Borrowing money to build credit.

[callmefence]

I've caused a bit of a dust up with dil.
She was talking about a purchase they were getting ready to make. (A vehicle). I ask my son you having car trouble. No...she jumps in we need to buy something to help build our credit.. I responded. Being the time of the year it is ,I reckon you got your tax return check. And you've done a fine job of talking your self into buying something you don't need.

 

[Son of Butch]

Yup - just an excuse not a reason to buy. But everyone is entitled to make their own mistakes.

 

[M.Magis]

She may or may not have a point. If they're looking to buy a home in the not so distant future and don't have much of a credit history, they actually do need to build some credit. No one here really knows anything about their situation.

 

[Nesikep]

I don't buy it either... if the sub-prime debacle was any indication, banks don't require you to have great credit, and I don't think that's changed all that much.. If you just have a credit card you use and keep in good standing, perhaps a personal line of credit, I think you'll build as much credit as you need to have without the OBLIGATION to have a monthly payment

 

[greybeard]

Borrow $$ to build up credit so you can borrow more money. :bang: :bang:
They should buy some cows so they can really learn a lesson in life.

 

[Son of Butch]

They should buy some cows so they can really learn a lesson in life.

Yer really mean....advisin' youngins to buy cows, could be considered child abuse in some circles.

 

[Rafter S]

Sounds like you need to give your DIL one of Dave Ramsey's books for her next birthday.

 

[TCRanch]

If they're getting an income tax refund they're having too much taken out, letting the government essentially use their money for an entire year. Agree with Rafter.

 

[backhoeboogie]

I'd rather them put it in a house than a car.

 

[shaz]

A junk credit card with a 500$ limit would also work.

 

[skyhightree1]

id suggest buying some land even if a couple acres... However, People will do what they want.

 

[wbvs58]

When it comes time to buy a house and you go to the bank they draw up two columns, one to list what you own and the other to list what you owe including credit cards. The what you owe list weighs very heavy against the amount you can borrow. Better off going to bank with a bit of savings which shows your able to budget and save responsibly and have a clean slate on the debt side of things.

Ken

 

[Son of Butch]

USA runs on credit scores. Having no credit cards or loan history actually lowers your score, not sure by how much.
It's a messed up system. A history of being a sucker can also raise your score. Credit companies don't like customers
that pay up before interest is due or those that don't incur added fees. They call them free loaders within the industry.
What they love are people that always pay, but incur a lot of fees and interest before doing so.

 

[True Grit Farms]

When it comes time to buy a house and you go to the bank they draw up two columns, one to list what you own and the other to list what you owe including credit cards. The what you owe list weighs very heavy against the amount you can borrow. Better off going to bank with a bit of savings which shows your able to budget and save responsibly and have a clean slate on the debt side of things.

Ken

Apparently y'all have a better banking system than us.

 

[Caustic Burno]

I've caused a bit of a dust up with dil.
She was talking about a purchase they were getting ready to make. (A vehicle). I ask my son you having car trouble. No...she jumps in we need to buy something to help build our credit.. I responded. Being the time of the year it is ,I reckon you got your tax return check. And you've done a fine job of talking your self into buying something you don't need.

You just described the majority of the nation of instant gratification.
All I can say is Lord help them if we ever have a true economic collapse.
I have a grandson with the same line of thinking all he owns is a note.

 

[Ol' 243]

I don't have a great credit score, but I own every damm thing I have. Bankers hate me. If we can't write a check, we don't buy it. Been down the other road, ain't been back in over 20 years. Screw banks.

 

[littletom]

I will never tell another man how spend money. If it was family I might offer advice but I usually keep my thoughts to myself, unless it was family doing something stupid. Credit is the necessary evil in what I do, but I don't own a ride with less than 200,000 or working a.c.

 

[M.Magis]

It's a fact of life. Unlesss someone is buying a home with cash, they better have some cedit history. How many here paid cash for their home?

 

[ez14]

its like shooting yourself in the foot so you can feel how bad it is before you shoot yourself in the knee

as my brother found out it can be hard to get a loan with no credit score (and it will really confuse the bank :lol: )

 

[Ol' 243]

its like shooting yourself in the foot so you can feel how bad it is before you shoot yourself in the knee

as my brother found out it can be hard to get a loan with no credit score (and it will really confuse the bank :lol: )

It depends. . . . ., big cities . . . . . . .probably . . . . . .where I bank, I can make a call and have it deposited in my account. They know they are probably not gonna get that phone call tomorrow though.