Convince me that I actually need credit ever again...

[StartinOver]

We did so badly for so long with debt, that I'm feeling as if it would be wisest for us to never have credit again.

Background, as we go forward...

We are below median for where we live, and way below median for where I work in the adjoining state. We have 2100.00 in savings, for the first time in our lives we have more than a nickel that isn't pre-spent. We're budgeted to put $400 a month into savings above and beyond the allotments for annual and quarterly expense items.

Our Chap 7 BK discharged on 8/2/11. I'm 54, he's 42, no kids, just pets. We are now well within our means, and living a cash life. I'm way past the idea that I need to OWN the home, that was a millstone that nearly drowned us, and taking on a 30 year mortgage that won't be paid off until I'm in my mid-80s seems a special kind of crazy to me.... then there's the boat anchor called credit card temptation. I've proven to myself that credit cards and me are not a wise mix and I don't intend to get in trouble again. I fear I'd be the one posting that I was filing again, 8 years and 1 month from now otherwise.

Since we are living well within our means, what purpose does credit serve for us, other than to line someone else's pockets because I can't be patient and wait til I can afford my wants?

Someone convince me that I even care what my credit score is. The only purpose I can see to watching it, is to ensure that someone hasn't stolen my identity (good luck to 'em getting anything with it, actually!)

[lotsahats]

HA!!!

I TOTALLY hear that!

In my case, the credit card was there when we needed it, and look where it got us. We lived off it for a few months when hubby and I were both out of work, and had a baby on the way. We had a small (laughable, microscopic) savings, which we used to pay the minimum, so that we could continue to use it as we needed it. The limit was high, because we'd had the card for so many years, and didn't use it, so the issuer kept upping it.

When my husband finally found work again (I am a stay-at-home mom), we were unable to break out of debt. We've been trying to for three years, but the universe seems to be working against us. It eventually got to the point where we were having to make ends meet by putting whole paychecks toward the card, and then use the card to pay other bills. By doing this, the the cc balance was slowly climbing, because of the ridiculous interest rates. On the other hand, if you leave the cards out of our budget, we have more than enough to live on. So, we decided to stop paying them, and save up for a bankruptcy attorney. I plan on filing Chapter 7 early next year.

As for a home, renting has always been a personal preference for us. In an apartment, if the refrigerator breaks, you call maintenance, and they come and fix or replace it for free. They even clean the rugs for free once a year. It's that simple.

As for a car, I'd rather buy an older, cheaper (yet reliable) vehicle outright, than spend six years paying off a newer, more expensive car that is only going to age, anyway. We've already been down that road. In fact, I considered filing for bk now, and paying the attorney in installments, but I'd rather just pay for the whole thing upfront. There is just something satisfying about knowing something is bought and paid for.

And, as for my credit score, well, my brother had an outstanding score. Worked hard for it. Until someone stole his identity, and messed it up. He still hasn't been able to fix it. That is why, while I have never missed a payment on anything, (until very recently, that is), my credit score has never been a major concern of mine.

While I admit, I'm not sure how we would have survived without the evil plastic monster, I can now look back and learn from the experience. I just consider it a tuition payment to the School of Hard Knocks. In the future, we'll be sure to have an emergency fund, in case of hard economic times, especially now that we have the well-being of a child to consider. Hindsight is always 20/20, isn't it?

So, yeah. I'm in the same boat as you, and I'm 31! You'll never convince me to get a credit card, ever again.

[Exployer1234]

I have to admit I have not even wanted a credit card after my discharge. I think living within my means is important to me. I don't even miss having a credit card. If I don't have the money I don't buy it. Though my situation recently has not been great, I still have no need for a credit card. Personally I could care less if my score stays the same.

[kayba]

Nope you don't need it, ever. If you have no plans on buying a home or getting a car loan then your credit score means little if any. Living debt free and within your means sounds wonderful to me!

[artgood]

I hope to never buy anything on credit ever again. No credit cards. No department store cards. No mortgage. No car loan. Right now I still have a $3500 student loan that is driving me CRAZY, and I can't wait to get it paid off. I am happy with renting. Driving older vehicles. Paying CASH for everything I need or want.

The weight of debt is crushing - and I hope to avoid it at all cost. Freedom is a wonderful thing.

[DebtHater]

Nope you don't need it, ever. If you have no plans on buying a home or getting a car loan then your credit score means little if any....

You don't need a good credit score to buy a home. Only to borrow money to buy a home. If you can get a lender to manually underwrite the loan it doesn't matter either.

[malf1204]

I got a 1500.00 secured card with NFCU. No fee and your 1500 earns interest while they have it. The ONLY reason I use it is car rental. It has awesome car rental insurance for free. If I pay cash or use a debit card I have to buy insurance.

[Scooter10]

It is great that you can get buy with out credit and use all cash. I have the same motto. I dont see how obtaining a small 1-2K card can hurt. You neverknow what you will run into 5-10 years down the line or even next week. Credit is easy to get when things are going good, but if things turn sour quickly will be hard to obtain. What if you lose your job, there is a break-up, you have to move...Just saving Murphy is always just around the cornes. $2100 in savings would go rather quickly. It would be nice to have a $1-2K cushion on credit to get by if something were to happen. You dont have to use it, but atleast it is there.

[DebtHater]

It is great that you can get buy with out credit and use all cash. I have the same motto. I dont see how obtaining a small 1-2K card can hurt. You neverknow what you will run into 5-10 years down the line or even next week. Credit is easy to get when things are going good, but if things turn sour quickly will be hard to obtain. What if you lose your job, there is a break-up, you have to move...Just saving Murphy is always just around the cornes. $2100 in savings would go rather quickly. It would be nice to have a $1-2K cushion on credit to get by if something were to happen. You dont have to use it, but atleast it is there.

Whether you have a $2000 credit or $2000 in savings if things go down hill the bottom line is it's still $2000. The difference is with credit you have to pay it back with interest. If you lose your job or some other Murphy related event happens you may not be able to pay it back. $2000 taken out of savings won't come after you if you fail to pay it back in the near future. Plus you make money on what's in savings, you lose money on what's owed.

Don't get me wrong, $2000 in savings is not a lot. Ideally build up a minimum of 3 months of expenses in savings. The bottom line with the $2k card is it's a crutch with risk.

[Logan]

We did so badly for so long with debt, that I'm feeling as if it would be wisest for us to never have credit again.

Background, as we go forward...

We are below median for where we live, and way below median for where I work in the adjoining state. We have 2100.00 in savings, for the first time in our lives we have more than a nickel that isn't pre-spent. We're budgeted to put $400 a month into savings above and beyond the allotments for annual and quarterly expense items.

Our Chap 7 BK discharged on 8/2/11. I'm 54, he's 42, no kids, just pets. We are now well within our means, and living a cash life. I'm way past the idea that I need to OWN the home, that was a millstone that nearly drowned us, and taking on a 30 year mortgage that won't be paid off until I'm in my mid-80s seems a special kind of crazy to me.... then there's the boat anchor called credit card temptation. I've proven to myself that credit cards and me are not a wise mix and I don't intend to get in trouble again. I fear I'd be the one posting that I was filing again, 8 years and 1 month from now otherwise.

Since we are living well within our means, what purpose does credit serve for us, other than to line someone else's pockets because I can't be patient and wait til I can afford my wants?

Someone convince me that I even care what my credit score is. The only purpose I can see to watching it, is to ensure that someone hasn't stolen my identity (good luck to 'em getting anything with it, actually!)

If you don't ever plan on getting another loan then you don't need credit.

[BankruptinNJ]

I completely agree that you don't ever need credit cards again if you don't plan on ever getting a mortgage or getting a car loan.

I do believe, however, that you should definitely check your credit reports at least once a year. This is important not only to find out if everything is reporting correctly, but making sure that no one is stealing your identity! You do want things to be accurate,.

[CCsAreEvil]

and checking your credit report once a year is absolutely free.. there's no reason NOT to do it.

[nc73]

It's great that some of you decided that you don't need credit. It is better to be safe than sorry and start rebuilding. You never know when you will need it.

[LSUTiger32]

This is such a refreshing thread. To re-iterate what most have said and to answer the OP.....you are right, you DO NOT need credit.

My 2 year post discharge date is fast approaching and I just checked my stuff on CK and low and behold for the first time since I was 18, I now have ZERO inquiries over the 2 year period! Such a great feeling. We have had our struggles going to all cash, but I love when people tell me about their credit cards and I show them my plastic, that being my debit card.

We will begin the process of re-financing our house next month, so I am really looking forward to that with the interest rates out there! At 6.5% right now and seeing those 3.75% rates out there gets me so excited!

[discombob1]

I'm perfectly happy with the in-between. I have one card, use if monthly and PIF. That's it, I'm done. It is helping my score, I'm not tempted to run it up. I am getting a perverse pleasure out of getting offers...then shredding them. I tend to be pragmatic which is why I did open one. That one and time will be my friend. Other than that, I don't plan on buying a home until my student loan is paid off, and that will take time. By the time I can do that my credit should be good to go. For me, that works