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Equifax removed the $125 claim payout option after millions submitted claims

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Re: Equifax removed the $125 claim payout option after millions submitted claims

#381

Post by donarb »

mamon wrote: post #328
sfifs wrote: post #323

Earlier quoted context omitted.

Would you possibly be in the top 20% household income percentile? For such households, it's generally not required to buy furniture in credit in most markets. Credit for these sortse of things generally is for people with lower income

In my country lower income people usually save money first (even if they need to save for a long time, like a year or two), then buy expensive items, like furniture. Typically it works like this: people simply try not to spend their whole income, and save at least some part of it. Then, when they arrive at a significant amount of it they sit down and think: what can we do with those money? buy a new car? redecorate o…

What's the difference between saving money for a year and buying on interest free credit, with the "saved" money going to payments for that year?

Re: Equifax removed the $125 claim payout option after millions submitted claims

#382

Post by krageon »

navigatesol wrote: post #337
Retric wrote: post #335

Earlier quoted context omitted.

Those loans can be a profit center as they make it really easy to miss a payment, and then instantly jack up the rates to ~20% APR. Think short window to make a payment and no automatic payments available. It’s probably not worth it for effectively a sub 1% discount.

> It’s probably not worth it for effectively a sub 1% discount. The discount is small, I agree. But it's always worth it. It's riskless if you have the cash anyway.

The fact that these constructs exist and only make money when people make mistakes should tell you that enough people make mistakes to make it profitable. This makes it not riskless at all. It makes it predatory.

Re: Equifax removed the $125 claim payout option after millions submitted claims

#383

Post by astura »

krageon wrote: post #377
fluffything wrote: post #364

Earlier quoted context omitted.

I'm also a human being from planet earth, and if I'm ok with paying X in cash to buy something, and the other persons offers me paying it in interest-free rates, it would be stupid for me not to. Worst case, I move the cash to a 2% interest rate bank account and let it sit there. Best case, there are other investments I can make now with that capital, and end up paying less overall for whatever I was buying because h…

> a 2% interest rate bank account I'm fascinated by this. Where do you find these sky-high interest rates in banks?

https://www.doctorofcredit.com/high-interest-savings-to-get/

Re: Equifax removed the $125 claim payout option after millions submitted claims

#384

Post by g051051 »

p49k wrote: post #300
g051051 wrote: post #181

Earlier quoted context omitted.

This is not "default opt-in", like having the "Subscribe to our email newsletter" checked on an online order form. The sharing of credit worthiness information is the cornerstone of your ability to get credit. It's not a hidden extra, it's not something you can choose not to get, there's no "opt out". It's a condition of doing business with the credit grantor. It's like opting out of having a driver's license. If you…

Credit checks are often required in job applications and almost always when renting a home; it’s not like you can opt out of those.

They check all kinds of things, not just credit. Criminal record, job history, salary history, education, etc. How much of that should a prospective employer be "allowed" to check before deciding to hire you? Or a renter check before letting you live in their house? In both cases, they are taking on real risk. How else can they reduce that risk, without doing checks?

Re: Equifax removed the $125 claim payout option after millions submitted claims

#385

Post by rubyskills »

krageon wrote: post #377
fluffything wrote: post #364

Earlier quoted context omitted.

I'm also a human being from planet earth, and if I'm ok with paying X in cash to buy something, and the other persons offers me paying it in interest-free rates, it would be stupid for me not to. Worst case, I move the cash to a 2% interest rate bank account and let it sit there. Best case, there are other investments I can make now with that capital, and end up paying less overall for whatever I was buying because h…

> a 2% interest rate bank account I'm fascinated by this. Where do you find these sky-high interest rates in banks?

There are several floating around right now.

Ally Bank, wealthfront etc.

The key is to make sure they're FDIC insured.

Re: Equifax removed the $125 claim payout option after millions submitted claims

#386

Post by dsfyu404ed »

elcomet wrote: post #318
frereubu wrote: post #308

Earlier quoted context omitted.

This is a great 99% Invisible episode about how credit cards came about, and what it was like beforehand, where you would be interviewed at length by a store before being given credit to buy, for example, a piece of furniture. Credit cards were designed to outsource checking of credit-worthiness, stop intrusive interviews with stores and avoid embarrassment of being rejected in-store. Lax digital storage of informati…

Coming from Europe, it would never occur to me to buy furniture on credit, is this something common in the US ?

I haven't financed furniture but my impression is that if your credit is decent that the cost of financing it is basically the same as paying cash.

Furniture is high margin, low volume so furniture retailers have an incentive to spread out cash-flow and get consumers to buy more expensive furniture than they would if paying all at once.

That said, I suspect if your rand the numbers you'd find that the overwhelming majority of furniture (by units sold) is bought cash from Walmart, Ikea and the like by people paying cash.

Re: Equifax removed the $125 claim payout option after millions submitted claims

#387

Post by bluedino »

adrianN wrote: post #349
safgasCVS wrote: post #341

Earlier quoted context omitted.

I had the exact same thought. Making credit easier to obtain is taken as 'good' but I only see that as beneficial for something major like a house or car but the idea of going into debt for disposable items seems really weird

For low income families, furniture is something major.

They often rent it at Aarons or Rent A Center

Re: Equifax removed the $125 claim payout option after millions submitted claims

#388

Post by harryh »

rootusrootus wrote: post #366
nostrademons wrote: post #271

Earlier quoted context omitted.

It's the other way around - your credit score is higher if you have a lower balance on your cards.

That is not correct. A small balance raises your score more than a zero balance. But you want to keep it under a third.

This is an oft passed around urban legend, but it's not true. You can try for yourself by opening up a free CreditKarma account and seeing what happens if you zero out all your balances.

Re: Equifax removed the $125 claim payout option after millions submitted claims

#389

Post by bluedino »

atombender wrote: post #355
navigatesol wrote: post #332

Earlier quoted context omitted.

> it would never occur to me to buy furniture on credit Ikea, and nearly any reasonably sized furniture store, has a financing arm. So I assume it's common (and a money maker). Thing is, often these places offer 6 months interest free and what not, so as long as you pay off your debt in the allotted time, it's smarter than paying cash.

Many places offer interest-free deferred payment. For example, Design Within Reach, through Synchrony Bank, lets you pay in equal installments over 24 months (or less, if you want) [1]. APR around 20% kicks in if you go past the time limit. [1] https://www.mysynchrony.com/mysyf/paymentestimator.html?intc...

Back when I was younger I bought about $1500 in furniture from Art Van on credit, and did not pay it all off within the 18 or 24 months

Then I got smashed with a HUGE interest charge, they charge you ALL of the interest from the 18/24 months at the end of that time if you have a blance

I buy $300 couches from the clearance center now, in cash.

Re: Equifax removed the $125 claim payout option after millions submitted claims

#390

Post by jazzyk »

krageon wrote: post #377
fluffything wrote: post #364

Earlier quoted context omitted.

I'm also a human being from planet earth, and if I'm ok with paying X in cash to buy something, and the other persons offers me paying it in interest-free rates, it would be stupid for me not to. Worst case, I move the cash to a 2% interest rate bank account and let it sit there. Best case, there are other investments I can make now with that capital, and end up paying less overall for whatever I was buying because h…

> a 2% interest rate bank account I'm fascinated by this. Where do you find these sky-high interest rates in banks?

https://www.bankrate.com/

Make sure you go past the "featured" ones :-)

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