Borrowing money to build credit.

[Caustic Burno]

Debt is a bottomless pit with Satan at the bottom for many.
Boogie remember until recently in Texas you couldn't borrow against your homestead. Society couldn't stand it the potential to go further in debt and finally got the law changed.

 

[M-5]

I avoid buying things because I "want it" and buy things which I need. That said I have used credit to buy land, cattle, vehicles, and tractors. I wish I had bought more land when I was younger it is the one thing that really has made me money. I do buy new vehicles but I buy plain Jane models with no bells and whistles. And then I drive them until the wheels fall off. I know how they have been maintained from day one. Things I want like a new gun or boat I pay cash or I don't buy it. While I would prefer to pay cash for things I need it isn't always an option. What I do is make sure that I have a big enough down payment that if things do go bad I can sell it for enough to pay the bank. I would hate to lose my money but not nearly as much as losing out and still owing the bank money.

Thats the criteria I use on buying something , Can I sell it today and make my money back.

 

[TexasBred]

In all my years and all the many loans I obtained over those years it never once crossed my mind that I was building credit. I just figured I got the money because I already had good credit and was able to prove that I could and would repay it.

The difference today it is a way of life with most Americans that end up in the later years in hock up to their eyeballs. We have went from a society of savers to pee poor money managers. Look at the reverse mortgage crap if you get there you are in trouble. I can't imagine going into retirement with a house note.
This phenomenon started with the S&L fubar and it has been good,bad or no credit come on down.

When gov't regulations let CD rates run wild as well as borrowing rates and then began allowing you to borrow more than the place was worth and walk away with money in your pocket everything went to he// in a hand basket. Someone with nothing to lose has no incentive to try to protect it.

 

[f150fatboy]

I bought my place on a 15 year loan, paid it off in 10. Then my credit score went down, go figure. No other loans and pay credit card off every month if it has a balance. Doesn't make sense to me but I guess I'm not borrowing enough for it to matter.

 

[JMJ Farms]

Credit scores are very complicated and IMO are not always true indicators of a person creditworthiness. Paying on time is super important. And never having a balance of more than 25-30% of your credit card limit is important, whether it's current or not. The whole concept is to show that you have access to available credit that you are not utilizing and that you are responsible and pay your bills on time. More and more insurance companies are using credit scores to quote insurance prices. Another reason to try and have a good score.

But like I mentioned above, I know people that have poor scores that have enough money to burn a wet mule because they have never had to do much, if any, borrowing. Therefore they don't really have a credit score, so it's not necessary, but it's sure helped me. Credit is a tool. And like any other tool, when used properly, is a valuable asset.