Originally Posted by BoilerUpXFire
Steve, I am going to have to strongly disagree here. I have great credit, am under 30 years old, own my own house and cars, and have some debt, and my credit score is higher because of it. I am talking about using credit cards, but paying them off EVERY month, and having a mortgage payment and currently, a car payment as well. This credit allowed me to save several hundred dollars a month on my mortgage because of my good standing, the interest rate was super low.
If I never had any debt, yes, I would not have any debt, but when you are going to make a large purchase, lets say a house, because that is the only thing you did not pay cash for, you get hung out to dry on the rate, if they will even give you a loan at all. Some banks do not care if you have cash in the bank and no debt, if you have no credit history, you are screwed.
It is all about being responsible, and we agree on that.
i guess we have to agree to disagree. when i bought my house i borrowed the money for it. the only thing i will borrow for. i have zero credit cards and i put 60,000 down on a 115,000 house. my interest rate in 2005 was 5%. bank didnt care at all about my credit rating. they cared about my ability to repay the loan. good job no debt big downpayment = house. that simple.
as for renting a car my debit card worked just fine last month when i rented a car in fl. even got my AAA discount!
blackcrossfire in theory you are correct. what you failed to realize is that if you lost your job tommorrow and it took 3 months to find another that paid 15,000 per yr less would you be able to pay all the debt owed? thats were a majority of the country failed to relize and fell into that black pit of borrow borrow. still gotta pay it back job or not.
as it is america folks are free to do as they please. for me ill stick to the old theory of save and pay cash. no stress and i get to have my toys and hang with the gang on here. just works for me!
