A good credit score is the RESULT ... not the GOAL.

A FICO score or any credit score for that matter are only important if you want to get into debt. What’s the opposite of wealth? Debt, of course. So if you want to be wealthy, getting into debt is not going to get you there. It’s not how much you make, it how much you keep. And while it may be true to some extent to not close your unused credit cards, providing you want to stay in debt, it really doesn’t matter that much for those that are or want to be wealthy.

MYTH: Paying my credit card charges early helps my credit score.

FACT: There’s nothing on your credit report that shows when a bill is paid, only whether it was paid on time.

This post was edited on 2/26/14 at 1:27 pm

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Posted by LSUAfro

Baton Rouge

Member since Aug 2005

12775 posts

Posted on 2/26/14 at 1:32 pm to Will Cover

quote:
Will Cover

Mr. Ramsey would be proud of you.

This post was edited on 2/26/14 at 1:33 pm

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Posted by Teddy Ruxpin

Member since Oct 2006

39625 posts

Posted on 2/26/14 at 2:32 pm to Will Cover

I was fine with the totality of your post except:

quote:
And while it may be true to some extent to not close your unused credit cards, providing you want to stay in debt,

Having an unused credit card to increase credit card age (and therefore score) does not equal "staying in debt."

This thread has enough misinformation already.

This post was edited on 2/26/14 at 2:33 pm

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Posted by foshizzle

Washington DC metro

Member since Mar 2008

40599 posts

Posted on 2/26/14 at 5:43 pm to Will Cover

quote:
What’s the opposite of wealth? Debt, of course.

Ummm ... no.

Wealth is basically net value. In account terms, it would be "owner's equity". Debt is "liabilities". Two completely different things that need no impact each other at all.

Debt that is used to pay for assets that don't have a higher rate of return will reduce your wealth, but that is not the same thing.