Not all debt is bad. In fact, a certain amount of debt can actually work to your advantage. Using credit responsibly and establishing and maintaining a strong credit history demonstrates to lenders, creditors, employers, and landlords that you are financially responsible and trustworthy. Debt from certain things, like a mortgage on a house, for example, can show to creditors that you are invested in your financial future and can use even large amounts of credit responsibly.

Using the example of a mortgage on a house, your debt can say to creditors:

• I am invested in my financial future.
  
  
• I intend to use my credit and debt responsibly.
  
  
• I intend to always have a job or source of income so I can pay my debts.
  
  
• I am financially responsible and trustworthy.
  
  
• You can trust me if and when I need credit for something else.
  
  

Actions speak louder than words and your credit and debt history can tell volumes to creditors about your potential credit “success” in the future. Certain kinds of debt, like a mortgage on a house, can be positive for you future.