this post was submitted on 29 Jul 2024
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Credit Cards

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Hey, I was wondering if someone needs credit to buy things. People in my family have said I wouldn't be able to buy a car or a house without credit. But if I'm saving up cash to pay for things outright, do I really need credit?

Note: I’m sorry if this is the wrong place to ask.

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[–] mipadaitu 3 points 4 months ago

Also something to realize is that buying things on credit isn't always a bad thing. If you have $30,000 to buy a car, and get 0% financing, you can do a lot with the rest of that cash while paying off the car. (as long as you don't miss any payments, or do anything that will charge you fees)

Buying things with a credit card can also protect you from problems, many credit cards have strong fraud and warranty protection.

Keeping a credit card for emergency purchases that you may not have the immediate cash for can also be helpful, as long as you do it responsibly.

Wealthy people use loans, credit, and delayed payments to maximize their portfolio.