Ghetto-mobile: Is a credit score mandatory to function in this day and age?
I’m not a fan of debt and live purely on cash and my checking account. Is it truly necessary to obtain a “credit score”? In my mind no credit history is better than any, because it says you don’t get into debt and signals to your auto dealer/whoever that you don’t buy/lease/whatever what you can’t pay for.
Answers and Views:
Answer by dzwreck
Unfortunately for most of the population a credit score and credit history is mandatory. Most people can not afford to pay for houses and cars with cash and they need to finance these items. In order to finance big $ $ $ $ items you need to have a satisfactory and established credit history and a good credit score. The worse you are on both, the higher your rate and the worse financing terms you will receive. Also, considering that your risk assessment for homeowners and auto insurance is partially determined by your credit scores as well, this can have an impact on you. Many employers, landlords, leasing agencies, rental companies, etc… also want to see your credit history to determine how responsible of a person you are and what the chances are that you will fullfill your end of the lease, the rental agreement, etc… Therefore, credit is a mandatory part of life for most people in this day and age and it truly is unfortunate that our society has come to rely on it so much.
If you are one of the few that can live by paying for everything in cash, congratulations as you are one of a very select few.
Answer by JACunless you can pay for everything in cash, no..
but, if you want to buy a car, a house, or large ticket items, you need to have a good credit rating.
no credit history means they have no reason to trust you with credit unless they see a record of how you pay your bills….
a good history is essential….
dzwreck is totally correct.
I look at credit every day and it always amazes me when someone comes in and says they have perfect credit. And then you pull their credit and they have no score and no lines of credit.
The other amazing thing is that when you get someone like this and do get them approved, they can not understand why they are paying the State maximum interest rate.
Credit bureaus are like report cards when we were in school. They reflect how we manage our debts, pay our bills and handle our personal lives.
The bad thing about people is that they are creatures of habit. If you are a lender and look at someones credit and see a history of not paying as agreed, what would make you think that anything is going to change?
Answer by heybulldogNO. You dont need to borrow money. Anybody can save money and pay cash. The problem is that people “WANT” a new car (They dont need a new car) or a house that they cant afford or a new 50″ plasma tv. So they go borrow money. Just think how fast you can save money if you make $ 40,000.00 a year if you have no payments. The average household in the US makes 40k a yr. You can get a home loan without a fico score (I Love Debt Score). IT’s called manual underwriting.
check out daveramsey.com and listen to his radio show or find station near you to listen to. Lots of good advice on money and debt.
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