Is having a credit score really necessary?
Return to Board  •  Menu  •  Bottom  Page 1 of 2  
Message
Is having a credit score really necessary?
Posted by Daygo85 on 11/12 at 4:06 pm
OK. After one has their main home purchased is it really possible to live in America without credit? Is it still possible to start small and purchase with cash? Slowly purchasing nicer "stuff"?

Discuss...........if possible.






Reply  •  Back to Top
Posted by LSUAfro on 11/12 at 4:11 pm to Daygo85
quote:

Discuss...........if possible

Discussed about once a month on here...at least.

Feel free to search.

Will Cover in 3..2..1 with his nonsense.

If you can't understand why a good credit score can help you, I



Reply  •  Back to Top
Posted by Daygo85 on 11/12 at 4:21 pm to LSUAfro
quote:

If you can't understand why a good credit score can help you


Well I did search. Saw plenty of posts on improving a credit score but nothing on not actually needing credit (which is at the heart of my original question).

I truly understand how good credit is better than bad credit. It just seems to me the government is not the only one with a lot of unnecessary debt.

So, can we live without consumer credit?



Reply  •  Back to Top
Posted by Tigerpaw123 on 11/12 at 4:29 pm to Daygo85
Life insurance uses credit score for rates

would need credit if something happens to your house such as fire or flood and you need to buy a new one

I am sure there are several other things, so take it for what it is worth



Reply  •  Back to Top
Posted by trillhog on 11/12 at 4:32 pm to Daygo85
if you got lots of money, no, otherwise yes.


Reply  •  Back to Top
Posted by jso0003 on 11/12 at 4:36 pm to Daygo85
If you have the discipline to live cash only, is it really that much of a leap to just use a credit card for utilities or something and keep it paid off?


Reply  •  Back to Top
Posted by Daygo85 on 11/12 at 4:57 pm to trillhog
quote:

if you got lots of money, no, otherwise yes.


So one has to have lots of money to buy stuff. If not they NEED credit? Hmm


quote:

If you have the discipline to live cash only, is it really that much of a leap to just use a credit card for utilities or something and keep it paid off?


I like the way you think. But how can I buy that $35,000 car when I only make $50K a year (you see where I am going with this?).



Reply  •  Back to Top
Posted by foshizzle on 11/12 at 5:20 pm to Daygo85
quote:

how can I buy that $35,000 car


If you have good credit, no problem.

The problem is in justifying the expense. Buy used.



Reply  •  Back to Top
Posted by CajunTigerBabe on 11/12 at 5:38 pm to Daygo85
Don't be stupid. A person can use credit with out being in a lot of debt.


Reply  •  Back to Top
Posted by tigeryat on 11/12 at 7:43 pm to Daygo85
Your credit score affects the cost of every insurance product you own.


Reply  •  Back to Top
Posted by foshizzle on 11/13 at 4:07 am to Daygo85
One can live without credit, sure. But why would you want to? There's a big difference between borrowing foolishly and borrowing wisely, having the option of doing the latter is very good.

Not to mention that getting 1-2% cash back on virtually everything you buy is nice.



Reply  •  Back to Top
Posted by CoolHand on 11/13 at 7:31 am to LSUAfro
quote:

Will Cover in 3..2..1 with his nonsense.


Was that necessary?

To the OP, yes I think it is "possible". I've got a great credit score, but the only time I've really needed it in the past ten years was during a refi. I'm not sure what would have happened without the score.



Reply  •  Back to Top
Posted by LSUAfro on 11/13 at 8:26 am to CoolHand
quote:

Was that necessary?
Yes.
This troll called me out on the F&D board unnecessarily, so I figured I'd return the favor on the MB.


Now I'm just disappointed he hasn't showed up. I'll give him some more time.


This post was edited on 11/13 at 8:29 am

Reply  •  Back to Top
Posted by CoolHand on 11/13 at 9:07 am to LSUAfro
I see. I actually don't see him around here much anymore.


Reply  •  Back to Top
Posted by Shankopotomus on 11/13 at 9:25 am to Daygo85
unfortunately, yes.

determines insurance premiums, credit card rates, all sorts of things. you don't have to be in debt to have a good credit score FYI



Reply  •  Back to Top
Posted by Zach on 11/13 at 11:53 am to Daygo85
I own my home and have no debt. I shall only make one more move, to the grave. There is no need for me to have a credit score, good or bad. But when I built my house 16 years ago it was very important that my credit was good.


Reply  •  Back to Top
Posted by TheHiddenFlask on 11/13 at 2:23 pm to Zach
In theory, it is possible.

However, a good credit score costs nothing. If you use a rewards card and pay it off every month you can get ~2% back.

There is absolutely no need to ever carry any debt to have a good score.



Reply  •  Back to Top
Posted by datdude3384 on 11/13 at 4:05 pm to Daygo85
I will answer the question you should have asked "Is a credit score worth a shit?"

- No, it's a laughable model to use as a whole, amongst many other issues. That being said, I acknowledge that there are few other blunt comparable alternatives so institutions will use what they can, and most banks/users have their own modifications and use it as a basis for a forward looking framework.

Your original question is asinine, of course it's possible, but it's not wise as many have pointed out. Hard to be seriously wealthy without levering up brah.



Reply  •  Back to Top
Posted by Tiger n Miami AU83 on 11/13 at 5:31 pm to Daygo85
quote:

I like the way you think. But how can I buy that $35,000 car when I only make $50K a year (you see where I am going with this?).


It can be done, but you will need good debt to income ratios and about 20% down and will need to go to a credit union.

I had shitty credit several years ago, but made good money with zero debt and enough in my 401k, IRA to pay cash for a nice car if I wanted.

Bought a Benz with 25% down, about a 12-15% debt to income ratio and showed enough in retirement assets to buy the car with cash. Got a loan at a credit union pretty easily with about a 575 FICO, but it was a manual underwrite and basically a no brainer considering I had no debt, good assets and good income.

So, yeah, you can make large purchases on credit with a shitty score but it has to make a lot of sense to the credit union (I had no prior relationship with them, just walked in) and have shown you can build some assets and have a low DTI ratio.

Oh yeah, this was in 2008 when credit had already gotten super tight due to the housing crash.



Reply  •  Back to Top
Posted by Meauxjeaux on 11/13 at 6:27 pm to Daygo85
Every insurance you buy now is partially based on your credit score.

Pisses me off to high heaven.

Our homeowners is routinely $500-$800 a year more than it should be because we struggle with bad credit.

I have a sick child and medical collections pop up on my credit report continuously (a whole other thread).

We have been a GREAT risk on our homeowners... no claims, low risk, etc.... and yet my score is based on lifelong family illness and not my status as a homeowner.



Reply  •  Back to Top  •  Refresh
Return to Board
Jump to Page   

           Page 1 of 2           


 

 Message Boards
 Tiger Rant
 Recruiting Board
 SEC Rant
 Saints Talk
 Pelicans Talk
 More Sports Board
 Coaching Changes
 Soccer Board
 O-T Lounge
 Tech Board
 Outdoor Board
 Movie/TV Board
 Music Board
 Political Talk
 Money Talk
 Fark Board
 Gaming Board
 Fantasy Sports
 Food and Drink Board
 Ticket Exchange
 Help Board
 

 News
 LSU
 More Sports
 Sports Lite
 

 Other Options
 >> Search
 

 SECRant.com Links
 SEC Rant
 SEC Recruiting
 SEC Tickets
 Off-Topic Board
 

 Geaux.com Dining Guide
 New Orleans
 Baton Rouge
 

 Site Features (Full Version)
 Home Page
 LSU Football Schedule
 Pick'em Home Page
 
Back to top
Sign In 
View in: Desktop
Copyright ©2014 TigerDroppings.com.