Not sure debt free is a good thing !

Discussion in 'Bad Dog Cafe' started by 83siennateleguy, Aug 13, 2018.

  1. blowtorch

    blowtorch Telefied Ad Free Member

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    Screw those guys. seriously. What your financial situation (in terms of a credit score is) is NONE of their damned business.

    You don't have to play that stupid game, and if more people refused to, it wouldn't even be a thing.
     
    Last edited: Aug 13, 2018
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  2. TC6969

    TC6969 Friend of Leo's

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    Go in for a job interview and tell them exactly that.

    Then check back and tell us how much longer (In seconds) the interview lasted.
     
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  3. rcole_sooner

    rcole_sooner Poster Extraordinaire Silver Supporter

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    As said several posts above. Get a CC, buy stuff with it, pay it off each month. Get one with rewards you can use as a bonus. It can be all setup to be automatic payments too. Easy stuff.

    I don't think any debt is required.


    Not that debt itself is bad, it is just another tool in the financial toolbox. Debt can be used wisely.
     
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  4. magicfingers99

    magicfingers99 Friend of Leo's

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    or get new glasses....
     
  5. blowtorch

    blowtorch Telefied Ad Free Member

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    Personally I won't work for someone who's interested in invading my privacy in that way
    Ironically enough I have no issue with being tested for drugs, although I never have been tested.
     
    Last edited: Aug 13, 2018
  6. joealso

    joealso Tele-Holic

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    I have a lot of experience with this subject. Short answer: Remember 18%. Move your credit around so that no credit card carries a balance that is more than 18% of the card's credit limit. All the other rules apply (never be late on a payment, no cash advances, think twice before closing revolving accounts because you'll also lose the positive reporting, don't request increases, etc).
     
  7. tfarny

    tfarny Friend of Leo's

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    I'm jealous. The point of getting out of debt is not to have a great credit score! Conversely, the point of a great credit score IS to make it easy and cheap to go into debt...others have given you advice on increasing the score without paying interest.
     
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  8. jhundt

    jhundt Doctor of Teleocity

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    I haven't had a credit card for almost 20 years. I have a debit card which serves then same purpose re: car rental, hotel, etc.
     
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  9. rdwhitti

    rdwhitti Tele-Holic

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    As others have said get a no fee rewards card and pay it off every month. I routinely charge maybe $2k every month including groceries, cell phone, insurance, etc., things that I would normally buy anyway. Don’t fall into the trap of charging stuff you can’t pay for. So the result is the same as paying cash but you get paid back in rewards and a good credit score. There are even cards now that will pay you $500-$750 just for opening and using the card (usually $4000 over 4 months). That’s better than a savings account or stocks!
     
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  10. brobar

    brobar Tele-Holic

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    You half did it right. If having credit is still a necessity (you aren't at a point where you are paying cash for everything yet), then maintaining some sort of credit payments over the course of that time would have ultimately been ideal. You can be debt free and still have great credit... that just means you aren't putting yourself in debt WITH your credit. Utilize it, but pay it off each month. Have a card just for groceries and gas (two necessities you will be utilizing with or without credit). *charge* the groceries and gas. If you use the card only for groceries and gas, and pay it off at the end of each month, you aren't in debt any at all (because you would have been paying cash anyways)... and you are showing credit utilization.

    That's one of the reasons twice a year I'll buy something at Best Buy on my Best Buy credit card. Credit is such a balance of credit utilization percentage, age of credit, number of accounts, etc...

    Since the Best Buy Card is the oldest card I have (going on 20 years now)... it would be a hit to my 840 credit score should I close it (my combined credit age would get lower... you want it higher). I'm not going to keep a balance on that card though at the ridiculous interest rate. It was dumb for me to get the card in the first place, but it would be dumb now for me to cut it up and never use it, so once every 6 months I'll buy a DVD if for nothing other than a Christmas gift for someone else. I immediately pay the card balance (a whopping $20 or whatever) off at the end of the month. I'm not in debt... I pay it off before I incur any interest... I keep showing a utilization of credit... and I keep my long credit history in tact because the longer the better for your score. I'm at a point where I do my best to pay cash for anything now (no financing other than the house and car). But to keep that score up there in case some day I need it... I play the little credit game (enough accounts, never get rid of the oldest ones, keep a zero balance on them but utilize them at least once or twice a year) to keep a great credit score. It's a game, and unfortunately most don't know how to play it, but it can be played to where you are 100% debt free and still have phenomenal credit.
     
  11. 1293

    1293 Poster Extraordinaire

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    I pay for everything with my Amazon card. I can't remember the last time I didn't pay for an Amazon order with points.
     
  12. jhundt

    jhundt Doctor of Teleocity

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    OK - so you confused me. First, you say you are debt free.

    Then you say "I dropped almost 100 points by not being debt free over the past 2 years."

    Then you tell us how important it is to have a credit rating, and imply that we need a lesson.

    Maybe we need some clarification about the original post.
     
  13. 24 track

    24 track Doctor of Teleocity

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    a little different here in Canukistan, I have a visa debit , that is recognized south of the 49th but in Canada its just a debit
     
  14. Octorfunk

    Octorfunk Tele-Meister

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    We took out one small loan for some furniture when we bought our first house 10yrs ago, paid it off early and haven't even considered going in debt since. We don't do car payments, I'd rather have an older car that's paid for than to basically rent one for years on end. We're within a year or two of paying off $65,000 of student loans, then the only debt we'll have is our house.

    That being said, I've had the same credit card since I was 18 and have NEVER kept a monthly balance on it, so I guess we do it both ways; we use a credit card out of convenience at the grocery store/gas station/etc., but we never go into debt over it, so we still have the benefit of having a good credit score.

    I'm not nay-saying the financial choices of others, I'm just really happy with the results we're getting. For example, my neighbors' car was hit several months ago, and I watched them go back and forth between body shops and their insurance company trying to figure out how much they still owed on the vehicle vs. how much they would get for it, etc. If my car gets hit, I already own it, so I'll get every penny. Same thing if I want to sell it. It's mine, I'm not worried about how much I need to get or what to do with the loan, I just put it on Craigslist and sell it.

    And had I known what I was getting into as a 17yr-old, I wouldn't have taken out and student loans.

    To the OP, I get what you're saying. You've done everything right, but your credit sucks. It's dumb, but like everyone else has been saying, using & paying off a credit card helps. I look forward to the day when I'm having that problem!
     
  15. 83siennateleguy

    83siennateleguy Tele-Meister

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    I'm only saying that some people can learn a little bit about how all this credit rating B.S. works.
    Like I said , probably somewhere in the future you will need some type of credit. A card for hotels or rental car,etc.
    I know now that I should have kept a card active or something to have some form of credit activity to show to creditors .
    I thought having no loans and/or no credit cards and no credit activity at all would never lower a credit score.
    I was wrong , so don't do what I did is all I'm saying as far as a lesson goes.
    I think if I were a millionaire I'd still somehow be affected somewhere along the way by having a lower credit score. Mine isn't all that bad (674) but 7 or 8 years ago it was 740+. It was a little shocking and confusing to see the 674 score.
    But life is still good. And we'll be applying for that credit card soon.
     
  16. bftfender

    bftfender Friend of Leo's

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    best advice..borrow from yourself...thats def the concept...
     
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  17. thegreatshocka

    thegreatshocka Tele-Meister

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    Believe me, the past 15 years of glasses and contacts weren’t cheap.
     
  18. Mjark

    Mjark Doctor of Teleocity Silver Supporter

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    It seems silly but it's why when we last bought a car we financed about half of it. As we had no loans left either.
     
  19. FenderLover

    FenderLover Friend of Leo's

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    Being debt free is obviously a good thing. Being debt free with good credit is even better, and takes almost no effort. Using a credit card and paying it off with one check is not only easy, but gives you buyer protection, and cash back credit.

    Credit is a little like insurance. You don't need it until you need it. When you can have good credit just by the way you use your money, why wouldn't you do it? There are some real curious responses here...

    These days when you can finance a car for next to nothing (and still pay it off early), why would you use all your cash instead of investing it? I don't buy new cars myself but a few people have made examples of it. Some people mortgage their house and invest the cash because they can make more than twice as much as the loan is costing them.

    Landlords and employers use a credit score to verify history. If someone came to you and only said, 'let's enter into an agreement, but my history is none of your business' you should look at them like the idiot they are. The very next person is almost certainly more qualified.
     
    Last edited: Aug 13, 2018
  20. Average_Joe

    Average_Joe Tele-Meister

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    Your debts are an asset, which can be purchased repackaged and sold, otherwise you are viewed as a liability.
     
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