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

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.