Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

1 Bump

Credit?

Does anyone else on here not believe in carrying debt? People around here (including family) look at us as if we were crazy because we don't believe in carrying debt. The only exception we have is a mortgage but we don't even have that now. We are renting at the moment and will try and pay cash when we buy. But anyway, we don't have payments on cars, appliances, furniture, NOTHING! My dad thinks that it is very important to always have a credit card but I think that is ridiculous! We have a cash savings for if something happens and we need the extra money. so why would I need a credit card?

 
My3LittleGirls

Asked by My3LittleGirls at 12:38 PM on Jul. 2, 2010 in Money & Work

Level 15 (1,867 Credits)
This question is closed.
Answers (9)
  • You sound like a Dave Ramsey fan. We don't believe in carrying debt either. Sometimes we are looked at weird- but if you know you are heading in the right direction, what does it matter?

    I think the argument of needing a good credit score so you need a credit card is ridiculous. If you have cash, you just buy it. If you don't- it's because you can't afford it. It's that simple.

    I'll probably get replies like I'm a rich snob and that's why I don't need credit. Not so. We go without a lot of things because we can't afford them. It's that simple. Cell phone- nope. Cable, nope. Eating out- maybe two or three times a year. It sucks, but I know it will put our family in a better position in the long run.

    GOOD JOB OP :)
    Erica_Smerica

    Answer by Erica_Smerica at 12:14 AM on Jul. 3, 2010

  • I agree with you! Our only debt is our home and if I could do it again, I would have saved and paid cash for that. Don't get me wrong, we've been messed up with debt in the past and have learned some serious lessons from it. It won't happen to us again. No credit cards are allowed in our household and we are teaching our children that if you don't have the cash to buy something....then you don't get to buy it.
    slw123

    Answer by slw123 at 12:43 PM on Jul. 2, 2010

  • well Yes and no...My hubby is a banker and so yes, no debt is important but he also clarify's that you need to build credit as well...most people even with the BEST credit carry a little on the CC b/c it keeps you scores higher believe it or not...Im not talking thousands forever...but in building credit, the only way to get credit is to use it...My little brother for example went to buy a car and he needed a co-signer b/c he was debt free and had no CC;s and needed to open one to build and establish...

    I absolutely commend you for being debt free, it is extremely tough in this world now...and GOD Bless if you have wonderful credit to pay for a house with cash, cheers to you.
    Happymom2-2

    Answer by Happymom2-2 at 1:12 PM on Jul. 2, 2010

  • The PP is correct about revolving credit giving you a better credit score. My dad is like you now a days. He owes money on NOTHING. His credit score is lower than mine for he has no revolving credit. You want a good credit score for the points in your life where you will purchase a home or another car.

    It's great you are debt free. Honestly to have one CC and just pay it off every month will help your credit score raise.
    KairisMama

    Answer by KairisMama at 2:24 PM on Jul. 2, 2010

  • I don't have credit card and will not get one. I might need to look into that and save my money and buy a. house outright. But lord it will take forever my kids will be grown. But I won't need a real big housel.
    mamaofficer

    Answer by mamaofficer at 2:43 PM on Jul. 2, 2010

  • We shop online a lot and I would rather give a credit card than a debit card over the internet. I knew someone who had money stolen from his account because he had used his debit card. He ended up getting the money back but not until an investigation was made by the bank, which took a couple weeks.
    Christina807

    Answer by Christina807 at 3:28 PM on Jul. 2, 2010

  • You need good credit in order to get a mortgage, or a loan. So it's a good idea to have, because you never know what opportunties might pop up in the future. That perfect property, vacation home, whatever.

    I agree with you about not buying things you cannot afford paying cash for, although we do have a mortgage. But, I do carry a credit card and I buy almost everything with it. That way we earn airmiles, and since the card is paid in full every month, we also have a credit history. So in the future, if there is something I might want a loan for I have some history built up.
    Bezu

    Answer by Bezu at 4:51 PM on Jul. 2, 2010

  • Why do you need good credit if you don't believe in carrying debt? Why would I need credit if I am never going to buy something with credit? I just don't understand that concept. I don't want good credit, I don't want bad credit, I just don't want credit at all.
    My3LittleGirls

    Comment by My3LittleGirls (original poster) at 3:01 PM on Jul. 2, 2010

  • We didn't need credit in order to buy a house. We bought owner finance and with the correct down payment you don't have to have good credit for that either.
    My3LittleGirls

    Comment by My3LittleGirls (original poster) at 6:40 PM on Jul. 2, 2010