A friend tells me that he is using his credit cards every opportunity he has, even for smaller purchases, even for groceries. He said that he is doing so to beef up his credit score but for this friend, it's fine with him because he settles his credit card balances every month, sometimes even twice a month because if he continued using his credit cards before settling previous charges, they would have exceeded his credit limit.
I understand that they are many people who also charge their credit cards often just to make their credit record look good but unlike this friend, many are really living on credit. My friend has the cash in his bank account to pay off his bills when the arrive but this cannot be said for many other credit card users who only pay off the minimum on their credit cards.
I feel that it's rather foolish to live dangerously financially like this just for the sake of a good credit score. Sure it's good to have a healthy score but if you could use cash and not live in debt why choose to be in debt? Nothing is more real than cold hard cash.
I understand that they are many people who also charge their credit cards often just to make their credit record look good but unlike this friend, many are really living on credit. My friend has the cash in his bank account to pay off his bills when the arrive but this cannot be said for many other credit card users who only pay off the minimum on their credit cards.
I feel that it's rather foolish to live dangerously financially like this just for the sake of a good credit score. Sure it's good to have a healthy score but if you could use cash and not live in debt why choose to be in debt? Nothing is more real than cold hard cash.
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