Share your insights or perspective on the financial matter presented in the input.

Purpose of having good credit when you are well-off?
Credit is very important even if you are wealthy. One thing you may not realize is that rich people typically have comparatively little cash on hand.  If they're smart, most of their assets are not liquid - they're tied up in safe, long-term investments.  They use credit for their day-to-day expenses and pay it off from the dividends on their investments (which might only come in once a quarter). There are also tax advantages to using credit.  If a rich person wanted a new car, he'd be smarter leasing it for his business (immediate write-off of the lease payments on taxes) versus buying it (depreciation over several years plus property tax liability in some states).  There are more elaborate tax dodges but the point is that buying a car outright is the worst option in terms of tax avoidance. Another way the rich (mis) use credit is so that they don't risk their own money on business ventures.  Let's say I have $1,000,000 in my personal bank account, and I want to buy a business that costs $1M.  If I am dumb, I clean out my bank account and put all my money in the business.  I get 100% of the profits, but I also bear 100% of the risk.  If I'm smart, I loan 200K of my own money in the business and put the rest someplace safe, and get a loan from a bank for the other 800K.  If the business succeeds, the bank gets their money back plus interest.  If it fails, the business declares bankruptcy and the bank eats the 800k loss. If I structured the debt right, my personal loan to the failed business gets paid back first when the company is liquidated, and the bank gets whatever is left over (if anything).  The most of my own money I can possibly lose is 200k, and probably it's closer to zero if I have a good accountant.