Sunday, November 14, 2010

Is it important to build my credit score?? mom said no, gf said yes.?

I am 22 years old, I never had any credit history (credit card, phone bill, etc).

How important is it to build my credit?

My mom said ';you do not need to get credit, just pay with what you have when you have it';

My GF: ';its very important that you build your credit score, especially if you want to get a house and other things in the future';

So what should I do? WHo is more correct??

thanksIs it important to build my credit score?? mom said no, gf said yes.?
This is one of those rare times when mom does not know best.

Your girlfriend is 100% correct. but if you read personal fianance on

a regular basis, you can see what happens to people with too much credit. That's where your mom is coming from.Is it important to build my credit score?? mom said no, gf said yes.?
I feel that it is very important to build a good credit score. My wife and I both have good credit but just not very much of it. We recently purchased a car and had to deal with a higher interest rate than we would have liked due to the fact that our credit, although was good, was small.

The better your credit score is the better chances of getting good financing for items such as vehicles and houses down the road.
Both of them are correct from different perspectives.

Your GF is correct, that if you don't have a good credit score, you can't get a (good) loan for a house, car or others.

Mom's correct, in the sense that you should not get credit just because it's offered to you. Only get what you can afford. There are unscroupulous companies out there that'll extend you credit to sell you things you don't need for their own benefit.

Bottom line, learn how to manage your finances responsibly and establish a good credit history.
The only way your mother could be correct is if you have no intentions of ever owning any assets including a car, house, etc (as pointed out by the other response) because unless you have full cash upfront all that will have to go on credit. Credit that you won't be able to attain unless lenders have an idea of what your payment history is.

I'm not exactly sure what ';My mom said ';you do not need to get credit, just pay with what you have when you have it'; means but obviously you pay for your things which is great. However no one can track this if it's being paid by cash so even if you're great with money, there's no record of it.

I'd suggest getting a credit card asap (even with just a low limit) and using it even for your every day purchases (nothing above and beyond what you can afford) and simply paying it off in full when your bill comes. This way you'll get your credit history started. As long as you're responsible enough to not go overboard with spending on it, you'll be fine. Personally, I pay all my groceries, gas, etc with my credit card and pay if off in full at the end of the month to maintain my rating.

You'll be glad you have a credit rating when the time comes, trust me. Good luck!
ur gf just wants ur money
you need to have a good credit score you need to start off simple like a credit card with a low balance that you get and pay on it and keep it good and work on keeping everything paid because when you go to buy a home first thing they will say is you dont have enough credit need to get that score above 620 and keep it there or higher trust me been working on mine for 6 months
I'm mostly with your mom on this. Loans steal money from your future paychecks, and interest makes everything you buy more expensive. When you pay with cash you do not have a sword dangling over your head. But when a business or financial case can be made for borrowing (buying a house, education, work tools, etc), your credit history can make the difference.

It's possible to be both frugal and a smart credit user. Make sure you and your girlfriend are both on the same page about money, lifestyle, and saving for the future.

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