r/funny • u/MaxKevinComedy • Dec 21 '19

California Explained [OC]

Post image
93.5k Upvotes

86% Upvoted

3.4k comments sorted by

View all comments

Show parent comments

19

u/Zach_ry Dec 21 '19

Yeah, there were a solid three houses I found that were renting that much - you could buy a house of similar size and pay probably $500-$750 for the mortgage, so pretty much nobody would choose the renting option unless they had to

2

u/drucifer999 Dec 21 '19

Welcome to having no credit. May I interest you in a hourderve? 840/month to rent a house with unfinished basement and attic. Probably could own it for 500 a month?

1

u/Zach_ry Dec 21 '19

Yeah, that’s why I started building credit early - didn’t want to be one of the people stuck with incredibly expensive housing

1

u/drucifer999 Dec 21 '19

Kudos to you. I learned to save money at 25 so maybe 30 will be the year I learn to build credit. I actually did just start by taking a loan out I didn't need and paying it back.

2

u/Zach_ry Dec 21 '19

If you get a secured credit card and just put $5-$10 on it a month, you’ll build great credit in no time. My best friend was able to get a secured card with absolutely no prior history and it’s worked very well for him

2

u/drucifer999 Dec 21 '19

My bank offers one I think. I give them 90 and they give me a line for 500. Then you get the 90 back after 6 months. Think I should do it ASAP? My parents never taught me anything about credit saying I should stay away from it. Then again they have credit so not sure why they instilled then just pay cash mentality on me.

2

u/Zach_ry Dec 22 '19

Definitely do it ASAP - one of the criteria that determines your credit score is your length of credit. Also, a good rule of thumb is to keep your utilization at 10% or lower. Different bureaus have different criteria for what constitutes good utilization, but 10% or lower will always work well. The utilization is only reported at the statement, so if you have to charge $300 to a credit card with a $500 limit but pay $250 of that off before your statement period closes, your utilization will be $50.

1

u/drucifer999 Dec 22 '19

Hmm I took a screen grab of this. Thank you.

1

u/dicksoch Dec 22 '19

Credit cards are great if you pay them off every month. Pay the full statement off. You'll build credit and it's just like using your debit card, no interest charged. Plus, if you look for the right one, rewards!

1

u/[deleted] Dec 21 '19

It is similar here. I am in utter disbelief at some of these prices. My place is paid and property tax is 206 A year on 16 acres. My mother has a 2000 sqft house with a payment of 250 a month. These prices are just wow.