[FoRK] Credit

Dave Long dl at silcom.com
Thu Dec 16 16:15:21 PST 2004


> FWIW, I do have a loan out on my car that I pay fastidiously, but that 
> is the only thing on my credit report other than the corporate travel 
> card I have through work (in my name). I'm not opposed to spending a bit 
> of money in raising my credit score (e.g. interest on short term loans), 
> but it should be within reason...

It may help to carry debt, but it's not at
all required.  For cars, I pay cash: after
all, how many automobiles appreciate?

Paying off cards on time also doesn't seem
to be an issue: in the rare instances when
we use more than 4-5% of available credit,
we're often given a limit increase for the
following month.

(As Stephen says, this is easy, if, unlike
the US Gov't, one accounts for liabilities
when incurred, not when the bill arrives)

It may help to get cards issued before any
entrance into the Real World; they will be
willing to offer relatively high limits on
no visible income.

> I take issue with the idea of not saving as early as possible. I
> started my retirement accounts when I was in my early 20's; the
> long-term interest is where the pay-off lies. Even saving a small
> amount every month is good; especially if you can do it pre-tax.

The father in Brideshead discusses how the
trade-off is made: he first points out how
there is no other time in a man's life for
which 100 Pounds one way or the other will
make such a big difference, then says that
one must remember it comes out of capital.

My folks were able to keep me fed and well
supplied with Fischer-Technik during their
(non-)tenure as lumpenprofessoriate (those
who talk in other people's sleep) so I can
not begrudge that their meager savings for
that period now account for quite a bit of
their retirement income.

>                       Forget "Erector Set," [8020] is the equivalent of
> Fischer-Technik for grown-ups.

That's because Fischer-Technik is just the
small toy outfit of an industrial company, 
Fischerwerke, and was originally patterned
after the metal 8020-like prototyping kits
used industrially.

-Dave

:: :: ::

Capital and no credit gets one through bad
times better than credit and no capital.


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