No. of Recommendations: 1
That's interesting...I had heard that rebuilding your credit was important. I know that one of the things that counts against me is my lack of good credit payment schedule, since the only things on my report are bad (and that thing with the other car payment will be on my credit til 2009! :'( ). I was thinking I needed to prove I could handle credit, and you're saying it's better to just not worry about it and let things age off?

I'm saying that you should pay your OLD debts, but not to worry about marks in the past and yes, let them age off. The people who are telling you to rebuild your credit are usually the ones who want you to use their card to do it. Why would you rebuild credit? So you can borrow. What got you in trouble in the first place? Borrowing. By not borrowing, I think it shows that you've learned from your mistakes.

Look at it this way - you pay rent and utilities (I hope). I can't speak for utilities, but I'm certain that apartments will ding your credit if you don't pay. Paying rent and utilities shows that you have somehow mastered the task of transferring money to someone on time. That might mean that you have to go to a smaller community lender for a mortgage. So be it. I don't like dealing with the idiots at ConHugeCo. Bank anyway.

I have a friend that has never borrowed a cent in his life. He has NO credit history. Based on what you've heard, he shouldn't be able to get a mortgage or, if he did, it would be at a high rate. Neither is true. I haven't had credit of any sort for over two years and I had no problem qualifying for a mortgage. I pay cash for everything else.

A six-month cushion for my bills is almost $9500. That IS overwhelming and scary, yes. :( If I was to focus solely on that, it would take me years! My bf, of course, shares in the bills, but it IS hard not to panic with that kind of number. Even if I do a lot of work for my Mom, taking on a second job at $200 a month, it still will take a year and a half.

Fine then, how about a three month cushion? $9500 sounds like a lot and it may be accurate, but you might find that if you're out of work your expenses aren't going to be as high as they are when you're working. Clothing and gas will likely go down and you can cook in more often. Still, how much were you going to spend on the new car? What if, instead, you took the money you WOULD have paid as a car payment as saved it. It still might take you a while, but don't you think that a) it's better than the alternative and b) it's still moving you in the right direction. What if you quit doing everything else (i.e. stop saving for a vacation, stop saving in the 401(k) - bring the money home). Then how long would it take. I'm not saying you should stop those forever, but for a short period of time to get you where you want to be.

Regardless of that, it sounds like you might have to find a way to get more income, whether it is from working another job or (more likely) from getting a better one. You might want to investigate that.

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