Post # 1
I’m constantly amazed by the number of people here who post that they have no credit.
Growing up, I was taught that it is important to build up a credit history. I don’t think I got a credit card the minute I turned 18, but I got one before I was 19.
Besides the importance of a credit history, credit cards offer additional benefits. Here, it can be difficult to rent a car or book a hotel room without a credit card. Shopping online used to require credit cards. My venue required a credit card. Then there’s the rewards, the additional interest by delaying payments for a few weeks, the additional waranties, etc.
Some people seem to think the banks are evil. If you feel this way, why not take advantage of them by getting a credit card, paying off the balance every month so you’re not paying interest, get a no-fee card and take advantage of the benefits?
Post # 3
I’m baffled as well. I remember getting my first credit card, JUST to build my credit.. and get free money from the points earned on it! Paid it off every month… to this day I have yet to pay interest on a CC… Student Loans are another story… lol.
Post # 4
A lot of times you can use a debit card in place of a credit card so it doesnt hinder people from shopping on line or booking cars/hotels. Many people also dont have the self control to use a credit card properly and pay it off eachh month and just find it better to budget using only cash. I’m with you about using credit cards and paying it off each month for the rewards, but I totally understand if this system doesnt wokr for others.
Post # 5
I keep a credit card for emergencies and to show payment history, but otherwise we operate on cash or debit (debit card is through our bank and carries a Visa logo so we can use it anywhere).
Some people cannot responsibly use credit, or don’t want to risk spending outside their means. I understand why someone wouldn’t keep credit cards.
Post # 6
I didn’t know what credit or a credit score was until I was 22. I didn’t understand ANYTHING financial for the longest time – I had an allowance debit card for my dad’s account until I graduated college, and didn’t even understand what that meant. My parents are both fiscally responsible people, but no one bothered to explain to be what credit was or why I’d need to build it until I was out in the real world.
Luckily, I was able to build credit (mom co-signed for a car with payment on autopay, retail credit card I paid off every month, no-fee bank credit card I paid off every month) and I was able to buy a house with FH when I was 25. I still don’t use credit cards though, though FH has a rewards card through his credit union that he uses for most of our expenses.
I’m going to start reading Dirty Delete Suze Orman books when she’s like 6, seriously.
Post # 7
Most people I know that don’t have credit, don’t because they’ve been taught that credit cards are bad. It actually isn’t all bad that they think this way however as 99.9% of the ones that I speak of are AWESOME savers and have paid cash for their homes. Who needs credit when you pay cash for everything, day to day, cars and even homes.
Edited to say, I don’t necessarily believe in this but I’ve seen it very successful in 5 of my friends all of which put 6 figure down payments on their houses working very modest blue coller type jobs. I’m humbled by them.
Post # 8
@pinkshoes: It’s getting to be that way with debit cards, but many places used to require credit cards. I know many still do.
For budgeting, people don’t even have to use the card, beside every six months or whatever it is to avoid paying an inactive fee.
Post # 9
… I guess if people reason that they can’t handle the responsibility and self control of paying their credit card bills/keeping the balance to a reasonable amount.. then I don’t think they should complain about not having credit hindering their ability to get a loan and other things.
Post # 10
Actually, I have never had a credit card (will probably get one soon but just never had a reason to before as my debit card is backed by Visa and gets me access to everything I need), but I have a phenomenal credit score.
That being said–yes, it’s important to build good credit from early on and it’s not hard to do so. However, at least in my experience, a lot of my friends had parents who just paid all the bills for them…which meant that they had no opportunity to build their own credit.
Post # 11
Yea I dunno. My parents actually got me a credit card when I turned 16 (with them on it as well) and used it as their own (and paid it off every month) to start my credit history, and then helped me get another solo card when I turned 18 for that exact purpose. I have always used credit cards almost exclusively for all of my purchases and just pay it off every month. I also increase my credit limits whenever I can (to help my debt/credit ratio). I don’t think I’ve ever paid a finance charge in my life. I feel like it is kind of irresponsible to not build some credit history for yourself and the whole “I don’t want to be tempted” thing strikes me as BS because adults should be able to control themselves.
Post # 12
@CorgiTales: “I don’t want to be tempted” thing strikes me as BS because adults should be able to control themselves.
My thoughts exactly. Plus I think it’s always a good thing to have in case of emergencies.
Post # 13
@pinkshoes: Exactly a lot of people just don;t have the discipline to pay credit card balances off at the end of the month. For example the national credit card debt for the USA for the 2010 4th quater was $810.2 billion!
Credit cards can ruin a persons life if they cannot handle them. Banks are evil in the sense that they are in the business of making profits so they want you to overextend yourself and pay interest. It is why they do issue credit cards to people who may not be in the best life situation to handle it.
Edited to say- I don’t have a credit card- I pay cash or use debit cards and the only credit I have is a mortage.
Post # 14
@j_jaye: I don’t see that as banks being evil. They are out to make a profit, and rightfully so. It’s up to adults to responsibly use the credit they are offered.
Post # 15
I love credit cards. I pay for everything on credit cards and earn hundreds of dollars per year in rewards and cash back. However, I think a lot of people avoid credit or get into trouble with it because they don’t fully understand how it works or they have seen other people get into trouble by misusing credit.
Post # 16
Personally, though I do have a clear understanding of credit, between college and then grad school, I’m pretty sure that I’ve never been making enough money that my credit union would give me a credit card with an even remotely useful limit. I knew I would have student loans and build my credit history paying on that, and have never had plans to make large purchases or take out large loans before paying back a significant amount of student loans. I’ve also never run into a situation where my debit card did not function as legal tender where a credit card might have once been needed. I have a surprisingly good credit rating given how little they must have to base that on, and I intend to build credit history going forward– actually, this is a good reminder that my current work situation might help in getting a credit card! Thanks!