This might actually be a good way to teach kids about credit and interest. Let them borrow a small amount at a high interest rate and walk them through paying it off.
It's one thing to tell them about financial responsibility. But watching a bad choice drain their piggy bank is the sort of trauma that leaves a scar.
Oh I don't know if that was the reason for the one in the image. I agree with you that needing to finance ice cream is sad. I'm just thinking it could be a good intro to predatory finance for kids.
"Credit Score" exists purely to sell you more credit score. It's only there because they were forced to let you see your own credit history, and they figured "why not monetise that somehow", so now you'll be bombarded with ads for more credit and loans, which boosts your "score" while giving them a sliver in affiliate fees.
Actual lenders will examine your credit history, and apply their own score. The criteria for a phone contract, am unsecured bank loan, a mortgage, etc, will all have wildly different requirements. I have one credit card that I pay off each month, and that was enough to get a house.
Paying what you owe reliably is all they're really looking for.
Credit cards come with fraud protection and help you build a credit score, which will get you a lower interest rate on a loan, if you need one. So long as you only spend money you have on hand, and pay off your card every month in full, there's no down side.
is this a universal thing or are you just assuming that the entire world works like the US? Here in sweden i have never heard of anyone actually using a credit card.
The debt industry makes so much god damned money for the companies involved in it, it's not even funny.
Between student loans and credit cards, US citizens have a collective $1.73 trillion in debt. And let's just assume 15% interest on average (probably a low-ball to be honest): that's $173 billion going to these companies in interest payments per year.
Shit won't change here because too many people with too much power are making too much money.
In all fairness, it's not exactly something people talk about - and for the record, I've never ended up paying any interest on the card. It's just convenient, offering a layer of protection for charges, makes it easier for me to track spendings, and allows me to be earning interest on my paycheck by keeping it in a savings account until I need to balance the CC.