... but keep signing contracts, payments and obligations that make walking away more expensive every year. Warren Buffett I REALLY like Buffett, but I have a problem with this one. If you are getting into an instalment payment contract because you are buying something you really can't afford, but can buy it now and delay paying for it, that is one thing! And in that context, I totally agree with him! That said, using these instalment contracts to buy things that you intended to buy, and can afford to buy, actually helps your credit score. Taking advantage of no interest offers for 24 or 36 months, and making the monthly payments, helps improve your credit. And I encourage people to do this! The keys are that you intended to buy the item, and can afford to buy the item, without NEEDING a credit plan. You are not just buying it because you can delay the payment. MOST people do not understand how their credit score is calculated, or what goes on their credit report. They do not realize that their credit score and report are documenting their responsible use of available credit! To better understand how instalment contracts, and other types of credit usage, actually HELP your credit score, watch my short video below. https://youtu.be/JXc9Hm7h2iU Happy Monday! Make it a great day and week!