How To Improve Your Credit Score Without Debt

dianna follows me at facebook.com slash Davey how can someone improve their credit score when there's no debt you can't and that's a good thing we need to understand what a FICO score is a FICO score has according to Phi cos website four elements to it a much debt you have the kind of debt you have how you pay your debt it's all about debt so your FICO score or into a guy this weekend he said no Dave I don't really need your information I have an 855 Aiko score I'm doing fine and it wasn't a situation where I it was a social situation where I couldn't really laugh at him in his face so I just nodded and said okay and walked away because there was no I didn't have time nor did I have the footing in this conversation to to completely expose the ridiculous thinking that that represents let me help you with that an 850 FICO score does not mean you have money it does not mean you have an income it does not mean you have wealth all it means is you have paid hundreds of thousands of dollars in interest to the bank it's the only possible way to get an 850 FICO score you have to have a lot of debt have had it a long time and have paid it perfectly and stayed in debt religiously as a matter of fact you've borrowed money just to keep your FICO score up to be at that level now does that make sense well let's think about it the number one key to building wealth is having your income to invest instead of having committed it to other people that means gotten into debt when you don't have any payments you have money to invest in to be generous with and all the data points tell us that that is the fastest way to build wealth all the research gives us that plus common sense tells you that so once we understand that the fastest way to become wealthy is to be out of debt and we understand secondarily that the FICO score is 100% built off of your relationship with debt if you have a high fate high FICO score it means you've been playing kissy-face with the bank a lot once you understand that the FICO score is not and I'm good with money score it's not an I'm wealthy score it's an I love debt score and I'm really good at borrowing and paying back a lot of debt over a long period of time score which is a stupid way to score whether you're winning with money so when the guy goes well I'm doing okay I've got an 80 50 credit score what he really meant was I'm pretty stupid I'm giving the bank a lot of money and I don't have any likely because the shortest distance between two points is a straight line that straight line is debt free I have my income I can put it in two investments so my point being my credit score very proudly is indeterminable which is the FICO score people way of saying I have a zero score why do I have a zero score I have had no debt no accounts open of any kind for a very long time if you only will do business with me or loan me money based on my FICO score we can't do business I don't have a FICO score because I don't borrow money because not being in debt is the fastest way to become wealthy so your goal should not be how can I keep my credit score up how can I build my credit because building your credit is I'm gonna borrow money why so later I have the opportunity to borrow money why so that I can borrow more money why so I can stay in debt and make those towers in the skyline be owned by somebody else because I gave them my working life's income you being ruled over by banks they're telling you what to do they're managing your life they've built it into the culture to the point that people actually walk around bragging about their I love debt score what a great job the banking industry has done teaching you to be in debt and stay in debt which is where they make all their money the credit card is the most marketed product in the history of the world more money has been spent selling you credit cards marketing you credit cards than any other product in the history of the world and it worked you all have one or two or twenty two it worked don't you feel stupid don't you feel manipulated don't you feel used you should you're a slave the borrower is slave to the lender so don't improve your credit score have a goal of having everything paid off in every account closed and then somewhere around six months later your credit score will be fabulously indeterminable zero how would I get a house how would I get a house well two possibilities say you have to get a mortgage with someone that doesn't use a credit score to issue a mortgage which is a mortgage company who actually knows how to write mortgages the old-fashioned way it's called manual underwriting like churchill mortgage does or you'd have to save up and pay cash yeah yeah I am and I live that way I live in an unrealistic world where I've become unrealistically wealthy managing money God's ways it works every time so you have to be like that young couple I ran into he was an engineer and she's a teacher just talk to him the other day they're young they're making a lot of money for a young couple so they're unusual granted but they were making right around 100 and they're you know twenty four years old when they started they had no dad and they decided they were not going to borrow money for a house so they lived in an apartment a garage apartment out back of a rich old lady's house he cut the rich old lady's grass and kept her gutters cleaned out and the rent was almost free because of that their friends made fun of them their parents thought they needed counseling but they made a hundred and their rent was two hundred fifty dollars a month in a nice city in a nice neighborhood but it's a garage apartment out top of over the top of a garage out back of a lady's house it was not it was not fabulous and you know what they did they saved almost I mean I think they say provide that $50,000 a year for four years and they paid cash for a $200,000 house when they were 28 but everybody made fun of them now if you're making by then one hundred and twenty five thousand dollars a year and you're 28 or 30 years old and you never have a house payment the rest of your life do you know how rich you're gonna be see why you don't need a FICO score hello are you starting to catch on to these numbers this is real so don't improve your FICO score set out destroy it as quickly as possible by being 100% debt free with all accounts closed as soon as you possibly can so kind of countercultural isn't it though the Bible says that it says be not conformed to this world don't be like everybody else but be transformed how are you transformed the renewing of your mind you need ideas that are different than everybody else's ideas normal is broke 78% of Americans live paycheck to paycheck the foreclosure rate is at an all-time high the bankruptcy rate is at an all-time high and the number one cause of divorce in America today is money fights and money problems do you want to be normal normal sucks why would you want to be normal whatever everybody else is doing you want to do exactly the opposite don't you otherwise you're gonna be just like them if you do what they do you're gonna be just like them so go run up your FICO score if you want to be broke your whole life don't worry about your I love debt score if you want to be broke your whole life you'll be broke mathematically it's a proven freakin fact or you can be different than everyone else be weird don't be normal mmm that's what winning is

Channel: The Ramsey Show - Highlights

Views: 1,058,992

Rating: 4.8013778 out of 5

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Id: 3k0ObI4OBbY

Length: 9min 20sec (560 seconds)

Published: Fri Feb 02 2018