Originally posted by
Hate to break it to you, but you pretty much have to own a credit card (or have some line of credit) if you ever want to buy a house. You're not going to get approved for a mortgage if you have no credit. Nothing wrong with having a credit card,
Hate to break it to you, but you pretty much have to own a credit card (or have some line of credit) if you ever want to buy a house. You're not going to get approved for a mortgage if you have no credit. Nothing wrong with having a credit card, you just need to be responsible. It's also good to have in an emergency. Debit card isn't going to cut it if you suddenly need to spend thousands of dollars to get your car fixed, or some other unforeseen circumstance. There is nothing inherently wrong with credit cards. It's just a piece of plastic after all. Any problems with a credit card come from the person whose name is stamped on to it.
Yup. I worked in finance for a number of years. Our clients that would come in and never had a credit card NEVER got approved for car or home loans. They were thinking they were being smart with their credit, but at the end they couldn't get the big loans they really needed. Unless you plan on buying homes and cars in cash, you pretty much have to have a credit card. They key is using it responsibly.
I have a number of credit cards with zero balances. I have an American Express charge card, which requires you to pay the balance in full every month. We run most of our purchases on that. We earn money back and keep our credit score high. We've been able to get our car and home loans easily because of this.
The problem comes in when people get a credit card, run the balance up, and then either don't pay it or pay minimums for years and years.