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Dave Ramsey doesn’t need a credit score. He says you don’t need one, either.
The anti-debt crusader, who has an estimated net worth of at least $200 million, calls FICO scores the “I love debt scores.” He’s proud of the fact that he doesn’t have a credit score.
Ramsey has inspired countless people to pay down debt — and we love that. But the truth is, he can afford to be credit invisible. If you’re a regular person, not having a credit score makes life a lot more costly and complicated.
5 Reasons Dave Ramsey Is Wrong About Credit Scores
- You’ll pay deposits for everything.
- It will be difficult to get a mortgage.
- Credit cards are usually the safest way to pay.
- Travel is challenging without a credit card.
- Credit can be a valuable tool in an emergency.
Here’s what Ramsey gets right about credit scores: They aren’t a reflection of your overall finances. Doubling your salary or your savings is great for your finances, but it won’t affect your credit scorebecause a credit score only measures how you manage debt.
If you’re like Ramsey and you don’t have a credit scorethat probably means you haven’t used credit in the past 24 months. So the credit bureaus often won’t have enough data about you to give you a credit score.
But you don’t need to carry debt to have a credit score. In fact, one of the best ways to build excellent credit is to open a credit card and pay off the entire balance each month.
Here’s why everyone who’s not a multimillionaire should ignore Ramsey’s credit score…
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