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> A credit card isn't gonna make that big of an impact on the kinds of purchases you truly need credit for (land/housing). Yes it will. I know a few people wh
by twblalock 4y ago
> A credit card isn't gonna make that big of an impact on the kinds of purchases you truly need credit for (land/housing).
Yes it will.
I know a few people who avoided credit cards well into their 20s. They ran into trouble with credit checks for renting apartments and buying cars. Imagine being nearly 30 years old with a good income and no debts, but needing to ask your parents to cosign on a car loan simply because you have no credit history of any kind. That does happen.
- abfan1127 4y ago"Avoiding credit" means no car loans either. Paying cash for such things. Arguably the only loan one should consider (imo) is a home loan. And while many banks are dumb, there are plenty of lenders which will underwrite a loan based on limited credit. Especially, when you can show income with 20% down, etc. source: dave ramsey.
- _skel 4y agoDebt is a useful tool for people who can control themselves. Dave Ramsey caters to people who need unusually strict financial discipline to avoid getting in trouble. For everyone else, responsibly using debt is often better than paying cash. For example, paying cash for a car is often worse than taking a low-interest loan. Liquidity is important -- locking up a bunch of money in a car means you can't use it for other things, like investments or emergency savings. Another example: taking out a loan for a large purchase, rather than liquidating investments to pay cash, can cost less overall because the interest paid on the loan might be lower than the capital gains taxes on the investments.
- deleted 4y ago[deleted]