Here in Finland there is no such thing as a credit score. There is a register where you can see if someone has payments in collections, have gone bankrupt or have been deemed to neglect payments in court, but nobody give you a score. Having multiple credit cards is actually considered a risk, not an asset!
@amireallythatgrumpy6508
8 ай бұрын
Credit scores are an absurd concept that only backwards countries like the USA have.
@amirtak9886
17 сағат бұрын
Finland is such an amazing country.
@punkbassandcovers
Жыл бұрын
Hey baby look at my credit score, and my brand new $1400 truck payment...for which I use to haul mulch twice a year and to compensate for other areas in which I lack.
@GeorgeKamel
Жыл бұрын
Haha nailed it 😂
@punkbassandcovers
Жыл бұрын
@@GeorgeKamelwe ALL have THAT neighbor 😂
@condog209
Жыл бұрын
Having trucks are wroth it, in the long run
@Bubs.
Жыл бұрын
@@condog209sounds like something someone with a mini condog would say ngl
@condog209
Жыл бұрын
@@Bubs. good luck having to pay someone extra just bring that furniture you bought from Ikea to your house, or that new grill you got cus it can't fit in that Accord ot civic that you have
@LeiaAOS
Жыл бұрын
I love the way Dave refers to it as an “I LOVE DEBT” score. Excellent video. If only everyone in the world understood this.
@boostedfist
Жыл бұрын
If people knew how to use debt they would get way further ahead. Problem is. most people don't know how to use it. Thus it becomes a detriment rather than a benefit. Video was good, message was good as well for the general pop but blanket statement that its bad is misinformed or purposefully ignorant.
@Superhyperaktive
Жыл бұрын
@boostedfist, if everyone was good with credit cards, then the credit card companies would not make money and could not offer any perks.
@boostedfist
Жыл бұрын
@@Superhyperaktive CC companies make money off our yearly fees as well as all the charges for merchants to use their service. Would they make less? ofc. Are interest payments their only revenue source? Absolutely not.
@Superhyperaktive
Жыл бұрын
@Tunechi65 How is he a scammer when he's been helping people get out of debt for years? Of the people who use cc, what is the average debt they owe on them?
@nathanwestford2065
Жыл бұрын
Times are uncertain, the market is out of control, and banks are gradually failing. I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the stock market and I realized some investors made a fortune from the recent recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?
@Jennnparker
Жыл бұрын
Cryptocurrency crashed the last couple years, so it should be starting a new run to a new high.
@nathanwestford2065
Жыл бұрын
@@RandyPelletier checked for your FA and found her web page. she is very impressive , I wrote her and I'm waiting on her reply.
@KevinWilliams-o5v
Жыл бұрын
Insurance agent here. Having a good or bad credit score affects your auto and home insurance rates significantly!! Someone with a low credit score can end up paying thousands more a year. Having a high credit score and being financially responsible are not in competition with one another.
@amireallythatgrumpy6508
Жыл бұрын
There's no better credit score than ZERO
@MikeThePike316
Жыл бұрын
What does a low credit score have to do with an indeterminable credit score?
@watuwantt
10 ай бұрын
You can get a good rate for having no credit score. Do not confuse having NO credit score to LOW credit score
@KevinWilliams-o5v
10 ай бұрын
@@watuwantt uh......you'll have to elaborate. I have no clue how you've come to that conclusion. No credit score equals low credit score equals higher rates. Unless the company doesn't credit rate, and there are just a few that do, and they're typically non-standard auto companies.
@amireallythatgrumpy6508
9 ай бұрын
Nope. Big difference between low and no. @@KevinWilliams-o5v
@joeandjoeable123
Жыл бұрын
The one thing I would say is. As someone who is young, and wanting to try a house young, but wont be able to save up more than 15% or so, wouldn't a credit score give me the best rate. As someone who had a 760 and no debt, meaning it is only rising over time. Wouldn't it be best to just keep not having debt, raise my credit score, and use that rate instead of risking a higher rate with manual underwriting?
@joeandjoeable123
Жыл бұрын
For clarification, I mean 15% of the house purchase price, in the time before I want to buy it.
@ninjack8973
Жыл бұрын
I bought a house young (22), 20% down with no credit score and I got a 2.5% rate. The rate you get is just as competitive. It turns out when they manually underwrite you and realize the ONLY people you will have to pay is them you are considered a pretty safe bet and get a good rate lol! Plus, soon as I get this house paid off I'll never need another loan cuz I ain't going back. Interest will from that day on always work on my behalf. Never again on someone else's behalf with my money.
@TartarianTopG
Жыл бұрын
@@ninjack8973how old are you now
@watuwantt
10 ай бұрын
You just sound like you wanna buy a house faster than you can afford. Dont rush
@rossmcgreg6r642
Жыл бұрын
I'll give you credit for this one, George.
@conorstanage8434
Жыл бұрын
Here in the UK our credit scores are marked out of one thousand. I have ZERO idea why my score is so high because I never use credit. I use the "twice/once" rule before a purchase: if I can't pay for it is twice, I don't buy it once - using cash. So if an item is £100, I'd better have £200 in my wallet. Works for me!
@dreams2383
Жыл бұрын
If you have a mortgage you'll have a score also if you use a credit card at all you'll also have a score
@Py16777216
7 ай бұрын
I know. I don't need it, but I like it.
@The_credit_game_
7 ай бұрын
Need assistance with your credit score? Have you recently had your application for a credit card, house, or auto loan denied?
@JpivotalBurcham
9 ай бұрын
Do you want to get rid of NEGATIVES on your credit report in 14 days?
@JpivotalBurcham
9 ай бұрын
*Brandon Credit Fix LLC*
@JpivotalBurcham
9 ай бұрын
They fixed my credit report fast to 800+
@meljordan220
5 ай бұрын
You only need that if you want to continue to be in debt and be a slave to debt.
@jasonmoquin
Жыл бұрын
Yup, because getting a mortgage, applying for an apartment, home and car insurance rates, turning on utilities, background checks on a new job, etc...none of those require CCs or credit checks, right?
@thedude5040
Жыл бұрын
I actaully did all of those things without a score. Not sure why your job requires a credit score. I make more than you, so perhaps your employer is idk dumb? Same thing with insurance, agents that need a credit score have no idea how insurance works. If a landlord wanted a credit score I just printed out my bank statment that showed I had more money than they did. I actually broke my landlord's idea of what a credit score means.
@josephtejero7317
Жыл бұрын
Background checks ?! 😂 Require credit cards?! Thats wild where do you work? Never seen that before
@dreams2383
Жыл бұрын
Actually no they don't. I've done all that with no score. Apts and jobs look for late or bad accounts not score. My car and home insurance is cheaper now that I have no score, you can buy a home with no score called manual underwriting. It's almost the same process as fha. Pulling your credit doesn't mean they are looking for high score they are looking for bankruptcy etc.
@tduck828
Жыл бұрын
Wrong. My job checks my score and history yearly.
@dreams2383
Жыл бұрын
@@tduck828 my reply says some do when you have a higher finance job so I take it you skimmed my comment. I bet though if you don't have a finance job they wouldn't fire you for having no score because no score is not the same as a low score or bad score. Huge difference. They may be running your credit but again they are not watching or care about your score unless you are in high finance or in the military with a security clearance
@Pillarblue
Жыл бұрын
Recently paid off one of my student loans & credit score went DOWN 10 pts - I see their game.
@rebeltheharem7028
3 ай бұрын
Yup, its stupid. Since you paid off the loan, that means the "account" is closed. So your "total credit limit" (including home loans, auto loans, and credit card limits) lowered. And that affects your score. And since its a recently closed account, it also affects your score.
@yvonneh.3618
Жыл бұрын
Car insurance rates are based off your credit score too.
@dreams2383
Жыл бұрын
Not true. My insurance has gone down in price now that I have no score.
@tduck828
Жыл бұрын
Depends on state. Some allow and some do not.
@jasondima1411
Жыл бұрын
Thank you George! The world needs to hear this! Invest in the stock market is way better than getting a credit score! Manage wealth not manage debt
@Ivy-wv4wd
Жыл бұрын
You don’t need debt to have a good credit score.
@jasondima1411
Жыл бұрын
@@Ivy-wv4wd explain?
@Ivy-wv4wd
Жыл бұрын
@@jasondima1411 you can get a credit card and pay it off in full every month before interest. You don’t need to carry a balance. You can now add rental payments and utilities to your credit report via Experian boost and other similar services. Having a credit score will make your life easier. They check your credit for apartment rentals, utilities, phone services, jobs especially in the financial industry, etc. If you don’t have a score, you automatically get denied because it’s all automated now.
@Ivy-wv4wd
Жыл бұрын
@@jasondima1411 btw I am not advocating for the credit scores. I agree with George that the system sucks but you have to deal with it because it’s the system that we have.
@dreams2383
Жыл бұрын
@@Ivy-wv4wdthat is just false. I have had a high score and no score and my life hasn't been harder in fact it's easier with no score because I have less monthly bills and more money. I have bought a house,gotvutilities have insurance with no score. My insurance is cheaper now that I have no score then my old 800 score.
@WriteCold
Жыл бұрын
Fight the power and speak the truth, G-dawg
@Executor009
Жыл бұрын
That debt to cocaine bear analogy was spot on.
@pgdark1946
Жыл бұрын
"feeling knotty" made me laugh more than it should have....lol
@ramsaraswat9532
5 ай бұрын
Love this, George and your work! I just started following Ramsey and love your advice. Do you have any resource/partners for Canada?
@blandlinda
Жыл бұрын
Very proud to announce that I do not have a FICO score. 👍🏻🙌🏻👏🏻
@cedricatmoore
Жыл бұрын
Great Video! And A Great Reminder! Thank You George! God Bless You, your team and all at Ramsey solutions!
@lanbao2010
Жыл бұрын
To a point… I’d love to see how you work around getting renting an apartment and also deal with employers or utilities companies looking at your credit score.
@jes00456
Жыл бұрын
In my experience most apartments and utility companies will just want a slightly higher deposit and employers have never looked at my credit score(I don't know why they would?). It's mildly inconvenient but if you're good with your money it doesn't really matter.
@tduck828
Жыл бұрын
If you are in a finance based role they absolutely look at score and history
@amireallythatgrumpy6508
Жыл бұрын
@@tduck828 If you're in a finance based role you need a MUCH better job.
@dreams2383
Жыл бұрын
@@tduck828they look at your credit history and in almost all cases besides certain finance jobs they don't look at score. I worked in hr
@jes00456
Жыл бұрын
@@tkat911 For sure. The place I’m renting now and the last place I rented didn’t care that I don’t have a credit score once I told them why I don’t.
@libertarian4323
Жыл бұрын
I have a credit score well over 800. I use a cash back credit card for all purchases. I have paid $0 in interest and fees in 40 years. I have no real debt, and am a multimillionaire many times over. You don't need to be "in debt" to have an extremely high credit score.
@BrandonPickett
9 ай бұрын
Are you struggling with BAD CREDIT ?
@BrandonPickett
9 ай бұрын
I was able to get rid of all negative items on my credit report in 14 days.
@BrandonPickett
9 ай бұрын
*BRANDON CREDIT FIX LLC*
@mastershackgroup5331
9 ай бұрын
Thanks for sharing, will definitely look them up.
@meljordan220
5 ай бұрын
If you don't have any debt, you won't have any bad credit. You don't need to fix your credit. You need to get rid of it.
@mmp495
Жыл бұрын
Just paid off my rental property. My FICO is dropped 20 points quick...come on undetermineable.
@WhatShallEyeDo4U
Жыл бұрын
Routing for you! 😎
@EntreJordan
Жыл бұрын
Congrats on the 50K subs!
@gainesville323
Жыл бұрын
While I do agree that the credit score is a broken score system that relies on debt payments, I still use credit cards to earn cash back. I’m a meticulous budgeter, and I only use my cards when I know I can afford to make my purchase in cash, which allows me to earn money back from purchases I would’ve made regardless of the payment method I used. Just this year I received almost $700 in cash back, where I would’ve received nothing if I were to use my debit card (which I only use to get cash from an ATM)
@beth3535
Жыл бұрын
Agree.
@HeathenwoodOfficial
Жыл бұрын
How much did you spend to get the cash back and how many of those purchases were needed?
@gainesville323
Жыл бұрын
@@HeathenwoodOfficial Well the majority of my cash back came from sign-up bonuses (I got $350 from Navy Federal after spending $3,000 in 3 months, $200 from Citi after spending $1,500 in 6 months, and I’m working on one from American Express where I’ll get $150 when I spend $1,000 in 6 months), and the purchases that were “needed” were gas, groceries, insurance, other household goods, and the occasional oil change (I would include internet but my roommate pays that, and I just send him my half). I also spend money on my wants because I don’t have any debt (I don’t carry credit card balances from month-to-month), my emergency fund is fully-funded and I’m investing. So I’d say about 60% of the spending was my “needs” and 40% were from the things I want/enjoy
@rotoboravtov4354
Жыл бұрын
You can also buy things you don't need with a debit card. The only difference is that you won't buy something you can't afford with debit. @@HeathenwoodOfficial
@KacieMarie
10 ай бұрын
@@HeathenwoodOfficial depending on the type of credit card he has you can receive a lot of money on purchases just by the percentage of cash back on the item alone; how you spend and number of people are in the house hold. Take groceries, some offer 6 parentage cash back on 6000 dollars on groceries which is equaled to 360 dollars. Then there can be cash back on gas, which might be 3 precent or 6 precent, and cash back on transit and ride share apps. It is quite easy to save that much money on credit cards on needed every day items.
@robsmithmusic777
Жыл бұрын
Bruh you earn my like and sub everytime, hilarious and effective video!
@funtechu
Жыл бұрын
Going to add another point from my perspective. I grew up on Dave Ramsey and was convinced that the credit score was not required for anything. I successfully rented cards, and was able to rent with no score. But then several years ago I got slapped into reality when I was moving and found that no place in the new city would rent to me because my credit score was indeterminate. I ended up finding a place that would rent to me but they required a double deposit, were in a worse location, and cost more per month than some of the other places I had been looking at. TL:DR; having a good credit score gives you options, and in my case the opportunity cost of not having it was incredibly high. Plus, to get a perfect credit score is incredibly simple and doesn't require ever paying a dime in interest. Just get a credit card with a low limit, put an expense that you are not going to overpay for on it (like gas), and pay it off in full every month. Within a year you'll have a score > 740 which is considered a perfect score for all purposes. Anyway, just beware of this, especially if you are young or still renting. I love Dave, but this is an area where he is just plain wrong on the practical side of things. I would love a world where you don't need a credit score to rent. But unfortunately that's not the world we currently live in.
@Jumpman67
Жыл бұрын
Exactly. It is 100% possible to live without a credit score but you're going to have to compromise. is the trade off worth it? I don't know.
@KatieBellino
Жыл бұрын
Yes, the cities are where the credit score thing really affects you for renting. My first apartment was in a rural area. Month to month, handshake from landlord. My second apartment before I bought a house ran a credit check and everywhere in this area nearer the city does it that way. It's also a bloodbath to get an apartment, so having no score really reduces someone's chances of getting decent housing.
@rayofsunshan
2 ай бұрын
🎯
@BadPhD777
Жыл бұрын
I couldn't care less what my credit score is.
@aolvaar8792
Жыл бұрын
The $250K house across the street is for sale today, $50K. You have a standing loan for $100K, Signature only.
@ordinaryhuman5645
Жыл бұрын
I had no score or a low score depending on who you asked because I only had a student loan that was paid off within a month of graduating, and some apartment rental history. Getting a mortgage was a pain (only my local credit union with access to my detailed financial history were willing) and the interest rate I had was worse than it should have been. I didn't and don't care about credit scores, especially with my house paid off and with no intention of ever borrowing again, but it's obviously better to have a strong credit score when it's time to borrow for a house. Lower interest rates are better than higher interest rates, and you get those with a strong credit score, for better or worse.
@caden01691
Жыл бұрын
For me, I only had a paid off $20k car loan for history and one open credit card I sternly treat as a debit. Plus over 7 years of employment at one place with consistent raises. Getting my mortgage last year at 23 was insanely challenging even though those two things gave me an 800 credit score no matter who you asked. Even my credit union I got the auto loan through and had all of my financial history wouldn't even consider me. I had a %50 down payment to top things off. I finally found a lender that had a good interest rate (rates were rising fast) and would pre-approve me. They made it clear, in writing, that the only reason I was approved was because of my score. I'm no credit advocate as I prefer saving and avoiding payments, but I'm %100 confident I wouldn't have gotten my home at my age without that score. I'll be keeping my score in tip top shape until I don't need a mortgage to purchase a home/land as that's all I really need it for.
@soulanstreets222
9 ай бұрын
It's because you got your car before getting a house...don't ask me why that matters but if you're paying on a car note, some lenders think that if it came down to paying your mortgage or your car, you would pick your car so that's considered riskier to them than if you already paid off your car. Also 50% down payments aren't what banks prefer. They want to be able to keep you in a loan longer because they only make their money off interest payments. I always say that even if you have 50% down...only put 20% and then after you make your first mortgage payment, make another payment right after with the rest of the 30% you didn't put down and apply it to the principal. You get the same results with more than likely a lower interest rate. Lenders practically want people who cannot afford the home to get a mortgage. They don't like people who can pay the house of quickly...they want to make money. @@caden01691
@caden01691
9 ай бұрын
@soulanstreets Car was paid off for like three years before ever applying for a mortgage. You're %100 correct about them not wanting someone to pay it off quick so they can milk the interest. My credit union said they wouldn't approve me for said mortgage because I only had one open account. (Credit card) They wanted me to have at least two accounts open to "Prove I can manage multiple accounts" but we all know it's just because people are less likely to pay a loan off quickly if they have other payments to make.
@lanbao2010
Жыл бұрын
That subtle reference to “cotton-eyed joe” (F-I-C-O) was amazing.
@muzerhythm2242
Жыл бұрын
Glad I wasn't only one that caught that!😁
@lkj0822g
Жыл бұрын
What Ramsey personalities don't tell you is that you can have a high credit score with zero debt. George spent about two seconds on how the credit score is used in other ways other than obtaining debt, but those other uses are extremely important, such as employment, housing, utilities, insurance, just to name a few. Also what George isn't telling you is that Churchill Mortgage pays Ramsey Inc. a hefty advertising fee for him to push manual underwriting. Funny how that works. Drink the Ramsey KoolAid at your financial peril....
@amireallythatgrumpy6508
Жыл бұрын
And what YOU don't tell anyone is that credit scores don't exist in civilised countries. They only exist in backwards countries like the USA.
@GhettoGatesss
Жыл бұрын
So if your score is low it hurts you? But you don’t need a credit score?? I don’t totally agree with this George.
@amireallythatgrumpy6508
Жыл бұрын
The best possible credit score is ZERO
@josephrodriguez5218
Жыл бұрын
I don’t know who edits this but Dave’s not paying them enough 😂
@debbiefried3533
Жыл бұрын
Proverbs Chap. 13 Verse 7: "There is one who feigns riches but has nothing; one who feigns poverty but has great wealth" The former is the average American today.
@ciscoshibler3214
Жыл бұрын
All hail almighty FICO! Lol. Totally kidding of course. I'm debt free and always will be! Love your content Goerge. If you are ever in kansas, we will treat you to lunch. The Ramsey show has changed my life!
@ryancraig4811
Жыл бұрын
Recent WSJ article points out that retirees with no scores pay higher insurance rates. Getting a mortgage at any stage in life without a score is also more expensive. It’s possible to maintain a score without incurring debt. Worth it to play the game - if you’re capable.
@ErikMore
Жыл бұрын
When you pay off your student loans your credit score goes up. Maybe more people should try it.
@GeorgeKamel
Жыл бұрын
😂 genius marketing angle
@anaroman1499
Жыл бұрын
That's what I had to do before getting a loan from the bank.
@kevaleva
Жыл бұрын
Mine actually went down because it was considered closing an account…oh well
@ebonylo.
Жыл бұрын
@@kevalevathey were being sarcastic so people can actually pay for their student loans instead of holding it for 20 years for it to fall off.
@MrPaulervin78744
Жыл бұрын
have fun with no credit score in 2023. i hope you people watching this laughed.
@amireallythatgrumpy6508
Жыл бұрын
You;ll notice that credit scores only exist in backwards countries like the USA. They do not exist in civilised countries.
@JustJDog09
Жыл бұрын
I'm a simple man. I see a George Kamel video, I click play! ❤❤❤
@ChrisEpp
Жыл бұрын
My name is Christopher and for once my eyes widened when I heard George say my name 👀 Hi George!
@SLangel18
Жыл бұрын
Credit scores just have sooo many errors. And you are not the customer but the product. My husband and his brother get their credit reports mixed because of their similar name and social security numbers! And for us to buy a house and for them to buy one… we had to send 3 separate letters to outline which brother had what. At one point it looked like my husband has 6 cars! That was ridiculous. And they keep mixing it to this day.
@konradterlikowski8788
10 ай бұрын
When moving to the US it was a big issue for me to rent a good house, because I didn't have any credit score. Some of the renters wanted up to 6 months up front payment, some just plainly didn't want to rent.
@amireallythatgrumpy6508
9 ай бұрын
They're renters you want to avoid anyway. You just know it would take a month to do an urgent repair
@donovankean
Жыл бұрын
I've never ran into any ACTUAL problems with not having a credit score. Yes it's SLIGHTLY inconvenient when getting a rental car or APT, but we've made it work. I'd rather deal with the slight inconveniences than be tempted with with a credit card. I'm a HUGE spender, so I don't trust myself with a credit card honestly. It's so easy to just not have the line of credit.
@DaRKWizaRdGaming0
Жыл бұрын
Did you have credit and then no credit later? I have a few questions if you don’t mind.
@donovankean
Жыл бұрын
@@DaRKWizaRdGaming0my wife and I stopped borrowing money and closed all our credit cards in 2020. It was the best thing we ever did. It really helped us control our money instead of wondering where it went.
@trumpshare
7 ай бұрын
Both having a high credit score and having NO credit score would both be important to me as it shows how responsible a person is with money.
@amireallythatgrumpy6508
6 ай бұрын
Correct. Having any credit score proves people are irresponsible.
@meljordan220
6 ай бұрын
@@amireallythatgrumpy6508 They are also impatient. they don't want to wait and save for what they want. Got to have it now! lol
@rebeltheharem7028
3 ай бұрын
I'm a credit card person, so I can handle the ramifications of using em. Most people aren't (apparently more than 50% of the US), so they shouldn't get them. But in general, a "no credit score" is almost the same as having the best credit score, so as long as you can prove stability of income, and paying for non-debt liabilities (like utilities and rent).
@jmalone3934
Жыл бұрын
Frampton Comes Alive 👍
@elvioperez5940
Жыл бұрын
Did you say you got great insurance rates without a credit score? How
@motoryzen
Жыл бұрын
Well if it's automotive..ya 1. Shop around and I don't mean just once in your life.. Shop around every 6 months... 2. Don't drive or ride a motorized vehicle like a jackass...from the show Jack Ass. It's not rocket science ans it's not like these two things are a secret 3. Chances are ya don't need a big freaking Chevy suburban or Ford expedition. So donr buy a vehicle with a giant engine u less you're hauling heavy stuff for your income. Boom..those three things alone just nuked the vast majority of reasons why you're paying too much for insurance. 4. If you're under 25..well that can't be helped..get under moms or dads insurance plan . At 25..your Insurance cost goes down
@GeorgeKamel
Жыл бұрын
I use Zander Insurance and they use independent brokers who shop a bunch of top rated companies for the best deal. There are many other factors that go into your rate outside of credit score
@lornamacdougall9825
Жыл бұрын
I am debt free. My credit score has dropped. Not much. How do I get the credit score to zero? I have never closed any old credit cards. They eventually close them for me. Love your help!
@GeorgeKamel
Жыл бұрын
You must close all accounts to start the clock on the score becoming indeterminable. Don’t wait on someone to close them. 6-12 months after that, your score will become indeterminable
@lornamacdougall9825
Жыл бұрын
It is time for me to run my annual credit report. Is that the best way to figure out what accounts are still open? I have no idea which ones are still open. Thank you
@KatieBellino
Жыл бұрын
I think accounts remain on your report for 10 years, so you'd have some sort of score for probably at least that long.
@SimonRishty
Жыл бұрын
You'd have a credit report with information but the algorithms probably won't generate a score without any recent, active data
@lornamacdougall9825
Жыл бұрын
I have now closed all my accounts. My FICO score has dropped from 835 to 732. Will wait and see. Thank you
@WhatShallEyeDo4U
Жыл бұрын
Missed opportunity to rope in Cotton-Eyed Joe.
@cheapcookies
Жыл бұрын
Why? You ask why? GK, life is 1000% easier with a credit score. The problem is not the score, the problem is that there is, and always will be, a segment of society that can't or won't pay up. And that's why we score people, to weed out the non-payers.
@GeorgeKamel
Жыл бұрын
My life is not 1000% harder without a score. You’ve been brainwashed to believe that. Leave the dark side and join us on the no score side!!
@WhatShallEyeDo4U
Жыл бұрын
@@vectorhacker-r2 ummm.... You need to watch George's video how he BECAME a millionare. He's not biased at all. Even if you don't invest heavily, being debt free is always going to make humans feel better than carrying around a lofty loan with a high credit score.
@cheapcookies
Жыл бұрын
@@GeorgeKamel Not brainwashed. I understand that there is a difference between expenses and debt - but you don't. I use a CC, therefore I have a credit score. I pay it off every month, thanking the bank in Delaware that loaned me money interest free for ~40 days. My CC is an expense, just like my utilities and taxes are, I respect Ramsey, but he leaves no room for those of us responsible consumers who shun debt, but also use the system to our advantage.
@hersheyskwertz9315
Жыл бұрын
The debt game is crazy. I have this game on my phone, it’s called Sim Company’s and it mimics the ebbs and flows of a market. It also teaches leverage but it’s a bit unrealistic where you can borrow money from other people within the game at .5% interest. Anyways, like everyone else I maxed out on the amount of leverage I could have within the game to make more money faster but growth as a percentage was slow and I often found, especially going from a boom market to a recession you’ll lose money because of the payments you have to make using leverage. Also, I wanted to see which was actually faster, carrying around the debt or paying it down and running a company on cash and I must say, since paying down almost all the debt my running total of money has been shooting to the moon. Kind of cool that there’s a game out there that can really help teach us in a more practical sense without making too many mistakes in real life
@susanmcconnell6536
Жыл бұрын
One's credit score determines the interest rate you will get on a car loan and can also affect the amount you pay for insurance, etc. I have built my credit score WAY up by judiciously using credit cards for things I would buy anyway. It's paid off in full weekly, and I never pay a cent of interest or fees (and of course no annual fees!). So NOOOO, you do NOT have to have high debt to have a good credit score! My FICO score is excellent and I have NO debt. Zero, zilch, nada. I think you drank the Ramsey Kool-Aid, Mr. K.
@GeorgeKamel
Жыл бұрын
Jokes on you, I’ll never need a car loan and I get great rates on insurance.
@watuwantt
10 ай бұрын
The only reason you say you NEED a credit score is because you think that buying a car necessitates taking a loan. You don’t need a credit score to buy a car. Why? Because you’re not supposed to take out a loan.
@matthewwilliams9200
Жыл бұрын
People like points and scores. Its why publishers clearing house survives today. Dave you should have a real point system score for true money health ham it up add it to every dollar
@daxtonbrooks2054
Жыл бұрын
If you have a mortgage, how do you not have a credit score?
@beth3535
Жыл бұрын
I paid off the mortgage. I have a high credit score but it has dropped since the payoff.
@trentme09
Жыл бұрын
I just want to see a video of you renting a camel with a debit card
@DaRKWizaRdGaming0
Жыл бұрын
How long does it take for my score to go away after removing the debt and credit cards
@thomasfradd2034
Жыл бұрын
Im always “Feeling Knotty” when I tell my friends I don’t care about my credit score. Love your humour and videos George 😂
@Brooklyn-rj3np
Жыл бұрын
Credit score just means you can make payments. Doesnt mean you handle money well.
@TheSoulCrisis
Жыл бұрын
Why don’t we create something to counter credit scores……like a money score?! 😮
@jonsmith9728
Жыл бұрын
hmmm, time to go fishin (need some summer R&R anyway)
@wolfpackflt670
Жыл бұрын
I dumped $8k into my mortgage principle (24k to 16K) and the credit people didn't like that apparently and dropped my score by 16 points.
@wolfpackflt670
Жыл бұрын
How dare I try to pay off my mortgage, how dare I.
@Deucenheimer
Жыл бұрын
I have a credit card and think it is important for these reasons: 1. I get the highly cherished cash back 2. I get opening bonuses for new cards 3. Having a good credit score doesn't mean I am good with debt or money. I will give you that. But I think having a low credit score means you are bad with money. 4. At 4:50ish I didn't know that was how it was. I pay off my cards early before each statement and keep my utilization near 0%. Personally I thought that meant it had no effect on my credit score/was a good thing for it.
@condog209
Жыл бұрын
Same here I get 6% cash back for grocery stores, and streaming services. And got my bonus just for buying I would have bought anyways
@ww45818
Жыл бұрын
The fish is symbolizing that you’re about to be catfished
@Sovnarkom
Жыл бұрын
utility companies require a large deposit if you don’t have credit insurance companies require automatic ACH and a larger down payment credit score is still important without loans
@MichaelHasebroock
Жыл бұрын
Well said, George. Sent this to a senior in high school to dispel the myth and help them avoid debt.
@jessica97939
Жыл бұрын
Can you give more information about car insurance w/o a credit score?
@GeorgeKamel
Жыл бұрын
Here’s a link for you! www.ramseysolutions.com/insurance/independent-insurance-agent
@heathervenkat1414
Жыл бұрын
I always learn so much from your videos!
@Andrew_28
Жыл бұрын
These videos are hilarious
@derek3735
Жыл бұрын
The problem for me right now is that I have a credit score. I'm now debt free with 3 months of expenses for emergencies. I wish to buy a house in the next 2-3 years. But my credit score will stay for the next 6 years.
@GeorgeKamel
Жыл бұрын
Huh? Why would your credit score stay for the next 6 years?
@derek3735
Жыл бұрын
@@GeorgeKamel Is'nt the credit history 6 years...? Maybe i got misinformed..!
@KatieBellino
Жыл бұрын
Not a problem. You just probably won't need to do manual underwriting because you have a credit score (unless - you don't need to mention here-the debt was so bad that it's a poor score).
@justinsongnj
Жыл бұрын
what about investing in real estate with no credit score?
@GeorgeKamel
Жыл бұрын
Only do it with cash. 1. Way less risk. 2. Way more cashflow. 3. No credit score needed.
@justinsongnj
Жыл бұрын
@@GeorgeKamel Word up GK
@DanielGoldMcduckRose
Жыл бұрын
I always thought I’d was stupid the only thing I ever needed debt was 4 a house. What interest do get then?
@taurusthebull76
Жыл бұрын
Great info George, though I'm fine with having a few CCs that are used responsibly.
@joysilas4724
Жыл бұрын
George is dat dude
@jabbaweezy
Жыл бұрын
I applied for my first credit card last summer to establish a credit score. I got approved for a $1200 limit a month later (so that line of credit is currently open) but I never activated the card. I signed up for monthly FICO reports 2 years ago. However, I didn't start seeing anything on my FICO reports till January of this year where it started me out at 725. Now as of July, it's at 742. My debt hasn't changed, my bills haven't changed. Just my job and my savings. Confused how it could continue rising like this.
@The1Weapon
Жыл бұрын
By having an account and having it open over time, it might factor into the “length of account” portion of your score.
@nickgoesvestmode
Жыл бұрын
Your score is likely going up because your account is aging. Which is a "good thing"
@birdsaloud7590
8 ай бұрын
The Credit bankers won't have debt so they won't have a credit score even though they tell us we need to keep on having debt to have a credit score! It is a way of keeping people indebted whilst the bankers grow rich at our expense.
@mattcollins4550
Жыл бұрын
This is incorrect. You don't need debt to have a good credit score. If you study how then you can learn how to work the FICO algorithm to get a good credit score with no debt. Graham Stephen has some great videos on this. Also buying a used car with cash is not possible for most people especially these days with inflation through the roof, so yeah, a good FICO does matter. And finally doing manual underwriting for a mortgage is a lot more expensive than getting a conventional loan with a credit score.
@motoryzen
Жыл бұрын
Vlaim9ng manual underwriting is more expensive is completely asinine. The entire point of shooting to dealing with a vendor that will give you a proper mortgage (15 yr fixed interest rate) is that you end up paying LESS in the long run for that house. Dave's team has already spelled out the facts of why having 20 percent doen payment to avoid PMI makes sense . It's not rocket science. Facts dont care about anyone's feelings But hey..you worry about your precious make believe fico score and take that 30 year mortgage without a down-payment ans you show us all whose boss eh? Lol
@amireallythatgrumpy6508
Жыл бұрын
The best possible score is no score.
@rebeccatoruno4986
Жыл бұрын
Just pay cash. 😉
@Andrewramirezla
Жыл бұрын
Someone tag graham stephen !
@jessicahalvorsen9315
Жыл бұрын
He can’t keep getting away with it
@AbidingHopeMentalHealthCoach
Жыл бұрын
My credit score is over 800 and I have effectively zero debt. I use a credit card occasionally (very rarely, usually for gas at Costco) and pay it off promptly. I haven’t been charged interest on my purchase for so long I lost count. But I prefer to avoid credit. It’s a pain when I have to make a payment that is from more than one line item in my budget. Our home is paid for. So now it’s just a high score. I don’t know if I want it to go away or not… but either way, it’s not my love of debt score!
@libbyneefe1075
Жыл бұрын
Exactly! I don’t know why the Ramsey team keeps insisting this. My husband and I both have a very high score as well as my dad, and we’re far from broke. My dad is a multi millionaire.
@AbidingHopeMentalHealthCoach
Жыл бұрын
@@libbyneefe1075 Because he is talking about the majority. A few people can manage to use a credit card well. Most can’t. A few people can leverage debt to become wealthy. Most can’t. He’s speaking to the majority.
@victorblas3483
Жыл бұрын
2:07 I was born in 89 too!!
@Vero.does.better
Жыл бұрын
This is a serious question. I promise I'm not trolling. I'm not a home owner just yet, and I rent. I have watched videos about how to get a mortgage without a credit act, but how do you get approved to rent an apartment without a credit score? Does anyone know of a particular form that can be applied to this situation, or maybe sending a letter to your prospective landlord explaining that you are debt free will do? I'm just curious if anyone has experienced this.
@GeorgeKamel
Жыл бұрын
They check for bad/low credit. No credit is far less of an issue. Sometimes there may be a higher deposit or first and last months rent, but that’s it.
@Vero.does.better
Жыл бұрын
@@GeorgeKamel Thank you so much. I really appreciate you taking the time to respond.
@amireallythatgrumpy6508
9 ай бұрын
Why would you want to rent an apartment? They're not fit for human habitation.
@eliinthewolverinestate6729
Жыл бұрын
I have no credit. Its my data and I want paid for it. If I want something I save for it. Credit+debt=debt slave. Debt free. Bought tax sale houses.
@kathys1285
10 ай бұрын
I’m 50 years old never ever got a credit card never will and I turned out fine geez 🙄 I remember when the credit card companies took off I swear I had at least ten of them calling me every single day finally I couldn’t take it anymore and I went off on them I basically threatened them they didn’t like that I got a call from a office manager from the one I threatened told me I can’t threaten them I told them than stop calling me because I DO NOT WANT ANY CREDIT CARDS ENOUGH ALREADY he said you’ll never hear from us again and I never did 😁
@Daim_0nic
Жыл бұрын
George, I do think there is some grey area where you can be responsible and budget effectively while using a credit card as a proxy between your purchases and your actual money, but I also agree that credit scores and credit card companies are dumb! great video!
@GeorgeKamel
Жыл бұрын
Proxies are for wusses. Real men use debit!! 😎
@Daim_0nic
Жыл бұрын
@@GeorgeKamel hey man, I use my debit too!!
@ianwerkheiser1292
Жыл бұрын
@@vectorhacker-r2debit cards have the same fraud protection as credit cards by law.
@louisnvrr
Жыл бұрын
@@GeorgeKameluntil your debit card is hacked and someone has direct access to your bank account. Personally prefer the added security of the credit swipe
@WhatShallEyeDo4U
Жыл бұрын
@@louisnvrr ooooh.... The FEEEEAR... Listen, prepping for the worst when the worst is not likely to come is a form of insanity.
@suzanneboehland3621
Жыл бұрын
Many employers check credit scores of applicants. Positions that require a clearance heavily utilizes the credit score for background checks
@GeorgeKamel
Жыл бұрын
They’re checking for bad credit. I have not heard any stories of someone with no credit having an issue getting a job
@punkbassandcovers
Жыл бұрын
My spouse has one of those fancy dancy clearances. Didn't need a credit score for it. Not having debt also makes the SF-86 paperwork a breeze. Nothing to hide and nothing to worry about.
@GeorgeKamel
Жыл бұрын
@@punkbassandcovers thank you so much for busting this myth
@punkbassandcovers
Жыл бұрын
@@GeorgeKamel You got it. Keep up the great videos! I will say that the one pain point with the clearance paperwork is that the employer does make us report every retirement related financial transaction outside my wife's employer retirement accounts. I believe this is because of the potential conflict of interest between employer and government. They need to know what we are invested in...so for example every time our Smartvestor Pro makes a transaction with our Roth IRAs it has to be run against a list of what the company does/doesn't allow us to be invested in.
@tduck828
Жыл бұрын
George I've had very high finance positions in the past and they check score and history YEARLY. If you didn't hit certain parameters you no longer were employed. It can and does happen. Just because you don't think it does, absolutely does not make it not true..
@joeriveracomedy
Жыл бұрын
A girl I would have married yesterday called me Dave Ramsey as a slur. So no, don't put it on a dating site.
@TaliyahP
Жыл бұрын
The only problem is having a credit score is essentially necesssary if you plan to move. You're not getting a mortgage without one and so many landlords run credit checks now.
@amireallythatgrumpy6508
9 ай бұрын
The concept of credit scores is absurd. That's why better countries than the US don't have them
@alex182618
Жыл бұрын
You need a credit card to rent a car without troubles. You cannot rent a car in Knoxville TN airport without a credit card.
@thekingdomlifewithkamron
Жыл бұрын
true
@locotest22
Жыл бұрын
Jesus christopher what did you do to george
@GeorgeKamel
Жыл бұрын
He knows good and well what he did. Good and well.
@bennettconnelly7899
Жыл бұрын
Who said it was a rating of how you are with money. It’s always been a rating of if you are trustworthy with money or not according to lenders. 🤦♂️🤦♂️🤦♂️
@GeorgeKamel
Жыл бұрын
Then why do people use their number to flex? General population definitely sees it as a success rating.
@bennettconnelly7899
Жыл бұрын
@@GeorgeKamel those who have a high credit score, Have a history of being smart, with the money that isn't theirs. To be a smart user of money and a smart lender are two different things. Appreciate all that y’all do to get people out of debt, and to help them with their spending habits. But if used right credit cards can be a good tool to help you use your money efficiently.
@Sky-wakka
Жыл бұрын
the thing i dont understand is you do support buying a house using a 15 year mortgage. so no matter what once you take out your mortgage your going to have a credit score again anyway. So if your going to have one anyway once you buy a house i dont understand why you'd go through so much work to get rid of it just to get it back and have it for 15-30 years
@dreams2383
Жыл бұрын
The goal though is to pay off the house waster then 15. Most that follow the baby steps pay off their house in 7 years or less and also don't use debt of any kind other then that mortgage.
@nicolejohnson5225
Жыл бұрын
3:42 😂😂😂
@DarkenedTributary-po4mv
Жыл бұрын
Got my first credit card last year. As long as you're responsible with money, you should be okay. My scores are "very good" because I pay it off each month and keep an eye on what I spend.
@adammoore7994
Жыл бұрын
If she ain't into fishin I ain't into her
@benjaminhough8804
Жыл бұрын
I don’t feel that I “need” a credit score, but I do feel like it makes things easier. You mentioned George that you don’t need a credit score if you never plan on take on debt, I agree 100%. However, I do plan to take on debt in the coming years, I plan to purchase a house. And although I know you can find a “no-score/manually underwritten” loan, it will be SO much easier to walk into any bank/lender or even shop around for the best deal. I haven’t heard of many (if any) lenders except Churchill Mortgage that do those no-score loans. I’m sure they are out there, but why stress out and hunt for one when I have a nearly 10 year record of responsibly managing credit cards (with no interest, no monthly balance) and can easily find a mortgage with a credit score? My parents are on the other side. They never plan to purchase another home or borrow any money. If I were in their shoes, I’d consider pursuing a no-score credit score. However, as you say, in that situation I’d never plan to take on debt and I don’t need a credit score and it would serve no purpose. In that situation, I agree, the credit score is pointless.
@tduck828
Жыл бұрын
You also pay higher interest with manual underwriting but they don't talk about that. They act like interest and taxes doesn't exist when people are paying off debt in how long it will take to pay stuff off.
@WhatShallEyeDo4U
Жыл бұрын
Okay. So, is it easier to get a home relying on a Credit Score? Yes. Is it worth it in the long run because you're still in debt? No. Also, you're not going to worry about higher interest when you already have a fully funded emergency fund with some savings to spare. This is all dependent on HOW you're going to live your life. Debt Free = you're not going to care about certain premiums because you will have the money to pay for it and be done.
@benjaminhough8804
Жыл бұрын
@@WhatShallEyeDo4U I am debt free. I have no month to month debt payments, no car payments, and no credit card payments. I will never fault anyone who wants to live the debit card/cash lifestyle, but you don’t need debt to have a great credit score. I use my credit cards like a debit card, follow a strict budget, and pay the balance weekly. I have a great score and I’m building it higher.
@WhatShallEyeDo4U
Жыл бұрын
@@benjaminhough8804 well, technically if you're using a business' money and have to pay them back, it's still a debt. You can do what you want. However, I'm not taking the risk and owing any company money.
@aolvaar8792
Жыл бұрын
@@WhatShallEyeDo4U My Bank auto-pays my CC, what risk?
@newtonocatee5697
Жыл бұрын
After years of trying to use a debit card and no credit card I finally had to open a credit card account for car rentals. Car rental companies even Dollar that you used to endorse requires proof of a round trip airline ticket from their airport to obtain car rental from them with debit card. Sometime I fly into one airport and out of another one so hence the need for a credit card. The other issue of your credit score moving to undetermined after 6 months of no debt or open accounts was not my experience. After over 2 years in that situation all I saw my credit score do was drop to the low 600 level and stay there. It never went to undetermined. Funny how opening a $2500 credit card line in a matter of a couple of months my score went back in the mid 700’s. I only use the card for car rentals which is around six times a year and pay off early. I really wanted to not support the credit card industry but can’t get past the rental car loophole.
@beth3535
Жыл бұрын
I paid off my mortgage two months ago. I pay my credit card bill in full each month but now am paying it on the day the month’s balance is emailed to me (instead of 25 days later on the day the next bill is emailed). I have no debts beside monthly utilities, groceries, etc., and those are kept at a minimum. Tata! My credit score is very good but dropping! I have lines of credit on several cards (unused) so I’m a customer in great standing. What the heck? While I don’t anticipate getting loans, etc., going forward (age 70), the idea of being deemed less credit worthy than over leveraged people astounds me.
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