Credit Rating

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my question is would that be a good idea to establish a little credit right now?

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Yes.

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my question, will you ever need credit down the road?

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yes, I'm 24

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yes, I'm 24

will probably buy a business practice down the road, house, etc.

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The answer to your question is obvious.

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I would assume that >99% of Americans will encounter a situation where their credit score will impact them financially at some point in their life. The answer to this question from a fiscally responsible point of view is always, yes, build credit.

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I was making sure we didn't have a 1%er here brah.

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I was making sure we didn't have a 1%er here brah.

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And apparently we have a few of the 1%er's on this board from what I've read.

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my parents say its not a good idea

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to have good credit?

I've been with USAA for seven years and couldn't be happier. Call them and let them know you're situation and they'll give you a credit card with a $1,000 limit. It's a start to help build your credit

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would that be a good idea to establish a little credit right now?

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Yes! Having established credit will make things a lot easier for you down the road. Find a 0% to low interest rate rewards card and use it strictly for gas/groceries and pay it off every month. That way you don't get into a habit of overspending.

My first CC was a best buy card. Had a $1300 limit and bought a TV and had 36 months no interest as long as I payed the minimum each month. I easily paid it off in a few months and I didn't incur a lick of interest.

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Find a 0% to low interest rate rewards card and use it strictly for gas/groceries and pay it off every month. That way you don't get into a habit of overspending.

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The problem with most people is that they do overspend.

It's one of the reasons why the average American family has nearly $16K in credit card DEBT.

The sting of the charge is not immediately felt at the cash register when you use a credit card. But it hurts like hell when you pay for it with cash.

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The sting of the charge is not immediately felt at the cash register when you use a credit card. But it hurts like hell when you pay for it with cash.

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I've heard this repeatedly from people pushing their debt free books, but it makes no sense to me. Cash comes out of my pocket like it's on fire, but if I'm putting it on my credit card, or debit card I actually think about my ability to pay it timely.

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The problem with most people is that they do overspend

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He's not asking if you think he's financially responsible enough to handle a credit card.

He's asking if it's a good idea to begin to establish credit.

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If you can pay for everything in cash, establishing credit will not matter.

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Sure. That sounds great, but it is virtually impossible for most, and in some cases it doesn't even make the most financial sense to pay cash.

To tell someone that they should pay for everything in cash and make no attempt to establish credit is doing them a huge disservice.

You never know when a situation might arise that will need you to rely on having a solid credit history, and being denied an opportunity or being penalized with high interest rates because you refused to believe that you would ever need solid credit history is silly.