[elSicomoro]

Originally posted by Griff
Are you guys (Dave/Terry) talking about recovering from a bad credit rating or establishing good credit initially?

How dare you use my real name! People are supposed to figure that out on their own.

I'm primarily talking about establishing good credit initially.

If you've already ruined your credit, it's going to be nearly impossible to get another CC for a while (unless you jump through a kabillion hoops and sell your soul). My parents started off slowly: renting-to-own many of the items in their home, then a new car loan, then buying the house...now their credit is in good shape, and my parents have finally realized how important it is to be responsible when it comes to credit.

It seems like those are two different issues. Either way, I don't buy paying for money I don't need. You risk being a tool of the credit card company rather than using their card as a tool.

Look buddy, not all of us are mechanically inclined enough to freakin' build our own house.

They can be two different issues. However, once you come out of a bad credit fiasco, for the most part, you're on the same playing field as the 20 year old with his first CC...you gotta establish good credit.

What I generally recommend to people is this: Buy something on your credit card that you could easily buy with cash today. Put that money aside, add a little bit to it for interest, then pay it off over 4-6 months, longer if it's a big ticket item.

On the surface, it's ridiculous. Why pay $175 or more for something you could buy today for $150?

Because in today's world, trying to live life without good credit can be an incredible pain in the ass. I'm not saying you CAN'T do it, but it can be one hell of an uphill battle. No credit is almost the same as bad credit. It's all about the big picture in the end: the house, the car, whatever you set your sights on.

Banks and lenders are like any for-profit business--they offer a product or service and try to make money. And I understand the rationale behind showing a history of good credit--they're going to give you $200,000 to buy a house...why should they give this money to you?

I remember the days of every credit card company hawking their products on campus at SEMO...sign up for our card, get a free t-shirt! Get coupons for free food! Some kids just don't understand credit cards and the need for good credit down the line...they sign up for the cards, rack 'em up, then are nearly bankrupt before they're out of college. By the same token, these credit card companies love to prey on easy targets...knowing damned good and well the possible consequences of what they're doing.

Folks need to look at their own financial circumstance and act accordingly. CC companies rely on people screwing up, if you're living on the edge of financial disaster and are carrying balances so you can get a reasonable loan rate you are getting screwed and need to change banks or maybe join a credit union.

Absolutely, Griff. If your financial picture isn't good, or you fear that there may be too much of a temptation in having one, don't get one. (Though I would recommend seeking some help on the latter.)