I believe that you have misunderstood what I had meant as having credit as a tool.
I have said that is great to have good credit, but I have also stated that it is STUPID to use it.
Credit is good to have. Through real budgeting and a savings plan you should never have to use it. But having is good for today’s society.
With good credit you can have lower insurance rates, rent homes and cars. You even need to have good credit in some libraries these days.
Lets be honest…we are judge based on our credit. Having good credit is like keeping your word. You make a promise, you keep it.
While we all can stay in our small worlds; by doing so we fail to see the big picture. So until our society rejects the notion of credit entirely, then it is wise to have good credit, and maintaining it…Period.
Again, you are right…To have credit you must have or have had…debt.
And debt is never good.
Establish a good credit rating, then get rid of the debt as quickly and as morally as you can, then just maintain that credit every so often.
Always use cash to make purchases. If you don’t have the cash you can’t afford it.
Thanks for your wise wisdom.
Play with snakes long enough and you’ll get bitten. Think the finance companies who offer those 0% deals know something you dont? Not to mention the fact that they build extra profit into the sale price to get the poor atheletes to overspend in the first place. Try cash for a bargaining tool and see how much of a discount you’ll get from their 0% financing price.
If that were really a way to play for free, think they’d still do it? 😉
I realize that they build extra profit into the price. They obviously also bank on the fact that 99.99% of the people that go for the 0% will not pay up when it’s due and then they stick you with the extra interest and other fees that were hidden.
Cash is an incredibly effective tool to use and has been used in conjunction with the 0% for a very good profit.
I am just saying that tools can be used effectively. Even if you don’t have cash you should always try to negotiate price. It never hurts to ask and don’t always take the first no as the final answer.
I just was saying that for the disciplined negotiator, it might be effective to use what is offered to your advantage.
Anyways – 🙂 I hope everyone has a nice day.
Think the finance companies who offer those 0% deals know something you don’t? Not to mention the fact that they build extra profit into the sale price to get the poor athletes to overspend in the first place. Try cash for a bargaining tool and see how much of a discount you’ll get from their 0% financing price.
I think that you have some valid points about credit, and if that works for you, then great. But for the a great majority, this is not a solution.
Everytime someone buys on credit they are giving up a little bit of freedom. You are now bound to a monthly charge and severe penalties if you don’t pay up. For a lot that is not comfortable. And while some will have the discipline to do what you suggest, most do not.
By survey, 80% of American household admitted that they have some financial difficulties to one degree or another, and almost 90% are in debt and are carrying balances which would create a terrible situation if they lost there job or couldn’t work for a period of time.
There are ways to use credit to get one out of debt, and that is what I meant it can be a tool. Also if you have good credit established you can get good insurance rates for cars, etc. But if you have no debts thus little bills you can always afford…with ease…higher interest rates.
What you propose can be sound for certain purchases, but to buy cars, appliances, furniture on credit is absolutely stupid no matter the how low the interest rates even if it is the old bait and switch 0% interest game that banks play with you.
You’ll pay more always even if you do negotiate a deal. Otherwise the banks wouldn’t do it. It is not sound business practice to do otherwise.
The only time I think someone should use credit, and even I am pessimistic on this, is to buy a house. At least the house appreciates. Here, with right kinda loans, could credit be used as a tool.