Myth: You should get a credit card to build your credit.

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Mon Aug 14, 2006 7:50 am

Well put

Nalian · #12 Unread post by **Nalian** » Mon Aug 14, 2006 8:57 am

storysunfolding wrote:Nalian what kind of bike do you ride? I love the lines of it in your picture

Sorry - missed the question! It's an 06 H-D Sporty (883 custom)

DieMonkeys · Mon Aug 14, 2006 10:15 am

Nalian wrote:Credit is a tool, just like anything else you have to deal with as a growed up. Tools can be very useful things - but every tool is a weapon if you hold it right.

"Myth: Debt is a tool and should be used to create prosperity.
Truth: Debt adds considerable risk, most often doesn't bring prosperity, and isn't used by wealthy people nearly as much as we are led to believe."

flynrider · Mon Aug 14, 2006 10:36 am

If you have no credit history, then you have no credit. If the point is to build a credit history, then a credit card works just fine and you do not have to carry debt. Simply by using the credit card and paying off the full balance every month, you are building a credit history. You do not have to carry a balance to do this. As long as you can manage a credit card responsibly, using it shouldn't cost you anything.

I don't borrow money or carry balances on credit cards. I do use a couple of credit cards regularly and pay off the balances every month. My credit score is very respectable.

Nalian · #15 Unread post by **Nalian** » Mon Aug 14, 2006 10:45 am

I don't know anyone who believes that getting into debt will help them make money - unless you're talking about real estate and such. If that's the case the guy has quite a few million success stories to contend with.

#16 Unread post by **Sev** » Mon Aug 14, 2006 11:01 am

flynrider wrote:If you have no credit history, then you have no credit. If the point is to build a credit history, then a credit card works just fine and you do not have to carry debt. Simply by using the credit card and paying off the full balance every month, you are building a credit history. You do not have to carry a balance to do this. As long as you can manage a credit card responsibly, using it shouldn't cost you anything.

I don't borrow money or carry balances on credit cards. I do use a couple of credit cards regularly and pay off the balances every month. My credit score is very respectable.

That's what I've done.

I usually pay my credit card bill within three days of having the charges go through. This is because the bank I bank with takes 3 days for a charge to be aproved and put up on my "internet banking." I check daily and pay it off when it appears.

Doing this my credit rating 3 years ago was somewhere just above 800 out of a possible 900. I was told that if I wanted to (from the bank manager) I could buy a house at the age of 20 with my job and credit rating.

DieMonkeys · Mon Aug 14, 2006 2:18 pm

Nalian wrote:I don't know anyone who believes that getting into debt will help them make money - unless you're talking about real estate and such. If that's the case the guy has quite a few million success stories to contend with.

He was in real estate, was a millionaire. But then there was some sort of crash in the 80s with real estate and he got himself into quite a bit of debt.

Now he's a millionaire again, the book tells you how he did it. And it's not get-rich-quick scheme. But it does help that he has a radio show.

Mon Aug 14, 2006 3:40 pm

DieMonkeys wrote:
"Myth: Debt is a tool and should be used to create prosperity.
Truth: Debt adds considerable risk, most often doesn't bring prosperity, and isn't used by wealthy people nearly as much as we are led to believe."

That's wrong. Wealthy people generally finance every major purchase. When their money can sit in a fund and earn high returns and when the debt has a lower interest they will do it every time because by going into debt they make more money.

The guy who sold you the book doesn't need debt to finance his house, you're doing it for him.

Finance is a very complex animal. Yes it's best not to rack up alot of debt in general but there are cases where having debt and leveraging your assets makes you more money, or at least allows you to lose less. If you never want to think for yourself and can't control your budget then by all means avoid a credit card.

#19 Unread post by **ZooTech** » Mon Aug 14, 2006 3:54 pm

storysunfolding wrote:Nalian what kind of bike do you ride? I love the lines of it in your picture

Looks like a Sportie.

DieMonkeys · Mon Aug 14, 2006 4:00 pm

storysunfolding wrote:
DieMonkeys wrote:
"Myth: Debt is a tool and should be used to create prosperity.
Truth: Debt adds considerable risk, most often doesn't bring prosperity, and isn't used by wealthy people nearly as much as we are led to believe."
That's wrong. Wealthy people generally finance every major purchase. When their money can sit in a fund and earn high returns and when the debt has a lower interest they will do it every time because by going into debt they make more money.

The guy who sold you the book doesn't need debt to finance his house, you're doing it for him.

Finance is a very complex animal. Yes it's best not to rack up alot of debt in general but there are cases where having debt and leveraging your assets makes you more money, or at least allows you to lose less. If you never want to think for yourself and can't control your budget then by all means avoid a credit card.

You should check the book out yourself, or at least listen to one of his radio shows. Go to the library if you don't want to "fund him".