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When most of the experts discuss credit, they agree that it is helpful to have credit cards with low utilization, a small amount of revolving debt that is carefully managed.
Their emphasis is the importance of savings - both for retirement and emergency funds. 6 months expenses in emergency savings at all times is the current recommendation. 80% of your annual earnings in retirement income is also recommended before you retire.
So - you work hard, you follow the rules, do what you are supposed to - and then you get old, fall ill, and in most cases the doctors, hospitals and drug companies end up with everything you worked for your entire life. Later, you struggle to pay your property taxes so you can keep your house and eat ramen too often.
Just do the best you can and try not to worry so much, you just fall ill that much sooner if you do.
Credit good. DEBT bad.
The usual basis for evaluation of a consumer's "credit" is his or her credit score and the report used to generate that score.
In general terms, a credit score evaluates your history in repayment of credit, and is not an overall assessment of your credit worthiness.
It is totally devoid, for example, of any consideration of income or of other debt that is not reported to a CRA.
If you dont repay credit, you are a risk to future creditors, as they expect timely repayment of debt and dont lend to consumers who are not likely to repay. That is similarly the basis for potential denial of business transactions such as rental of an apartment.
If you view bad credit as the risk of your repayment of prior and current debt obligations, it makes perfect sense for creditors to put a "stigma" on those with low scores, particuarly if their credit report shows unpaid, delinquent debt.
Maxed out cards can be remedied by paying them down in the immediate future, provided you dont also become delinquent, and is not a doomed for life issue.
What difference does it make what other people think?? The only ones who count are Experian, TransUnion and Equifax...
Credit is not bad.
Living beyond your means is.
This thread is reasonably relevant: https://ficoforums.myfico.com/t5/Credit-in-the-News/Dave-Ramsey-Ticks-Me-Off/td-p/5047656
Credit in itself is not bad; it is the potential misuse of it that is bad. Wise use of credit proves to lendors that you can buy the car, buy the house, etc. based upon how you handle your credit and income. What is the diffference between a debit card that pulls the money out immediately and a credit card that bills you at end of month but is paid in full with no interest paid? You can make credit work for you if it is done responsibly.