FICO Revealed Worthless

FICO is worthless. Truly wealthy people understand that credit scores and credit bureaus and credit repors really don\’t matter in the grand scheme of things.

I often wonder why the average American worries so much about their credit. Why do you even care? A high FICO score can only lead to the possibility of high debt.

Shopaholics have been schooled to buy first, and pay later. Or maybe even hide the credit card statements. Out of sight, free to shop.

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. Your FICO Does Not Cover the Nut.

Credit is worthless if your bills are covered by your income each month. If your income falls short, you have bigger problems than a low FICO score.

2. No Control.

You can spend thousands of dollars trying to protect your credit score – often to no avail.

For example, your wife pays the landline phone, and you pay for the cell phones. Her score goes up, yours does not. You might write the checks for everything, but if the right bills (mortgage, electric, phone, gas) are in your wife\’s name, she gets the FICO boost.

3. Inaccurate.

Credit bureaus are not human, but boy can they make mistakes. And usually not in your favor.

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. Excessive Debt.

Without a high credit score, it\’s almost impossible to take on too much debt. If you cover your bills each month and live within your means, you don\’t need credit anyway.

If you have a high credit scores, banks will flood your mailbox with offers to give you more credit.

Lose your job, suffer an illness, or don\’t pay on time, and you will wonder how the word easy was ever attached to credit.

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.

Wealth matters. Your credit score does not.

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

Live happily within your means.

Don\’t lose sleep or thousands of dollars protecting your credit.

Discover more alternative financial strategies at Burn Down the Freaking Mission.