How should I start building credit?

[quote name='Vacabck']
I am not anti-credit, I just dispute the NEED for credit.[/QUOTE]

You don't NEED electricity either. But since it's not that fucking hard to get, why not get it.
 
It IS free to build good credit though, although you are right that it's very easy to screw up which is where most people go wrong.

If someone only uses their credit card to buy things that they would anyway, like gas, groceries, etc. and pays it off every month on time it is definitely free to build credit. Setting up online payments is free and practically effortless.

Sure a person might be able to save up and buy a nice home with cash, but don't you think that same person could earn a better return on their savings than the 4-5% mortgage that someone with good credit would get and enjoy the home now?
 
[quote name='pjb16']No, you buy a new car (via loan) because you need a car and want something that you can claim to be reliable for a number of years without much hassle or worry. You don't do it to "save" on interest or because you didn't want to pay cash for it.

Not everyone is looking to sell their car 3 weeks after getting it. I don't care about it depreciating the 1st 25% within a mile of driving off the lot when I'm going to keep it for 10+ years.

There are also ways to protect yourself from being upside down on a loan should you get in an accident.[/QUOTE]

And not everyone is holding on to a car for 10 years either, making your point completely moot. In fact, the people that do hold on to a car for 10+ years are in the minority. The average length of time that a person owns a car is 5.5 years. That's barely 5 months past paying off a 60 month loan.

There are in fact ways to protect yourself from being upside down on a loan. It's called not being there in the first place. There is nothing wrong with buying a 1-2 year old reliable car. Someone else has already taken the depreciation and you still have a car that is likely still under warranty.
 
[quote name='mtxbass1']And not everyone is holding on to a car for 10 years either, making your point completely moot. In fact, the people that do hold on to a car for 10+ years are in the minority. The average length of time that a person owns a car is 5.5 years. That's barely 5 months past paying off a 60 month loan.

There are in fact ways to protect yourself from being upside down on a loan. It's called not being there in the first place. There is nothing wrong with buying a 1-2 year old reliable car. Someone else has already taken the depreciation and you still have a car that is likely still under warranty.[/QUOTE]
I'm not sure why you're arguing this point, as I never insinuated there was an issue in buying a 1-2 yr old car. You can get great value by buying a car that is so lightly used. Just like buying a new car though, many people would need a loan to buy a 1-2 yr old car.

And I am well aware most people don't hold on to cars for 10 years, but that doesn't make my point moot because my point was strictly talking about myself.
 
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