Cash Isn't King, Credit Is!

Oh, so true!  Some people, especially those with less money, don't realize this.  It's important to have credit cards and pay them on time!  That's the winning combo.  Not having them is a mistake and not paying them is a bigger mistake.

BINGO!  Excellent topic Kathy, and so true.  This post should be wearing a Gold Star!

Good morning kathy. Who knew that there were any down sides to cash? I think this post is important and thought provoking. Having cash is one thing....how you use it another. Suggested.

I have a buyer now that is in this boat, paid cash for rent, utilities, no car payment, no credit cards. The wife has a salaried job but the husband you guessed it, is self employed in a cash business. They have tons of savings, but no credit history for years. 

Great topic Kathy!  Some folks don't understand that paying cash for things doesn't help build your credit.  We are currently working on becoming debt free, but we do keep one credit card for gas that we use and pay off each month to keep our credit where it needs to be. 

Suggested.

Kathy-I can agree that being able to document payment history for rentals is important, but I'm still a believer that cash is king.

Most folks with enough cash will still try to do something with credit so they leverage their money as much as possible.

Suggested!  Valuable information that most people are not aware of!

Kathy, I remember when my husband and I applied for our first credit card almost 30 years ago. We had money in the bank, good jobs and income, no debt at all a d we were denied because we didn't have a credit history! Case in point!

Kathy, I run into this with some buyers.They think paying cash is a good thing but it has problems as you say.

Hi Kathy,

This is a good post.  A healthy balance between having cash and having the ability to obtain credit for a mortgage loan is where I am at.  As little debt as possible and use credit wisely.

Best of GREAT success to you always!

Kathy, my lender has had some issues with some of my buyers hoarding cash in their home and not having a paper trail.     Good advice!

Kathleen, you make some really good points. We swapped our credit cards for debit cards and are working on paying down debt.