Do I need a credit card?

[connmj1]

I am in the 60 day club and am trying to start reading up on how to get my credit score back up. I kept my house and two cars, which have always been paid on time. I just sold one car today so it was paid off. Will that help my credit? Also, since I still have a mortgage and another car payment will that be enough to start rebuilding my credit or do I still need a credit card too?

[ksgirl38]

A credit card is a different line of credit so it can only help, if you only use 10% of the limit and make sure it's paid of each month.

[DesdemonaB]

Connmj1

What you can use a cc for:

Renting a car (work or pleasure)
Reimbursable work expenses
A debt card will open and hold a reservation but most hotel will close the bill at check in, but a cc will keep it open allowing you to charge to your room
Travel and purchase protection plans
Builds positive credit – debt cards don’t build credit

I know that many members of this board pooh-pooh credit scores – that it’s just a number but it’s a number that controls so many aspects of our lives. Car, health and even life insurance, employment, ability to borrow in real life and emergencies, opening utilities, buy and/or renting a house/apartment/condo just to name a few.

Use the card responsibly, pay on time keeping your utilization under 10% and it can do nothing but build a positive future.

[soccerguy]

I am in the 60 day club and am trying to start reading up on how to get my credit score back up. I kept my house and two cars, which have always been paid on time. I just sold one car today so it was paid off. Will that help my credit? Also, since I still have a mortgage and another car payment will that be enough to start rebuilding my credit or do I still need a credit card too?

stay away from the evil credit cards

[connmj1]

lol I'm even more confused now

[AngelinaCat]

Many of us advise against jumping back into using credit cards, because of the ease of falling back into relying on credit, when we really need to learn to save and go 'cash only' as much as possible.

[Bell30656]

You can always opt for a secured card so that it is actually your money that you are using. I have found that there are times that I have to have an actual credit card not just a debit with a Visa logo. The most common is renting a car. Enterprise is my favorite car rental place if you have a Visa Debit, they want all kinds of information and they have to make a decision about renting to you. On the other hand if you pull out real plastic no questions.

[jetsfan2010]

do you need - no.

[Logan]

Nothing wrong with credit cards as long as you use them responsibly. I like to compare credit to alcohol. Drink only what you can handle or you'll wake up with a hangover.
Do me a favor and if you get a credit card make sure you pay it off every month and never pay any interest. An annual fee is ok if it's low when you start out but make sure you close it after a year or 2 when you're able to get a better card.
Logan

[HHM]

Do you "need" a credit card...absolutely not.

The thing is, you need to evaluate why you think you need one? Although I give advice on credit rebuilding and what not (to make sure information that is given is accurate), I am very much anti credit. Even in today's society, credit is very much over rated. Cash is still king. If you can reform your life style and, most importantly, your expectations around paying cash for EVERYTHING, you don't need to give two s--t's about your credit.

In another thread, a poster mentioned that he went to the lengths of "forging" the date on his bankruptcy discharge to get the date of discharge accelerated on his credit report (irony being, discharge date is completely irrelevant, but nonetheless). He/She felt it was right because he felt he was the David fighting Goliath. In my analogy, he is really one of the Philistine soldiers cheering on Goliath. If you choose to succumb and place value on your credit score and, WORSE, make financial decisions based on how it will affect your credit score, you are one of the Philistine soldiers giving strength and credence to the Goliath that is the credit and credit scoring industries.

Be a David, do not depend or rely on credit for anything....

[justbroke]

I think very differently, today, post bankruptcy. I think you can have both. In fact, having credit and using it too much (> 30%) is actually a detriment to your credit "profile" (or score)! Don't chase a credit score.

You can have a really good score with simply 2-3 trade lines. It doesn't require lying and forging court documents, and doesn't require you opening 20 credit card accounts (from store cards to revolving credit cards). A reasonable car note, your mortgage (if you have one), and one or two VISA/Mastercard revolving accounts is really all that you need.

Revolving credit is what gets us in the most trouble.

I say, be responsible and you can have both. A life without the use of credit AND a good credit score!

[ksgirl38]

I came across this article today and thought it was interesting. Although I don't necessarily believe everything on this site I thought the info might be helpful to some others:

http://www.fool.com/personal-finance/credit/get-it-done-boost-your-credit-score-in-months.aspx

[df04527]

I was reading that link thinking yup true, yup true, yup and then saw the authors name. I know john, where he comes from, where he has been, his knowledge base and while i do not, very easily, give praise to someone i have to say john is VERY credible and is a very knowledgable on how the credit industry works. I am not connected to him in any way shape or form just giving my most humble opinion. I met him through professional association at conferences and what not. In this case you can believe what he says is true.