Why do I need credit?

Credit Consfusion

Living within your means by paying cash for everything and not having any debt sounds pretty good right? Well, from a credit standpoint it’s bad.  In fact, it may cause you to have “bad credit” or no credit at all.

Why? Because credit scores are based on your ability to manage debt. So if you have no debt you have no credit history. Thus, bad credit.

It seems nuts but this is the game and you have to play. You need credit to rent an apartment or house, turn on utilities, or to buy a car, house, or insurance. Otherwise, these things are way more expensive.  The cost of having no credit or bad credit is pretty steep.

Good credit means good interest rates, lower insurance premiums, $0 security deposits, and borrowing power for your business or personal needs.

The lesson here is that you need credit regardless of your age, how much money you make, or where you live.  Good credit gives you options, and makes life a bit easier.  I’ll get off the soap box now but thanks for reading!


Credit Confusion help
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My firm has 3 goals – be cost effective & efficient, make complicated things simple, and change the way people think about attorneys. We do this by offering flat rates with payment plans, educating our clients, and by encouraging everyone to ask us questions to better understand what we do & why we do it. I am a credit attorney and I love helping people with debt and credit legal issues.

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