I believe that was my quote so I will answer. That is just one study which may apply to some and not others. If one knows how to properly manage credit then there are more advantages to be realized by using credit. Credit can be everything including such things as using an American Express for all purchases and payments during the month and paying off the entire bill when the statement arrives. In the meantime, you are racking up Reward Points which can be redeemed for items.
Canute I remember a case where a man was paying off all his bills on a cc as soon as his statement came in. They wanted to take his cc away from him because they couldn't make any money off of him for paying the bill in full each time.
Those companies make their money off of interest. Most people don't see a cc as cash so charge it. So as soon as a person sees something they want then they whip out a card they can use to charge it. Most of the time they purchase something that they can't pay off as soon as the bill comes in. So then they send the minimum payment the company is asking for. A lot of people don't have the money to spend to double the amount of the minimum payment. Now by sending in the minimum the company is asking for mostly gets eaten up by the interest. It barely touches the principle. Thus that's why it looks like the bill isn't getting paid or at least not like we would want it.
The real problem is that they want you to think you need credit. It's a luxury item and if you don't handle it properly can get you in trouble. The 2 biggest things I think you need a good credit score for are if you're looking to buy a new car or a house. After that what's the point?
