How important is a credit card?

[cathywhite4495]

I've been reading up a lot on Dave Ramsey and I like what he says. Yes, he comes off a bit annoying at times but I think he's got a good plan. I wouldn't mind not having credit cardsm - I've never had more than a $1200 limit before and prefer (from now on) saving and paying cash. BUT...I am planning to buy a house under the FHA program 2 years after my discharge. I will have money down and a savings etc. Will not having a credit card hurt my score enough that I will have a higher interest rate on my loan? Also, I do travel sometimes for work and I wonder how it would go not having a credit card for hotels. I just reserved a room the other day with my debit card but the hotel said a credit card was required upon check-in. I'll be paying cash for the room - will they let me stay there without a credit card?!? I know they sometimes would put a hold on $100 or so from my credit card, will they do the same for my debit? I don't want that money tied up.
So, should I try to get a credit card for cases like this and to improve my score or is it better to just go cash and not have the temptation?

[BassBoy]

First and foremost, if anyone feels that they'll fall back into debt problems, then no, another CC is not for you.

That aside, time is the best way to heal your credit, but if you'll want to make a major purchase in the future, like a home, then yes, you'll want to rebuild. That said, having a CC or an installment loan (like a an auto loan) is very good for your credit.

[HeatherB]

I think it depends on the person as to getting a CC. If CC is what got you into debt that it would not be adviseable. If CC is a necessity (like you said for hotel stay) then maybe 1 credit card with a limit of $250. (or lower if possible - or a SECURED credit card).

However, with me, the CC's weren't the real issue that led to my bankruptcy. Still, I only have one credit card as of now (and am fine with that so far)