6 ms·

Good for you - keep it that way. Contrary to popular belief you can still get a mortgage (it's called manual underwriting, and a copy of a written budget plus

Good for you - keep it that way. Contrary to popular belief you can still get a mortgage (it's called manual underwriting, and a copy of a written budget plus proof that you have no other debt makes you a desirable borrower) and anything else you'd need a credit score for is probably better off being paid for with cash.

abfan1127 11y ago
this is the best advice ever. Staying debt free is critical to amassing wealth. I wish I would have received this advice sooner in life.
- jeremyt 11y ago
  Worst advice ever. A credit score is not just for getting a mortgage or a car loan. When I lived in New York, I had to have an acceptable credit score to get an apartment in most places. Not to mention, when I signed up for a Verizon account under an LLC that I have with my dad, we were forced to put down an $800 per phone deposit because the company had no credit history. Same with utilities. When I was starting a company, the bank wanted to check my credit score to decide whether I was going to get a checking account or not. This has happened twice, once with my previous company and a merchant account for credit cards. I haven't ever personally, but I've also talked to people who check credit scores as part of employment evaluation. Also, having a higher credit score gets you a better interest rate if you do need a loan, which can be worth a whole lot of money. You have every right to make the choice to live without credit, but I would have a hard time arguing that it's the smart play.
  - abfan1127 11y ago
    having done all of those, it was without a credit score.
- up_and_up 11y ago
  Actually building and attaining good credit is a valuable asset in its own right. Building wealth is more than refusing to play the game and putting money in a shoebox. Be disciplined and use various financial vehicles for your advantage. No credit == Bad credit. This equates to you being seen as more risky which equals you paying more interest for any loan in the future. Having good credit also afford you more opportunities. I only know b/c I avoided holding a CC and loans for years until it started to hurt. Now I use them with discipline and for my advantage and am 810+
  - abfan1127 11y ago
    Like I said, I'm not interested in taking loans, regardless of interest rate, as the risk associated with such aren't worth it for me. I've seen what debt does. Its like a drug. Look at all of the comments and they all sound like drug abusers. "Use it responsibly" or "I can handle it". You are welcome to borrow, I'm taking my ball and going home. I won't ever borrow again. If I can't pay cash, I can't afford it.
- __z 11y ago
  There is nothing bad or irresponsible about using some credit responsibility.
__z 11y ago
>anything else you'd need a credit score for is probably better off being paid for with cash. Your credit score has become a stand-in for a whole bunch of non-credit related things. You get lower insurance rates with a higher credit score and vis-versa. Every landlord nowadays requires a minimum credit score and employers will check your credit report as well. For the last item not having credit won't be a problem, however, they are just looking for negative items. Utility companies (cell phones, internet, electricity) usually require a down payment for those without a credit history (or those not wishing to authorize a credit check). Your credit is pulled when you get a bank account (don't know the consequences of not having a credit report for that one though - if you don't show up they may make you prove your identity more?)
- bdcravens 11y ago
  > Every landlord nowadays requires a minimum credit score Not accurate, though it may be true for a typical apartment complex.
  - __z 11y ago
    Depends on the region, of course, I should have put that as a disclaimer. Where I live you absolutely can't get an apartment from anyone unless you submit to a credit/background check (and pay for it yourself of course). This wasn't the case a few years ago but that's how it is now.
    - bdcravens 11y ago
      Perhaps you should clarify apartment landlords, since many houses are owned by individual real estate investors who lease out the properties, and who have a different set of requirements when it comes to single-family dwellings.

abfan1127 11y ago

this is the best advice ever. Staying debt free is critical to amassing wealth. I wish I would have received this advice sooner in life.

jeremyt 11y ago
Worst advice ever. A credit score is not just for getting a mortgage or a car loan. When I lived in New York, I had to have an acceptable credit score to get an apartment in most places. Not to mention, when I signed up for a Verizon account under an LLC that I have with my dad, we were forced to put down an $800 per phone deposit because the company had no credit history. Same with utilities. When I was starting a company, the bank wanted to check my credit score to decide whether I was going to get a checking account or not. This has happened twice, once with my previous company and a merchant account for credit cards. I haven't ever personally, but I've also talked to people who check credit scores as part of employment evaluation. Also, having a higher credit score gets you a better interest rate if you do need a loan, which can be worth a whole lot of money. You have every right to make the choice to live without credit, but I would have a hard time arguing that it's the smart play.
- abfan1127 11y ago
  having done all of those, it was without a credit score.
up_and_up 11y ago
Actually building and attaining good credit is a valuable asset in its own right. Building wealth is more than refusing to play the game and putting money in a shoebox. Be disciplined and use various financial vehicles for your advantage. No credit == Bad credit. This equates to you being seen as more risky which equals you paying more interest for any loan in the future. Having good credit also afford you more opportunities. I only know b/c I avoided holding a CC and loans for years until it started to hurt. Now I use them with discipline and for my advantage and am 810+
- abfan1127 11y ago
  Like I said, I'm not interested in taking loans, regardless of interest rate, as the risk associated with such aren't worth it for me. I've seen what debt does. Its like a drug. Look at all of the comments and they all sound like drug abusers. "Use it responsibly" or "I can handle it". You are welcome to borrow, I'm taking my ball and going home. I won't ever borrow again. If I can't pay cash, I can't afford it.
__z 11y ago
There is nothing bad or irresponsible about using some credit responsibility.

__z 11y ago

>anything else you'd need a credit score for is probably better off being paid for with cash. Your credit score has become a stand-in for a whole bunch of non-credit related things. You get lower insurance rates with a higher credit score and vis-versa. Every landlord nowadays requires a minimum credit score and employers will check your credit report as well. For the last item not having credit won't be a problem, however, they are just looking for negative items. Utility companies (cell phones, internet, electricity) usually require a down payment for those without a credit history (or those not wishing to authorize a credit check). Your credit is pulled when you get a bank account (don't know the consequences of not having a credit report for that one though - if you don't show up they may make you prove your identity more?)

bdcravens 11y ago
> Every landlord nowadays requires a minimum credit score Not accurate, though it may be true for a typical apartment complex.
- __z 11y ago
  Depends on the region, of course, I should have put that as a disclaimer. Where I live you absolutely can't get an apartment from anyone unless you submit to a credit/background check (and pay for it yourself of course). This wasn't the case a few years ago but that's how it is now.
  - bdcravens 11y ago
    Perhaps you should clarify apartment landlords, since many houses are owned by individual real estate investors who lease out the properties, and who have a different set of requirements when it comes to single-family dwellings.