All right all you spenders, there’s a subject near and dear to me and that’s on the subject of credit. Now you may be thinking to yourself that poor old Frank Money has no life. That may be true but I’m not poor and I’m not in debt, but thinking about the different kinds of debt can really knock me off my feet.

There are costs and benefits for carrying different types of debt. Some credit accounts are viewed more favorably by lenders than others but all require the ability to repay your debts in a timely manner. For example, there’s non-revolving credit like taking out a mortgage that’s paid in installments. Revolving credit deals with credit cards and fluctuates how much you pay each month.

Believe it or not carrying debt and paying it off monthly can raise your credit scores because it clearly shows how you manage your finances. Just remember the higher your credit score the better you can negotiate lower credit rates.