Should I lease a car just to build credit?
Im sitting here thinking about my future... Most likely I'll live at home with my parents after graduation. I wont have many expenses, but I dont want to just keep building my bank account. I dont need a car but I was wondering if I should lease just to get some credit built up? I was thinking maybe a 3-Series (the new models)
If you don't need a car don't lease anything...especially not an entry level luxury car. The marginal upside to your credit score is not worth spending $400 a month leasing a 3-Series. If anything save those $400 / month and just use your credit card for all your purchases but pay off the card off in its entirety every month on time. This will help you build a good credit score that will still allow you to get decent rates in the future once you actually need to lease a car or when you go and get a mortgage.
My credit bureau told me that it's best to make monthly payments on my credit card to show a payment history instead of paying in full.
You build credit all the same whether you lease a $500/month car or buy one candy bar each month for $0.99. As long as you make A purchase in any given month and pay your full balance each month, you are building credit. I started using a card when I was 18 (24 now) and have a score of 757 and I haven't made any ridiculous purchases for the most part.
Short answer is no
Building credit is only a good idea if you already need something. You should never get something for the sake of building credit... totally backwards. It sounds like you just want a 3-series and are trying to justify to yourself a legitimate reason for getting one. I'm in the market for a 3-series now, I'm graduating and it's a terrible financial decision but at least I'm honest.
And leasing? No. A better way to build credit is to take out a bank loan in order to purchase the car. That way, at the end of the loan, you actually get to keep the car instead of just paying for an overpriced rental.
I do agree that a new 3 series is a bad idea.
Don't be stupid, if your going to tell me I'm wrong, at least read what I say first. Building credit is a great idea, but buying useless shit for the sake of building credit is borderline retarded... are you advocating this? If you already want something, and have the option to buy it on credit instead of cash at low interest -- good idea. If you are literally taking the fact you want to build credit as a reason for your purchase...
As for the 3-series, I'm buying used and it's a bad FINANCIAL decision, but a great idea.
I don't hate you per-say, I just hate your point of view.
No. Just get a credit card and use it enough to avoid inactivity fees. I qualify for just about every bank's best mortgage rate, and that comes SOLELY from having credit cards with $0 balances that I pay off every month.
Trust me, if you don't need a car, don't waste your money just to say "Oh look what I got." You may not want to 'build your bank account' now, but down the road $400 a month for 3 years adds up to a nice rainy day fund that you may wish you had.
Back to my dividend stocks.
Paying off your card every month is good to save money on the interest but has nothing to do with upping your credit score. When a bank pulls your report they're going to see mid month balances anyway. Your biggest variables are length of credits, types of credit (bank loans, credit lines, credit cards, retail credit cards, etc), and your debt to total credit limits ratio.
Don't lease a car to build credit.
OP are you kidding me? Don't buy a BMW, but a Bentley
Do not lease a car
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