"For when you will want to buy a car or a house!"

Discussion in Credit Cards started by hellavu • Dec 30, 2014.

  1. hellavu

    hellavuActive Member

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    When I was younger, I was not convinced by credit cards. I thought it pointless to pay with credit what I could pay with money; I liked going to the bank, withdrawing the money I'd need over the next week/two weeks, and using this money to pay whatever expenses came with.

    Then, someone came up to me and said: "Even if you never use it to get extra credit, you should still use it so that later in life, they can check at your credit card balance and payments and let you buy a house or a car." I did not plan to want to own a house or a car, not anytime soon if ever, so I showed my doubt, and the person continued, "Anyway, you just have to make at least a few transactions every month and pay it in full right away, what's the big difference?"

    So I did this. I got a student card and enjoyed the convenience. And it was a lot of convenience! From buying online, to buying airplane tickets at the drop of a hat, to just not have to carry change on me, it worked well.

    I still don't think I would want to buy a house or a new car. I am curious though how much difference would it make? I've stopped using my credit card since half a year, since I've came to Europe I use cash exclusively. Would that make a difference, provided I ever wanted to get that elusive house?
     
  2. Dora M

    Dora MWell-Known Member

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    I have a very strong opinion about showing anyone my credit card details, even if I had a credit card. :)
    It's nobody's business what my bank balance is like. Even if it's common practice these days to present all your personal details if you want to buy a house or a car, I don't care. If I need or want to acquire a house or a car, I will look into alternative options. It's too much information for all kinds of institution that I don't care to provide.
     
  3. hellavu

    hellavuActive Member

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    Very good point, people who pry too much when wanting to sell/rent me something out are not people I want to make business with. Especially in a renting agreement, because it becomes long term.

    I think though it is necessary if someone wants to make a loan from the bank? But then I don't know how much very old, teenage and student years credit scores matter vs actual income. And how having periods with no credit card would pose a problem.
     
  4. MrsJones

    MrsJonesActive Member

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    It's good that you have put your credit card on vacation. It sounds that you have established your credit by the purchases that you have made so that if and when you should decide to purchase a car or house it should prove in your favor for the loan. This of course is true as long as you've paid on time or paid off those debts.
     
  5. Pat

    PatWell-Known Member

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    I also pay cash for all of my items. I want to purchase a car but because I have no credit not bad credit just no credit I will have to purchase an older car with cash because so it does several a purpose to have at least one card that shows you have been using it and paying it. I did have credit at one time and choose to no longer carry cards.