Do you need a credit card?

[thomsbrain]

Originally posted by: SsupernovaE
Your friend is absolutely correct.

Ditto.

Just because you CHARGE it to your credit card doesn't mean you are carrying a balance or losing money in any way. And using a credit card increases your credit score as long as you remain in good standing with the lender. You sound like you're on top of your money, so it shouldn't be too hard for you to simply keep track of paying your card off in full every month.

 

[thomsbrain]

Originally posted by: IHateMyJob2004

Originally posted by: SsupernovaE
Your friend is absolutely correct.

WRONG

I never had a credit card in my entire life and when I went to get a loan for my first home I was told that I am what mortgage companies dream of. Just pay your damned bills on time and make sure that you don't get pinged on your credit rating for having late charges and such.

ALSO! My credit rating was "excelent" (and still is) before I ever had a credit card so when people say that, you might as well be told that they don't know what they are talking about.

The only reason I ever got a credit card is so I can do things liek reserve hotels. I have a whopping total of 1 credit card in my wallet (granted my ATM card also doubles as a credit card).

Sorry, but this is one topic that most people are truly uneducated about and all they know how to do is repeat what others have said before them!

If you bought your house any time in the last 10 years of boom, then anyone who was willing to knowingly falsify their income on their application was considered "what mortgage companies dream of."

You need to understand that they didn't give a crap WHAT your credit history was, because they were planning on selling your loan to the Chinese in two weeks. They were banking your fees, selling the loan for a profit, and incurring no risk.

Try it again now, and you'd be in a MUCH different situation. Banks are going under because they royally fucked up by lending to people like you.

 

[bobsmith1492]

Hm, at 22 I've never had a credit card; my debit card does everything a credit card does. I'd rather save before purchasing anything anyway and don't want to bother with crappy bonus points since I don't hardly ever buy anything anyway (my debit card does some kind of rewards points, too, but I've never even looked at them).

Basically, if I want to buy a house, I might have a hard time. Fine; by the looks of things I can save up enough for ~20% downpayment in a couple of years anyway; what bank would say no to that?

What's the problem, now?

 

[ShawnD1]

Oh god I love my credit card so much. Walking inside the gas station to pay for gas is for losers.

Credit card is also the most effective way to transfer large amounts of money at one time. If I walk into Best Buy and want to get a new TV or something, how else can I pay for it? Do I walk around with a fist full of cash, waiting to get jacked? Do I allow a huge purchase amount on my debit card, which has absolutely no fraud-protection? Do I talk the cashier into accepting a cheque?

 

[Muadib]

Originally posted by: bobsmith1492
Hm, at 22 I've never had a credit card; my debit card does everything a credit card does. I'd rather save before purchasing anything anyway and don't want to bother with crappy bonus points since I don't hardly ever buy anything anyway (my debit card does some kind of rewards points, too, but I've never even looked at them).

Basically, if I want to buy a house, I might have a hard time. Fine; by the looks of things I can save up enough for ~20% downpayment in a couple of years anyway; what bank would say no to that?

What's the problem, now?

You need to read up on the mortgage crisis. Yes, someone will give you a loan, but you are kidding yourself if you think it will be at a good rate. Start establishing a credit history now, so when the time comes, you will be ready.

 

[randomlinh]

I really don't understand the debate. If you're against debt, what harm is having a credit card that you pay off completely? Hell, you can set it to automatically pull from your checking monthly if you really wanted to. Plus, get a rewards card, and instant profit. I have one for food and gas, my two biggest monthly purchases aside from student loans.

Plus, the credit protection... I've had 14k run up on my card somehow for google adwords/adsense. If that was my debit card, I'd be SOL. Yeah, it would most likely have been resolved, but it's far easier to deal w/ the credit card company over having my cash tied up in a dispute.