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.
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.
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.
I might be renting a house soon, but my family has been making me really nervous about it, which is what they do. The rent is $2.4K per month, and it includes industrial equipment like sinks, and fiber optic internet. That $2.4K covers everything I need. The house itself is $1.3K. They say I should be making at least three times the $2.4K rent, but I’m making about $4K every month.
And the cost of buying a house could continue to skyrocket the entire time. In 30 years that could be a nice down payment, but you’ll want good credit, too.