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Question: Question about Suze Orman’s Women and Money?

So I’m reading Suze Orman’s book Women and Money and in month 2 she thinks women should get their own credit card. I’ve never had a credit card and I honestly don’t want to get one because it seems like a big hassle and I have a tendency to compulsively spend. I don’t want the temptation and I’m not seeing the logic of getting a credit card when my debit card has worked just fine. Suggestions? Comments? Keep in mind that I know very, very little about finances and that sort of thing, which is why I got the book in the first place. This little piece about getting a credit card just doesn’t seem like a good idea for me. I’m not really in debt, just the $15,000 student loan. Other than that I’ve managed to keep up on bills and that sort of thing pretty well.

Answer: Good for you for wanting to learn more about managing your finances. If you like Suze Orman, I recommend you read her other book "Young, Fabulous, and Broke." It pertains directly to decisions young people have to make about their finances, and it's less touchy-feely than Women and Money seems to be.

About credit cards: you need to get one. Having a credit history (credit cards, installment loans) is important for a number of reasons.

1. First of all, a good credit score gets you the best/lowest rates on mortgages and home loans.
2. Not only that though, employers and apartment complexes are now checking credit reports before hiring/renting to you.
3. It's important to have good credit so it's available when you need it, too. If you ever need to take out a loan or use a credit card in an emergency, you'll need to already have good credit. It's like insurance; you have to have it before you need it.

You probably already have a credit history if your student loan is in your name. That's great--but having different types of credit is one of the key components of your score (installment loans, revolving accounts, mortgages are all different types). So having a credit card will only boost your score (unless you pay late on it).

You don't even have to use it if you don't want to--you can cut it up as soon as it arrives in the mail. It's better to use it a little bit and pay it off each month, but even if you never use it, just having one open revolving account on your credit report will be a big plus. One option--get a credit card you can only use at a gas station, so you don't risk overspending at the mall or anywhere else. Just use it for gas and pay it off each month.

Tonight's TV Hot List: Saturday, Jan. 2, 2010

Doctor Who8:30/7:30c BBC America Ask not for whom the bell tolls — or in this case, the drums beat — good Doctor. Keep the tissues handy because there will be tears in Whoville tonight, and, no, it won't be the Grinch's fault. One of sci-fi's ...

Suze Orman - 4 Oct - Attitude On Personal Finance

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