02-15-2009 02:24 PM
When I was very poor I couldn't get credit or help of any kind. I learned to penny pinch, set priorities, and do without. Over the years I have built my career and my life without credit. Currently I am a home owner, I have my own vehicle, I pay my bills on time. I used the lost notion of saving and trading up. For example, we lived in a cheap, cramped apartment to save money for a cheap, cramped trailer on a small plop of land. We continued to penny pinch and save until we could afford to sell the trailer and land and use our savings to buy a house. Nothing fancy, not even a garage. As the years have gone on we've added to the house and property and upgraded as we could afford. The place is a lot nicer now than when we first bought it. All of this was done without credit.
I don't want credit. I've gone this long without it and I think have reaped some good benefits. What bothers me is that being responsible sometimes hurts us. I couldn't rent a car on a vacation because I didn't have a credit card. No biggie, more of an inconveinace than anything else. When I went to buy a cell phone, Sprint refused to sell one to me because my credit score was too low. I wasn't going to beg someone to take my money, so I got a cell phone through AT&T. My latest house insurance bill said that I didn't qualify for the optimal rate because my credit score was too low. I got a copy of my credit report and was told that I have no score. The letter said someting like "my creditors" don't know where I live and therefor they can't calculate a credit score for me. I should inform "my creditors" of the change in my address. "My creditors" don't exist because I don't owe any money.
Shouldn't people who save before they buy actually have a higher score than those with less discipline? How do I remedy the situation without getting credit?
02-15-2009 02:53 PM
08-28-2013 06:31 PM
Remember: FICO is an "I LOVE DEBT" score. FICO is not designed to show how financally smart you are with money. You can be broke with a great FICO score, or be a multi-millionaire with a horrible FICO score. You credit report shows your history, FICO shows how profitable you are likely to be over the next 2-3 years to a large lender.
08-29-2013 07:29 AM - edited 08-29-2013 07:37 AM
How do I remedy the situation without getting credit?
Nope. How can one build credit without credit? Responsibility with cash and responsibility with credit are two entirely different things.
Keep the situations you listed in mind when you are deciding that you don't want any credit. You might also want to read up on how credit scoring works so you understand what factors are taken into consideration. Scoring doesn't consider any of the responsibility you've had over the years without credit.
How do I remedy the situation without getting credit?
You don't unless you can single-handedly overhaul the entire credit industry. It will probably be more effective to learn the game and play it.
08-29-2013 12:59 PM - edited 08-29-2013 01:00 PM
I have no debt except a mortgage, but I have plenty of credit. I PIF every month, my score is around 790, and I get lots of assorted reward points. I have also received a lot of interest free credit for things like replacing my computer and replacing my air conditioner.
Even if rewards and interest free loans don't tempt you, you can get a credit card and use it pay regular monthly bills, and PIF every month. Or do what I do, and make my charitable donations from a credit card.
All of which works for me. I don't spend more with a CC than with cash, I don't change what I buy with a CC, and most of my cards are annual fee free
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