Monday, December 12, 2011

Why do so many people on here say that it's ';better to have no credit cards';?

I'm not seeking credit...I have 6 credit cards, each from major banks. My last credit score was 752.

I am quite irritated to see that people are recommending to other people that it's ';better to not get credit cards at all.'; The main issue being...if they take their advice, they will have no credit. They can't get a mortgage, they can't get a car loan, they have no backup credit for emergencies, and in some areas like where I can't even get an apartment without a credit check/good credit.

So my question to those people only...why do you recommend this option for everyone because it ';works for you'; to do a cash-only life? It's easy if you're a $100k a year person who can feasibly live off from cash only and do all of your purchases in cash. However, not everyone makes that amount of money to be able to pay cash for everything immediately. They DO pay their bills, but credit cards are very beneficial to them. So basically the only way the non-credit card people can buy a house is if they have ALL of the money up front to pay it completely. I doubt even those people have that kind of money on hand to just up and pay, since they live day to day on cash only and it's depleted regularly. So...what's the deal with people telling others to not get credit at all? You need credit to live in society. You need it for a lot of things, and some jobs require good credit to be considered for them. For those who pay their credit cards on time, it builds their credit and they have a backup means for emergencies as long as they don't let anything get out of hand. Why are people so bitter towards credit cards? Yes, they charge ';interest'; if you don't pay them in full at the end of the month. But some of you charge your own family/friends interest for loaning them is that different, exactly? How is it ';less corrupt'; than the credit card companies they bash regularly?Why do so many people on here say that it's ';better to have no credit cards';?
i bought a house and i didnt have any credit cards. ive never made more then 40k/yr. been here 20 yrs. havent used a credit card since 2005. lent money to friends lots of times never charged interest.

it can be done. the world went around the sun without them for a long time and everything was ok then the banks invented credit scores.

look where it got us.Why do so many people on here say that it's ';better to have no credit cards';?
because the credit card like the fico score was designed to get and keep you in debt. That's all!

You have to borrow money and make payments on time to get a high score. you also have to keep borrowing money and keep making payments on time to keep a high score.

You will never get ahead financially with payments.

If you live on less than you make. Pay as you go. Save for an emergency. You will have money and not have to play kissy face with banks. You will not have to worship at the alter of the great fico.
Great question. I share your frustration. I have a son about to enter college and we are trying to get him credit.

I think most people see credit cards as large bad money making banks that force you a down a path of debt. If someone abuses them or misuses them, perhaps the is a ribbon of truth.

Most financial counselors will tell you that 3-6 credit cards are best to have. If you have to many, this will hurt you since there is to much credit available to income based on the theory you could max them tomorrow at the same time and go bankrupt.

And of course to echo your point. No credit cards or loans, NO credit.
Great question and you are 100% correct in everything you stated! To believe you should not have any credit cards at all is a matter of believing one is not capable of managing financing! That is what it is all about.

There are many cards that you can really win the game with such as interest only intro periods, or cards that give you points for your purchases to use towards other purchases, such as airline tickets. You just simply pay them off monthly and then you are not paying interest and you win with their special offers (good example, american express points for travel, every dollar you spend is a point and a certain amount of points gets you a free airline ticket, dah!)

Plus, as a mortgage lender and finance consultant, you have to have a credit history for us to make a determination on your ability to ';manage'; credit!!!!!!! Before we give you hundreds of thousands of dollars for a mortgage it makes super good sense we want to see if you can at least handle some credit cards and hopefully a car loan too!!!
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