As of 2010 that is bullshit if you want to buy a big ticket item like a house, boat, or large piece of real property. Why? The lenders now rate you by the amount of credit on your credit cards. The more you owe the more they will lend. If you are stupid enough (like me) to owe nothing, you can borrow nothing. No house, no yacht, no trophy mistress. It has just been explained to me that a person must have at least three cards with high limits that show some action during each calendar year. So? I'm now getting an AMEX card, a Visa, and a Sears card and I will use each of them one time per year (and pay off the balances).