• givesomefucks@lemmy.world
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    9 months ago

    Those “Pay over X months” schemes for smaller purchases than before.

    Some people don’t realize each one of those is a new line of credit…

    You can fuck your credit up for a very long time messing around with those on stupid shit.

    • Spiralvortexisalie@lemmy.world
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      9 months ago

      The scarier thing is that they are designed to be less than six months to avoid federal loan regulations and are reported to credit agencies as some new kind of installment loan (I forget the exact term/acronym). Many lenders are refusing to lend to anyone who has even taken one out in the past 2-3 years since they are seen as such a high risk indicator.

      • givesomefucks@lemmy.world
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        9 months ago

        It’s not just one, it’s that credit checks are big factor in credit scores.

        Normally you get an infinite amount in a 2 week period as one check for when you’re shopping around

        If someone does one of these every other month, that’s 6 credit checks in a year. Even if you pay them all back asap, it fucks your credit up.

        And it’ll show as an open line of credit on your report forever. Which is normally a good thing, but it brings your average credit per account down which hurts you further.

        People do t know all that, and their fucking up their credit without knowing it. Then if they have to do a big loan for home/car/whatever, they get a worse rate