Why worry about your credit score?

Question

The only legitimate thing to borrow money for is a house. Otherwise, you shouldn't buy things if you can't afford them.

You don't need a credit card. Use a debit card. Other than obtaining a mortgage, there is no viable reason to give a damn about your credit. Either you have the money or you don't. If you don't have the money, then don't do things.

And there is no reason to believe I am wealthy so quit whining about how poor you are and stop borrowing money (except for a house)...and pay that freakin' thing off too.

Want a car? Save for it or drive what you have.

Answer 1

1) down payment on a house
2) interest rate on private student loans
3) good credit = no deposits for utilities
4) good credit = lower interest rates
5) good credit = less hassel on starting cell phone and internet accounts

I agree with you though.
If you don't have the money, don't freakin' buy it, unless in the case of dire need or emergency (need does not equal want).

Everytime you go to the store to buy a pair of undewear or jeans for example, you get sales pitched for that store's credit card. Jeez, just say thanks for patronizing the store and leave it at that. I reply to these offers with, "I think I'd rather vote repulican than sign up for your lousy card." That ususally shuts down the pitch.

Best of luck to you.

Answer 2

There are a few reasons to have a good credit score.

The basics of credit simply say whether you apprear to be a risk to lenders, but the idea of risk is broader than that. True - you need a good credit rating to qualify for most home loans, but they do also offer sub prime loans, and if you put enough money down you can usually finance the remainder regardless of how bad your credit looks.

Your question was more specifically why bother. here are a few reasons why you need to have good credit outside of the realm of finance:

If you are looking to rent an apartment they will pull your credit to see if you have a history of delinquencies - since they are granting a sort of service credit (you get a home - they get paid each month) they want to make sure that you dont have a history of defaulting on your monthly obligations.

If you are in the millitary - your ability to rise within the military will be hampered if you have bad credit and or a lot of debt... why? because you appear to be a risk - if you are given sensitive information and have a lot of debt there is a direct correlation to whether or not you would be more willing to sell that sensitive information to a subversive group or china - etc. Your credit would oslao convey whether you are a risk for that.

Same goes for employment in areas where intellectual property and sensitive documents abound... the more you owe and worse your credit is, the more likely that someone could bribe, persuade or convince you to give them that information.


Now having bad or no credit does not mean that you are a criminal or that you would be willing to give sensitive information away, but you fall into a category of people that are MORE LIKELY to do so.

Its relatively easy to get your credit in line, and you dont need to borrow or owe thousands to do so.

Think of it like this - if you are going to a business to use some service they offer you'd want to know that they have done that service before... same goes for you as a borrower or consumer- they want to know that you have borrowed money and paid it back...

my two cents

Answer 3

It sounds like you have it figured out pretty well.

In the future you will likely be able to get a good mortgage rate with an alternative credit score(based on rent, utility and other payments). However these days you still need to have credit established to get a good mortgage rate.

A car loan can be helpful if you are just starting out and need reliable transportation. However with cars get more reliable, this is becoming less of a reason to borrow money.

Student loans really depend on the motivation whether they are positive.

Answer 4

I agree that you shouldn't borrow money needlessly. However, your good credit score can get you lower car insurance premiums, lower interest rates on a house or car, and money in an emergency. You also need a credit card to rent a car, make hotel reservations, and for emergencies on a trip. Can't get a credit card (with a good interest rate) without a good credit history.

Answer 5

the better your credit score, the better type of home loan you can obtain, as in lower interest rates, lower down payment, and higher loan amounts. So, unless you can pay for a house with outright cash, your credit score is VERY important. and will determine the location and size of your house. Also, credit scores are extremely important if you want to finance a new automobile purchase. You credit score can influence the difference between driving a Hyundai or a BMW, for basically the same monthly payment.

Answer 6

Your credit score is important, it determines your interest rate, how much money you qualify for, lots of things. I just bought a car and because my credit score is now over 700, after a long period of bad credit due to my husband's disability, I didn't have to show proof of employment, no personal references, I qualified for the lowest interest rate Honda Motors offers, and then I refinanced with my own company and got an even lower interest rate and one year knocked off the loan without hardly any change in the monthly payment. Credit scores mean a lot. And after I cleaned up my credit I refinanced my house and qualified for a much lower interest rate which lowered my payment quite a bit.

Answer 7

Lots of companies these days check your credit before they provide a service or will open an account for you

For example... want a cell phone? They check your credit. Want a visa or mastercard? They check your credit. Want to rent an appartment? They check your credit too.

There are lots of good reasons to keep a good credit rating - not just to borrow money to buy a house or car, but to make it easier to get a cell phone / visa / rent anything more costly than a video.

Answer 8

I agree, mostly. Everyone should worry about their credit score, though, because eventually everyone will want to buy a home like you said. So, have a credit card or two, but always pay the bill IN FULL, every month. Also, always pay your utility bills on time.

Answer 9

Actually, your going to have to have a good one if you want to:

buy a car
get auto insurance
get home insurance
a good job
get a credit card

Without a decent credit score your rates will be higher for your insurance, and any money you borrow will have a higher interest rate.

Answer 10

You will need credit for renting a place to live, many jobs check credit, as well as it simply being what a person who cares about themselves and other people would want to do. If not, you may end up as one of the people in this Q&A forum asking for help because you are getting your wages garnished.

Here is some additional info. I suggest you check it out.