Podcast #128: We chat with Kent C Dodds about why he loves React and discuss what life was like in the dark days before Git. Listen now.

Hot answers tagged

489

Based on what you've said, you shouldn't buy this car, and probably can't buy it anyway. You are saying you earn a total of $1200 a month and have a total of $600 to your name. After four months you will have just barely enough to make a down payment on the car by spending all your savings --- and that's if, as you say, you spend nothing between now and ...


280

Your problem isn't that you have no credit. Your problem is that there is no way on earth how you can ever keep up with the payments for this $43,000 car, and there is no way on earth how you can repay this loan. I don't know if that is quite clear to you: Loans are not free money. They need to be repaid. YOU need to repay it. If you somehow managed to get ...


244

I did exactly that when I was 2 years older than you. Like you, I made $1200/mo. I was a bit more of a saver but the $3000 down was basically subsidized by my big hearted employer. I remember the payment, $264.75. Every month, little coupon book. Interest rates were a lot higher back then. But the real kicker was insurance. This thing was a musclecar....


182

This is no friend. The clue is that your user name and password aren't required. I've made payments for my mother in law, and the card number, just the 16 digits on front, were enough to send a payment. No one writes their username and password on a check when they make a payment. Think about that.


141

The offer of an increased credit limit may be a sign of increased confidence. However from a bank's point of view it is an attempt to get you to spend more and thus make more money from you. Decreasing your APR however will result in them making less money from you. There is no equivalence.


134

BrenBarn's answer is pretty darn good—you would do well to follow his advice. My one point of contention is that I think you should get the car. How long will it take you to save up $43,668? Only 36 months at your current salary; if you can double your salary, then you can have the cash to pay for this car 18 months. So go for it, work like ...


121

If the rate is the same, then clearing one card to zero does have one advantage: getting your grace period back. Generally when you owe money on your credit card, and you make a new purchase that new purchase get charged interest starting on day one. But if you are not carrying a balance, in other words you pay off the charges every month, then new ...


75

I would not be concerned about the impact to your credit rating. You already have an excellent credit score, and the temporary change to your utilization will have minimal impact to your score. If you really need to make this $2500 purchase and you have the money in the bank to pay for it, I would not recommend borrowing this money. Only put it on the ...


75

First, you need to be aware that the credit score reported by Mint is Equifax Credit Score. Equifax Credit Score, like FICO, Vantagescore, and others, is based on a proprietary formula that is not publicly available. Every score is calculated with a different formula, and can vary from each other widely. Lenders almost exclusively only use FICO scores, so ...


73

Step 1: Start saving like you said you would. You said you could stop spending, and start piling up your paychecks into your bank account. Start doing that now. Step 2: Become an authorized user on your parents account. Get a credit card in your name, but don't carry it or use it. You are not spending money, remember? This will build your score without ...


64

Your friend has unwittingly got a virus/malware on his computer which has read his contacts list and sent some or all of his contacts (including you) a message, pretending to be from him, asking you for these details. Don't break off the friendship, because he didn't do this deliberately; but don't send the information, because it won't go to him, it will go ...


61

If you pay your statement balance in full before the due date you will never pay a cent in interest no matter what your interest rate is.* In fact, I don't even know what my interest rates are. Credit card companies offer this sort of thing in the hopes you will spend more than you can afford to pay completely in those first 15 months. * Unless you use a ...


59

Yes, it is a very good idea to start your credit history early. It sounds like you have a good understanding of the appropriate use of credit, as a substitute for cash rather than a supplement to income. As long as you keep your expenses under control and pay off your card each month, I see no problems with the idea. Try to find a card with no annual fees,...


59

There are a couple of things to consider. First, in order to avoid interest charges you generally just need to pay the statement balance before the statement due date. This is your grace period. You don't need to monitor your activity every day and send immediate payments. If you're being really tight with money, you can actually make a little profit ...


57

The grace period exists simply to get more customers. The bank makes money from merchant fees every time you swipe the credit card, and the amount they make is more then it costs them to float that money for about a month. Without the grace period there would be much less of an incentive for many people to use the card. It's true that even those that ...


56

There are several issues with paying for furniture and appliances with 0% credit instead of paying with cash. When you pay with 0% credit, you might be tempted to spend more on something than you would have if you paid with cash, because it feels like free money, and you've justified in your mind that the extra you earn will help pay for the more expensive ...


54

Can you pull a credit report on your adult child, spouse - or even any other adult for that matter? If you have access to things like national ID (Social Security number), can answer security questions related to addresses they have previously lived and outstanding major debts they may have (house loans, car loans, etc), then sure you physically can. Now, ...


52

You can simply use them to pay in a supermarket or anywhere else. Just give them the card and say ‘put 1.23$ on this one please, and the rest I pay cash‘ or whatever. They might be annoyed when you have really many, but you can use up one every time you shop easily. For some cards, you do not even have to know the remaining amount, just say use it up. Note ...


50

Time for some tough love: "but I desperately need this one and I'm willing to work for it" No. No you don't, and no you aren't. You want to know why I know that? Because your birthday is only four months away. If you truly, desperately needed that brand new jeep - you would've been asking this question a year or two ago - not a mere four months ...


49

If you are truly preapproved (not just prequalified) then they are required to supply you with a Good Faith Estimate within 3 days. The interest rate will appear on that document. It's subject to change until you lock it in, but there's no reason they can't provide an estimate now. Source: Title 12 of the US Code of Federal Regulations Except as ...


44

First, before we talk about anything having to do with the credit score, we need the disclaimer that the exact credit score formulas are proprietary secrets that have not been revealed. Therefore, all we have to go on are broad generalities that FICO has given us. That having been said, the credit card debt utilization portion of your score generally has ...


44

Is it normal for realtors/landlords to ask for for the prospective lessee to provide their credit report? Not normal, but should be. This approach saves money (these costs are already baked into rent or application fees, so hopefully this saves you money) and it also prevents inquiries which are not a big deal but do have a small impact on credit score (...


41

Kyle, I recommend you read "Who can truly afford luxury cars?" and then, the linked questions to the right regarding home purchases. $800/mo is what someone pays towards a $160K 30 yr mortgage. With a 20% down payment, this is a $200K house. I'm not trying to talk you into buying a house, but rather, I'm drawing a comparison and showing the alternate use ...


40

I would take a closer look at each provider. I have one credit-card provider who when there is a large portion of credit available, they frequently offer promotions on balance transfers so you fill that credit, sometimes it can be 0% for xx months, or a very low % until paid off in full. If this is the case clear that card fully and balance transfer the ...


39

That's what "friend" means. The very definition of a friend is someone who knows you well, you know well, can be presumed to help you move**, and would never rip you off. If you are not properly using the word "friend", stop! Language is the shared medium by which we communicate. It only works if we share meanings. If you say "friend", we have to take ...


39

Yes, this is a scam. Your instinct was correct, and you should not engage with this person further. Scam artists use other people's bank accounts to move money around from scam to scam. Even if you give her access to a bank account with no money in it, that bank account will be in your name, and the scam artist will use it for illegal activity in your ...


38

Your dad may have paid an "opportunity cost" for that outright purchase. If the money he saved had been invested elsewhere, he may have made more money. If he was that well off, then his interest rate should have been the lowest possible. My own father is a multi-millionaire (not myself) and he could afford to have paid for his house outright. He didn't ...


38

The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without borrowing money, and get as much of it paid off as you can. You might be able to consolidate the debt into, say, a new mortgage, but you need to be careful to ...


38

What can I actually do to leverage this high credit score to my advantage? Borrow money. Although I'd question whether that's actually to you advantage or not - it depends on what you're borrowing the money for and whether the interest you're paying is worth the benefit to you. Does a high score give me any negotiating power with the lender to get a ...


35

There are 3 entities in a credit card transaction; The Merchant Bank/Acquiring bank that provides the POS to the Merchant where you buy / swipe your card. This bank is the one that acquires the funds at the end of transaction. The Card Network [Visa/Master/etc] The Issuing Bank [the Bank that issues you a credit card] Typically when you swipe for 100, the ...


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