tuna pimp
carbon neutral
- Joined
- Nov 11, 2004
- Posts
- 228
Dangerkitty said:That is by far the most uneducated statement I have ever seen written on these boards.
DEBT IS NOT A WAY TO BUILD A CREDIT SCORE!!!
But it sure is a way to destroy it.
No, actually you're incorrect. You need to take on debt (car payment, credit card) RESPONSIBLY in order to build a credit history. You need to show creditors that you can repay a debt obligation on time before they will consider you for a larger (mortgage) or more risky (business) loan. One of the metrics in which credit worthiness is measured is by how long your credit history is.
I'm not saying charge everything you can to a credit card, but showing that you can repay within terms of agreement is crutial to build up a credit rating in your late teens and early 20's.