Good debt versus bad debt
“finance for dummies” says buying a car on credit is one of the worst financial decisions you can make, so I doubt that qualifies as “good credit”.
I wasn’t thinking that buying a car with a credit card was a good idea,I was thinking that making a down payment and financing a car and making payments on time would be good for your credit. Does Dave Ramsay think that buying a car with a down payment and making your payments on time is a bad idea? I am just curious, as I can’t buy anything and have terrible credit, I was just thinking about my future – please let me know if you get a chance.
Dave Ramsey says on his t.v. show all the time to save up for car purchases. If you have to, get some $2500 car, just to get by with until you are debt free. If necessary, when it dies, get another one, just don’t finance them. Then, when you are finally debt free, save up and buy a car outright.
Personally, I am all for used cars in great condition. I fully intend to pay off the current one and later, save up for the next one so I can pay for it in cash at the time of purchase, rather than financing it.
Dave always says that he does not borrow money. (Financing a car is borrowing money.)