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Originally posted by juju
Well, I dunno. That sounds like a pretty bold statement. Do you really think a person just can't get by without a credit card? I mean, I seem to be doing pretty well so far.
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In the US 2002, no, you almost can't. Oh sure...you can. But it just makes your life 50 times more difficult.
My parents had incredibly bad credit for many years, and have only rebuilt it in the past 5 years to where it's actually good now. Here are some things that they couldn't do (and what you can't really do either) w/o a CC:
--Rent a car (b/c most places demand a CC to secure a deposit...and even with a MC or Visa logo on a debit card, many places will either not accept it if it's just a debit card, or their card readers may be unable to properly read the card).
--Rent a hotel room (same thing).
--Shop easily online. (What a lot of banks fail to mention is that even though your debit card may be a Visa or MC debit card, they don't always work as well as a Visa or MC credit card does...for whatever reason, the cards don't always read properly.)
--Actually get a MC or Visa debit card. (Most banks actually check your credit now before they'll issue a debit card with either logo. If your credit sucks, you'll only be able to get a plain ol' debit card.)
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I don't know much about the home loan stuff. Am I to understand that you're paying interest..eh..i mean, "building credit", just so you can take out a bank loan in the future?
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You gotta pay to play, my friend.
Why on earth would a mortgage company want to give you a loan for $200,000 if you have no credit history? Why would a bank want to give a car loan for $15,000 if you have nothing that shows you've paid back anything in the past?
That's why you start small. JCPenney will give anyone a CC...that was the first card I ever got. I'm sure you have plenty of folks on campus trying to get you to sign up for a CC. Go ahead...sign up for one. It won't be the best...it'll probably be like 18% interest, and will probably only have a credit limit of $500. Use it sparingly, wait a year, then ask for a lower interest rate, or get a new CC.