Some info please

This make no sense to me at all....

How did the USA get a AAA rating when we owe trillions? Wouldn't it be better if we owed nothing? Isn't that like telling your bank ...."Sorry I owe you money but atleast I still have good credit"

Thanks,
RPC

I think is like for people:having several credit cards and pay them on time is good. That gives you a high credit score. Having zero credit cards or loans will give you zero credit score or a low one. You won't be able to apply for a home loan. Then you either have to buy it in cash or throw your money in rent. Having many credit cards and many loans very high, will start reducing your credit score. I think having loans is a good think if you know how to do it. Wisely, at a good interest rate, with a collateral it allows you to diversify your investments. The problem is overspending and stretching your credit cards to the max. That is what happen to the US. The possibility of paying late or not paying is greater because the increasing of the loans, (more credit cars!). So by reducing the rating they are saying " You are at risk of defaulting, you are not using your credit wisely, we don't trust your judgement etc". And this will make it more difficult for USA to apply for new loans since we have not so good credit score etc.

letmar321 wrote:I think is like for people:having several credit cards and pay them on time is good. That gives you a high credit score. Having zero credit cards or loans will give you zero credit score or a low one. You won't be able to apply for a home loan. Then you either have to buy it in cash or throw your money in rent. Having many credit cards and many loans very high, will start reducing your credit score. I think having loans is a good think if you know how to do it. Wisely, at a good interest rate, with a collateral it allows you to diversify your investments. The problem is overspending and stretching your credit cards to the max. That is what happen to the US. The possibility of paying late or not paying is greater because the increasing of the loans, (more credit cars!). So by reducing the rating they are saying " You are at risk of defaulting, you are not using your credit wisely, we don't trust your judgement etc". And this will make it more difficult for USA to apply for new loans since we have not so good credit score etc.

nicely done. On the credit commercial, america is about to be the guy in the hockey mask.