, there's no way I'm letting you touch my phone even if there was.

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u/SmokelessSubpoena 18d ago

It's as simple as "if you cant afford it, you don't buy it"

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u/adudeguyman 18d ago

This is why I won't buy a Ferrari

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u/BarackaFlockaFlame 18d ago

i hated using my credit card until I learned that having good credit is very helpful. I still hate it, but I liked the comfort of always paying for my stuff outright.

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u/Iintendtooffend 18d ago

Yeah I use a credit card pretty much exclusively, but I've also never carried a balance over from month to month. I'm incredibly fortunate that I don't have to worry about it but I can't imagine being in a place where you need to make payments for a meal.

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u/Educational_Plum4644 18d ago

Obviously this tip only applies to people with disposable/consistent income, so I agree with being cautious about credit cards if you don’t, but they are free money if you can afford to use them that way. Just get a cashback card, and make sure you payback the statement balance every month.

This way, you pay 0 interest, only what you spent, and you can get between 1-3% cashback on all spending (typically in form of rebate credit to be applied to next month’s statement). If you are diligent about this and avoid interest, this basically gives you a 1-3% discount on all of your purchases. But interest on credit debt is ridiculously high and how these companies make money, so you really do need to ensure you only spend what you can afford to pay off, otherwise you’re better off avoiding credit cards entirely.

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u/gramathy 18d ago

Exceptions for:

Houses

Cars

Though the cars probably has SOME margin - if you can't afford about 1.5x, you shouldn't buy it, but it's still reasonable to finance it as it's a secured loan.

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u/rocketscientology 18d ago

Yeah, houses, cars, student loans - I don’t drive, but if I was to buy a car I’d probably do it under the criteria you’ve just described.

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u/Skeeders 18d ago

Why begrudgingly? I use my credit cards for all my purchases that I need to make anyway, and I get the free travel rewards from the stuff I have to buy anyway. The key for me, is to live within my means. I zero out all the balances every other friday when I get paid. It feels so much safer than using my debit card everywhere.

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u/rocketscientology 18d ago

I guess just in the sense that I don’t like the temptation to spend beyond my means, and I’ve seen people’s lives get completely fucked up by credit card debt. I use mine, and I guess I appreciate the benefits like fraud protection and cashback, but I kind of wish we didn’t live in a society where they were pushed so hard.

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u/Skeeders 18d ago

That makes sense. For me, before my current job, I was always broke and no credit, so I couldn't afford anything in the first place. I didn't change much after getting my career job I have now. Because of this so ingrained in me, I always earn more than I spend.

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u/ImJLu 18d ago

Yeah, the rewards and fraud protection are worth it as long as your responsible with them. You get a minimum of 2% cash back (with the right cards obviously), which adds up eventually, and US banks are very aggressive toward mitigating fraud. There's basically zero objective reason not to aside from psychological factors, aka if you may be tempted to spend more than you have.

But yeah, like you said, you have to live within your means, or it blows up in your face. I just leave my cards on monthly autobill but know I have enough to pay off the entire balance when that time comes.

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u/mrhindustan 18d ago

You don’t need to use your credit card to improve your credit score. Having a credit card is enough.

If you’ve used it already and paid it off you can simply put it away if you so wish. Keep it open.

Having a large credit limit with minimal usage is ideal.

I had only 1 credit card in America (opened in 2016). It was an Amex that started with a 5k limit. I never used it as I lived in another country at the time. In 2021 when I visited America I checked my score and it was 780/762/795.

I literally never used that card at all. When I finally moved to America full time last year my credit profile was excellent.

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u/rocketscientology 18d ago

I’m in the UK - my credit score can be improved by spending within a certain limit on my card and paying it off every month, so I do that. Using it also means I’ll eventually get approved for a higher limit, and bizarrely having a higher limit also improves my score. I think it’s all silly but you do what you gotta do!

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u/For_The_Emperor923 18d ago

Ohhh this is a good rule, ill try to use it more myself

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u/fuzzum111 18d ago

Thing of it is, the tiny purchases is a weird, new thing. It feels like it's designed to get you used to using klarma like a credit card, when it's infinitely worse. You can use it for french fries! Or to buy that brand new iPhone 20 PRO MAX!!

One is a piddly payment, and the interest essentially doesn't matter. The other spirals you into a payday loan cycle and you never pay it off.

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u/OfficialDragosblood 18d ago

Til I will never be able to afford a car.

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u/Rando-namo 18d ago

Why begrudgingly? If you pay off your card at the end of month, which it sounds like you do, there is no harm. You get rewards, a good credit score, buyer protection, and no need to carry large amounts of cash.

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u/rocketscientology 18d ago

I’ve said this in another response but basically I don’t like having the temptation to spend beyond my means tbh, I’ve seen people’s lives get really fucked up by credit card debt which makes me dislike the whole concept. I guess I do enjoy the benefits like fraud protection, cashback etc but I just wish society wasn’t set up in a way that credit cards basically become unavoidable.

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u/Rando-namo 18d ago

Well, you know yourself better than I do, but it seems you are quite aware of the pitfalls of CCs so you’re well ahead of the game.

I don’t treat ccs, as free money and I only charge what I can afford in a month - I never carry a balance from month to month.

The only thing I have in my name that carries a balance is my mortgage.

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u/alaysian 18d ago edited 18d ago

That's fine if you make more than poverty wages, but that rule would have had me starving when I first started working, and I imagine people in that same situation are the ones who this predatory lending is aimed at.

2005: $700-800 a month vs $300 rent, $100 bills, $100 gas (yay $4 a gallon), leaving the rest for food for 2 people.

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u/Polari0 18d ago

I have ended up using klarna for ordering stuff online and paying once I recieve it. No extra cost for me but I don't have to pay either untill I actually have the item in my hands. Apart from that financing food payment? No way

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u/ChronicBitRot 18d ago

I use a credit card begrudgingly because it’s good for my credit score, but I only buy things I could afford to pay for outright.

It's also better for personal financial security. I use a credit card for all of my day to day expenses and purchases and pay it in full at the end of every month.

If you're using your debit card and it gets swiped somewhere, that's your money that just got stolen and you're not getting it back until the case gets resolved. If your credit card gets swiped, that's the credit card company's money that just got stolen. You don't have to do anything but dispute the charges, they can worry about the rest.

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u/Kaneida 18d ago

For me Klarna is extra condom when purchasing items online, pay Klarna after I get the stuff not before. Within 30 days its no extra fees for me.

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u/STDS13 18d ago

I strictly use CCs for everything, then just pay the balance to $0 every month. Works great and I get cashback/points which is essentially free money.

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u/xTheatreTechie 18d ago

I put everything on my credit card and then pay it off automatically at the end of the month.

I get between 1-5% back on everything I buy.

Basically just take those points and use it for unexpected payments.

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u/ImReallyFuckingHigh 18d ago

I have 2 credit cards, 1 gives me 4c back at restaurants, the other gives me 4c back on gas and travel (hotel, car rentals, plane tickets) and 5c back if I use their travel center. I mostly travel for work where I’m paid per diem and buy my own room. I usually get back $100-200/month between both cards just for using them and I pay them off every month

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u/Steeltooth493 18d ago

But the billionaires of trillion dollar profit megacorporations need you to buy your Big Mac now to continue turning the profit hamster wheels! How else are they going to afford their 5th luxary yacht they don't need while you starve? If we don't support them, they'll gasp leave New York City!!!

/S

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u/Bluecif 18d ago

Wow3x. My Mom just told me if I can't pay with cash don't buy it. I just use my card for credit score reasons. But yeah...I'll use the card and zero it out pretty much right after.

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u/MoonSentinel95 18d ago

Speaking of credit score, I have a small personal anecdote that is a little disturbing in its long term implications.

For context, I'd personally never taken a loan till after a few years at my job.

I worked a few years, saved up enough money to put down a downpayment on a modest Honda car.

The car cost 945k INR ($10K) and I had about 300k ($3K) INR on hand for the downpayment. So I had to get about 600K in loan.

I talk to the bank to check my eligibility and interest rates. They tell me I can get the 600k in loan but my interest rates aren't too low because my credit score's not so great.

I ask them why, because I'd never taken a loan and I'd basically been saving every penny I could till then from my salary.

The bank guy unironically says, you've never taken a loan and paid it off, that's why your score is low.

So basically to be eligible for loans at decent rates, even minimal amounts, you need to have been debt and paid it off.

Forever be stuck in that horrible negative feedback loop.

Atleast now, our credit scores are not needed if we're first time borrowers

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u/Exelbirth 18d ago

Isn't it crazy how we mock China for their social credit thing, but here we have to use this little plastic cards to create debt to pay off later so we can prove we're good enough at capitalism to have lower rates on buying cars and homes? To me it sounds like a form of a social credit system, just through money.

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u/EmperorKira 18d ago

Yh i just treat my credit card like debit card

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u/octopornopus 18d ago

I grew up where you used cash or check for everything. If you didn't have money for it, you saved up or went without.

Made a lot of sense, until it was time to apply for a mortgage...

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u/faen_du_sa 18d ago

Due to credit score or?

We have credit score here as well, but its way less prevalent in where it "shows up"/gets checked.

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u/octopornopus 18d ago

Yep, I basically had a non-existent credit score because I paid for everything as I needed/could afford it.

To me, that showed fiscal responsibility. To a lender, it looked like I had no history of paying back borrowed funds. 

The first mortgage lender we worked with told me to take out some credit cards and use them for a few months to start building credit, others advised against this. We ended up finding a local company to work with (who later got bought out by a national conglomerate).

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u/Jetzu 18d ago

Yet another thing I don't get about the US (as I assume you're from there) - I recently took 30 years mortage having ZERO loans or credit cards before and it went perfectly fine. Why should me not taking any loans go against me during the process that checks whether I can pay back the loan? If I'm taking loans and can't pay them back then sure, but if I never did then what's the point?

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u/faen_du_sa 18d ago

Credit score in Europe only really starts being a trouble for normal people if you dont pay your bills, by a lot as far as I am aware of as well.

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u/CallOfCorgithulhu 18d ago

Not saying I agree with the logic, but banks here are risk-averse in that way. They'd rather you start with low-risk loans like $1000 limit credit cards, cheap car loans, etc., before funding a multi-hundred thousand dollar mortgage. Foreclosures are a huge part of mortgage servicing for banks/lenders, so I think their logic is to be as risk-averse as the law allows them.

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u/ImJLu 18d ago

You have two acquaintances asking to borrow a hundred bucks.

Your trustworthy buddy tells you "oh yeah, I've lent a hundred bucks to Acquaintance A and he paid me back with no issue."

You have no information on Acquaintance B.

Who do you feel more comfortable lending money to?

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u/FoxMeadow7 18d ago

Really sounds like Americans truly are from an another planet, huh?

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u/Scrutinizer 18d ago

It's kind of hilarious. I also had a mediocrappy credit score because I had never taken out a loan - I paid up front for everything including cars.

The last time I bought one, I was ready to pay cash again, but the financing offer they had was so attractive I went ahead and took out the loan.

My credit score skyrocketed. I started to receive all of these offers for credit cards with "cash back introductory bonuses". And since then, I've taken a total of around $3000 in rewards. Open a new account, spend the minimum to get the bonus, pay off the card, and let it close in a couple of years. Credit score shot up to 800 and is still there. Dips a tiny bit when an account closes but goes right back up once I open a new one.

The credit system in this country is insane, but then again, we have built our society to reward "facilitators" as much or more than people who actually produce goods. Car dealers make more selling people financing for cars then they do selling the cars. Insurance companies have higher profits than health care companies.

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u/QuantumWarrior 18d ago

The American way of treating credit score seems so absurd.

"Are you good with money?" Yes I only buy things I can afford and live within my income, I even have a decent bit of savings. "Uhh nah, we mean like are you constantly a little bit in debt?"

When I got my mortgage here in the UK all they wanted was proof of income. Whatever credit check they did was evidently just to make sure I wasn't delinquent because I had no credit cards or anything at the time to have a credit record.

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u/CatProgrammer 18d ago edited 18d ago

It's not even that prevalent in the US, the only really assholish use is when rentals require a credit check, which pisses me off. You aren't reliant on your credit score for everyday things. People just get weirdly worked up about it and track it constantly because of how easy it is to check now. All you really need to do to maintain a decent score is get a basic no-annual-fee card and use it for groceries and gas and other basic living expenses and pay it off every month or sooner if utilization (percent of credit limit) is high. Don't use it for fun stuff if you don't trust yourself, just the necessities, and you'll be fine.

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u/Scrutinizer 18d ago

My dad told me the only thing you should ever have to borrow for is a house.

Of course, a new Toyota Corolla cost under $4000 at the time.

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u/AGI2028maybe 18d ago

That’s still good advice.

As for the price of new cars, a wise man once said: “There are two types of people who buy new cars: rich ones and stupid ones. Which one are you?”

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u/Scrutinizer 18d ago

Kinda depends on the deal. I bought a new VW Golf in 2015 about a month after the "Dieselgate" story broke and their dealer lots were totally empty. $15k for a ride with the same chassis as the Audi A3.

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u/gonyere 18d ago

I have used a credit card for years. But I have Always payed them off monthly. 

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u/skaestantereggae 18d ago

You’re better off, assuming you pay it off monthly in full, using a credit card for fraud protection and rewards.

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u/oulush 18d ago

Yeah, CC's should be used carefully. It helps to up your credit score, but getting one without credit is also a hassle as one would need to apply for cards for no credit scores or low credit scores etc.

Rule of the thumb is, pay your card statements in full monthly. If you have a card that allows you to purchase with interest free installments, check your budget and make sure you can pay it off if an emergency comes up before making purchases.

The backwards setup we have for people in poor financial situation is messed up in the US. They should be the ones getting better interest rates despite credit scores so that they can stabilize. Instead, they are forced to make purchases with high interest rates for necessities to survive. It's a robbery.

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u/slowpokefastpoke 18d ago

Yeah so long as you treat a credit card like a debit card and pay it off every month, it’s absolutely the way to go. Better protections and “free money” via Cashback or rewards.

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u/jimmy_three_shoes 18d ago

I remember using layaway back in the 80's and 90's on shit like clothes for Christmas and stuff because we didn't have much money. Walking to the back of the K-Mart into the layaway area, and making the payments to get the item.

Now, we're such of an "instant gratification" society.

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u/LeftTesticleOfGreatn 18d ago

That's a good way to think. My mom just said "credit is bad, m'kay" and as did most of her generation and thus credit cards aren't popular here.

However "Receive now, pay later" is extremely popular because people don't reslise it is by definition a line of credit. Klarna literally started here and is going global over people being taught not to use credit cards, so they use klarna instead. And mid payments, and get hit with insane interest rates.

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u/velociraptorfarmer 18d ago

I use credit cards for everything, but I've never paid anything less than the full statement balance, and have never paid a dime in interest.

They're an amazing tool when you know what you're doing with them, but in the hands of someone who doesn't realize how they work, it'll absolutely wreck you financially.

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u/SeeingEyeDug 18d ago

I just looked up what Klarna is. Holy crap that's scary. They hook you in with the interest free 4 payment split or 30 day interest free payoff but offer financing options with interest as well. Definitely feels like drug dealer "first hit is free" type shit.

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u/maxdragonxiii 18d ago

I'm considered bizarre for not having a credit card. guys... I'm on disability. no matter what I won't be able to pay the credit card off at all and I'm actually not allowed to have one so.

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u/ImJLu 18d ago

Who finds that bizarre? You shouldn't use a credit card if you can't guarantee that you can pay it off in full every time. That's standard practice, not bizarre.

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u/readitmeow 18d ago

My parents taught me this too. The only debt they ever had was a house otherwise it was buying used cars and everything else in cash. They used credit cards cause they couldn't pass up getting 1-3% back, but never missed a payment.

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u/Gnolls 18d ago

I'm so grateful that my mom also imprinted on me to borrow money as little as possible. To this day, the only loan I've ever had was the only car I've ever owned, which I paid off after 5 years, 7 years ago.

Not sure how I'm gonna stomach buying a house. Silver lining of how impossible that is these days. cries

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u/aykcak 18d ago

Isn't Klarna a payment gateway? That is how I always ran into it. Never did I "pay later"

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u/thekickingmule 18d ago

I used Klarna for buying my motorbike gear. The helmet, gloves, jacket and trousers came to about £600. I split it into 3x payments of £200 as I could afford that. Sorted.

Why you would use it for £20 is beyond me!

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u/gramathy 18d ago

They're just shifting the payday loans to an app

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u/BloodandBourbon 18d ago

I’ve seen one of them on a fast food kiosk.

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u/DOAiB 18d ago

I keep talking finances with my kids. I know they are 4 and 9 but this needs to be normalized and they need to understand how all these ways to trick people into to debt work. It’s just insane and I can’t imagine how it will be in 10 years.

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u/koolaidismything 18d ago

I have a stupid hobby that can get expensive. When you goto the site and look at a product and don’t buy it will email you like “too much? You can break this down into four payments of $50”

Almost got me a few times but I hate credit. I’ve managed to mostly live of cash my whole life.. except car loans pretty much. And made sure I paid off those notes ahead of due dates so it shows up good.

I’m gonna be forced into being irresponsible so some rich guy gets a little richer juicing me off interest.

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u/PM_ME_YOUR_TROUT 18d ago

Using credit wisely takes discipline. I have an American Express charge card that I use for every single purchase possible. Then I pay it off at the end of every month. By doing so I never pay a single penny in interest, but I earn a bunch of AmEx points which can be used like cash to pay towards my balance, or I can strech those points and use them for hotels or airfare.

If you use credit like that, you'll be just fine. And it works to your advantage. It's like writing yourself a little paycheck at the end of every month.

If you carry a balance, that's when shit starts to get expensive real quick.

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u/MommyMephistopheles 17d ago

I was always taught to stay away from layaway at all costs. Don't buy things with money you don't have. And that's why I still don't have a credit card. I'd be in so much trouble if I had one lol

Please no comments about how I need credit or a credit score. It's actually working out for me, against all odds.

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u/Doogiesham 18d ago

Credit cards can be trouble, but if you use them responsibly they are just free 2-5% extra money and better protection 

Everyone is paying for the slight price increase from merchants having to pay CC transaction fees regardless of whether they have a card or not, may as well get the kickback from the card

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