Corporate Health of Sony, Nintendo and MS

[DonFerrari]

SpokenTruth said:

rolltide101x said:

mountaindewslave said:

its actually not 'healthy' to have any debt at all

its a false concept in society that having some debt is good, and the only reason for that is that it gives creditors and banks something to look at in terms of your history and reliability. if you have debt and pay it off then people consider you trustworthy. nothing more

the concept that 'debt is good' makes zero sense

From a consumer standpoint debt is almost a necessity. Without some sort of past debt getting a house loan would be very difficult. My parents are actually going through this right now. They want to buy a house, they have enough money to afford the house payment, but they have not had any debt in 7-8 years so even though their credit score is pretty high they are still having a bit of trouble. Though they will get it in the end if they keep trying

This is correct regarding consumer credit.  Showing you have a proven record of paying off debts will increase the likelihood of being approved for a loan.  But you do not have to currently have debt, only the history of paying it off.

In face, the best practice is to still pay it off immediately and not carry over a balance.  Utilize up to 30% of your total credit availability (across all credit accounts) and pay it all off after the statement is billed but before interest is charged (usually called the grace period).  This maximizes your overall credit health. In this way, you don't carry over any debt yet get the full benefits of it.

You don't have to have any debt at all when you apply but, as you noted, if you don't have much of a credit and debt history, even though you have the money and the finances to easily afford the loan, they will be reluctant to provide it.

For some companies your credit rating would be better if you were always late and paying good extra interest, but kept paying.