Debit card is simply a check from the days of old.

You need good credit to be approved for loans, which you might need to own a house, a nicer car, get a business loan, etc.

I don't exactly see what you don't understand though.

Consume is driven by money.
What do you do when you don't have any money?

>>4269626
>You need good credit to be approved for loans, which you might need to own a house, a nicer car, get a business loan, etc.
Not OP but that's what I don't understand.
In western Europe, having a good credibility is a requirement to get an affordable loan.
THEN you have to have collaterals, a guarantee or a good and stable income.

>>4269626

> You need good credit to be approved for loans, which you might need to own a house, a nicer car, get a business loan, etc.

So unless you can prove to the bank or the company that you can manage your money well, you won't be able to buy (or get a better loan to buy) better stuff ?

> I don't exactly see what you don't understand though.

The place of credit in your day-to-day life and overall financial system.
To say things bluntly (not troll), I sometimes think that"Saving up money I gain on a bank account and use it later." does not seems possible or logic to US citizens.

>>4269626
Not OP, but i find this system retarded. When applying for loans where i live the bank will assess your income and the value of your property. If you have a solid income you'll get a loan, you don't need to buy things and pay it back in order to prove you can pay a loan back. No one gives a fuck about credit cards here unless you fail to pay it.

>how does US banking work?
It doesn't.

>>4269685
No, what he means is that you have to buy things with a credit card and pay it back in order to get a good credit rating.

Buying things for your own money (which would be the responsible thing to do) means that you'll get bad credit rating and can't get loans.

It's very much a system that encourages people to take loans, buying things for money they don't have.

US banking in a nutshell
>you give them money
>they sell your money
>they never have enough money to pay back their investors (aka, you)
>keep this in a perpetual cycle assuming banks will never fail
>neverending profit

I love it when americans yell "MUH INCOME" and then they're still poor despite working two jobs until they die.

>>4269685
It's because they want things they can't afford NOW

Like me, I can't afford a computer so I charged $1,000 to my credit to obtain one.

>>4269739
But why?
I have 5,000 euros in my bank account right now and I wouldn't dare touching that since it's my iron reserve in case I lose my job

OP here

>>4269716
This is what I don't understand. How can somebody who buy things from his own money gets a bad credit rating ? Shouldn't he get a good credit rating instead since it shows he can manage his income and spending by himself ?

>>4269739
I get how credit works, but here, the "good thing" to do is either wait 'til you have enough money or settle with something cheaper. Being overdrawn is a sure way to have the bank breathing down your neck everyday.

>>4269799
>How can somebody who buy things from his own money gets a bad credit rating ?
Yes, it's an actual conspiracy and quite logical.
They're earning money with people who CAN'T pay their bills so they can charge interest and fees.
That's how it works, forceful capitalism at its best.

Credit shows that you are able to pay back money you borrowed, so that lending you money must be worthwhile.

>>4269860
...So you guys have no choice but juggle with credit just to inject money in the system in the form of interest, fees and whatnot ?

That's... Unsettling, I must say. Seeing how there's 300 millions of you, that looks like a sure way to make your economy unstable and prone to deflation, no ?

>>4269799
Yes, well if people were rewarded for being smart they might actually use their money wiser and the banks wouldn't make as much money?

You're forced to play by their rules, you have no choice. Of course you can act to act smart, but many will just be blinded about the cool things they can buy.

>>4269885
>Credit shows that you are able to pay back money you borrowed
Is it really a good sign when someone has to lend money all the time?
Spending your own money wisely and not taking a loan for groceries should be appreciated too.

How the American Banking system works!

>you go to bank and give them money to store safely while you transfer money to and from this account digitally (used to be with these ancient rectangular paper forms called "Checks")
>Bank then sells the cash you give them to other people who in return make a promise to pay it back with a little extra.
>this is how the bank profits
>Sometimes these people don't pay it all back
>When this happens the bank seizes whatever the person offered for collateral, usually a home or vehicle or other valuable assets, including other accounts
>This worked really well until banks started getting greedy
>They got to the point to where they would give anyone a loan and then seize homes regularly
>They also realized that debt is just as valuable as income
>so they would also sell your debts to this bank to another bank
>this results in the debt holder suddenly having their rights and policies changed, and for instance if they signed the original loan for 6% interest the new bank could change it to 8% and the holder couldn't do anything about it
>Also a majority of the funds and currency banks control are primarily digital dollars
>so interestingly enough, if every person who had an account with a bank, be it saving or checking, all demanded their accounts be closed and their money refunded (minus large hidden fees) the banks would not be able to meet this demand
>i don't remember the actual number but it's like for every 10 dollars in the US only one dollar is actually printed and physical

>>4269902
Typically you don't pay interest for the first couple of months when buying something on credit. So if you have money on your checking account, you can buy something with your credit card and pay it back without having to pay any interest.

>>4269685
> So unless you can prove to the bank or the company that you can manage your money well, you won't be able to buy (or get a better loan to buy) better stuff ?

Your credit score is not a measure of how good you are at managing money, but how good an investment you represent to creditors.

It is not meant to be a fair system of reward and punishment, only a way for the credit industry to make decisions.

> The place of credit in your day-to-day life and overall financial system.

In day to day life, it varies wildly from individual to individual. From the perspective of the economy as a whole, much the same role that it plays in European economies.

> To say things bluntly (not troll), I sometimes think that"Saving up money I gain on a bank account and use it later." does not seems possible or logic to US citizens.

To say things bluntly (not troll), I sometimes think you're looking for an excuse to feel superior to Americans, and that makes you a faggot.

>>4269902
>prone to deflation
How?
They just keep printing money, a deflation is nearly impossible.
And why should prices be lowered when there's more money available?
And last but not least, why should banks let a deflation occur, it would only be a disadvantage to them since the debts are comparably worth less than in times of inflation?

>>4269921
This is what smashed things in 1929 IIRC.

The system in my country hve loans too, but the general mindset (I hope...) is that you don't buy things with money you don't have, unless it's something huge that will take a lifetime of savings to buy (such as a house or a car), but even then, people are REALLY told to think stuff twice before rushing.
"You have 3 kids and both you and your wife earn minimum wage ; do you REALLY need to buy this pristine Audi SUV ?" is something any banker is invited to say to their customers if they think the customer is about to fuck up. (several large banks here are cooperative banks)

>>4269799
You get a good credit score by borrowing money or purchasing items on credit and making payments on time

You get bad credit by doing the above but failing to meet your payments in a timely fashion agreed upon by yourself and the lender/credit agency.

A lot of people don't know this, but you also get negative credit, though not severe, for taking out a credit card and then never using it. The only reason for this is because they want you purchasing stuff if you're going to bother opening an account.

So a lot of parents or students that gets an emergency only credit card it can have a negative affect on the account holders score.

>>4269954
I agree that I sound smug, but I just want to understand how stuff works from the other side of the ocean. It took me a while just to understand how VAT works on your side too, and I don't think it's better in my place than yours.

>>4269921
>Bank then sells the cash you give them to other people who in return make a promise to pay it back with a little extra.
>this is how the bank profits

Is this really happening in the USA?
Because everyone and their grandmas already know that banks profit for investing into stocks and shares.

>>4269902

Yes, guess what, it doesn't work, and that's why the US economy is completely down the shitter.

Since some time in the 90's:

You deposit money.
They store it
They gamble with it (Loans, Stock Trading etc.)
They put a tiny amount of their gambling earnings back onto the amount you've stored.


The main fault:
If they fuck up their gambling, then it's your problem because it's your money
If I fuck up my gambling, then it's my problem because it's my money

Their fuck ups however are now (de facto) underwritten by the government so now it's your problem regardless of you were even storing your money in a bank.

>>4269954

You don't need an excuse to feel superior to the american economic system, as it's the dumbest piece of shit on earth. Short-term gain, long term pain and procrastination.

Now we're getting to the long term part, and shit's hitting the fan.

>>4269995
> Because everyone and their grandmas already know that banks profit for investing into stocks and shares.

This is very bad. If the bank makes a bad investment, suddenly they have no money to pay back the money you put in, and the whole thing collapses.

The bank needs a way of making money that is not quite so unreliable. Thus, loans.

>>4270011
>>4270040
>>4270041

Your system looks like it's designed to squeeze people like lemons just so the bankers can swim in pools of dollars. Why in the name of fuck nobody calls the bullshit out of it ?

>>4270040
Boils down to this, really.
>oh well there goes another manager
>oh no his contract says that he'll get another million if he has to leave early
>but wait here's the new manager promising that he'll do much better, our stock value will triple withing two years
>please bail us out governments it's the economy's fault but we're not the ones who failed the economy

>>4269995
larger chain banks do. Chase, Citi, Bank of America.

But not smaller local banks.

Either way banks are the devil and you should do everything you can in cash transaction with a small checking account with a credit union for digital purchases and online bill pay only.

I mean, with interest rates sitting around .8% there's no reason to even have a savings account unless you have 6 figures in the account. With all the fees and everything you get charged now days you're probably losing money keeping it in a bank instead of stuffed between your mattress.

>>4269799
>This is what I don't understand. How can somebody who buy things from his own money gets a bad credit rating ? Shouldn't he get a good credit rating instead since it shows he can manage his income and spending by himself ?

if you don't purchase items on credit you will not have a credit rating

>>4270085
> Why in the name of fuck nobody calls the bullshit out of it ?

They do. All the time. Loudly and continuously.

>>4270085
Because the people are being squeezed like lemons and have nothing at their disposal against the wealthy bankers. It's difficult to fight for your rights when you're working two jobs full time and still struggling to not wind up on the streets.

>>4270085

Because people don't even understand what the fuck is happening. To them, it just means

> Wow i can get a couch and not have to pay for 3 years! Surely at that point i'll have money! Somehow! And now i get to enjoy such freedoms NOW!

Of course they never have money in 3 years.

>>4269799
>Being overdrawn is a sure way to have the bank breathing down your neck everyday.

Being overdrawn is different than purchasing on credit. Overdrawn means your cash account went negative.

>>4270046
>Thus, loans
Not profitable enough. Bank structures are too complex and big.
>>4270085
I'm always very surprised about that, I only went to a business highschool and some college graduates are still oblivious about it.
Don't worry, every single bank around the world does that. Europe, America, Asia, Africa, Australia.

>>4270115

And nobody moves because of what ? Because the government can't think of anything better ? Because you have no choice but keep using it ? Or because the shit-for-brains in the banks are too afraid of the idea of not being able to rob you blind anymore ?

>>4270111

It's still safer in an account than between your mattress. Cash money is too fragile. Besides, employers don't pay you in cash, they'll only pay by the way of the banks. So regardless you have to deal with fees and whatnot.

Bankers have us by the nuts, there is literally nothing you can do not to be caught up in their scam.

>>4270111
>But not smaller local banks.
They all do it because they're not stupid.
Every bank is a place where huge sums of monetary value come together.

>>4270085
Hence the whole occupy wallstreet and we are the 99% bullshit.

You can't do anything about it or you'll just get maced and arrested for disturbing the peace. The banks are owned by large conglomerate corporations, or in chase's case they are the large conglomerate. They in turn purchase senators and governors and presidents who in turn tell Americans to fuck off.

The only thing you can do is expatriate and that's impossible without enough money and someone to sponsor a visa. Plus once you revoke your American citizenship you're not allowed back in the country and a lot of people might want to come back and see their family or something.

>>4270040
>underwritten by the government

NO NO NO NO FEDERAL RESERVE. which the banks have to pay large fees to.

>>4270148
>And nobody moves because of what ? Because the government can't think of anything better ?
There exists no other system on earth besides loan sharks.
Don't be stupid, corporations are influencing governments all the time, that's how capitalism works.
Take a look at communism, it's the exact opposite.
Not one bit better.

>>4270193
That's just fucking awful. I knew the world was not a place where people shit ponies and candy, but DAMN. I'm getting a bit scared every time I hear about my bank wishing to become more American-like now.

>>4270148

They have no money to. I've wanted to move for years, but how can I leave? I have to save up enough to at least get by for a few weeks while I look for work in another country, and that's only if they'll take my subpar education, lack of credentials, and few references. That isn't to say that some of us don't try, but it's extremely risky and most people feel trapped.

credit affords people/organizations the chance to turn a nickle into a dime so to speak. There is much hand holding involved now reducing personal resposibility for people/organizations that partake, so now everyone does it even if they dont have the discipline to do it or the balls to take the potential risk.

>>4270220
The world is a terrible place.
Keep in mind that we're sitting in one of the most comfortable corners.

>>4270256
Yeah well, I didn't needed that kind of reminder.

Still, now I have a better grasp of things. Thanks, robots.

>>4270277
That's not even the tip of the iceberg Anon.

>>4270220
it's not THAT awful. It's just very unforgiving. You fuck up once and you're done. There's no coming back or second chances. Even if you declare bankruptcy that's not a second chance. Just means you'll live with your parents for the next 10 years and never purchase a new car.

I mean we get cable tv (breaking bad anyone?), video games, movies, and air conditioning out of the system in return. Oh and soda. We get delicious mountain dew and dorritos

>>4270308
I'm an eurofag, no Dew for me.

Still, you're right. I'm not going to cry about it or anything, it's just kinda sad to see another one of the great schemes used to fuck us.

>>4270308
>You fuck up once and you're done.
>Even if you declare bankruptcy that's not a second chance.
Wrong. Having connections and being a superb talker gives you a few chances.
I recall a guy who managed to buy a pub by declaring his fictional yacht as collateral.

>>4270324
well to be fair that's how life always has been. Since the begining of time till the end it'll always be you vs the world with everyone else wanting to take everything you have.

They just went from wearing fur and wielding clubs to wearing suits and wielding contracts and repo forms.

Ahaha, neat image. Reminds me of that stupid accounting song.

>>4270360

you only get the repo forms if you fail to pay the money you owe.