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The Water Cooler
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My Credit Score Is Zero...
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<blockquote data-quote="Glocktogo" data-source="post: 3124708" data-attributes="member: 1132"><p>We've hashed and rehashed this numerous times on this forum. As Neanderthal aptly described, having good credit provides opportunity and flexibility that not having credit doesn't.</p><p></p><p>The most effective way to build credit while not going into debt, is to get a Visa, MC or Discover from a reputable bank, preferably one with cash back or some other type of rewards. Use the cc for every purchase you can, but pay the entire balance at the end of each billing period. It's money you have to spend anyway and you're using their money while gaining rewards, without paying any interest or other charges. It also provides you with easy to read statements on your spending, to better track your spending habits and minimize overspending. CHenry's statistic of spending 18% more when using a cc, includes all the people who don't treat their cc as cash, don't pay their balances in full every cycle and don't manage their money wisely regardless of the form it takes. Just don't be part of that statistical pool and you're money ahead.</p><p></p><p>Another way to do it is to buy something on a long term contract that offers 0% interest and no finance charges. But don't buy it unless you actually have the money in the bank to pay for it. Case in point, we bought a ZTR mower on a 0% interest 4 year contract. We had the money to buy it outright, but why not tie up someone else's free money for four years? So we set the money aside in an interest bearing account and make the monthly payments out of that account. In the event we had some financial emergency, that money is still unencumbered and can be used until we replace it. Again, financial flexibility.</p><p></p><p>The key to smart money is to not cut corners and examine all the pros and cons before making a financial decision. It's also best to make financial decisions S L O W L Y. We never make large purchases on the spur of the moment. I just bought a new truck based largely on a rare opportunity to get one way below MSRP. But we'd already decided we would purchase one 6 months before buying. I just wasn't in a hurry and waiting saved us thousands.</p></blockquote><p></p>
[QUOTE="Glocktogo, post: 3124708, member: 1132"] We've hashed and rehashed this numerous times on this forum. As Neanderthal aptly described, having good credit provides opportunity and flexibility that not having credit doesn't. The most effective way to build credit while not going into debt, is to get a Visa, MC or Discover from a reputable bank, preferably one with cash back or some other type of rewards. Use the cc for every purchase you can, but pay the entire balance at the end of each billing period. It's money you have to spend anyway and you're using their money while gaining rewards, without paying any interest or other charges. It also provides you with easy to read statements on your spending, to better track your spending habits and minimize overspending. CHenry's statistic of spending 18% more when using a cc, includes all the people who don't treat their cc as cash, don't pay their balances in full every cycle and don't manage their money wisely regardless of the form it takes. Just don't be part of that statistical pool and you're money ahead. Another way to do it is to buy something on a long term contract that offers 0% interest and no finance charges. But don't buy it unless you actually have the money in the bank to pay for it. Case in point, we bought a ZTR mower on a 0% interest 4 year contract. We had the money to buy it outright, but why not tie up someone else's free money for four years? So we set the money aside in an interest bearing account and make the monthly payments out of that account. In the event we had some financial emergency, that money is still unencumbered and can be used until we replace it. Again, financial flexibility. The key to smart money is to not cut corners and examine all the pros and cons before making a financial decision. It's also best to make financial decisions S L O W L Y. We never make large purchases on the spur of the moment. I just bought a new truck based largely on a rare opportunity to get one way below MSRP. But we'd already decided we would purchase one 6 months before buying. I just wasn't in a hurry and waiting saved us thousands. [/QUOTE]
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