I have always advocated doing everything possible to pay off credit card balances; it's good financial management and the ticket to a strong FICO credit score.
If you default on an unsecured debt, you won't lose anything (except points on your credit score).
The interest rate you receive, however, is contingent on your credit score.
Absolutely pay off credit card debt. If you're not getting a match in your 401(k) and you've got credit card debt, you've got to get yourself out of credit card debt. When you get out of credit card debt, your credit score goes up and interest starts to go down.
I love, love, love that you want to use your debit card. But to keep your credit score solid, you still need to keep a few credit cards and use them at least once every few months.
You don't have to get a job that makes others feel comfortable about what they perceive as your success. You don't have to explain what your plan to do with your life. You don't have to justify your education by demonstrating its financial rewards. You don't have to maintain an impeccable credit score. Anyone who expects you to do any of those things has no sense of history of economics or science or the arts.
Money, credit scores, material things don't matter. Life & death, your family & friends, once they're gone it's irreversible. Don't forget.
I don't believe there's any evidence that credit scoring is a risk factor. What is it about someone having a worse credit score that makes them a worse driver? (Insurers) can't answer that.
If you're in poverty and all you have is a debit card or a prepaid card or you pay in cash, it does not report to a credit bureau. If it doesn't report to a credit bureau, it cannot create a credit score for yourself.
Getting to a higher spiritual level is like increasing your credit score. You get a lot more points for sinning and repenting than if you have no credit history at all.
The average credit score of today's FHA borrowers is higher than the average American household with a score. As it becomes more costly and difficult to get a FHA loan, loans from private mortgage lenders will become more attractive and their market share will grow.
Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?
I came out of my professional athlete career with a 450 credit score, no money in the bank to show for it, but I had an Ivy League degree. So I put that Dartmouth degree to good use and got a job on Wall Street. I hated it but used the time to make connections and become financially literate.
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