rc3.org Rafe Colburn on software development (and other topics)

The big reason I dislike them is that they have nothing to do with your financial situation. It’s only a score of your debt and how well you handle it.

Posted by Jeff on 12 October 2009 @ 9am

A credit score is an “I love debt” score. If you have 5 million dollars in the bank and never use a credit card and don’t have a car payment and own your home outright, your credit score is zero.

As Jeff said, it’s not a measure of your financial situation. It is a measure of how embedded you are in credit.

I’m a big fan of Dave Ramsey in matters related to credit, and I wish I had known his plan when I was in my early 20s. I could have saved myself a lot of heartache.

See his 7 Baby Steps for an excellent and simple road map for how to take care of your money. He’s got a free podcast where he talks people through their financial situations which has opened my eyes to the practical ways money can be handled.

Posted by Joe Crawford on 12 October 2009 @ 10am