http://thesmarterwallet.com/2009/no-credit-history-building-credit-is-important/ Money Tips, Consumer News and Product Reviews To Improve Your Finances Tue, 16 Mar 2010 04:47:23 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://thesmarterwallet.com/2009/no-credit-history-building-credit-is-important/comment-page-1/#comment-9259 Thanushka Thu, 27 Aug 2009 20:43:47 +0000 http://thesmarterwallet.com/?p=4351#comment-9259 I moved in to the US recently and it took me only few days to realize how much US way of doing things depend on credit history. I had to buy a car for over 11% interest (which would have been 3.9% if I had credit history), I had to rent furniture (which was very expensive) until I could save enough to buy piece by piece. Although I personally believe that it's this credit driven habits which makes the US economy crunch every once in a while I also realized that all US systems are made with pre assumption that every person would have credit history. It's easy to change yourself than change the world. :) I moved in to the US recently and it took me only few days to realize how much US way of doing things depend on credit history. I had to buy a car for over 11% interest (which would have been 3.9% if I had credit history), I had to rent furniture (which was very expensive) until I could save enough to buy piece by piece. Although I personally believe that it’s this credit driven habits which makes the US economy crunch every once in a while I also realized that all US systems are made with pre assumption that every person would have credit history. It’s easy to change yourself than change the world.

]]> http://thesmarterwallet.com/2009/no-credit-history-building-credit-is-important/comment-page-1/#comment-2590 Darin Thu, 26 Mar 2009 22:43:45 +0000 http://thesmarterwallet.com/?p=4351#comment-2590 So you stated that you didn't have a lot of money. How would credit have solved your problem? It would have delayed it. It would have not only tied up your current income, but also your future. The only thing you need credit for is to buy a house, and for that some banks will do manual underwriting. They look at previous utility and rent payments along with job stability. Yes they do expect a 10-20% down payment, but should you really be buying a house if you can't afford that? So you stated that you didn’t have a lot of money. How would credit have solved your problem? It would have delayed it. It would have not only tied up your current income, but also your future. The only thing you need credit for is to buy a house, and for that some banks will do manual underwriting. They look at previous utility and rent payments along with job stability. Yes they do expect a 10-20% down payment, but should you really be buying a house if you can’t afford that?

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