I Have a Credit Score of Zero…And I Love Every Minute Of It!
If you ever want to hear a good story, talk to a financial counselor. I know an individual who happens to be one and he told me the story of a woman named Beatrice. Beatrice’s father told her from a very young age that it was very important to protect her credit score. She had called my friend the financial counselor and told him that she had not eaten in two days; however she made all of the minimum payments on her credit cards. Those are some seriously screwed up priorities. Americans have been indoctrinated to worship at the altar of the FICO score, and it’s time for that to stop.
I have a credit score of zero, and I love it. A few weeks ago, I tried to pull my FICO score from Fair Isaac, and they told me that my score was so low that they could not even calculate it because I have not had any credit activity in over a year. The error message even went as far suggested the reasoning for this is that I might very well be deceased!
How did I attain this very low score? I do not borrow money, period. I have accepted that ‘no’ is an acceptable answer to my wants and that if I do not have the cash to buy for something I simply cannot afford it.
At this point many will be asking, “Don’t you need a high credit score to get a home loan, automobile loan, get a credit card or rent an apartment?” In some cases yes, but I don’t borrow money; I don’t mind explaining to the apartment manager that because I’m not deeply in debt I actually have money to make my rent checks. The only thing that a high credit score enables you to do is get deeper into debt. No one wants to be thousands of dollars in debt and in a very deep financial hole, but so many people do it because they have fallen for the myth that you need to have debt as part of your financial life.
The only way to have a high credit score is to be in debt for great amounts of money over long periods of time. This isn’t exactly a winning financial plan. The FICO score is based on your debt payment history, your amount of debt, the length of your credit history, the types of debt that you have and any new credit that you attain! As the famous financial counselor Dave Ramsey puts it, a “credit score is an I love debt score”.
Does my FICO score of zero indicate that I couldn’t repay a loan, or that I am somehow not good with money? Of course not, it indicates that I don’t owe anyone in the world and have not for a long period of time and that I actually have some money. You can keep your FICO score.
- RCDL Weekly Roundup - Be Prepared to Get Stuffed Thanks for joining us here at RCDL for another weekly roundup. Hope your Thanksgiving dinners are full of good food, great friends, and lots of laughs. Some new categories are with us this week and some old ones. Easy to find and browse for your weekend reading pleasure. Retirement My......
- Top Credit Repair "Secrets" (Pssh, They're Easy) A bad credit score will affect your lifestyle. Severely. You're either forced to take out loans at very high interest rates or, sometimes, not at all. In some cases, you may lose an employment opportunity due to a poor credit. If the items listed in your credit report are real,......
- Money Hacks Carnival #64 - As American As Apple Pie Welcome to the 64th edition of the Money Hacks Carnival! Thanks for stopping by! If you would like the chance of winning a $10 gift card to Global Giving, please follow the directions at that link. I am real excited to give one out, and hope you are excited about the possibility of......
- July 20th Roundup Sunday Money Madness is back again this week with more great mid-afternoon reads. Don't miss out on: Low Cost Weekend Idea: Borrow Library Videos from Blueprint for Financial Prosperity is a great idea for those who don't have Netflix and are looking to watch movies without having to go to......
- Hard Truth Finance Week in Review - Fading Summer Edition A weekend at the lake is a great way to recharge the batteries. Summer is beginning to fade, which brings short-lived melancholy. The lake was actually warmer than the air, where the temperature here in Kentucky didn't crack 80. The sunset was spectacular. Overall, another reminder that being careful with......
Interesting perspective – I’ve never really considered thinking like this before. All the while I’ve been working away at digging myself out of my debt hole, I’ve been doing it in such a way as to protect my credit rating and even try to boost it up.
Screwed priorities indeed.
(Hi!)
Not true unless you wish to pay cash for your home when one day you want one having a zero for a score is not good. Its better to keep one line of credit open for duration to prove pay history. Its time paying that helps even if you have one credit card that you have a small balance on that you pay. Not the entire line of credit around 30% open. Yes not something I’ve done I have no debt but cant get a house loan now. Not so sure about Dave Ramsey now.
I feel slightly different about it, im trying to get a credit report built up so i can get a mortgage. My credit score is so low i wont get accepted for anything!
Scott