How does one get credit?

[KCGal]

If you don't want to spend the rest of your living month to month this is the best advice you will ever find.

I have not had a credit card in at least 5 years. It is silly to maintain a bunch of credit crds to keep a high FICO score if your long term goal is to be financially healthy and independent.

Originally Posted by SLAG

Here is the book

But here are the steps:

Step 1- Save $1000 Emergency Fund
Step 2- Pay off all Debts Smallest to Largest - using the funds you free up to add to the payment of the next debt - aka the debt snowball
Step 3- Complete the ER fund with 3-6mo of savings
Step 4- Put 15% of your income toward retirement
Step 5 - Save for Kids' college
Step 6 - Pay off House Early
Step 7 - Become Wealthy and give a lot of it away


Thats the VERY high level overview but the Key to step 1-3 is budgeting - give every dollar a name -- on paper - on purpose every month - Keep a $0 Budget meaning every dollar has a Job


we are hooked
We want to live like no one else so later we can live like no one else.

[R8RFAN]

Originally Posted by SLAG

dude - your FICO score is your " I love debt" Score or "I care what banks think of me" score

If you truly live debt free you shouldn't care about your FICO score

Also
Cell phone companies don't use the Traditional FICO they have an Industry specific credit calculation - but if I was debt free i'd probably look into something like Ting.

We have been working the Dave Ramsey Baby steps for the past month and we should be debt free except the house by the end of the year.

I have cancelled all my credit cards and I vow never to borrow money again - meaning I could give a flick about my FICO score..

Good luck to you

I have lived like this for years and it just pisses me off to all end to know how diciplined and responsible I am with money that I probably would struggle to get a 10k loan somewhere if God forbid I ever had too

[loochy]

Originally Posted by R8ers

I have lived like this for years and it just pisses me off to all end to know how diciplined and responsible I am with money that I probably would struggle to get a 10k loan somewhere if God forbid I ever had too

I'd give you a loan mr R8ers

[KCGal]

Originally Posted by SLAG

dude - your FICO score is your " I love debt" Score or "I care what banks think of me" score

If you truly live debt free you shouldn't care about your FICO score

Good luck to you

Yep we are brainwashed into thinking we need a good FICO score. All that does is show the bank if you are a good little customer. Meaning you like to borrow money and you are pretty good at paying them when you tell you too.

The ultimate goal is to have a fico score of zero because that means you don't need to borrow money.

[R8RFAN]

Originally Posted by KCGal

Yep we are brainwashed into thinking we need a good FICO score. All that does is show the bank if you are a good little customer. Meaning you like to borrow money and you are pretty good at paying them when you tell you too.

The ultimate goal is to have a fico score of zero because that means you don't need to borrow money.

I don't need to borrow any money ..

I get the FICO thing but it should also go by the Debt to credit ratio thing

The system is flawed and penalizes disciplined savers

[SLAG]

Originally Posted by R8ers

I don't need to borrow any money ..

I get the FICO thing but it should also go by the Debt to credit ratio thing

The system is flawed and penalizes disciplined savers

The FLAW is that you think you need to have a good credit score

It only Penalizes you if you need to borrow money - from what you say it seems like you don't need to borrow any.

I don't understand why you are obsessed with your FICO score.

You can usually get a substantial discount no matter what you're buying if you take your cash out of your wallet ask for a discount or tell them you're going to walk - watch their mouth drool

[R8RFAN]

Originally Posted by SLAG

The FLAW is that you think you need to have a good credit score

It only Penalizes you if you need to borrow money - from what you say it seems like you don't need to borrow any.

I don't understand why you are obsessed with your FICO score.

You can usually get a substantial discount no matter what you're buying if you take your cash out of your wallet ask for a discount or tell them you're going to walk - watch their mouth drool

Well I tried to buy a new Harley with cash one day and they told me I didn't get a dime discount for buying it with cash so of course I walked (this has been several years ago when the economy was good, don't know how it would work today)

[Ming the Merciless]

Originally Posted by R8ers

The ultimate goal is to have a fico score of zero because that means you don't need to borrow money.

bah.....

credit is a tool, just like a rifle or a tractor....

you can do a lot with tools, or you can roll your self over on your riding lawn mower if you are a moron

just be wise and use your tools properly..

you never know when you may need credit...it sure is handy....when you need it

keep your rifle oiled up....ready for battle

[KCGal]

Originally Posted by Pawnmower

bah.....

credit is a tool, just like a rifle or a tractor....

you can do a lot with tools, or you can roll your self over on your riding lawn mower if you are a moron

just be wise and use your tools properly..

you never know when you may need credit...it sure is handy....when you need it

keep your rifle oiled up....ready for battle

I would argue credit is a tool in the same way liposuction is a tool. If you've been making good choices more often than not, eating healthy and exercising, you don't need it. But if that's not the case there's always liposuction.

[loochy]

Originally Posted by KCGal

I would argue credit is a tool in the same way liposuction is a tool. If you've been making good choices more often than not, eating healthy and exercising, you don't need it. But if that's not the case there's always liposuction.

need it to buy a house

who has cash to buy a house? not many.

[Ming the Merciless]

Originally Posted by KCGal

I would argue credit is a tool in the same way liposuction is a tool. If you've been making good choices more often than not, eating healthy and exercising, you don't need it. But if that's not the case there's always liposuction.

I would argue that if your fat ugly bitch ass cant tell the difference between lipstick, a hammer and liposuction that you are probably beyond liposuction into the hammer and chisel stage.

credit is MUCH more like the exercise in your example than liposuction if you arent a ****ing idiot

[cosmo20002]

Originally Posted by KCGal

I would argue credit is a tool in the same way liposuction is a tool. If you've been making good choices more often than not, eating healthy and exercising, you don't need it. But if that's not the case there's always liposuction.

Some people just may not have a few hundred thousand in cash to pay for a home. Credit can come in handy.

[alnorth]

Originally Posted by KCGal

Yep we are brainwashed into thinking we need a good FICO score. All that does is show the bank if you are a good little customer. Meaning you like to borrow money and you are pretty good at paying them when you tell you too.

The ultimate goal is to have a fico score of zero because that means you don't need to borrow money.

If you achieve this "ultimate goal", then you'll pay a lot more for auto and home insurance. Your credit impacts you financially even if you don't borrow money.

[Deberg_1990]

Go take out some loans and pay them off within a year. My credit score is in the 800s.

I have zero CC debt, but i will take out loans for stuff like furniture from time to time even though i dont have to.

[The Franchise]

Originally Posted by Deberg_1990

Go take out some loans and pay them off within a year.

Just make sure they don't have early payoff penalties tied to them.