Quote:
Originally Posted by IndyNova
if you have the cash, why do u need credit? suppose you have something unexpected happen, and you had 5 grand out on credit cards, and you were unable to pay it, what then? if you had just paid cash, then no worries right? I mean, how many people now have to worry about paying for the christmas gifts that they bought? I guess from my p.o.v, after seeing how hard it is to crawl out of the hole credit can put you in, i just as soon not need the burden or credit cards.
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Your sword cuts both ways. What if you suddenly had to spend 5 grand for something you could not do without, to repair plumbing you could not repair yourself, as an example, and you did not have the money because you only pay cash and had no means to gain any sort of time payment?
We use our one credit card, and always pay it off, this has given us very good credit. It has also enabled us to get a Lowe's "project card" when we needed it to finish our home in order to put it on the market. We have no way of extending the date we put it on the market as we need to have it sold and closed by April. Without credit, made accessible to us because we pay everything off and thus can both afford the "loan" as well as the payments if everything were to go south and our home did not sell.
Credit is a tool. Like any tool, if used recklessly, or if abused, it can cause serious damage or injury to the user.
Happy New Year!
Bill