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Started By
Message
Is having a credit score really necessary?
Posted on 11/12/12 at 4:06 pm
Posted on 11/12/12 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.
Discuss...........if possible.
9
Posted on 11/12/12 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
Posted on 11/12/12 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?
Posted on 11/12/12 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
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
Posted on 11/12/12 at 4:32 pm to Daygo85
if you got lots of money, no, otherwise yes.
Posted on 11/12/12 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?
Posted on 11/12/12 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?).
Posted on 11/12/12 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.
Posted on 11/12/12 at 5:38 pm to Daygo85
Don't be stupid. A person can use credit with out being in a lot of debt.
Posted on 11/12/12 at 7:43 pm to Daygo85
Your credit score affects the cost of every insurance product you own.
Posted on 11/13/12 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.
Not to mention that getting 1-2% cash back on virtually everything you buy is nice.
Posted on 11/13/12 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.
Posted on 11/13/12 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 11/13/12 at 8:29 am
Posted on 11/13/12 at 9:07 am to LSUAfro
I see. I actually don't see him around here much anymore.
Posted on 11/13/12 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
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
Posted on 11/13/12 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.
Posted on 11/13/12 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.
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.
Posted on 11/13/12 at 4:05 pm to Daygo85
I will answer the question you should have asked "Is a credit score worth a shite?"
- 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.
- 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.
Posted on 11/13/12 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.
Posted on 11/13/12 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.
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.
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