If you get your first job you live at home. During 6-8 month you save every penny you can to save for a used car.
Only true if your parents are wealthy enough to let you work and save money at a young age.
Used cars come from new cars. If everyone does this then there will be no used cars. It only works because people have credit to buy new cars.
Oh and btw the US govt requires a background check on any sale of a car from a dealership. And guess how they do the check? They run your credit.
When you have your car, you can save the next 2 years to save for a downpayment of a smaller home or save another 2 years and look to pay cash for a small fixer upper.
Down payment means you are borrowing money which requires credit. Again there are no fixer uppers without someone using credit.
The system doesn't even work this way. Walk into any dealer to buy a car in cash and they will still run your credit. Buy a home in cash and escrow is still going to run your credit. This is because counterfeiting is a thing. No one is going to let you take off worth a 5+ figure asset without knowing the money is good.
Any money transfer over $9,999 and guess what? You're credit is being run. By law it has to be reported to the govt and the easiest way to do that is run a credit report.
I don't think you actually know what you are talking about. Nothing works the way you seem to think it does.
I bought everything cash. Two houses and 2 cars.
Credit check my ass.
Once needed a lawn tractor. Had some other important project to put my monthly savings to .
They had one of these zero down and pay within a year deals.
Instead I made them a purchase offer:
40% down and monthly rate for 6 month with my pay stub as proof of income. No credit check. Local dealer agreed. If not him, one of the competition would have.
Young people with little assets are not the customers to buy new cars who can afford losing 10k by signing a purchase contract and pay interest at the same time.
I grew up "poor" and did everything without credit. No financial help from my parents to buy cars and homes.
If you run my credit, it will tell you:
No history, lol.
Only true if your parents are wealthy enough to let you work and save money at a young age.
Used cars come from new cars. If everyone does this then there will be no used cars. It only works because people have credit to buy new cars.
Oh and btw the US govt requires a background check on any sale of a car from a dealership. And guess how they do the check? They run your credit.
Down payment means you are borrowing money which requires credit. Again there are no fixer uppers without someone using credit.
The system doesn't even work this way. Walk into any dealer to buy a car in cash and they will still run your credit. Buy a home in cash and escrow is still going to run your credit. This is because counterfeiting is a thing. No one is going to let you take off worth a 5+ figure asset without knowing the money is good.
Any money transfer over $9,999 and guess what? You're credit is being run. By law it has to be reported to the govt and the easiest way to do that is run a credit report.
I don't think you actually know what you are talking about. Nothing works the way you seem to think it does.
I bought everything cash. Two houses and 2 cars. Credit check my ass. Once needed a lawn tractor. Had some other important project to put my monthly savings to . They had one of these zero down and pay within a year deals. Instead I made them a purchase offer: 40% down and monthly rate for 6 month with my pay stub as proof of income. No credit check. Local dealer agreed. If not him, one of the competition would have. Young people with little assets are not the customers to buy new cars who can afford losing 10k by signing a purchase contract and pay interest at the same time. I grew up "poor" and did everything without credit. No financial help from my parents to buy cars and homes.
If you run my credit, it will tell you: No history, lol.