How important is credit to you?

Question

Do you know what your score is
Need to be at least 630.

Dont use a credit card with a limit of $ 500.00 no more that $200.00. Do you know that can mess up your credit

Paying cash is not good. You can not show lenders responsiblity with that. You cant go over you credit limit because it looks like you cant afford what you have. Also credit is all about debt to ratio

Answer 1

I think people are too fixated on their credit score. It sometimes doesn't make any sense why a score can go up or down for the slightest difference. For instance, I have a credit card that I rarely use. I will use it a couple of times a year. Not using it for more than 6 months and then suddenly using it can lower your score. If there is a zero balance and then you charge $50, your score can go down, because the charges increased by more than 25%. If you have good credit and never missed a payment and for some reason a bill gets crossed and you are out of town where you go over 30 days, your score can drop as much as 100 points. Everything else may look great, but this one time you run over and it suddenly drops. There are many causes for fluctuations in your score. Most people don't understand the formula and how it works. A score of 650 or more is usually considered good and you can usually get a credit card or loan at fairly decent rates. There are lenders who cater to those with lower scores, but you will pay a premium for using them.

It is difficult for most people to get along without some credit. Most want to have immediate gratification or the things they want now, rather than waiting as they save for purchases. That is how most people get into trouble. There are instances where someone gets out of work for a time or illness is present, but for the most part, it has to do with wanting it now, whether they can afford it or not.

Frankly, I think we would all be better off by waiting to make purchases until we can afford to pay cash. We would have more money and anything we purchase would be ours. If you buy a car an finance it you will at least double the price you pay. A home will cost at least double or even triple the purchase price when you consider interest. You may need a car, but do you really need to spend $50,000 for transportation? You could save and spend $3,000 and get a good car and not have the payments. You may need a place to live, but do you need to spend $500,000? You may be able to find something smaller for $50,000 or perhaps $100,000. Somehow, we seem to have confused want with needs. We may want an expensive SUV. What we need is transportation. We may want a 5,000 square foot house. What we need is shelter.

Answer 2

My credit score rating could be very main to me. however i need to say it did not come to be main till i bought into my 20s. When i graduated from top tuition and in a position to go into institution i used to be getting all form of presents from collectors and prefer a immature baby i carried out and was once granted a card. However, now not considering that after i went off to tuition i used to be going to want a process to pay my expenditures. I did not paintings my first 2 years in institution and accrue a debt of 10,000 in bank cards and now I'm nonetheless paying them off plus i've 25,000 in loans so I have confused out approximately my debt for the beyond two years..... I had peers that still had bank cards however that they had mother and father to aid them. I did not.... so I hate i signed up for any card till i graduate from institution. Don't make the equal mistake i did. O yeah my rating is beneath 610. I purchased a modern day vehicle in 2005 and I needed to have a cosigner. My vehicle is a 2005 and I have under no circumstances been past due. This is my best large cost and if i attempt to get anthing they desire permit me for the reason that at the same time i used to be in institution my debt went unpaid. i heard it'll take three to 7 years to get it strait. I"m so saddened.