Page 3 of 5 FirstFirst 12345 LastLast
Results 41 to 60 of 84

Thread: Build credit

  1. #41
    Join Date
    Sep 2007
    Location
    Boone, NC
    Posts
    6,230

    Default

    Quote Originally Posted by SCSwitchback View Post
    I’ll also disagree on keeping a credit card active. Use it to build a credit score and maintain it while getting a nest egg built up. One you’ve gotten a home loan or car loan, burn the credit card as it’s then served it’s purpose.

    I was able to obtain several free flights (and bumped up to first class) as well as a 4 day vacation to a nice resort in the Keys with points just from every day spending. My credit card saved me around $2000 in flights alone in 2021.

    I think I’ll keep using it and paying them off every month.

  2. #42
    Join Date
    Nov 2010
    Location
    Summerville, SC
    Posts
    7,297

    Default

    Quote Originally Posted by SCSwitchback View Post
    That’s an opinion, not a rule. Someone in position to pay cash for whatever they buy isn’t paying BS interest on cars/boats/a tv, etc. That savings easily offsets any marginal increase you might see in insurance. I’d agree that young adults need to establish a strong credit score to get started in life but insurance doesn’t factor into that.

    You couldn't be more wrong if you tried.
    I've seen the use of "financial stability" (credit score) in the insurance industry morph over the years and the real affect it has on rates literally thousands of times. Insurance companies use "insurance scores" (credit) to determine eligibility for coverage and the rates charged every day.

    "offsets any marginal increase you might see in insurance." Most folks would consider a 50% difference in pricing more than "marginal" when a $600 premium jumps to $900.

    I've been licensed in insurance since 1989 and have seen the use of credit to set insurance premiums morph tremendously over the years. The algorithms that insurance companies have been using over the years to set a client's insurance score are considered proprietary and do not have to be disclosed to the state dept. of insurance. As such, the algorithm can be surreptitiously adjusted by the insurance company to achieve a goal such as back door rate increases that would require normally require dept. of insurance approval.
    Last edited by scatter shot; 12-01-2021 at 09:34 AM.

  3. #43
    Join Date
    Jan 2016
    Posts
    2,773

    Default

    Quote Originally Posted by Saltydog235 View Post
    That's one way to look at it. I pay my utilities, marina slip, household expenditures etc on one, end of the month I pay the mortage and a credit card bill and I'm done with bills. Business wise, other than supplier/subcontractor accounts, everything goes on a card with a job assigned, makes tracking easier. Pay it off every month. It isn't about not being able to afford it for a lot of folks, it's about convenience and simplifying things. Yes, it takes discipline because some people cannot walk away from that shiny new toy.
    That and exposing your information from your bank account is now borderline stupid. Happened to my wife once. Somehow someone got her dept card information in California. Never been and prolly never will go to Cali. We caught it early and got new cards and all the money back. Since then everything goes on a credit card and gets paid off.
    “Duck hunting gives a man a chance to see the loneliest places …blinds washed by a rolling surf, blue and gold autumn marshes, …a rice field in the rain, flooded pin-oak forests or any remote river delta. In duck hunting the scene is as important as the shooting.” ~ Erwin Bauer, The Duck Hunter’s Bible, 1965

  4. #44
    Join Date
    Nov 2010
    Location
    Summerville, SC
    Posts
    7,297

    Default

    And I'll stand by my original post, Dave Ramsey is an idiot.

    Don't be like Dave Ramsey.

  5. #45
    Join Date
    Nov 2010
    Posts
    1,255

    Default

    Quote Originally Posted by SCSwitchback View Post
    Correct, I’m not arguing that. But once you’ve established credit and bought a home, making the payments on that home are going to rebuild the credit score. At that point, there no reason to keep the card unless you just want to buy stuff that you can’t afford. If you can afford it, just pay for it.
    Credit Cards have more uses beyond just building credit. In the right hands they can be very beneficial. The money I spend on my credit card I am going to spend either way. So I put it on my credit card and pay it off at the end of the month, never paid a dime of interest. But then when I travel to hunt, or travel for vacation, I rarely have to pay for a plane ticket or a hotel room. The credit card rewards take care of that. So I pay a ~$70 card fee per year and use a couple thousand per year in rewards. I'm not the best at math but that seems like a good deal.

    Not to mention it's impossible to shop online without a credit/debit card. Dealing with fraudulent charges on a credit card is super easy, fraudulent charges on a debit card, not so much.

  6. #46
    Join Date
    Nov 2010
    Posts
    1,255

    Default

    Quote Originally Posted by huntinghagen#12 View Post
    I was able to obtain several free flights (and bumped up to first class) as well as a 4 day vacation to a nice resort in the Keys with points just from every day spending. My credit card saved me around $2000 in flights alone in 2021.

    I think I’ll keep using it and paying them off every month.
    Blows my mind that this opportunity is out there, and people that are disciplined with their finances still don't use them.

  7. #47
    Join Date
    Jun 2011
    Location
    Columbia, SC
    Posts
    3,946

    Default

    I watched a friend who never had a credit card, paid cash for car and boat, very financially responsible, get screwed on rates when he bought his first home. Bank said bc he had no proof of credit he could get a good rate. He got a credit card with a low limit, reapplied a year later and got a much better mortgage rate.

    CCs are a necessary evil in today’s world.
    Sea Ark 1542 w/ Yamaha 40
    Xpress 16 w/ 50 Hammer
    War Eagle 15 w/ 30 Hammer

    --------------------------------------------------

    "Sometimes you gotta grab the bull by the horns and the women by the tits and take charge in your life" - General Patton

    "I'm very drunk and I intend on getting still drunker before this evening's over."
    - Rhett Butler

  8. #48
    Join Date
    Oct 2015
    Posts
    2,265

    Default

    Quote Originally Posted by Buckin Bronco View Post
    I watched a friend who never had a credit card, paid cash for car and boat, very financially responsible, get screwed on rates when he bought his first home. Bank said bc he had no proof of credit he could get a good rate. He got a credit card with a low limit, reapplied a year later and got a much better mortgage rate.

    CCs are one of the best personal finance inventions of the past 100 years.
    FIFY

  9. #49
    Join Date
    Sep 2008
    Location
    Carolinas
    Posts
    1,403

    Default

    Quote Originally Posted by scatter shot View Post
    And I'll stand by my original post, Dave Ramsey is an idiot.

    Don't be like Dave Ramsey.
    I don't disagree but his audience isn't the financially disciplined folks responding to this post. His audience needs to resolve cc debt and should shred the credit card.

  10. #50
    Join Date
    May 2015
    Posts
    2,928

    Default

    Quote Originally Posted by scatter shot View Post
    And I'll stand by my original post, Dave Ramsey is an idiot.

    Don't be like Dave Ramsey.
    Dave Ramsey is good for people/couples in trouble or just starting out who have no clue how to manage their money. Once you get the basics down and understand your income and expenses and get some discipline, it's not necessary or wise to keep cash in envelopes for different categories of spending.

  11. #51
    Join Date
    Jan 2009
    Location
    Murrells Inlet
    Posts
    2,302

    Default

    I got my first one in my name in high school for the purpose of building credit. Gas card essentially and pay it off each month.

    I ran my debit card for my discretionary spending.

    My wife didn't have a credit card until later in life and we are still working to increase her score.

    With the points programs available today, just use of a card makes a lot of sense.

  12. #52
    Join Date
    Nov 2010
    Location
    Summerville, SC
    Posts
    7,297

    Default

    I'll give Ramsey a little credit, his core principle of becoming financially independent is strong but his firmest and often repeated recommendations such as don't worry about credit score, never finance a car, buy term life insurance only, etc. is way off base and in fact can be quite injurious to people.

  13. #53
    Join Date
    Jul 2008
    Location
    Lexington
    Posts
    1,888

    Default

    My parents co-signed for me on an auto loan when I graduated high school 21 years ago. Always tried to avoid credit cards. Got one in my mid 20’s. Then another here for sky miles, then one with John Deere, etc. etc. Kept up with all the payments and then some. Learned it the hard way. Started putting less into savings and more into CC payments, and starting with the lowest balance card first, and snowballing that minimum payment into the next, and worked to the top card. Over $12K on the top card. At it’s peak, $25K total in CC’s. Paid the last of that mountain off last year, and closed two of those CC’s. Traded in the 2005 Honda CRV I had been driving for 7 years, and bought an F150. Credit score at time of truck loan was 780. Haven’t used the CC’s since.

  14. #54
    Join Date
    Sep 2009
    Location
    Kingstree
    Posts
    3,781

    Default

    I hired a girl straight out of vet school. Her parents were reasonably prosperous and paid for all of her schooling and living expenses up until her graduation.

    She was extremely conscientious of her spending and saved most of her income. She never had a credit card or made a vehicle payment.

    She had no credit. Couldn't get a credit card with a decent rate. We finally found an okay one after some research to start her credit.

    If she had wanted to finance a car or buy a house she would have been screwed on her interest rates.
    Rule #2: Double tap

    The truth is a lie that will get you killed.

    Duncraft Pro-Staff

  15. #55
    Join Date
    Dec 2010
    Posts
    15,733

    Default

    Quote Originally Posted by scatter shot View Post
    And I'll stand by my original post, Dave Ramsey is an idiot.

    Don't be like Dave Ramsey.
    ...

  16. #56
    Join Date
    Apr 2002
    Location
    upstate
    Posts
    9,696

    Default

    I just went through this last December. I am 54 years old and have no credit cards, I pay all my bills on time and only owe on my house and a small RV payment. I have purchased everything I own, cars, boats, jeeps, trucks etc. through my credit union (except house.) Last Christmas I bought my wife a car (not FOR Christmas, AT Christmas) I called the credit union and told them what I wanted, they said send the buyers order and they would have a check ready for me.

    30 minutes later i got a call back saying that my credit had dropped nearly 75 points. I asked why. He stated that I didn't have enough outstanding credit and the credit rating companies penalize you for that. Remember I only owe on my House and RV. Apparently you have to have 3 open lines of credit to be rated. Its a RACKET.

    So, solution. I took out a $5000 personal line of credit. Put it in my savings account and auto drafted the payment back to the credit union. When I pay it off, We will open another one and roll on.

    Credit ratings are bullshit.
    A vote is like a rifle: its usefulness depends upon the character of the user.

    Theodore Roosevelt; 26th president of US (1858 - 1919)
    ____________________________________________

    “A fear of weapons is a sign of retarded sexual and emotional maturity” Sigmund Freud

  17. #57
    Join Date
    Sep 2002
    Posts
    2,152

    Default

    Quote Originally Posted by Jozie & Me View Post
    I just went through this last December. I am 54 years old and have no credit cards, I pay all my bills on time and only owe on my house and a small RV payment. I have purchased everything I own, cars, boats, jeeps, trucks etc. through my credit union (except house.) Last Christmas I bought my wife a car (not FOR Christmas, AT Christmas) I called the credit union and told them what I wanted, they said send the buyers order and they would have a check ready for me.

    30 minutes later i got a call back saying that my credit had dropped nearly 75 points. I asked why. He stated that I didn't have enough outstanding credit and the credit rating companies penalize you for that. Remember I only owe on my House and RV. Apparently you have to have 3 open lines of credit to be rated. Its a RACKET.

    So, solution. I took out a $5000 personal line of credit. Put it in my savings account and auto drafted the payment back to the credit union. When I pay it off, We will open another one and roll on.

    Credit ratings are bullshit.
    They are, but as others have stated, a necessary evil.

    I have a customer that has borrowed AND paid back 10’s of Millions of dollars over his lifetime. Mostly from 2 commercial lenders that don’t report to the credit bureaus. There isn’t a more credit worthy person around.
    Never had a CC, never financed a vehicle from other sources, etc.

    He doesn’t have a credit score and would likely be denied if he went to obtain a consumer loan.
    "To the sensitive gunner nothing can equal a bird and a dog and a gun in trilogy."
    George Bird Evans

  18. #58
    Join Date
    Apr 2002
    Location
    upstate
    Posts
    9,696

    Default

    Quote Originally Posted by MDman View Post
    They are, but as others have stated, a necessary evil.

    I have a customer that has borrowed AND paid back 10’s of Millions of dollars over his lifetime. Mostly from 2 commercial lenders that don’t report to the credit bureaus. There isn’t a more credit worthy person around.
    Never had a CC, never financed a vehicle from other sources, etc.

    He doesn’t have a credit score and would likely be denied if he went to obtain a consumer loan.
    The problem is, he paid it all back. That is what penalizes you. I have an excellent history of paying what I owe. Problem is I don't owe enough people RIGHT NOW. You would think that my income to debt ratio would play into this somewhere, but no.
    A vote is like a rifle: its usefulness depends upon the character of the user.

    Theodore Roosevelt; 26th president of US (1858 - 1919)
    ____________________________________________

    “A fear of weapons is a sign of retarded sexual and emotional maturity” Sigmund Freud

  19. #59
    Join Date
    Nov 2013
    Posts
    1,102

    Default

    Quote Originally Posted by 2thDoc View Post
    so...son2 asking if he should get a credit card to "build some credit" while in college.
    I know nothing of this world. What say ye banking/credit people?
    2th- not a Banking or Credit Person, but the best thing for him now is to add him as an authorized user of one of your Credit Cards. Bank will issue a Card in His Name, attached to your Account. You don't have to give him the Card or ever let him know you have one. Instantly, he now has your Credit Score and History in his name. I did this for both of our Daughter's when they were in HS, so they could have a Card In Case of Emergency, if we were out of town. Once they started getting their "own" credit established, I removed them as an authorized user.

    What they do with the Credit they open in their name doesn't affect you at all, but this gives them a great starting point.

    As long as your Credit Score doesn't suck as bad as your Vax Opinion does!!

  20. #60
    Join Date
    Sep 2007
    Location
    Boone, NC
    Posts
    6,230

    Default

    On a related note, check your credit score semi regularly.

    I've been around or over 800 for close to a decade now with all three reporting houses. I got in touch with a mortgage broker about 6 months ago for some investment properties I was looking at. The broker calls me two days after I send her my info wanting to see if I knew about my credit score dropping nearly 100 points. Come to find out, I had a $50 lab charge for a procedure I had done over a year ago in collections. I hadn't received a call, anything in the mail, and the charge wasn't accurate to begin with (found that out later). It was all reconciled and taken off, but my scores was severely affected by an amount of money I have sitting in the center console of my truck.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •