Poll: How important is your credit?

[NeoStarO1]

In light of recent events. My rant, and the fact that I been taking a series of classes on financial fitness and taking classes to learn how to purchase a home when I get ready to do that, and what to look for and all of that good stuff.

I am really amazed at how many people in my class have allowed themselves to get into huge debt loads. I am not saying I am exempt from this as I have made my share of mistakes not relizing what my credit meant to me many years ago. In the last 8 to 9 years I have struggled hard to get it cleaned up. finally as of 2 years ago I was able to clean up the last of it and have a good credit report now and have been working on increasing my credit score. (the higher the score the better).

So for my poll I am really curious of how you rate the importance of your credit report/score.

Please vote but feel free to stay silent.

[Epidemic]

Well Credit is multi faceted.

In order to establish a credit score you must carry a balance.

from 1984 to 1995 I never carried a balance and always payed on time. Yet my credit score was worse than my sister who was burried in credit cards and struggling with debt.

Currently I am carrying a debt in my mortgage. I hate it. I bought half my house cash but the rest just was not in the cards for me. I am carrying an enormous debt load of 85,000 dollars. Bleche!!!

[cowboybooter]

I voted pathetically low, sorry.

Money is not a problem tho, I own my house, car etc.

[caddmannq]

Hmmm...my credit score isn't great.

However, I just bought my second house. Right now I'm about $250,000.00 in debt, and people are swarming like flies trying to get me to borrow more.

HeeHee...I'm laughing at that amount, but when I was younger, I wouldn't have been able to sleep at night.

But I finally decided "What's the worst that can happen? I could die. But if I do, I won't have to pay them!"

HeeHeeHee...I sleep like a baby now.

(PS: Escrow closes today. Deed records tomorrow. Keys by lunch. I'm not sure how I'll be able to work tomorrow afternoon...I wanna MOVE! )

[NeoStarO1]

Well I think that if your have already purchased a house and your debit is like as posted above the 85k or the 250k I would think that is a good debit since its a major purchase and if paid on time and all that good stuff it goes as a good debt rather than a bad debit.

About the only thing I consider as a good debit is homeowners loans. Everything else to me is secondary and could be good debit. *note I said could* depends on what it is.

[brandon184]

I don't look at debt as a bad thing, unless you're buried in it and the interest rates, etc. pile up faster than you can pay the bills off.

~ Brandon

[daveleau]

I chose pathetically low, even though I don't spend and spend.

I honestly care little/ none about my credit. I don't need it. I do not carry any credit cards and my car is paid for. I am working to get out of debt so I can live debt-free like my friend Dave Ramsey teaches on his nationally-syndicated radio show. www.financialpeace.com for more info. The ONLY thing I will EVER buy on credit in the future is a home. All cars, al clothes, all meals will ALL be paid for in cash. Yes, I said cars. When you make $30-40K/year, there is no reason you cannot. If you have no debt and only pay for your home and electricity, cable, telephone and water, that leaves a LOT to save for a car.

Debt-free is the way to be. He teaches how to be a millionaire by the time you retire (no get rich quick here, you must EARN it while still having fun). He teaches how to invest, how to buy real estate, he teaches why your $30,000 car costs you several HUNDRED THOUSAND DOLLARS in the long run because of depreciation and interest.

Sorry, didn't mean to get on my soap box. The smartest financial move you can make is to do something that costs NO MONEY! Listen to Dave Ramsey's radio show online here: http://www.daveramsey.com/radio/index.cfm It's the best financial advice I can give!

Dave

[daveleau]

BTW, while I care little about my credit rating, I still pay all my debts on time and I do not overspend. I believe if I take on a financial responsibility, I must make good on it.

[NeoStarO1]

daveleau,

You make a lot of sense. Many years ago one of my older brother said to me when we was working on his boat motor. He said, ya know, when you get older make sure your first major purchase is always a house, buy your cars used and not brand spanking new. and invest wisely, I have never forgotten his words and that I what i am trying to accomplish.

I think your advise is sound and no you are not on a soap box IMO. I am curious as to how others think and how they see thier own credit.


Edit: BTW I had voted extremely obssively high, I think cuz i been on the system so long and going to college so long that I want out from under the government pressures is why im obbsessed with my credit. I mean everything I do from rentals to other things I go beyound my duty to ensure my credit doesn't get bashed for no reason whatsoever.

I have seen too many people in my exact shoes go into deb and never even try to pay the debt off. That is sad IMO.

I voted "medium" as we have had some scares a few years back when we owned a few houses and couldn't get any more loans for more as we were mortgaged up to the hilt We could always pay our bills, but just wanted more investment properties. Now we have sold them and are settling in to stock investments, using some savings and equity in our new home.

I agree with daveleau about his financial goals and stuff, as we are heading that way now with a good financial adviser. We USE credit to our advantage, which does not mean huge debts. It simply is a way of using the banks money for our purposes, like interest free periods for credit cards (ALWAYS pay off the whole amount before the interest free period finishes), and line-of credit loans which allow you to use equity and pay it straight back without fee penalties.

I never used to care much for credit ratings and stuff, but am now beginning to appreciate the sound logic in good money management, which includes some understanding of how to use credit wisely.

Cheers
Mick