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.

  • inconspicuouscolonEnglish
    1·
    3 days ago

    If you intend to put this money away for a long time, and you won’t be tempted to take it out prematurely, it would be wise to invest in a low cost index fund (invest in stocks and bonds, basically). If you are in the U.S., you can invest in a Roth IRA and take the funds out prematurely ONLY if it is for purchasing a first time house. You earn far more interest that way.