Lets talk money

[jaymegriffiths]

I built my credit with a couple small student loans (2.5% interest FTW!!!) and a credit card used to buy food and gas that I've never carried $0.01 on in the years I've had it. When I applied for a $100,000 mortgage to buy my first house a year ago, they said my credit score averaged 730 (3 different scores) and that they would be more than happy to give me a 30 year mortgage at a 5.00% rate.

I pay extra on the mortgage every month. I've also been early or on time with every other bill (gas, electric, internet, phone, water, student loan payment) so I'm guessing my credit score has only gone up from where it was.

My advice to all you wanting to build credit:
1. Having good credit is helpful, but you shouldn't plan on using it. Debt is a nasty thing that should be avoided unless you can use the money to earn a better rate of return than the interest rate you're paying to carry the debt.

2. Borrowing money for something that's going to depreciate is a stupid proposition. Borrowing money for things that have a reasonable chance of appreciating (like a house or an education) makes sense because the appreciation in value offsets the interest you are paying to have the money ahead of time.

3. Given the above point, DON'T BORROW MONEY ON A DANG CAR!!!!! The car makers and dealers have been very successful at convincing the american people that borrowing money to buy a car is "normal", and that you "deserve" to drive something nice and new regardless of whether or not you actually have the money to buy that car.

My advice is to get whatever credit card you can, use it for everyday purchases, and pay it off each month. Student loans are also an excellent idea because they are usually very low interest and nearly impossible to be turned down for. Just keep it within reason. Borrowing $80,000 to get a degree that will earn you $30,000 a year is going to put you in a large hole for many years to come.

while i agree completely and thanks for your advice, i cant see why using a crediter to buy a reliable vehicle is not a good idea.
5000 dollars is not going to buy me a reliable truck.
10000dollars might buy me a semi reliable truck with little to no options.
but after driving that truck for 5 years i still have a crap truck and no credit.
if in 5 years i want to buy a house bank says no way.
im sick of talkin to banks and stuff. i found some nice trucks and im savin up a big downpayment. ive been told the first is the hardest.
a girl i know from school works fulltime makes less than me and drives a brand new gm half ton 4x4 crew cab because her parents co signed.
i spent like 650 bux on my truck last month. thats like 2 months car payments. ill be lucky to get 1000 bux for my truck and it seems like a waste.
investing in my education? invest what? my parents wont co sign and the bank wont give me a loan regardless of wha part time job i get so...