Hey, I was wondering if someone needs credit to buy things. People in my family have said I wouldn’t be able to buy a car or a house without credit. But if I’m saving up cash to pay for things outright, do I really need credit?

Note: I’m sorry if this is the wrong place to ask.

  • DaddysLittleSlut@lemmy.worldOPEnglish
    0·
    6 months ago

    I’ve created a plan to save $1,000-$2,000 every month for 25-30 years at a realistic interest rate of 2-3%. By the end of it, I’d have around $886,389.54.

    • scoobford@lemmy.zipEnglish
      2·
      6 months ago

      That’s great, but that entire time you’ve (assumably) been paying rent. You’ve saved up enough to buy a house for cash, but also spent enough to buy an entire second home.

      You’d stand to gain significantly if you bought the house earlier. Rent paid is burnt, but a mortgage paid is building equity in your hone.