I want to both cringe and laugh uncontrollably when I hear someone tell me how “high” their credit score is. I put the word high in quotes because it is a completely subjective term. Most people start getting pretty proud around the 700 mark, and once they breach 800 it seems they want to shout their score from the roof tops. Sorry to burst your bubble peeps, but your credit score doesn’t make you cool.
I honestly have no idea what my credit score is. I’ve never checked it. I use to have student loans and a car payment, and I currently have recurring credit card accounts. I have a pretty good track record of making my payments on time so I’m gonna take a shot in the dark and assume I have a pretty okay score. You can get a free credit report score by doing a quick google search.
Do you know what the primary purpose is of your credit score? It tells lenders how likely you are to make your payments on time and pay back all that you borrowed. The higher your score, the better rates you get. Pretty straightforward stuff.
But what if you don’t like borrowing money? What if you are going to pay cash for your next car? What if you don’t care what the interest rate is on your Credit Card because you pay the bill in full each month? Hmmmm, suddenly your credit score becomes exponentially less important.
Instead of thinking you are super cool for having a high credit score, maybe you should be asking yourself why you even care? Are you really that excited about being deemed “qualified” to take on more debt?
Don’t get me wrong. I know the difference between a 6% interest rate and a 4% interest rate on a mortgage will save you tens of thousands of dollars over the life of the loan. I’m not at all trying to say people shouldn’t care about paying their bills on time, of course everyone should do their best to be fiscally responsible. But instead of manipulating my spending habits in hopes of them having a positive impact on my credit score (by doing things like taking on a car loan), I’d much rather pay cash and not even have to worry about it.
Long story short: I will NEVER, EVER, EVER put myself in further debt just for the sake of improving my score. And personally, I don’t think you should either.
We’ve allowed the credit score to become far too important in the way we evaluate one’s character (people can actually get denied employment because of a poor score). So today I take a stand and say “Bite me FICO score!” I’m not changing a darn thing.
Are you with me!? Do you know people who appear to be pretty proud of themselves for having “great” credit? Do those people make you want to cry inside? Do you care about your credit score?