Credit – Times Have Changed

If you’re near my age, you remember when it was “good” to have some credit, and to use it. Now, they want you to have a lot of credit, and use as little as possible. When I say ‘use,’ I mean carry a balance from month to month and owe interest, not pay with a card and pay the card in full each month.

“They” are most impressed if you have a very large amount of AVAILABLE credit. Large credit lines, with small or zero balances.

I agree with them. I think the most effective use I can make of my credit is to keep it active by using the card, and keep it clean by paying it off either in the same month or within a month or two. The main benefit to me of a credit card is to be able to pay for something like a car repair that costs too much to pay out of pocket. Then I have a month or two or three to pay off that expense gradually.


Read more about getting and maintaining good credit in my book:


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