FICO Credit Score - Dave Ramsey Rant

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[kwd]

Dave should put out a list of all the mortgage companies that will give out loans to people with no fico score.

[thomasburns]

You are tight Dave. I remember when I canceled a credit card and the person on the other side said " that will lower your FICO score". I told that person I tell credit card companies what to do... they don't tell me what to do.

[cajamat]

I am 20 years old and started watching dave ramsey this year. I have started building my credit score since i got out of high school only to realize i dont need it. It truly is stupid and only results in debt and stress. Thank you Dave! You are amazing!

[fpl_bailey]

playing kissy face with the bank 😂😂😂😂😂

[KEANUWHITE]

I have a very high score, and I dipped because I paid off the cards last year. I had to laugh, like forget you all, I have everything I need, don't care about the score anymore, they take people for idiots.

[Thejenneral]

This video changed my life a year ago .

[unlimitedpower]

All a FICO Score shows is your ability to pay off money you borrowed.

[pc]

you can grow FICO without paying interest in terms of credit cards. Its a reflection of payments on time, credit usage, and length of credit history. Some other factors to a lesser extent.

[royhoco]

I have never considered my FICO score to be a measure of my success, my success is determined by the net worth on my balance sheet. I am debt free (20 years) except for one credit card that is paid in full each month. The card is for my convenience. I don't give hoot about my FICO score cause I never intend to borrow money again. Debt free is a wonderful feeling and I fully intend to stay debt free. good luck with your financial matters.

[KickStandsandKeyboards]

The higher my Fico score is an indicator of my lowering of debt. That's how I use it. The higher my score the less my credit cards are the lower my car payment, and mortgages.

[elmateo]

FICO score is an extremely poor measure of success, but lots of companies DO judge it so many people have no choice but to worry about it. Many employers will check your credit score and won't hire you if it's bad or you don't have one, because they think it means you're irresponsible. This especially includes upper-middle class jobs at large companies. I know Dave hates credit cards, but a lot of people have no choice but to make sure they have a decent credit score.

[jvolstad]

I have a high score (800+) and have not paid interest on my credit cards in decades. I don't carry a balance beyond the end of the billing period.

[jennifertackett]

We went through the hassle of buying a house last year. The difference a few points in our FICO scores made on the interest rate was astounding. Even with a large downpayment, it helps to have a good score.

[richardsoutdoorworld]

I love the way Dave emphasizes being outrageously generous every time he mentions becoming wealthy ! That tells me he see's wealth and being charitable going hand in hand !

[TheShowThatSUX]

For normal people here is what a lack of GOOD FICO will cost you:
*You will pay more for your car insurance
*You will pay more for your renters insurance
*You may be turned down for a nice apartment
*You will pay way more for your house even if you have 20%+ to pay down
*Larger deposits to get utilities turned on
*And an increasing number of jobs wont interview you

Dave is absolutely correct that this number is not a good metric for these things: but this wont change that many places use it like it is. Like he said THEY WONT RENT TO HIM: great for him he can go buy a building, if you can not you need to data point if you want a nice place to live.

Oh and for the record that "manual under-riding" is going away. FHS, and so on now have MANDATORY FICO. Yes, it is a bad system, but good luck getting that to get better before it gets worce

[jackal]

Like most videos Dave Ramsey has that deals with Credit and Credit Cards, there are a lot of half-truths and false information here. Your score is dependent on the following items: 1) Credit Utilization - If you are using a large amount of your available credit, your score will lower, lenders like to see someone that has a lot of credit, but is not using most of it. 2) Payment history - If you make your payments on time, it shows you are a dependable borrower. 3) Derogatory Marks - If you had a bill the went to collections, etc, lenders do not like to see that. 4) Age of Credit History - How long have you had credit accounts. If you have a long history, lenders like that. 5) Total Accounts - Lendors like to see that you have or had a good number of accounts. What good is having no Derogatory Marks when you've only ever had a single credit account ever? 6) Credit Inquiries - If you have a lot of recent credit pulls, lendors might be worried as they will wonder why your credit has been pulled often. Dave is right in that FICO doesn't show anyone anything about your income level, but I'd make the argument that just because you have a lot of income, doesn't mean you will make payments on time. There are some stupid rich people out there, just like there are a lot of smart lower-income people out there. Nothing in the FICO calculations takes into account how much interest you have paid. I have credits cards and pay off the balance every month in full. I have had 2 car loans in my life and paid both off in under 2 years because I didn't like paying that interest. My House loan is a 15 year mortgage at a low interest rate. Between all 3 of these loans (2 car loans, house loan), I have paid less then $20, 000 interest in my entire lifetime and my FICO score is over 800. These are FACTS. His rant saying you'd have to have over 100, 000 in interest payments is totally false. Dave is just trying to make sure that people that can't handle credit, don't start down the path.

[Ant]

I’m a huge Dave Ramsey fan and I follow all his advice because it works, but this is the only thing I disagree with Dave about. I keep one credit card and use it occasionally and always immediately pay it off just to maintain my credit score. I never pay interest and I always have a zero balance and I am very proud of my credit score. Regardless of what Dave says, the reality is that the vast majority of people need good credit to buy a home. I just don’t see a way around that.

[stunaa]

You can't rent an apartment, get a mortgage, get a car, get a loan for medial services, get certain jobs, get car affordable insurance with no credit. Not to mention get a cell phone, certain utilities, co sign for a family member in an emergency. Having a good long credit history is irreplaceable when you need it most.

[wkb]

The only reason the Dave Ramsey channel has only 208.000 subscribers is that the truth hurts.

[russus]

I totally disagree with you I have a perfect 850 and have never paid a cent in interest so you sir are wrong about this one