FICO may not be the holy grail you have made it out to be. Wealthy people care about income and assets – not about credit and debt. Your credit score may actually be worthless to you.
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. FICO Does Not Cover Your Expenses.
Credit is worthless if your bills are covered by your income each month. If your income falls short, you have bigger problems than a low FICO score.
2. Out of Your Control.
No matter how many credit repair books you read, it is hard to raise your score except by paying your bills on time. And even then, which bills you pay can have more to do with your score than how much you pay.
For instance, not all bills are created equal. Pay your standard landline phone bill – FICO good. Pay your cell phone bill (often much higher) – FICO doesn\’t care. Don\’t pay any bill that gets reported to the credit bureaus and you get slammed. No one said FICO was fair, no matter what the name of the company is.
3. Inaccurate and Incomplete.
Credit scores are dry mathematical formulas. No real human contact. Mistakes can live forever. Most human activities can only lower your score.
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. Excessive Debt.
A high FICO paves the way to take on and use more debt. No one who pays their bills each month with a couple of dollars left over has any need for credit. A high credit score is meaningless for the wealthy and the modest.
Use your credit card, carry a balance, and pay on time, and the banks will increase your limits and give you countless opportunities to take on more debt.
Lose your income or suffer a personal financial crisis, and all that built up debt just increases your woes.
5. No FICO at Your Wake.
Death and taxes are inevitable. You can\’t successfully avoid either. On the other hand, your credit score is left at the graveside.
Wealth matters. Your credit score does not.
Eat well. Get a full night\’s sleep. Make love to your wife.
Live happily within your means.
Don\’t lose sleep or thousands of dollars protecting your credit.
Our site – Burn Down the Freaking Mission – offers additional information on destroying debt, recovering your privacy, and living debt free.