Why does everybody love debt?
I recently answered a question about how to build credit. Why do you want it is what I want to know! I have 2 very nice paid for cars (one is a classic hotrod), I don’t have to worry about making my credit card payment at the end of the month, and if I wanna buy somthing frivolis I have the cash to do it on the spot.
Why in God’s name do all of you want to live with the threat of finacial ruin. Many people live in fear of losing their homes if they get laid off. I have managed my money and built up large sums of cash on a 25k job a year. I could quite now and take a 3 month vacation before I got serious about looking for a new job. I did it by not messin with stupid credit.
Why do all of you mess with somthing as stupid as a credit card?
For over a year I have been attacking the FICO score as a bogus measure of winning. All it measures is your interaction with debt. It is composed of 35 percent payment history, 30 percent amount of debt, 15 percent length of credit history, 10 percent type of debt, 10 percent applying for new credit.
So it really is the “I love debt” score because there is no way to have a great FICO score without getting into debt and staying in debt. If you make $ 1 million per year and have $ 10 million in the bank, you can have a low FICO score simply because you don’t borrow. So we tell people they can get a mortgage with a manual underwritten loan if they never borrow by paying their landlord early or on time and being on the job for two years.
The FICO score people are mad, oh darn.