Is Credit Card Debt Evil?

2c6b74d9dd0342b76a4cbf72_259x194Everyone knows credit card debt is evil. But could it possibly be true that some debt is good, even credit card debt?

Financial advisor and author Jane Bryant Quinn thinks so. In fact, she says that if you do not use your credit card, your credit score could actually disappear and you will be unscorable. Lenders rely on a credit score to make a decision about whether a person is likely to pay back a loan. A person with no debt might have no credit score.

High credit scores are essential to getting a mortgage or the best rates on loans. They even are important to basic needs such as car insurance rates or starting utility service. Without a good credit score, your car insurance will cost more and the utility might ask for a higher deposit.

Even if you used credit cards in the past, you could still lose your credit score if you do not have any activity on a loan in six months. Quinn advises people with mature credit habits to maintain one credit card and use it at least once a month and then pay off the balance. One active credit account is all you need to maintain a credit score.

If you have a credit card that you never use, check to see that it is still active and then use it occasionally for small purchases that you can pay off at the end of the month.

If you’re married and your credit cards are in both of your names, the cards might be cancelled if either of you dies. So get a credit card in your own name now.