Major Hurricane Ian forecast to hit Florida next week, may be Florida's biggest in years, state of emergency declared by Florida Governor

[Lilsia]

You do you, but using and obtaining credit (and keeping low revolving balances) is essential to buifing credit and getting low interest rates on homes and cars.

So true, everything is based off of your credit rating now, not "if you can afford it".

 

[revdon64]

You do you, but using and obtaining credit (and keeping low revolving balances) is essential to buifing credit and getting low interest rates on homes and cars.

Essential? I'm not so sure it's essential considering that I haven't needed it so far. Easier maybe, but I'd rather not be beholden to credit companies if I can avoid it. And you can also get better deals with cash if you've got it. Takes will and perseverance to save it is all.

 

[revdon64]

So true, everything is based off of your credit rating now, not "if you can afford it".

You do you, but I'd rather be able to afford it when I purchase it than go in debt to the bank for it. I'd rather drive an older car than owe the bank $60K for a $40K vehicle, etc.

 

[Kwami]

You do you, but I'd rather be able to afford it when I purchase it than go in debt to the bank for it. I'd rather drive an older car than owe the bank $60K for a $40K vehicle, etc.

That's some crazy interest rates! I paid about $1k extra on a $35k car last year when I financed it instead of paying all cash.

Anyway, you don't have to go into debt to use a credit card. You can pay it off right after you use it, or at the end of the week, or whatever works for you. As long as you don't carry a balance from month to month, you won't pay any interest. The protections offered by a credit card are much better than what's offered by a debit card (even a Visa-branded one). The bonus points that you can redeem for cash or airline miles or something are just extra.

 

[DCLMP]

Chase preferred or reserve credit card is all you need for trip insurance.

 

[Lilsia]

You do you, but I'd rather be able to afford it when I purchase it than go in debt to the bank for it. I'd rather drive an older car than owe the bank $60K for a $40K vehicle, etc.

I think that you are completely misunderstanding what we are saying. We are not saying to spend money that you don't have. We are saying to pay for things with your credit card, but then just pay it off right away. If you pay it that month, you don't get charged interest. But you will be building a great credit score. Even insurance companies are now using your credit rating to determine your rates. So if you have little to no credit, because you use cash, that can mean that you are getting charged a higher rate for you insurance. That is just one example of how important your credit score is now.

 

[MomOTwins]

I think that you are completely misunderstanding what we are saying. We are not saying to spend money that you don't have. We are saying to pay for things with your credit card, but then just pay it off right away. If you pay it that month, you don't get charged interest. But you will be building a great credit score. Even insurance companies are now using your credit rating to determine your rates. So if you have little to no credit, because you use cash, that can mean that you are getting charged a higher rate for you insurance. That is just one example of how important your credit score is now.

Exactly, I’ve had credit card for 15+ years and use them every day and I have never owed a penny in interest because I always pay my bill in full and never charge more than I can afford to pay immediately. But I get between 2-5% cash back on every purchase with my credit card rewards. That’s added up to tens of thousands of dollars in cash back over time.

 

[freshmanjs]

You do you, but I'd rather be able to afford it when I purchase it than go in debt to the bank for it. I'd rather drive an older car than owe the bank $60K for a $40K vehicle, etc.

Don't understand. I use a credit card for nearly everything and I have not paid a cent of interest on a credit card in the last 20 years.