FICO Debunked
Credit scores and credit bureaus and FICO look like a three-headed monster living under your bed. Pull back the covers and see if you even care what your FICO score is this month.
So why are we (the average consumer) brainwashed into taking on debt and maintaining credit cards to keep our FICO scores high?
Credit. Buy things you don’t need with money you don’t have. Sounds like a country I know.
A high FICO/credit score can only guide you down the path to crushing debt. Living beyond your means is the American Way. Here are 5 reasons to take a different approach and to tear up your credit report:
1. Credit Score Does Not Pay Bills.
If you have income to cover your bills, what do you need credit for. If you don’t have enough money to buy gas, to pay for groceries, or to handle life’s expenses, you have much bigger problems than a fluctuating number determined by a computer algorithm.
2. No Control.
You can spend thousands of dollars trying to protect your credit score – often to no avail.
For example, your wife pays the landline phone, and you pay for the cell phones. Her score goes up, yours does not. You might write the checks for everything, but if the right bills (mortgage, electric, phone, gas) are in your wife’s name, she gets the FICO boost.
3. Credit Bureau Mistakes.
Your credit score is like an idiot savant. It knows your payment history and debt-to-credit ratio. That’s it.
What’s missing? Your income. Someone who just landed a big paying job gets no higher FICO score. Someone who pays cash (credit ghost) who has no debt is treated like a leper. Mistakes also happen. Credit bureaus are notorious for confusing similar names and keeping bad information on file even after notification by effected consumers.
4. Too Much Debt.
Without a high credit score, it’s almost impossible to take on too much debt. If you cover your bills each month and live within your means, you don’t need credit anyway.
If you have a high credit scores, banks will flood your mailbox with offers to give you more credit.
Lose your income or suffer a personal financial crisis, and all that built up debt just increases your woes.
5. Can’t Take Credit Score With You.
Death and taxes are inevitable. You can’t successfully avoid either. On the other hand, your credit score is left at the graveside.
Living a prosperous and wealthy life is a desire of most humans. I don’t mean just spiritual wealth, but real dollars. No man or woman can live to the fullest without money. Having a debt master will surely burden your life.
Eat well. Get a full night’s sleep. Make love to your wife.
Live fully on the income you make. Upgrade your toys when you have the cash, not the credit.
Don’t lose sleep or thousands of dollars protecting your credit.
Look for more contrarian financial strategies at Burn Down the Freaking Mission.
categories: FICO,credit score,credit repair,debt
Related posts:
- What Is A FICO Score?
- How To Get Credit Score Based On FICO For Free
- How Are FICO Scores Calculated
- Your Credit Score – Is It Worth Fretting Over?
- Tips For Improving Your Credit Score Pt 1
- The Reason Why Credit Card Debt Reduction is so Important
- What Are “Good Credit” Credit Cards?
- A Review About Credit Scores And How It Affects Your Life
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