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Oh please. This has nothing to do with politics. It has everything to do with learning that you live on what you make and if that isn't enough for you, then get a job to make more. Leave politics out of it. Turning every topic into a political rant is the thing that's getting old around here
It is somewhat political, but I would say all Politicians promote debt behind closed doors, and some in public.
We have been sold a lifestyle of debt for far too long. The baby-boomers were the first generation to buy into the credit card frenzy. Sears were one of the first companies that realized they could make more on the credit issued than they could on their actual products. The 80s rolled around and people in this generation were purchasing VCRs, camcorders, and other products that their Parents usually saved years to purchase. Well, their Children took it to another level, and it was history.
Its to the point that you are looked at as a oddball for wanting to be debt free than have all this crap you dont need nor afford. I mean "most" People measure others success based on the vehicle they drive.
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I used it discriminately and paid it off each month
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But building up a credit score by charging something on the card and paying it off in full every month so you can improve your FICO and subsequently get a better interest rate actually does make sense.
My question is if you can afford to pay it off every month, why not just pay cash? I get it, to build your credit score so that you can "borrow" more money at a better rate. Gotcha.
All you need is a couple of years on the job, 3% down, judgement free, and no serious derogs, then you qualify for an FHA.
I took your post as "Sure you can get a mortgage with no credit if you have a significant down payment, solid work history, and the payment is under 25% of your income." You do not need all of that to get a mortgage with no credit. That's all I'm saying.
On that point you are correct. But it really wasn't the main point of my post at all. So I'll revise the thought to say all of the above OR you can go the FHA, VA, or USDA route, which will cost more in the long run.
My question is if you can afford to pay it off every month, why not just pay cash? I get it, to build your credit score so that you can "borrow" more money at a better rate. Gotcha.
All you need is a couple of years on the job, 3% down, judgement free, and no serious derogs, then you qualify for an FHA.
So you're against making small charges and paying off monthly in order to borrow money for a home at a better interest rate but in favor of buying a house with only 3% down which will significantly increase your debt load and interest payments for many years?
If you don't see the irony here, I don't know what to tell you.
What hoops? There are three extra forms to sign, that's it.
Hoops was probably the wrong word to use for my comment. I should have elaborated that FHA loans are a bit more strict than conventional loans. Examples of that are someone buying a home than is categorized as a fixer-upper. FHA requires the home to be habitable and safe to live in. Some people buy fixers and although they plan on living in them eventually, it's tough to get a loan through FHA for that type of purchase. Anyway, this thread isn't about loans or qualifying for them, it was about ...
gee, I can't even remember what it was about originally. As so many threads do, this one veered off in another direction.
So you're against making small charges and paying off monthly in order to borrow money for a home at a better interest rate but in favor of buying a house with only 3% down which will significantly increase your debt load and interest payments for many years?
If you don't see the irony here, I don't know what to tell you.
I agree with you. My son was completely against having credit. I pretty much forced him to get a credit card. He uses it every other month for a small purchase. This month it was a $10 prescription a CVS. When the bill comes he'll pay it off. He's been doing that for four years and has an 800 credit score. Companies are falling over themselves trying to offer him credit.
So you're against making small charges and paying off monthly in order to borrow money for a home at a better interest rate but in favor of buying a house with only 3% down which will significantly increase your debt load and interest payments for many years?
If you don't see the irony here, I don't know what to tell you.
This is a solid reason for using a credit card. Another good reason for having a credit card is when you get that late night phone call that your family member has died and you need to book a flight immediately, you can purchase the ticket immediately, online or over the phone.
Personally, I don't carry a balance on my card. If I did, I wouldn't reap the rewards I earn on it. While I think it's great the bank is assuring me a certain amount each month to use, they do make a bundle with the interest payments which means I have less money in my pocket each month.
I agree with you. My son was completely against having credit. I pretty much forced him to get a credit card. He uses it every other month for a small purchase. This month it was a $10 prescription a CVS. When the bill comes he'll pay it off. He's been doing that for four years and has an 800 credit score. Companies are falling over themselves trying to offer him credit.
This is great! That's exactly what happens. It's a pretty nice feeling when you're recognized for being responsible in spending.
DR is right about one thing. When you owe nobody anything, it's an insane feeling you can't imagine until you're there.
Recently some stuff happened to me that made me very angry, very disillusioned, and I seriously considered quitting my job. What made me feel safe and secure is that we have the finances to back that up. That feeling is irreplaceable. Luckily, things are looking ok now, but it's great to know no one owns me and I don't have to kowtow to anyone just to stay afloat.
So you're against making small charges and paying off monthly in order to borrow money for a home at a better interest rate but in favor of buying a house with only 3% down which will significantly increase your debt load and interest payments for many years?
If you don't see the irony here, I don't know what to tell you.
If you are that guy who is looking to become debt free as soon as possible, then you will probably have the home paid off quicker. The guy who is constantly staying in debt with cc's and other useless items will go the entire term, pay a ton in interest on the other debt, will eventually pay more.
Flirting with credit cards and other debt to build your credit score will not make up the difference with a guy paying his FHA loan off quicker.....
DR is right about one thing. When you owe nobody anything, it's an insane feeling you can't imagine until you're there.
That's the truth! There's something especially comforting about owning a mortgage free home. Sure makes a person sleep sound at night.
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That's exactly what happens. It's a pretty nice feeling when you're recognized for being responsible in spending.
