I know this might just reflect financial culture differences across countries, but let’s give it a try
Edit: as a clarification, I meant credit card compared to debit, not to cash
I know this might just reflect financial culture differences across countries, but let’s give it a try
Edit: as a clarification, I meant credit card compared to debit, not to cash
You clearly listen to too much Ramsey. No credit is a credit score of 0. Bad credit is 580. It is going to take time to repair either one but if you’re running a race, do you want to start at 0, or 2/3 of the way to the finish line?
Even if rates are 10%, ownership is better than paying a landlord rent. Equity, equity, equity… High interest rates are when you upgrade or purchase more property to build wealth. Just ride it out and refinance when the rates come down.
Having a high credit score makes everything easier. A high credit score is also something required for certain jobs. Ramsey comes up with “workarounds” for when his advice about not having credit doesn’t work out.
You should probably learn how credit scores works. You sound very misinformed.
Ownership can be better than rent, it depends on the situation, but you’re moving the goalpost from a “good debt” argument to an “own vs rent” argument. Interest rates can could go decades without dropping below 5% again. What we saw after 2008 could have truly been a once in a lifetime thing. I’m not sure what you’re talking about when you’re saying high interest rates are a good time to buy for wealth building. That makes 0 sense, unless you’re buying in cash when interest rates are pricing everyone else out of the market. Have fun waiting to refinance at some unknown future time… kind of hard to predict your ROI when you don’t have a crystal ball to see the future. Buying in at a low interest rate locks it in, so you keep it even when rates go up, which is an infinitely better idea, as you don’t need to wait and hope for a rate drop in the future and then pay to refinance.
Also, if you really liked “good debt”, you wouldn’t have any equity. You’d mortgage yourself as much as possible and do a cash-out refinance every chance you got. No equity.
High credit scores can make some things easier, but most related to borrowing money. I’ve had my credit locked at all the reporting agencies since the Equifax thing happened. I can count on 1 hand the number of times I’ve had to unfreeze it for a pull since then. It’s not like people should be doing things on a daily or even monthly basis that require their credit score. And I don’t know what kind of shitty job would require a credit check.
You sound brainwashed by the credit industry. Do you think velocity banking will supercharge your finances too?
When I checked my credit score last month, it was 847. I’m sure I’m doing better than 99% of people in that regard.
When interest rates are high, there’s less demand and as a result prices are lower.
Keep listening to Ramsey. This conversation has devolved into something I’m no longer interested in, so I’m checking out… have a good one.
Having a high credit score doesn’t mean you know how it works. For example, on time payments is part of the calculation. If you have no credit, you can get new credit and start at 100% when you start paying. If you have bad credit for missed payments, those don’t magically go away when you start paying, you have to wait for them to age out. They stick around for 7 years and drag you down.
Prices are lower, great if you have cash… which is what I said. If you’re paying a bunch of money in interest, it negates the benefit.
You “lost interest” when you realized you have no idea what you’re talking about… Most of this isn’t Ramsey stuff, it’s just finance stuff. If your ideas can’t hold up to any scrutiny, are they good ideas?
I lost interest when I realized I don’t care if you’re fucking up, and I don’t care if you think I’m wrong either. I don’t want to argue with you. Waste of my time. Like I said earlier, have a good one.
Maybe neither of us is fucking up, we’re each just doing what is best for our unique situations. Have a good one.
They’re not moving the goal posts from good debt to own vs rent, the reason a mortgage is good debt to have is because it is better than renting. Consider taking out a loan for something that has zero benefit, like a statue or yourself or something stupid. That’s bad debt because it provides no benefit. Being in a home builds equity. Your putting your money into a 30 year hole very slowly but it’s better than a bottomless pit.
It can be, not always.