Do you agree with self-help articles which state you must own a credit card to have good credit?

2015-10-16T18:02:15-04:00

Response by 1stSgt Private RallyPoint Member made Oct 16 at 2015 6:03 PM

2015-10-16T18:03:47-04:00

But it can be a double edged sword if not handled properly.

Response by SGT Private RallyPoint Member made Oct 16 at 2015 6:09 PM

2015-10-16T18:09:32-04:00

I know it helps. I wouldn't call it a necessity, though. There's a lot of research involved if you want to make the best decision for your lifestyle and goals.

Response by LTC Kevin B. made Oct 16 at 2015 6:32 PM

2015-10-16T18:32:39-04:00

A credit card, used properly, can help build your credit quite a bit.
A credit card, used improperly, can destroy your credit.

The bottom line...use credit card(s) wisely by not overextending yourself, and always pay your bills on time.

Response by Sgt Private RallyPoint Member made Oct 16 at 2015 7:29 PM

2015-10-16T19:29:41-04:00

I have one credit card and pay it off when I receive the bill. I had a hard time taking out a home mortgage because I only have one line of credit. They wanted to see three lines of credit. I ended up having to make a larger down payment. Other than establishing a little credit for large purchases, i.e., a house, I believe paying with cash is the best policy, except for a home mortgage, and possibly a car.

Response by SSG Private RallyPoint Member made Oct 16 at 2015 7:59 PM

2015-10-16T19:59:51-04:00

I do agree that this is the process that the 3 major credit reporting agencies use. I would recommend getting a credit card with a small limit, at least at first as well as the lowest APR (Annual Percentage Rate) and use it for purchases. If you pay it off totally with the money you would use for those purchases anyway, building credit will take no time at all!

Response by SFC Mark Merino made Oct 16 at 2015 8:48 PM

2015-10-16T20:48:53-04:00

My wife is Japanese and this is all new for her. In Japan there are no credit scores. Most all of their transactions are cash. The 5 year car loan concept blew her mind. They are looking for at LEAST 3 different lines of credit before even considering people for loans, etc. But just going out and getting 3 credit cards isn't good enough. Throwing them in the drawer and having zero balance is little more than having no credit cards. They want to see recurring payments. Before long, the vultures tripled her credit limits because she paid everything off at the end of the month. In our society, I fear that you have to play ball. When you are ready to buy a house, unless you plan on using the millions they pay us in base pay, you are going to rely on your built credit rating.

Response by SPC Carl K. made Oct 17 at 2015 10:04 AM

2015-10-17T10:04:58-04:00

I quit using credit cards 5 years ago. My credit score has suffered, but I don't buy anything I can't buy with cash. I really don't want the extra monthly bills coming in. I will only secure a loan if I am buying another car or house, and that is it.

Response by CW2 Private RallyPoint Member made Oct 17 at 2015 9:55 PM

2015-10-17T21:55:33-04:00

I was once told that bad credit is better than no credit. I will say that in my opinion that if you want your credit to start going up...you need to open up a line of credit. One of the easiest ways of doing that is a credit card. Now as sated in other posts, you must use that card responsibly, meaning do not go over 90% of your max at any time and pay off things as soon as possible. It is ideal to keep your total credit to debt ratio at around 25-30%. People will also tell you that you should charge no more on a card than you can afford to pay on it per month.

Personally, I have a couple cards and try to keep them around 25% of their max. This is while making above the minimum payments. By doing this I have raised my credit up to as high as 760 without a mortgage.

Now you can have other things than a card to obtain good credit ass well such as car loans, school loans, personal loans, making sure that you do not have many hard inquiries on your report, and reporting things that need to come off your report. I use a credit monitoring service through my bank with refreshes monthly and run a free report from all three credit bureaus yearly.

As for your options, I selected the Duh but really it is just a personal responsibility to manage your credit. You make what you can of it. It is not something that everyone knows and there are classes on most posts through ACS

Response by MAJ Hugh Blanchard made Oct 17 at 2015 10:26 PM

2015-10-17T22:26:29-04:00

No..the world is built on an unsustainable empire of debt. Pay cash and save your money for what you want.

Response by MSgt Curtis Ellis made Oct 17 at 2015 10:40 PM

2015-10-17T22:40:14-04:00

Learned this the hard way putting my credit together after my divorce... It turned out that this was a "requirement" per se and I can't believe the jump in my credit score when I finally decided to get what was suggested to me...

Response by SrA Daniel Hunter made Oct 17 at 2015 10:46 PM

2015-10-17T22:46:04-04:00

They do help. Although it doesn't necessarily have to be a credit card so long as you have revolving accounts. Credit cards are the most common.

Response by SFC Christopher Taggart made Dec 26 at 2017 8:55 PM

2017-12-26T20:55:52-05:00

Nope! Paying your bills on time and quickly paying them off builds credit. Unfortunately, I'm finding that I'll need to apply for one next year, so I'll be able to rent a car, when I need to. Debit cards were allowed at one time, but that's all changed now.