Imagine a world where a credit score didn’t matter
If anyone hasn’t listened to Dave Ramsey’s discussion on credit scores, you definitely need to. Ever since we were old enough to earn income we were taught that a higher credit score was some indication of your wealth. Were you taught the same? Like in order to be approved for the “American Dream” you need to have an exceptional credit score.
Credit Scores or Creditor’s Valuation On Your Ability to Pay Them Back?
“What you need to know is that this number is really just a measure of how comfortable someone is with taking on mountains (and mountains) of debt”. —Dave Ramsey. Man, so true. We never thought of it this way, but truly a higher credit score simply means that companies trust that you’ll be able to pay back the money plus the loads of interest that go with borrowing.
Credit Scores Mean That You Are Good At Borrowing Money
“If you happen to have a credit score north of 800, creditors may treat you like royalty and roll out the red carpet at the drop of a hat. But here’s the catch: Your “superior” score in no way, shape or form indicates you are good at handling money. It just means that you are good at borrowing lots of money”. —Dave Ramsey. Welp. Oh my, this was us. Not that we didn’t handle money well, we just didn’t handle our money well enough. It’s NORMAL to borrow money right? Amazing how debt and a credit score go hand and hand. In our society, it’s become ok that a credit score is needed as much as a social security card, like its some FORM OF IDENTITY.
Quite the Conundrum
Dave goes on to mention that he wouldn’t even be approved to rent an apartment (because he hasn’t had a credit score in years), BUT could WRITE A CHECK for the entire apartment complex!! Can you imagine? We can & it’s exactly the path we are on. Forget a credit score, our worth will not be summarized by the amount of debt we have or are we’re willing to take on. Debt free is the only way to be.