Credit scores and credit bureaus and FICO look like a three-headed monster living under your bed. Pull back the covers and see if you even care what your FICO score is this month.

So why does the average consumer worry so much about his credit rating? Brainwashing!

Credit – Buying things you don’t need with money you don’t have. Sounds like a country I know.

A high FICO/credit score can only guide you down the path to crushing debt. Living beyond your means is the American Way.

Here are 5 reasons to take a different approach and to tear up your credit report:

1. Credit Score Does Not Pay Bills.

If you have income to cover your bills, what do you need credit for? If you don’t have enough money to buy gas, to pay for groceries, or to handle life’s expenses, you have much bigger problems than a fluctuating number determined by a computer algorithm.

2. No Real Control Over Your Score.

No matter how many credit repair books you read, it is hard to raise your score except by paying your bills on time. And even then, which bills you pay can have more to do with your score than how much you pay.

Not all bills are created equal. Your credit score might improve if you pay certain bills on time, such as:

  • - a POTS line phone (Plain Old Telephone Service – it’s a real term)
  • - mortgage
  • - gas
  • - electric
  • - and other utilities

But let your debt-to-credit ratio get too high on your credit cards and you can get slammed no matter how current your payments are.

3. Credit Bureau Mistakes.

Your credit score is like an idiot savant. It knows your payment history and debt-to-credit ratio. That’s it.

What’s missing? Your income. Someone who just landed a big paying job gets no higher FICO score. Someone who pays cash (credit ghost) who has no debt is treated like a leper. Mistakes also happen. Credit bureaus are notorious for confusing similar names and keeping bad information on file even after notification by effected consumers.

4. Too Much Debt.

All a high credit score can do is tempt you into taking on too much debt. For the person who lives debt-free within their means, a FICO score is worthless.

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. No Legacy.

Death and taxes are inevitable. You can’t successfully avoid either. On the other hand, your credit score is left at the graveside.

Concentrate on living a wealthy life no matter what your income is.

Eat, drink, and be merry, just not on someone else’s dime.

And live within your means.

If your credit rating is shot, bury it. You will sleep better at night.

Look for more contrarian financial strategies at Burn Down the Freaking Mission.

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Filed under: Credit Repair

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