Great Credit Cards
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- johndiggity0
i had no credit card when i bought my first car, hence, no credit. i had to either pay 19.6% on a 60 mo. loan or get my mom to co-sign. if had used a credit card on a pack of gum every month and paid it off to build excellent credit, i would have qualified for the 0% apr special. i may be paying to use money, but not nearly as much as i could be.
- So now that you have established this credit you have stopped doing that, right?DrBombay
- no. you have to maintain your credit to keep the score high. it's like a game. but it is not fun like a game.johndiggity
- How many houses are you planning to buy?DrBombay
- DrBombay0
Mortgages and car interest are at historical lows right now and will be for quite some time. I just can't see any real benefit.
- you need credit to qualify for a lot of the special deals now. no one is lending to people with bad credit. that's how this mess started.johndiggity
- started.johndiggity
- ETM0
The benefit now is that they are being far more strict on who they even give mortgages/credit to. Its also short term thinking to neglect your credit score because the economy is forcing low rates. Most rates are attached to prime and when prime rises, you want to be able to have good credit so they still allow you low rates.
I am surprised when people take credit so lightly. Saving even 1% on your mortgage can mean hundreds a month depending on the borrowed amount.
- DrBombay0
I think you guys are brainwashed a bit into thinking you need all of this credit. Get a house and a car loan. If you pay off your car loan you will get another car loan.
- johndiggity0
it is really much cheaper and healthier credit-wise, to put a little on a credit card and pay it off every month, paying no interest, than having a credit score that can raise any loan rate by even a tenth of a percentage point. especially on something long-term like an auto or home loan.
- ETM0
Really? You have a $300,000 mortgage (modest today). Using some fairly current, average examples:
Have average credit and get the average rate 6.250%
6.250% = monthly payment of $1979 month over 25 yearsQualify for the best offered rate of 5%
5.00% = monthly payment of $1250 month over 25 years.Saving $529 a month on a mortgage for having great credit? What a stupid brain-washed scheme.
- DrBombay0
Do you guys live in apartments currently?
- i do yesjohndiggity
- I have a mortgage with a low rate and no car and no interest in a car unless I have a kid.DrBombay
- So in my situation credit isn't really a huge issue.DrBombay
- I have a house, a wife, a kid, 2 cars and a cabin. Its freakin' important to me! :)ETM
- I don't understand why. I guess I am content owning one house and paying for things I can afford.DrBombay
- Who said I couldn't afford it? I'm not strained, We obviously just come from different places. Which is fine.ETM
- DrBombay0
Also, a larger downpayment on most things can manipulate that interest rate as much as any high credit score can and it doesn't cost you anything.
- ETM0
Why you would be against having good credit, is beyond me. If you're not in debt, then its a healthy thing to do for the present and future. Opens more doors, more options, and saves money on things that have to be financed (home etc.).
I feel like we're just repeating ourselves now, so I'm out. Good conversation.
- DrBombay0
I have good credit, own a house etc. I just don't feel the need to pay a card company monthly to get some abstract number higher for the sake of having "great credit" that I will never use. But hey, to each their own.
- TheeOtherJuan0
My father use to have "Diners Club". It since has been bought off by a big bank but still available with all the perks.
- dibec0
... the best ones are the ones that have a zero balance owing.
- lukus_W0
I will never have a credit card again - they're far too expensive. Sooner or later, you have a bad month - can't repay in full .. and you're trapped.