Taking out a mortgage is not a bad use of credit. However car loans are a huge waste of money. Car loans are a huge waste of money, live within your means. I made 32k a few years ago (not very much) I saved and saved and bought a 2k car. The following year I sold it for 1.9k and had planned for another car so I had already saved 2.5k. I was able to buy a 4k car. Needless to say my newest car I have ever owned was payed for with cash for a total of 8k. This following year I'm going to sale it an use my car fund of 6k to buy a 14k car. Get away from the red face child thing of wanting it now, now, now and save! Credit is than irrelevant if you use cash. ... View more