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You may not need it and that is great but a high score is also an affirmation of your credit worthiness and having that in itself is rewarding to know.
No, That is a reflection that you have borrowed (And repaid with LOTS of interest) often, and much in the past.
What IS rewarding to know, is that you have money and don't owe anybody anything!
No, That is a reflection that you have borrowed (And repaid with LOTS of interest) often, and much in the past.
What IS rewarding to know, is that you have money and don't owe anybody anything!
Not if you pay your credit card bills in full and don't carry a balance. You can be debt free, pay no interest and have a high credit card score. Just because you use it doesn't mean you have to pay interest.
getting ready for retirement is not done thru debt. its is done by being debt free.
Retirement is a non working condition not a financial condition as many retire with lots of financial flexibility and resources and many with very little. Finance plays a role in the quality of your retirement but not in actually being retired. That is why so many of our bretheren are suffering as they are in forced retirement and financially struggling. If you replace 100% of your income in retirement what has changed other than your intense need to save for retirement. Everyones situation is personal and their plan is built for them and not others. What is good for one is not necessarily good for anyone else. No one said getting ready for retirement is based on debt. It is simply a statement in my OP which is quite old by now that your FICO score is important. That score is ususally built on being debt free like you suggest so why is a high score something wrong? There are a number of services required when transplanting and having a high FICO score helps considerably. It is about debt ratio and cash flow. A debt ratio under 10% can be a very different amount depending on the persons income and there is not cookie cutter answer. If one travels to Europe are they going to carry all cash or use their credit card? Doesn't mean they need to carry that debt over and not pay it back right away but they are still using CREDIT! I never said DEBT was good but that a high FICO score was good. Perhaps others went down a path of trying to make a point buy changing what was said but read the OP again.
1. Low credit scores are often a reflection of too much debt. Debt is the number one roadblock to a comfortable retirement and one of the leading causes of a poor credit score. Your credit utilization ratio, the amount of debt you have versus the amount available on your credit limits, makes up 30 percent of your credit score. Too much debt affects your cash flow and takes money away from other important goals, such as contributing to retirement accounts and investing. Reducing the total amount of debt you have not only improves your credit score, but, more importantly, improves your cash flow and financial health
Why? How is retirement any different than the first say 40 plus years of adult life. Lots of folks in retirement make purchases, invest and just go on as they did with the major difference being not working. In fact you have more time to consume. The same principals of fiscal prudence apply and in fact you may have more flexibility as you age and have less time to need your resources for. Why does your house need to be paid off if your plan doesn't require it?
What about a second home or even a third home. At todays low interest rates a fixed rate mortgage is even a better deal especially when paired with a great price. Everyones situation is different and can be very different. The whole concept of being frugal is different depending on income and assets.
I just bought a second home for cash, with the Tea Party threatenng Social Security and my Veterans pension I need to be sure I have enough to get along without them. my score is 825
I just bought a second home for cash, with the Tea Party threatenng Social Security and my Veterans pension I need to be sure I have enough to get along without them. my score is 825
Excellent, enjoy it you have earned it. Have you considered that by tying your cash up in the house it is won't be available as an income flow unless you sell the house? Especially considering this housing market. We could have paid cash for our place at the beach but elected to keep that in place with other liquid assets. Simply reflecting a reluctance to turn a liquid asset into one that wasn't as liquid. Some time ago I started a thread posing the question of how to access the equity in your house. A number of posters indicated that was why they got a mortgage instead of tieing up cash they might need for another purpose. However what ever works for you as you have a plan and are keeping to it and thats what counts.
Not if you pay your credit card bills in full and don't carry a balance. You can be debt free, pay no interest and have a high credit card score. Just because you use it doesn't mean you have to pay interest.
Now, THIS I agree with...
But the ORIGINAL statement (Nice bait and switch BTW) did NOT say CARD...
IT concerned a high credit score.
Credit cards alone (Unless I guess you used an ungodly amount) are NOT enough for a high credit score.
Ergo: I am right, you need OTHER debt (And pay interest) to achieve the high credit score.
Oh, and as to your 'go to europe and take cash or credit cards...'
As I have siad previously, Debit cards have rendered credit cards unnecessary.
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