Dear Liz: I haven’t had a credit card since 1993. I refuse to get one. So how do I buy a house? Don’t tell me to get a credit card, because I absolutely refuse to let the banks and credit people rule me. If I can’t buy it with cash, I don’t need it that bad. I do have a car loan now and pay utilities. I pay everything on time. Any suggestions?
Answer: You might want to take a look at the contradictory attitudes you just expressed.
You have a car loan, which means you’re in debt and pay interest to a lender. But you refuse to get a credit card, which can help you build your credit scores without having to incur debt or pay a dime in interest.
Having a credit card does not make you a slave to lenders, unless you’re stupid enough to carry a balance. On the contrary: It can help you build your credit scores to the point where you’re in the cat bird seat, being pursued by mortgage lenders eager to give you a great deal.
If you absolutely can’t trust yourself to have a card without carrying a balance, then of course you should forgo plastic. Otherwise, you could use a card like the helpful tool it can be, charging small amounts each month and paying the balance off in full, to boost your credit scores over time.
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