Build Wealth, Not Credit

BY ALLEN PRIEST

BUILD WEALTH, NOT CREDIT
The Top Line article, “Five Facts about Your Credit” ( JofA , Nov.05, page 20 ), stated “Keeping active is key.”

While continuing to use credit cards may keep your Fair, Isaac and Co. (FICO) score higher, it does nothing to address the real problem for most people. Credit scores are irrelevant if you can get out and stay out of debt. Keeping credit accounts open just to keep up a credit score is simply irresponsible. Pay off the accounts, close them and build wealth with your income.

No one gets rich borrowing on credit cards. Success in financial management does not lie in managing a FICO score. The challenge is managing money to win. And that is done only when you can keep some of it for yourself.

Allen Priest, CPA
Louisville, Kentucky

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.