The Downside of Being Debt Free

While for the majority of the Americans being debt free is a dream that never comes true, it might be worth knowing that being debt free is sometimes a real drawback. For instance, you apply for a loan. You are debt free because you have almost never used credit. Is this great? Not from a lender's point of view because you lack credit history. It is surprising but true that a loan seeker without a credit history is as worse as a bad debtor! So, maybe you should occasionally open a credit line or two (but of course pay your balance in due time), even if you don't need to borrow money. Just do it in credit history's sake!

 

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