FICO Revealed Worthless
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.
I often wonder why the average American worries so much about their credit. Why do you even care? A high FICO score can only lead to the possibility of high debt.
Credit. Buy things you don’t need with money you don’t have. Sounds like a country I know.
5 reasons why your FICO score is a false idol:
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. No Control.
Trying to raise your credit score, as the countless credit repair books will teach you, is a thankless task. At any time, the credit bureaus can alter their algorithms and change their emphasis to change your score – all beyond your control.
For example, your wife pays the landline phone, and you pay for the cell phones. Her score goes up, yours does not. You might write the checks for everything, but if the right bills (mortgage, electric, phone, gas) are in your wife’s name, she gets the FICO boost.
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.
Income is not really a factor in the credit score algorithm. Get a raise at work and FICO does not know or care. Pay all your expenses in cash and become a credit ghost. Mistakes stay on your report forever. Even debt discharged in bankruptcy somehow lingers.
4. Excessive Debt.
Without a high credit score, it’s almost impossible to take on too much debt. If you cover your bills each month and live within your means, you don’t need credit anyway.
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. Can’t Take Credit Score With You.
You can’t take your FICO score with you. It will never be broadcast at your funeral. Life is too precious to worry about a credit score.
Concentrate on living a wealthy life no matter what your income is.
Eat well. Get a full night’s sleep. Make love to your wife.
Live happily within your means.
Don’t lose a moment of your life to worry about a mathematical score your cannot control.
Our site – Burn Down the Freaking Mission – offers additional information on destroying debt, recovering your privacy, and living debt free.