On some real sh!t muthafukk a credit score...

[HookersandIceCream]

So unless your young
Why don't you have good credit?

 

[25YOUTHS!!]

It's called leverage breh look it up.

If the interest rate at the bank is less than what you can invest for then it makes sense to borrow even if you have the cash

If you can buy a house outright though you save on all the bs fees, financing, etc. Then you can turn around and get a small business loan using the house as collateral and it will ALMOST always be appraised at way more than you paid for. Small business loan rates are next to nothing right now too. Invest that, repay the loan, eat.
The only reason to take out a loan when you can pay cash is to build your credit for larger purchases later on, or like you said if you can invest the $$ for more than the interest rate charged. IMO though unless you can get at least 10% GUARANTEED return on your investment then it's not worth the hassle.

 

[Erdos]

Banks are not stupid breh they aren't going to give you a loan for more then the value of your house

 

[25YOUTHS!!]

Banks are not stupid breh they aren't going to give you a loan for more then the value of your house

Where did I say banks will give you a loan for more than the house is worth?
I'm saying the value of the house will be MORE than the amount you paid for it (esp. if you bought it during the down market), and this is what the banks use when giving you a loan.
For example: I bought a townhouse about 3 years ago. It appraised at about 105K, for sale at 77K, I paid 70K.
If I was to get a loan from the bank using the townhouse as collateral, the bank would value it at 105K, not 70K.
BTW it's worth a lot more now since the market picked up.

 

[Kobes Two Jerseys]

Credit is just a tool used to get you further and further in debt.

 

[Erdos]

My bad I misunderstood. But a townhouse for that cheap where is it

If you can buy a house outright though you save on all the bs fees, financing, etc. Then you can turn around and get a small business loan using the house as collateral and it will ALMOST always be appraised at way more than you paid for. Small business loan rates are next to nothing right now too. Invest that, repay the loan, eat.
The only reason to take out a loan when you can pay cash is to build your credit for larger purchases later on, or like you said if you can invest the $$ for more than the interest rate charged. IMO though unless you can get at least 10% GUARANTEED return on your investment then it's not worth the hassle.

Where did I say banks will give you a loan for more than the house is worth?
I'm saying the value of the house will be MORE than the amount you paid for it (esp. if you bought it during the down market), and this is what the banks use when giving you a loan.
For example: I bought a townhouse about 3 years ago. It appraised at about 105K, for sale at 77K, I paid 70K.
If I was to get a loan from the bank using the townhouse as collateral, the bank would value it at 105K, not 70K.
BTW it's worth a lot more now since the market picked up.

 

[Detroit Wave]

i bought my car straight cash

and i basically inherited the house i was raised in

fukk debt