Credit score

[tbeak]

Yep a great credit score is a "I love debt" score.

What a racket.


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I don't believe so. We have our vehicles but that's about it and we'll abouvr 800onnall three. Pay things off in time and keep up with Bills. Sure you gotta take some debt but if you're responsible with it then it's not a bad thing.

[Mike D]

I don't believe so. We have our vehicles but that's about it and we'll abouvr 800onnall three. Pay things off in time and keep up with Bills. Sure you gotta take some debt but if you're responsible with it then it's not a bad thing.

IMO debt is bad, period. Any time you owe someone else money it's a bad thing.

And to your point, have you always had car payments?


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[2050z]

Yep a great credit score is a "I love debt" score.

What a racket.


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Agreed!!!!! Paid off all my CC debt and closed some unwanted department store cards. My scored dropped 100 points! We pay off the two cards we have and still my score barely moves. Total freaking scam!!!!! They want you in debt! Well **** on them!!!

[Ryan81]

Have my mortgage, a new land note and a few credit cards. I mainly use the discover for bills, fuel, etc and it's paid off monthly. I also have a Lowe's card for the 5% discount on products and a spare MasterCard in case discover is lost/won't scan.

I have had the mortgage for 1 year, land note was signed a few weeks ago.

That's all the credit I have and I have a FICO score of 794. It's not hard to get a good credit score.


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[txgb]

Debt is never a bad thing as long as you don't have too much. Credit scores aren't the only factors that matter to a bank when it comes to loans


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[bphillips]

IMO debt is bad, period. Any time you owe someone else money it's a bad thing.

And to your point, have you always had car payments?


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Also doesn't make sense to pay for big expenses in cash if you make more interest than they charge you for a loan. No way I buy a vehicle or something like that in cash when I can finance it all under 3% and avg 8%+ on investments. CC are also great if your good with them. We put every expense on ours, accumulate all those points and pay in full every month. Same as cash in that instance but with a discount

[Bumpy]

Agreed!!!!! Paid off all my CC debt and closed some unwanted department store cards. My scored dropped 100 points! We pay off the two cards we have and still my score barely moves. Total freaking scam!!!!! They want you in debt! Well **** on them!!!

You shouldn't of closed those department store cards. Should of left them open and cut the cards.

[TxAg]

IMO debt is bad, period. Any time you owe someone else money it's a bad thing.

And to your point, have you always had car payments?


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That's like saying guns are bad, period. Guns are a tool. Debt can be a tool. Some people use either one inappropriately.

[Beargrasstx]

What would Dave Ramsey say about debt? a tool or bad? serious question


edit... I decided to google the answer myself.

Just one man's opinion

https://www.daveramsey.com/blog/the-truth-about-debt

[Razrbk89]

IMO debt is bad, period. Any time you owe someone else money it's a bad thing.


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My dad always told me "if you have to finance it, you can't afford it". My wife and I financed part of a little 80 acre place because we wanted to start on our "own" land and both of our dads about flipped their lids. Paid <1,100 an acre to the old neighbor lady and had a good down payment, but still financed the balance....

I have to agree with them that giving money to the bank is losing money, no matter how you slice it. Financing a bunch of stuff is, by definition, living above your means.

[trophy8]

What would Dave Ramsey say about debt? a tool or bad? serious question


edit... I decided to google the answer myself.

Just one man's opinion
https://www.daveramsey.com/blog/the-truth-about-debt

I'm not a Dave Ramsey fan. He helps folks who can't do it on their own. I'm 27. We owe on a 1 year old house and a new to us Tahoe. I owe a little on a truck I just bought but paid mostly cash. No credit cards. Nothing else. I don't know a single person my age who has paid cash for a house. And very few for a new car. My credit is good enough that I get great rates and it doesn't cost me a ton to finance. I financed 10k on that truck at 1.6%. Over the life of the loan it will cost me $340 to borrow $10,000. You have any idea what that 10k would make in 4 years in a good investment? Lol. I'm going to pay it off within a year. Because I don't like owing money. But it's cheap to borrow when your credit is good and you can take care of business. I have enough liquid cash to pay it off at any given time if needed. Tahoe will be next. Then the house.

[Beargrasstx]

I'm not a Dave Ramsey fan. He helps folks who can't do it on their own. I'm 27. We owe on a 1 year old house and a new to us Tahoe. I owe a little on a truck I just bought but paid mostly cash. No credit cards. Nothing else. I don't know a single person my age who has paid cash for a house. And very few for a new car. My credit is good enough that I get great rates and it doesn't cost me a ton to finance. I financed 10k on that truck at 1.6%. Over the life of the loan it will cost me $340 to borrow $10,000. You have any idea what that 10k would make in 4 years in a good investment? Lol. I'm going to pay it off within a year. Because I don't like owing money. But it's cheap to borrow when your credit is good and you can take care of business. I have enough liquid cash to pay it off at any given time if needed. Tahoe will be next. Then the house.

I get it. I do the same thing as you. My truck is 1.375 percent for 6 years and I chose to not pay cash, but finance due to the very reason you stated. I am paying my truck off in 3 and not carry the term of 6.

I don't follow Dave Ramsey, hence I had to google what his thoughts on it are. However, I do think financing is a problem of our society. It is a keep up with the 'Joneses" mentality and with interest rates so cheap, it is hard to argue. Far too many people get overextended because it is affordable. Then they lose their job unexpectedly due to layoffs (ex oil/gas industry). So then they have all these toys they were able to afford but cant at the moment due to loss of income. So I say there is something in not relying on credit and paying only for what you can for at the moment.

What is the average amount in the USA a person or couple has in the bank for savings at any moment? 5k? 10k? 50K? 100k? From what I read a few months ago from ONE source, it is less than 10k liquid cash in hand to pull from.

http://www.cnbc.com/2016/10/03/how-much-americans-at-every-age-have-in-their-savings-accounts.html

[2050z]

You shouldn't of closed those department store cards. Should of left them open and cut the cards.

I had no need for them so I closed them. Penalized for being financially responsible. Mortgage, car note, and two credit cards should be enough. I won't get in over my head again.

[12RingKing]

That's like saying guns are bad, period. Guns are a tool. Debt can be a tool. Some people use either one inappropriately.

You hit the nail on the head there.

Some people can't seem to manage credit cards well. To me they're a tool to get rewards. I don't manufacture my spending to get rewards, just buy what I budget with my CCs when I can.

Credit score doesn't equal debt score as many are saying.

Shot term loans aren't a good way to build your score. Revolving credit lines are.

I have a few credit cards and store cards. Who shops at lowes? Why not get 5% off everything you buy??? Who shops at gender neutral bathroom target? Why not get 5% off everything you buy?

Who buys groceries? Why not get 6% cash back on your grocery bill? Who buys gasoline? Why not get 3% back on that too?

I could go on. It's just a matter of being responsible.

Congrats to the OP for the good score. I like seeing an 8 as my first number too, just took a little while to get there.

[texansfan]

My dad always told me "if you have to finance it, you can't afford it". My wife and I financed part of a little 80 acre place because we wanted to start on our "own" land and both of our dads about flipped their lids. Paid <1,100 an acre to the old neighbor lady and had a good down payment, but still financed the balance....

I have to agree with them that giving money to the bank is losing money, no matter how you slice it. Financing a bunch of stuff is, by definition, living above your means.

The way your forefathers thought will kill our current economy.
How long would it take for someone to save to pay cash for a $300k (or more) house?

How many farms would go under because they can't afford to pay $500k cash for the tractors and combines they need to run?