FICO Credit Score - Dave Ramsey Rant 

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

playing kissy face with the bank 😂😂😂😂😂

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.

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.

This video changed my life a year ago .

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!

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.

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.

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

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 !

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.

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.

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.

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.

I had an 831 a year ago. Today less than 600. Takes years to build up that number and a very short time to blow it. They only care about that number today and not the good history you've once had. I won't do bankruptcy as I want to pay off my debts, but after that I'm done using loans. I don't care if I have to be homeless. This show is extremely motivational.

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.

This guy has more sense than a lot of people and it's just common sense

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

0 APR for 24 months tells me I didn't pay a dime over what I used.

Dave is 100% correct, It should all be based on your income and job history!

I could not get an apartment without a FICO they said hit the road Jack!

“You’ve been playing Kissy face with the bank”

There are plenty “millionaires” running millions of dollars through their centurion card/palladium cards, and getting tons of bonuses back on their normal spending. The key is to be disciplined and pay off your balances every month so you don’t pay interest. You also need to find the right card that fits your spending habits (travel, dining, etc.) so that you can get a nice return on money you are already spending, 1% to even 10% in some cases.

I totally agree with what he says regarding credit scores. The thing that really angers me is why my auto insurance rate is based on my credit score and not my perfect driving record. It's a total scam IMO.

I remember when I was buying my last car and the salesman said that my wife could buy a Ferrari based on her FICO score. The funny thing was that she was a housewife and had been for 5 years. I wondered at the time, how could she or even we afford that. Now I know it was not based on our ability to pay. WOW!

Thank you for this video. It's what I really needed to understand.

My son never had a credit card and saved 10,000 for a down payment and the VA wants him to get a credit card to get a Fico score. He was in the Marines they still want him to get credit first.

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.

The CC trick is to always pay FULLY the amount on the credit card at month's end no matter what !! But Dave's main point has to be appreciated that having a CC makes it easier to purchase something not essential. Money is meant to be spent, true, but one must be highly disciplined in saving for your future. (retirement) It's called self-reliance !!

this is exactly the message I needed to get. i was very discouraged to see my fico score fall as I paid off the last remnant of my debt that was sitting in collections.

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.

LOVE this rant !

My eyes just opened. Thanks 👍🏻

you are awesome Dave Ramsey you explain it so well

That's not just 27 year olds, I'm 51, I didn't know this. They dont explain this like you do. It ain't stupid Dave, its ignorant

Whaaaaat!!! Mind BLOWN!!! Thanks Dave 😊

Stopped in my tracks as I was writing "but what if we want a mortgage?" - Slowly deletes comment and hangs head in shame.

I've been a fan of Suze Orman for years and have recently started listening to Dave Ramsey. Once thing I've learned about getting financial advice is to do what works best for you. I don't heed everything they say because there is not a one shoe fits all situation. This piece of advice he is giving here I disagree with. Sure it's not a measurement of success but to the average person who cannot buy a house or car without financing keep your credit score high as possible or else a high interest rate will follow.

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

I have an 820, and haven't paid anything in interest

Heard this in FPU, came back to hear it again. Never owned a credit card, never will

Such a malicious cycle. We are encouraged to use credit cards to overspend for Christmas. When Christmas is over we are encouraged to refinance our homes etc. to pay for the credit cards then come tax return time we have every advertiser trying to snatch those refunds out of our hands.

Dave, I work in managerial accounting and most employers will check my credit score before hiring me. How would that work for me if I had no score? Thanks in advance!

This is so incredible Dave, thank YOU!!!!!!!!!!!!!!!!!!!!

so true. i can pay cash for a new car. but they won't give me a loan for one lol

omg! Dave . you just taught me something new. you are so right. i have heard these financial guru talking a about a fico score, and i did not know that this is just their way of scaming us to keep getting into debt, so we can brag about a stupid fico score. Thanks Dave for your insight and wisdom.

looovveee this. PREACH

1:23 I can't, I can't!!! 🤣😂😂😂 TRUTH

A credit score is just an indicator of how trustworthy you are in repaying your debts nothing more.

My good credit score got me a beautiful truck that's almost paid for and a nice apartment, I know a lot of people that don't have either because of their bad credit history so whats wrong with that? I'll keep my good credit thanks.

I had no credit when I bought my house. I put down a 40% down payment and had no problems. Paid it off in 11 1/2 years.

I am from Romania and when we want to get a credit card or a mortgage or any type of borrowed money the bank analyzes the request based on the income and the history of payments, if it exists, if not, it's even better.

Even thought the FICO score is not a good measure of financial success, we poor people have to maintain one. The financial institutions of the USA use it as a measure of the likely hood of they getting their money back and you sadly need it for every day things like, renting an apartment or buying a car etc. So until you guys become multi millionaires, make sure to keep a good FICO score.

I get that it's counter-intuitive when buying cars but how are you going to finance a house without it? Not everyone can buy house cash.

Got it! Well put!

Somehow my FICO score isn't going down. I've been debt free for 4 years now. I only had a car loan and credit card. I paid both off and closed the Credit Card. I have followed the baby steps, I have the 6 month expenses in my emergency fund and save 15% into my 401K at work. Still my FICO on CreditKarma shows my score gradually increasing. I'm at 663 now. I would really love to see it at 0 but it's not going there.

When ever I'm about to make a stupid money decision I come back to this video. It's been years now.

Way to Go DAve!

You can also buy a house with seller financing.

Hi Dave, God bless! Can you name a few examples of companies that do manual underwriting for mortgages? With much love From Miami, FL

Dave,would you know of any banks that write mortgages without a fico score,I am in New Jersey and looking into purchasing in a 55+ community,thanks in advance.

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

The system brainwashed us thinking that If we close all the accounts, the credit score will decrease and nobody will give us money.

This is so true

How about things like car insurance that determine a rate based on credit score?

Poor Dave has been aggravated lately - you can hear it in his voice. He's far more patient than I am, so maybe his reserve is depleted? Merry Christmas, Dave.

Great advice I believe. Thanks

I have an 850 score and zero debt, what what??

Thanks Dave for freeing us of this programming

They also grade you on how Much credit you used, the less you used the better for your score, so even FICO tells you not to use credit.

Right now 0 sound good to me, if you pay off or pay more then the minimum, that won't improve your score. The only reason for a FICO is to lull you into borrowing more money. I went cash and carry. No more credit. I broke my chains and am now a freeman. If I can't afford it, I don't need it.

Straight facts 💯

I have a FICO score of 765 but I only use my credit card once a year to pay my Amazon Prime bill. I have only used my credit care twice in the past two years and yet my credit score stays at 765 every month. I pay cash for 99% of my purchases though. I see it as a win-win situation because my FICO score is still high, yet I still pay cash for most things.

Oh my fico score is 573 and 2 months ago it was 578. I'm 59 now and legally blind. when i was younger i believe i had a fico of approx 820. Now i own a 50 dollar mattress from Ikea. My sister's fico score is probably worse cause she's driving Colombo's junker

I've never paid a cent of interest and have a 800 plus fico 9 score. Dave needs to do a little more research.

How come Dave is not okay with FICO scores but is okay with having a mortgage? Getting a mortgage will give you a FICO score...

Dave, you're a wise man.

Another way to bypass the fico bull hockey is to find a land contract with another private party willing to draw up a legal contract where the seller is the lender and you’re the applicant. My parents did this when they bought our dairy farm.

Dave, not all of us have millions of dollars laying around to BUY buildings. Just to get your LIGHTS turned on, they check your credit. I'm sorry but I'm not paying a ridiculous "non refundable deposit," for a basic living necessity.

I hope one day the credit score dies. It's so stupid that it goes down when you have paid your debts.

Obviously there’s a lot of apartment complexes but from my professional experiences i don’t think they normally get your actual fico when you apply. They just see your credit report and repay history , collections etc

“You make a bazillion dollars a year.... thats me by the way”... dave is a savage 🤣

FICO score is a financial responsibility score. High score means your trustworthy with money.

I'm 21 years and I came to the USA when I was 16, and people who like traveling around the world always told me to get a credit card. Then I got my credit card a year ago. My FICO score is 728 right now. This is what I do . Let's say I'm going to spend 1000 dollars a month. So I make sure that I have it cash and pay it off that way I don't pay interest. Basically I spend my money not theirs.

Question. If the fico score is "baked into the pie". As a individual I cannot change the recipe, what choice do we have as a consumer?

worshipping FICO😂😂😂😂😂

I get it. Why would you borrow $10 if you have $10? Purposely putting yourself in debt, so now part of me is working to pay you back. Like my dad says "as long as I owe you money, you'll never be broke"

My question is if I have a 740 Fico credit score and as of today stop using credit cards how does my score disappear?

I hear you dave, but the world wants it now. you become rich at young age, you live it up. now you learn, now you make sure you stay rich by not being in debt . for the rest of us 9 to 5 we want some of the life. to own a sport car, dream vacations, buy nice things , big boats, atv rides. we want to live it up now, not when we're 70 to old to do things. life you never know how long you will live

But the bank looks at fico in order to grant low interest loans. Also if I pay my credit card in full each month I am not losing any money. In fact I am gaining money through cash back, miles, or otherwise. So if I am responsible is there actually anything I should be worried about?

This is an example of why Dave gets on my nerves sometimes.

I dont have a need for a fico since I pay cash for everything anyway.

double edge sword here; people will not touch you without a credit score.... some companies will not even work with you PERIOD without a credit history.

Dave goes off the assumption everyone makes $50K a year and live in low rent areas. If you have the money to buy a complex, why would you live in an apartment? That means you could buy a house outright and bank any increased valuation of the property and increase net wealth. You start to notice contradictions in his strawman arguments. Building credit history isn't hard and can be done without paying a single cent in interest. Do not spend a single cent of your paycheck and pay for everything with a credit card (if info is stolen it's on the CC company and not your cash), pay off everything when it's the end of your cycle; without interest. Never spend as much as you make, and be disciplined in spending habits. You can go from no credit to being able to get auto loans and such, if needed, in around 10 months.

He believes in mortgages... I'm sure those will get you a fico score. Maybe not him, since he writes a check for everything now...

i have rentals and i never check credit...i check eviction and criminal /civil history...as long as no judgements or lawsuits i do not care how many cards or loans you have or fico score.

"save up and pay cash for a house" of course ill start today when im 25 maybe when im 55 years old I'd have 250k saved up to pay for it

I have had 30 credit cards in the last 5 years and netted 6,000 in sign-up bonuses alone. If you have the discipline to NEVER carry a balance, you are taking the banks' money.

Well I mean your wrong because in my 7 years of having a credit card I haven’t paid a cent of interest (complete monthly payments) and have an 830 so....

Preach!!!!😂🤣