Credit isn't a measure of financial savvy. It's a measure of likelihood to repay debts. It may be financially savvy to strategically default, putting the two in conflict.
Precisely. In many ways it is better to steadily use a card (while being mindful of utilization ratios) and pay it than it is to carry a zero balance.
The credit system might have been initially about debt repayment, but there are several measures in store regarding "how valuable / revenue-generating is a customer".
And at times, these two principles may be in harmony, and at others, not so much.
The credit system might have been initially about debt repayment, but there are several measures in store regarding "how valuable / revenue-generating is a customer".
And at times, these two principles may be in harmony, and at others, not so much.