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> > "Good credit is for poor people" - words of a wealthy friend. By "poor" he likely means anyone who has to borrow for anything, including a home (60% of hom
by danans 7y ago
> > "Good credit is for poor people" - words of a wealthy friend.
By "poor" he likely means anyone who has to borrow for anything, including a home (60% of homeowners) or auto purchase (44% of individuals). So basically just about anyone who has to work for a living.
He probably also means "worrying about credit", vs "using credit as a financial optimization tool"
EDIT: changed "households" to "homeowners". 65% of Americans are homeowners, which means 65% * 60% = 39% of Americans have mortgage debt. Note that credit score matters a lot for those who rent also, since many of them are saving for a down payment for a mortgage, and most landlords require a credit report if you hope to rent their properties.
- Traster 7y agoThere's no way that only 60% of households borrow for a home. It might be that only 60% are borrowing against their home right now, but in that case you're probably talking about 99% of the people not borrowing against their home being pensioners. Those aren't particularly rich people, they're just in a different part of their life. (It also wouldn't matter if they were credit worthy because no one is going to give a mortgage to an 83 year old)
- singlow 7y agoHe didn't specifically say that it was 60% of homeowners. Could be 60% of households have mortgages, the other 40% either own outright or rent.