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Originally Posted by Tbxgz
Yes in principal that makes sense but there are very few of us who can purchase things like a house without applying for a loan.
So to answer your question yes, he doesn't need to build credit if his Dad is going to float him the money each time.. but I highly doubt his dad is going to float him 300k when it comes time to apply for a home mortgage.
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im not saying its bad to have a good credit score but 20% down and consistent and adequate income go a long way
Quote:
Originally Posted by Dadhawk
Unfortunately, a low credit score can affect some other things because companies have become brain-dead.
It can affect insurance rates.
It can affect the ability to get a job, even if your field has nothing to do with FInance or money.
There are other examples.
You can avoid this by having a credit score of Zero which is possible if you have no transactions for about 3 years. Then companies have to do more logical work.
You can get a mortgage with a zero credit rating, you just have to use the right broker that does it the old fashioned way with much more paperwork.
I have a very high credit rating but its only because of my mortgage. When that is paid off, I'll have to work to get my score to zero because I don't carry debt any longer other than my mortgage.
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i dont take too much stock in credit score as i do financial history. i doubt the raise in insurance would be anywhere near the cost in interest to build credit. again i dont think building credit is a bad idea but i think we put a little too much faith in it over other factors. i know that when i ruptured my achilles tendon, i had good credit but failed to get a $3500 loan for an operating suite even though i was prequalified for a 25k auto loan