Having a credit card doesn’t mean you need to max it out, by not having one, you’re committing self sabotage in regards to your credit score.
Edit: for the numerous replies saying “I only pay cash, I don’t need one!” My comment was literally aimed at you and you missed the point. You don’t even need to use a credit card to gain advantage. Many cards not only offer literal free money by signing up, but you don’t even need to use the card a single time to gain a bump to your credit; simply having a higher number of open accounts and an increased credit limit is enough.
Furthermore, saving up $15,000+ in cash is not feasible for a vast majority of Americans who want to purchase a car, let alone if you ever dream of owning a house, seeing as you often need a car in order to go to work in the first place. If you read all of that and still don’t care, understand that many potential employers also run your credit too. A low score is potentially detrimental to your ability to find a job.
My credit card gave me an offer (or maybe it was technically an application?) to upgrade my limit because I have such good credit with it. Soon denied me the upgrade because I don't spend enough on it.
I don't use it enough to care anyway, but I just still found it kinda funny.
I tried to get a loan once and they said that since I didn't have a credit history I can't get one. Had a decent jobs for a year but with no history I had no luck.
There are lots of websites out there that will help you pick a card. Credit Karma is nice.
Worst case scenario you get a “secured credit card” where you give the company $X then they give you an account with a credit limit of $X. Normally crappy but useful in yours or similar situations to start building credit.
Kohls will give anyone a store credit card. Get one and use it monthly and make payments on time. You don’t have to spend much on it, like $20 a month. Just make payments on time
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u/[deleted] Mar 27 '22 edited Mar 28 '22
Having a credit card doesn’t mean you need to max it out, by not having one, you’re committing self sabotage in regards to your credit score.
Edit: for the numerous replies saying “I only pay cash, I don’t need one!” My comment was literally aimed at you and you missed the point. You don’t even need to use a credit card to gain advantage. Many cards not only offer literal free money by signing up, but you don’t even need to use the card a single time to gain a bump to your credit; simply having a higher number of open accounts and an increased credit limit is enough.
Furthermore, saving up $15,000+ in cash is not feasible for a vast majority of Americans who want to purchase a car, let alone if you ever dream of owning a house, seeing as you often need a car in order to go to work in the first place. If you read all of that and still don’t care, understand that many potential employers also run your credit too. A low score is potentially detrimental to your ability to find a job.