At Ask Me Help Desk you can ask questions in any topic and have them
answered for free by our experts. To ask questions or participate in
answering them you must register for a free account. By registering you
will be able to:
Get free answers from experts in any of our 300+
topics.
I live without credit cards. Why not just save the money up and pay in cash. It will cost you less that way. everything you put on a credit card will cost you interest. I always hear "what about for emergencies?" I say, build up an emergency savings instead 3-6 months of income is ideal, and use that if an emergency comes up...much better for you, and you will never find yourself drowning in debt. It is much easier to do than you think.
well, then it might not be good to get a good iterest deal on getting my firs loan in the future, is it true?
U can;t just pay for your house by the money u have saved...at least I can't be able to do that :P
If you wish to travel you will need a credit card. You can't rent a car without a credit card. If you want to purchase stuff over the internet and be protected, you need a credit card. The trick is not running a balance. Find one that gives you airline points or other promotional things and use it as if it were cash. Only put on it what you can pay. I use mine to pay the cable, then go to the my credit card site and pay that from my bank account once it is posted. Ditto with other monthly expenses. You sound responsible, so I think you would use it as a tool to build your credit not a crutch to supplement your income.
You build your credit score by using and paying. It hurts your score to run a high balance that never gets paid down.
you can do all the things you mentioned without a credit card. even renting cars and booking hotels. while Emland is correct in that you are safe as long as you dont run a balance, it is very easy, especially at a young age, to do that. something will alays ccome up, and you will say, Oh I will pay that with the next check or something, and then before you know it you are in trouble.
I am going to post your PM here because my answer can help other people...
Quote:
Originally Posted by nicespringgirl
Thanks for your answers!
Are you sure it's better not having gradit card? how do the bakns check my criedts to give me a loan on my house in the future?
Thanks
You can purchase a house without any credit. Just ask for a lender with manual underwriting. they will look at how you pay other bills, rent, etc. You can even get a good interest rate. Which brings me to an answer for the other question you had...Yes, you will need to take out a loan for your house. the key is to take out a loan that is reasonable to you. try to put as much down as possible to build equitey, and then if you can, pay above your mortgage payment. Just make sure your lender allows that. Get a fixed loan and try to pay it off sooner than the loans life. for example. try to pay off a 30 year in 15 or 20 years.
I suggest reading about Dave ramsey, or listeining in to a couple of his shows. He is a good speaker, who has helped my family out immensly. he focuses on building wealth through your savings and investments rather than living through credit. it is really a lot easier than you think. It is hard to jump on because it seems so unrealistic in todays time, but believe me, it can be done.
You sound like someone who understands financial issues and is level headed about spending. Therefore, I think a credit card would be a reasonable choice for you. As long as you don't abuse it and use it to establish credit for big ticket purchases.
Sure there are risks to getting a credit card. But if the only reason to not get a card is to avoid those risks, I think its a mistake not to get one. Having a card helps build credit worthiness and does make it easier when traveling, making big ticket purchases etc.
what is the point of having good credit though, other that getting more credit? I mean really, the only people that score is important to is the people who want you to borrow more money...it has been drilled into our heads as a society that this number is so important we need to check it all the time...so on and so forth. but when you think about it really, its not that important. You can function normally without a credit score. We were able to get the lowest interest rate available at the time we bought our house, and there was no credit check...NONE! Im not saying having no credit card is the way to go, im just wanting to inform you that there are other options. I have had credit in the past, I have good credit, but I know people who live with 0 credit...nada, and they function just fine. and Im happily on my way down that road as well.
The others here have valid points, it does make it easier with a credit card, but it isnt impossible without one. I like paying the real price for things rather than the price plus whatever APR...just my personal opinion..
A credit card is not needed for anything, a BanK Card tied to the limit of your checking account at times will be. But you can rent cars, travel, get motels and all that without a credit card. The credit card does one thing and one thing only it allows you to spend more money than you have.
If you are careful it is not the card, but it is the spending habits, but cards lead to alot of problems for millions.
If you pay your bill off and on time there is no interest.
then why not just pay in cash? It has been statistically shown that people with a credit card will spend more than they intended to simply becasue there is no "ouch" factor. When you lay down a $100 bill, you actually feel that "ow that hurt my wallet" but not with a credit card. it isnt your money...so we spend more than we need to or often moer than we can afford, and then all of a sudden you cant pay it off by the end of the pay period. Sure everyone will say, that I dont let that happen, but the truth is that most people do.
Linear Mode
