As crazy as Dave Ramsey can be about credit cards and FICO scores ...

it's a risk signal to a lender. those without any debt may not be very good at managing it. may not want to give then a lot of money

Dem reward points doe.

I have around an 800 credit score, seriously. I also work 2 jobs and make on the high end about 65k a year while raising 4 kids and for the most part a stay at home wife, she just started working. I have no money, but a good credit score. Yes the credit score system is dumb. You damn sure don’t wanna be lending me much money unless it’s very small amounts.

Once you get past about 720 on a credit score, it doesn't matter how high your score gets.
That's the lowest score that banks will still typically give you the best rate.

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And because of that, my score drops. It's truly an "I love debt" score as he says -- and obviously being in debt can provide a higher credit score number. It does not indicate one's wealth or financial income. Seems rather backwards in terms of logical thinking, but it is what it is and my post won't change anything.

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Well wait. Its easy to see a fallacy in the system is you think it is an indicator of that.


It is a risk assessment of your ability to handle access to credit. No ongoing and up to date data increases possible risk.

You can split hairs about the methodology but that still holds true.

And it becomes a revolving door. People follow this cash based approached, and their credit drops. They hate the system more so they go more cash based. Its not inherently wrong or a bad course, but if you can use it credit is a tool.


And if you don't have a debt mix on your record in the past 7 years with as low rates have been, you haven't been using that tool correctly (or at all based off of your post).

So I don't know why you would get bitter about your score, or even why you would check it. You chose not to use it. You do you. Just don't fool yourself into thinking that a lower credit score is validation for that choice.

Banks don't make money off of you when you pay off in full each month your credit cards.

Banks don't make money off of you when you don't pay your debts.

So, to the lending system, a perfect customer is one that uses debt, pays interest, but isn't a risk for a loss of money.

That's how you get a high credit score.

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As crazy as Dave Ramsey can be about credit cards and FICO scores ...
I'm realizing he is right.

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He is right. Debt does make you a slave to the lender. You are always better being debt free.

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My credit score dropped 26 points since last month

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I have zero debt and have never been delinquent to any company that I have done business with.

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Same thing happened to me. I have a mortgage payment though. Never been late on any payment during my entire 22+ year credit history. I have a credit card I use for purchases, but pay it off in full every month. My credit score went from 831 one month down to 805. I really don't understand why? It really doesn't make any damn sense to me.