Your credit score is probably high if you've never missed payments on anything. Your credit history may be light enough to discourage some lenders. They like to see a record of no-problem loans. My credit score is over 800 despite my long history of light borrowing. I could borrow a lot of money but like you, I have no need or desire to. I say this because I think it is wise for you to know your credit report and keep the ratings high. Especially since it is not hard for the prudent. You just never know. A personal crisis or a business opportunity might put me in the situation of needing a loan. Not likely, but it could happen. I do not want any obstacles to that if I need it.
If you don't borrow money for a period of time you will not have a calculable credit score. It will just return null. All the formulas require some type of debt. If you pay with cash or debit cards, have paid for cars and a paid for house your Fico score will eventually be 0. I don't know if mine is there yet.
I understand. But I have always used a gas card and a credit card, I just pay them off every month and owe no interest. I like being able to borrow if I ever need to. Maximum slack.
Yes, and I see your argument. My counter would be when you factor in risk, and that my house is an appreciating asset the spread is diminished to some minuscule nothing.
There is the difference. You have some basis to compute a credit score. As a strictly cash user I don't. I assume if I had to borrow money for some reason I have enough to collateralize, but don't want to.
Yep. My son got a letter from on off-campus bookstore he occasionally uses, saying he owed them $50 on a rental from last semester. He proved to them twice that he didn't even take the class the alleged book was for, but they would not acknowledge it, just kept telling him that a supervisor would contact him. But my wife is a coward in such matters and paid them off.
I can see how that would work, if you don't have any long-term payment plans like a car note out there. Staying out of debt is great, but its the combination of timely payments against outstanding debt that credit score outfits get turned on about.
I have heard that even if you don't need the money it's a good idea to take out loans at low interest and pay them back just to build up your credit score.
